DATE=MARCH 22, 2002

TYPE=CORRESPONDENT REPORT

NUMBER=2-287881

TITLE=BUSH MIDEAST UPDATE (S)

BYLINE=SCOTT STEARNS

DATELINE=MONTERREY

CONTENT:

VOICED AT:

INTRO: President Bush says Palestinian leader Yasser Arafat must show he is serious about ending attacks against Israeli civilians. Palestinian and Israeli officials reported no breakthroughs Friday after three hours of security talks with U-S special envoy Anthony Zinni.

TEXT: President Bush says he is still willing to set-up a meeting between Chairman Arafat and Vice President Dick Cheney, but only if the Palestinian leader agrees to a ceasfire.

/// BUSH ACT ///

A meeting could happen if and when Chairman Arafat performs, does what he is supposed to do. Those conditions have been laid-out by Vice President Cheney, and now General Zinni is trying to determine whether or not he is going to do what he said he would do.

/// END ACT ///

General Zinni Friday told Mr. Arafat he is not doing enough to stop the violence. Mr. Bush met with French President Jacques Chirac on the sidelines of a U-N development conference in Mexico Friday to discuss a Saudi plan for Mideast peace.

Vice President Cheney met with Israeli leaders on his recent trip to the region but refused to meet with Mr. Arafat.(SIGNED)

NEB/PT