Bush joins Sharon in criticism of Arafat

WASHINGTON -- As Israeli tanks encircled Yasser Arafat's headquarters, President Bush cast fresh doubts Monday on prospects for Mideast peace with the Palestinian leader in power.

"No one has confidence in the emerging Palestinian government," Bush said with Israeli Prime Minister Ariel Sharon at his side.

Sharon, too, suggested there won't be peace until anti-Israeli terrorism ends and Arafat is replaced.

"We must have a partner for negotiations," the prime minister told Bush. "We don't see yet a partner."

The criticism of Arafat from both leaders came as Israel's tanks surrounded Arafat's battered West Bank compound and Israeli troops arrested 27 suspected Palestinian militants -- actions the United States defended as a temporary crackdown.

Sharon didn't get everything he wanted from Bush during their hourlong session and separate lunch. The president stopped short of endorsing calls to expel Arafat, and aides said he would pursue political talks despite Sharon's misgivings.

Even so, Sharon was pleased with the meeting's outcome, said a senior official in the Israeli party. The official, briefing reporters on condition of anonymity, said Sharon told Bush the military operation around Arafat's Ramallah compound had been planned to occur several days earlier.

It was postponed because many of those being sought had fled the area, but they then returned, apparently mistakenly believing that Israel would not initiate military action while Sharon was in Washington, the Israeli official said.

The official said that 52 were arrested, including one potential suicide bomber and a senior official of the militant Islamic Jihad group. Two car bombs were found, the official said.

Sharon also raised with Bush the issue of Syria's support of Lebanon-based Hezbollah guerrillas, who are committed to the destruction of Israel. He told Bush Syria has provided thousands of missiles and other weapons to the guerrillas, and that this "now has become the greatest threat to Israel," the official said.

The sixth meeting between Bush and Sharon is expected to be the president's final major consultation session before he unveils a Mideast initiative that aides say will address the concerns of both Israelis and Arabs.

Bush met last weekend with Egyptian President Hosni Mubarak, who wants Israeli troops to withdraw from territories occupied since 1967. Sharon has ruled that out, a sign of how difficult Bush's juggling act will be.

His new Mideast policy, expected as early as this month, will put a premium on changes in the Palestinian Authority to give Israelis hope for security. At the same time, he intends to push for concrete steps toward a Palestinian state as sought by Arab leaders -- such as a possible timetable for negotiations, aides said.

Bush pointed to Arafat's government when he said conditions are not nearly ripe for an international conference on Mideast peace that is planned for this summer.

"That's because no one has confidence in the emerging Palestinian government," he said after the Oval Office session with Sharon. Bush did not mention Arafat's nods at reform such as naming a new, smaller Cabinet.

The Mideast conference is still on track for this summer, though it may be later than previously thought, aides said.

"First things first, and that is, what institutions are necessary to give the Palestinian people hope and to give the Israelis confidence that the emerging government will be someone with whom they can deal?" Bush said.

"That's going to require security steps, transparency when it comes to economic matters, anti-corruption devices, rule of law enforced by a court system."

The White House's official policy is that only the Palestinian people can choose their leader, thus Bush has kept the door open to the prospect of Arafat embracing reforms that could lead to a peaceful, democratic Palestinian state.

But with every public utterance, he closes the door a bit more to Arafat.

Aides said Bush did not mean to imply with his "first-things-first" remark that Palestinian reforms must take place before political talks. They said he will push on two tracks at once.

"It is very important for people to understand that, as these steps are taken and as people work together to achieve the institutions necessary for peace, that there is a political process on the horizon as well," the president said.

Sharon said there must be a "full cessation of terror activity" before peace can be achieved, a position that could put him at odds with Bush if the president embraces a timetable for political talks.

Earlier, the White House defended Israel's latest assault on the Palestinian Authority headquarters in the West Bank.

"Our understanding is that the Israeli operation is limited in duration and it is to go after specific terrorists," White House press secretary Ari Fleischer said.

Bush said simply, "Israel has a right to defend herself."