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With New Violence, Hopes of Mideast Deal Have Been Deeply Eroded

Aired March 28, 2002 - 10:27   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: In light of yesterday's events, Israel has stopped just short of abandoning the U.S.-brokered peace efforts in the Middle East, and White House envoy Anthony Zinni remains in the region. There is little doubt, however, that hopes of a deal have been deeply eroded.

Our Kelly Wallace joins us from her post at the White House.

Kelly, hello.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Hello to you, Daryn.

Well, Daryn, you know just yesterday, President Bush was sounding a bit upbeat, saying that his middle east envoy was making very good progress when it comes to trying to broker a cease-fire. And the message coming from the Bush White House on this day is even in light of this horrible, horrible attack, administration is still hopeful that General Zinni can build on that progress. And so that is why General Zinni is remaining in the region.

The word from Secretary Powell and others is that he won't be recalled, that he will remain in the region, again, trying to work with the Israelis and the Palestinians. No word just yet, though, of any three-way meeting between General Zinni, and the Israelis and Palestinians. Of course, we have the Jewish holidays right now, but also of course the impact of this violence is in question, and also the impact of any Israeli retaliatory attack.

Meantime, Daryn, the focus, the pressure continues to be on Palestinian leader Yasser Arafat. President Bush making that very, very clear yesterday during a stop in Atlanta, after he found out aboard Air Force One about this latest suicide bombing. Mr. Bush making it very, very clear he does not believe the Palestinian leader is doing enough to stop these suicide attacks.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This callous, this cold-blooded killing, it must stop. I condemn it in the most strongest of terms. I call upon Mr. Arafat and the Palestinian Authority to do everything in their power to stop the terrorist killing, because there are people in the Middle East who would rather kill than have peace.

(END VIDEO CLIP)

WALLACE: That was Mr. Bush in Atlanta yesterday, as he was making his way to Texas where he is on this day. He is at his Crawford, Texas ranch. He will be traveling to Dallas a little later to salute some rescue workers who helped after the terrorist attacks, but also do some more fund-raising, helping Republicans try and win control of the United States Senate.

And, Daryn, there is one other note coming from this White House today, somewhat of a hopeful note. The administration welcoming the unanimous adoption of crowned Prince Abdullah's peace initiative at the Arab League summit in Beirut. U.S. officials describing this as a positive step forward something to build upon, calling on other Arab leaders to sees on Crowned Prince Abdullah's ideas and work in the direction of peace. Clearly significant when it comes to the administration, the first time Arab leaders together recognizing Israel's right to exist in exchange for Israel withdrawing to those borders, which existed before the 1967 Arab-Israeli war. So the U.S. finding some hope there.

But again, Daryn, big questions remaining about where those cease-fire negotiations go from here in light of yesterday's deadly, deadly violence -- Daryn.

KAGAN: Yes, the cease-fire, and that Saudi proposal with some conditions that might be difficult for the Israelis to accept. This one is far from done yet.

WALLACE: Exactly.

KAGAN: Kelly Wallace at the White House.

Kelly, thank you -- Leon.

LEON HARRIS, CNN ANCHOR: Well, against that backdrop of violence, delegates at the Arab summit have endorsed their own peace initiative.

The Saudi-proposed plan was adopted in closed session after hours of haggling.

Our Brent Sadler has been covering the summit, and joins us now live from Beirut -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Thanks, Leon.

Arab leaders are saying that suicide bombing in northern Israel with the heavy loss of life makes it more imperative that the fully endorsed Saudi peace initiative proposed just last month, and now as you say fully endorsed, adopted by this meeting of the Arab League nations, 12 heads of state out of 22 here, although all of the Arab nations in the Arab League were represented here.

Despite that suicide bombing, they want to see this initiative, which envisages an exchange of Israeli occupied land for peace in exchange for full and normal relations between the Arab states and Israel. Lebanese Foreign Minister Mahkmed Ahmood (ph) spelled out the details for the Israelis.

(BEGIN VIDEO CLIP)

MAHKMED AHMOOD (ph), LEBANESE FOREIGN MINISTER: The council asks Israel to review its policies and to tend toward peace, declaring that just peace is also a strategic option, and asks Israel to withdraw from all Arab-occupied territories, including the Surine (ph) Golan and to the borders of the 4th of June 1967 and the land that is still occupied in south Lebanon.

B, reach a just solution to the problem of Palestinian refugees which would be agreed according the resolution of the security council 194.

C, accept independent sovereign Palestinian state of the land which has been occupied since 1967 in the West Bank and Gaza, with its capital Jerusalem.

(END VIDEO CLIP)

SADLER: Arab leaders now hope of course that this summit declaration will be propelled into the international community. The U.N. Security Council, European union leaders, and of course President George Bush himself, when Saudi Arabia's crowned Prince Abdullah meets with the U.S. president in Texas next month.

Back to you, Leon.

HARRIS: Brent, what are you hearing about the different events that have overshadowed this summit? What are they saying there about the fact that there were many of the leaders key to this proposal going anywhere, they didn't even show up, one of them being Yasser Arafat himself, and then with the bombing we saw in Israel.

SADLER: Indeed, against that backdrop of more terror in northern Israel, leaders here only too fully well aware, that coming out with this peace initiative at this time, it makes it more difficult in the arena of the Israeli public, which after all, many Arab leaders are saying this declaration is really aimed at, not at the government of Prime Minister Ariel Sharon, but to try and persuade Israelis at large that Israelis this time are very serious about peace as Saudi Arabia's prime minister said, "It is now an indivisible whole that all Arab nations are unreservingly backing this new peace initiative."

Also in the spotlight here, Iraq, we saw pretty extraordinary scene of Iraq's deputy chairman of the Ruling Revolutionary Council embracing Saudi Arabia's crowned Prince Abdullah, warming of relations there, agreeing that -- or rather demanding that the United Nations should lift sanctions against Iraq. Despite the nonappearances of heavyweights like Egypt, Jordan and other leaders, this summit, say Arab leaders, is creating a momentum of peace, even against that backdrop of more terror in Northern Israel -- Leon.

HARRIS: Brent Sadler, reporting live from us for Beirut.

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