Israeli and Palestinian officials have agreed to a joint statement declaring their commitment to work toward a peace deal before the end of 2008, U.S. President George W. Bush told delegates Tuesday at a Mideast conference in Annapolis, Md. -
Flanked by Israeli Prime Minister Ehud Olmert and Palestinian Authority President Mahmoud Abbas, Bush said the two leaders agreed to "immediately launch good faith, bilateral negotiations in order to conclude a peace treaty resolving all outstanding issues, including core issues, without exception."
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"Congratulations for your strong leadership," Bush told both leaders before the two shook hands. "We're off to a strong start."
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In a speech to delegates from more than 40 countries ahead of Tuesday's group session at the U.S. Naval Academy, Bush emphasized that the aim of the meeting was to revive talks, not conclude a final peace agreement immediately.
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"Today, Palestinians and Israelis each understand that helping the other to realize their aspirations is the key to realizing their own, and both require an independent, democratic, viable Palestinian state," Bush said.
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"Such a state will provide Palestinians with the chance to lead lives of freedom, purpose and dignity. And such a state will help provide Israelis with something they have been seeking for generations: to live in peace with their neighbours."
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The first peace talks are to be held Dec. 12, Bush said, and are to continue biweekly after that.
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He said the Palestinian leadership "must demonstrate that a Palestinian state will create opportunity for all its citizens and govern justly and dismantle the infrastructure of terror.
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At the same time, Bush said, Israel must demonstrate its support for the creation of a "prosperous and successful" Palestinian state by "removing unauthorized outposts, ending settlement expansion and finding other ways for the Palestinian Authority to exercise its responsibilities without compromising Israel's security."
Days of war, terror 'belong to the past': Abbas
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Speaking after Bush, Abbas told the Annapolis conference that the days of war and terrorism "belong to the past."
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Abbas said any Mideast peace deal should ensure that Palestinians have East Jerusalem as their capital. He also called for a halt to Jewish settlements in disputed lands.
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"Tomorrow, we have to start comprehensive and deep negotiations on all issues of final status, including Jerusalem, refugees, borders, settlements, water and security and others," Abbas said.
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"It is time for the circle of blood, violence and occupation to end. It is time for us to look at the future together with confidence and hope. It is time for this tortured land that has been called the land of love and peace to live up to its name."
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The beleaguered Palestinian leader has scrambled to secure his Fatah movement's position in the West Bank following the violent takeover of the Gaza Strip by Islamist rivals Hamas in June.
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Hamas leader Ismail Haniyeh, who wasn't invited to the conference, said Palestinians and Arabs will reject any concessions made to Israel, the "Zionist enemy," during the summit.
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A Hamas spokesman also said Abbas has no mandate to speak for the Palestinian people in Annapolis.
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"He is isolated and only represents himself," Fawzi Barhoum said.
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Protesters took to the streets by the thousands in the Gaza Strip and parts of the West Bank to demonstrate against the Mideast summit.
'We will not avoid any subject': Olmert
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But Olmert expressed hope for the summit, telling the conference he believed "we will be able to reach an agreement that will fulfil the vision of President Bush: two states for two peoples.
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"We will not avoid any subject," Olmert said. "While this will be an extremely difficult process for many of us, it is nevertheless inevitable. I know it. Many of my people know it. We are ready for it."
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Speaking directly to Arab countries at the conference, Olmert added it was time "to end the boycott and alienation toward the state of Israel."
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The two-day conference is the Bush administration's first foray into jumpstarting Israeli-Palestinian peace negotiations, which have been stalled since previous U.S.-brokered talks collapsed at Camp David in 2000.
Skepticism high among Arabs, Israelis
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Arab League nations, including Saudi Arabia and Syria, are also attending the conference in a show of support for Abbas.
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Palestinian and Arab officials have insisted the talks include movement toward the resolution of the key issues, including final borders, the disputed status of Jerusalem and the fate of Palestinian refugees who lost homes in Israel following its 1948 creation. Central to Palestinian demands is the immediate cessation by Israel of construction on settlements in the West Bank.
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Israel had favoured a broader statement of commitment to two states living side by side in peace, with discussions on final status issues to come later.
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But before the conference, Saudi Foreign Minister Saud al-Faisal expressed reluctance and doubt over whether the parties can emerge with any form of substantial agreement, saying he would not participate in any "theatrical shows" of shaking hands with Israeli officials.
Deep divisions
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Syria, technically in a state of war with Israel since 1967, agreed at the last minute to attend the conference with the hopes of including discussions on Israel returning the Golan Heights.
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Observers have said these deep-seated divisions could end up making the Annapolis conference little more than an elaborate show that will result in failure, as have previous summits.
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Both Olmert and Abbas lack enough domestic support to sell a potential compromise, said David Makovsky, a Mideast analyst with the Washington Institute for Near East Policy.
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"Resolving the whole conflict is a bridge too far," Makovsky told CBC News.
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But proponents of Annapolis emphasize the summit is merely a "front piece" before the sides hammer out details surrounding the key issues in the coming months, said Janice Stein, director of the Munk Centre for International Studies at the University of Toronto.
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"It's a little more than photo op," Stein told CBC News on Tuesday. "We'll be able to measure Annapolis in a year from now as the Bush presidency is in its final days."
With files from the Associated Press