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CNN Live At Daybreak

Bush Administration Grappling With Middle East Policy

Aired May 27, 2002 - 05:31   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.
CAROL COSTELLO, CNN ANCHOR: As the president honors America's war heroes this Memorial Day, his administration is grappling with Middle East policy. Some say groping is a more accurate description. And Yasser Arafat's place in the complex Middle East equation is uncertain. More on the Middle East debate from our State Department correspondent Andrea Koppel.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): The Bush administration denies reports its Middle East policy is frozen over whether to sideline Yasser Arafat, and says he's the only game in town.

COLIN POWELL, SECRETARY OF STATE: I'm not sure which anonymous aides are being quoted, but this particular aide, the secretary of state, has received his instructions from the president. Chairman Arafat is the head of the Palestinian Authority and he is the leader of the Palestinian people.

KOPPEL: Nevertheless, privately, officials concede, they have hit an impasse. They can't get rid of Arafat, but they're not sure he can deliver. President Bush has made no secret he's highly skeptical Arafat will crack down on terrorism.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: He's had a chance to fight terror and he hasn't. Evidently, there's a new attitude emerging amongst some of the leadership in the Palestinian Authority, and the answer is, we'll see. We'll see if he can deliver.

KOPPEL: A senior State Department official will go to the region this week to press Arafat to end suicide attacks against Israelis. Until Palestinian terrorism ends, U.S. officials say they have no leverage to use with Israel's prime minister to convince him he must deal with Arafat.

CONDOLEEZA RICE, NATIONAL SECURITY ADVISER: The key is for the Palestinian Authority's security forces to be restructured in a way that they can be accountable for Palestinian institutions, financial, political and other.

KOPPEL: Arafat says Palestinian security forces were destroyed during Israel's recent military incursion into the West Bank. U.S. and Arab officials say U.S. policy is paralyzed, but not over Arafat's future role. The questions concern next steps, how far to push political talks if and when they begin.

(on camera): Should the goal of a future peace conference be a final settlement or interim steps? And how do you make peace between Israel and the Palestinians when Sharon refuses to meet with Arafat? "The verdict," said one State Department official, "is still out."

Andrea Koppel, CNN, at the State Department.

(END VIDEOTAPE)

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