Bush urges removal of Arafat as leader of Palestinian people

WASHINGTON -- President Bush urged the Palestinians Monday to replace Yasser Arafat with leaders "not compromised by terror" and adopt democratic reforms that could produce an independent state within three years.

"Peace requires a new and different Palestinian leadership so that a Palestinian state can be born," Bush said at the White House.

In his long-anticipated speech, Bush said "reform must be more than cosmetic changes or a veiled attempt to preserve the status quo" if the Palestinians are to fulfill their aspirations for a state alongside Israel.

Elections should be held by the end of the year for a legislature with normal authority and there also must be a constitution, Bush said as he set stiff conditions for a Palestinians state.

"When the Palestinian people have new leaders, new institutions and new security arrangements with their neighbors, the United States of America will support the creation of a Palestinian state, whose borders and certain aspects of its sovereignty will be provisional until resolved as part of a final settlement in the Middle East," Bush said.

As for the Israelis, he said they should withdraw to positions they held on the West Bank two years ago and stop building homes for Jews on the West Bank and in Gaza. Ultimately, he said, Israel should agree to pull all the way back to the lines it held before the 1967 Mideast war.

Speaking against the backdrop of persistent terror attacks on Israel, Bush said Palestinian authorities were encouraging terrorism, not opposing it. "This is unacceptable. And the United States will not support the establishment of a Palestinian state until its leaders engage in a sustained fight against the terrorists and dismantle their infrastructure," Bush said.

Both Arafat and Israeli Prime Minister Ariel Sharon welcomed the president's remarks, finding favorable elements.

'A serious effort'

Arafat said the speech represented "a serious effort to push the peace process forward," while Sharon's office said "genuine reforms and a new leadership" could clear the way to a diplomatic settlement.

Senior administration officials said they envision the Palestinians being able to reach provisional statehood within 18 months and full permanent statehood in as soon as three years.

"With a determined effort, this state could rise rapidly -- as it comes to terms with its neighbors on practical issues such as security," Bush said.