DATE=10/28/03

TYPE=CORRESPONDENT REPORT

TITLE=BUSH / MIDEAST (L-O)

NUMBER=2-309152

BYLINE=NICK SIMEONE

DATELINE=WASHINGTON

CONTENT=

VOICED AT:

INTRO: President Bush is expressing pessimism about progress toward Middle East peace. The president said Tuesday he sees no real change in attitudes among Palestinian or Israeli leaders. Correspondent Nick Simeone reports the president took issue with both sides during an extended news conference at the White House.

TEXT: Mr. Bush left no doubt how much he believes the power struggle within the Palestinian leadership has held back progress toward peace, since the resignation of prime minister Mahmoud Abbas, last month.

/// BUSH ACT ///

Unfortunately, he is no longer in power. He was eased out of power and I do not see the same commitment to fight terror from the old guard. And therefore, it is going to be very hard to move the peace process forward until there is a focused effort by all parties to assume their responsibilities.

/// END ACT ///

Mr. Bush was asked about U-S policy toward Israel and the Palestinians on the same day that Palestinian leader Yasser Arafat appeared to have persuaded his latest prime minister not to resign. Ahmed Qureia had threatened to quit because of a dispute with Chairman Arafat over control of Palestinian security forces, which Israel and the United States charge have failed to prevent terrorist attacks against Israel.

With no signs of progress toward ending those attacks, Israel has been moving ahead with construction of a controversial security barrier, which it says is needed to keep out suicide bombers. But parts of the proposed barrier are slated to extend into Arab land in the occupied West Bank, leading many Palestinians to believe the barrier is really an Israeli attempt create new national borders before anything has been agreed to in negotiations.

/// SECOND BUSH ACT ///

I have said the fence is a problem to the extent that the fence is an opportunity to make it difficult for a Palestinian state to emerge. There is a difference between security and land acquisition.

/// END ACT ///

Israel denies the security barrier amounts to a redrawing of boundaries. But government spokesman Rannan Gissin says construction will not stop as long as Palestinian leaders fail to stop suicide bombings.

/// GISSIN ACT ///

At many times in the 55 years of Israel's existence, we have built fences and then dismantled them. We have had fences with Egypt, we have had fences with Jordan and we dismantled or changed their location. The one thing you can not change, that is not reversible is those people who are getting killed, men, women, and children, whole families wiped out because of a lack of a fence.

/// END ACT ///

But President Bush also brought up the issue of Israeli settlements on Arab land, telling reporters the ground must be right, as he put it, for any future Palestinian state to emerge. (SIGNED)

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