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CNN Live Today

Palestinians, Israelis Emphasize Different Portions of Bush Speech

Aired June 25, 2002 - 14:32   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.
KYRA PHILLIPS, CNN ANCHOR: The Bush administration says reaction worldwide to the Mideast plan is basically positive. Though one official notes that not everyone has accepted the implications of an overhaul of the Palestinian Authority.

CNN's Kelly Wallace joins us now from the White House.

Kelly, what's the administration's sense of the reaction so far to the president's speech?

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Kyra, it's interesting. I was just talking to a senior administration official who said each party is highlighting the parts of the president's speech it likes. So the Israelis highlighting a call for leadership change. Arab leaders highlighting the president's call for the creation of a Palestinian state over a three-year time frame.

And even the Palestinians, while there is concern of course about the call for leadership change, even Palestinians are applauding the president's call for the creation again of an independent Palestinian state. So this official says the reaction is positive so far.

No question there are big challenges ahead. But the White House, Kyra, is taking some comfort in the fact that right now no party is saying this is a framework it can't live with -- Kyra.

PHILLIPS: Kelly, what about the president and this new Palestinian leadership, the ideas that he laid out in his plan, why now?

WALLACE: That is a key question. You know, the administration was crafting a policy for the president over the past couple of weeks. The senior official I talked to said during that time the administration did come across some information that showed that Palestinian leader Yasser Arafat was not only not discouraging terror, but that he was actually supporting it and encouraging it. This official would not reveal specifics.

And then of course we had last week. Two deadly suicide bombings in Israel. One of those bombings, the group, the al Aqsa Martyrs Brigades, linked to Arafat's Fatah movement. That was really the final straw. So the president taking a tougher line really than originally planned, calling for new leadership. Aides say the president has indicated he's been disappointed in Yasser Arafat and now feels, of course, new leadership is needed -- Kyra.

WALLACE: Kelly, does Bush truly believe that Arab leaders and the Arab community will support what he has to say?

WALLACE: That is the key question. Right now they're saying they can't -- they're not supporting it. Right now there has been sort of a praising of the president for this call for, again, the creation of a Palestinian state. And they've been somewhat silent so far on this call for new leadership.

But the sense from White House officials is that Arab leaders know the situation on the ground needs to change, that they believe in the need for reform. And that in the end, they will sort of stand behind the call for new leaders of the Palestinian community -- Kyra.

WALLACE: All right, Kelly Wallace, live from the White House. Thanks, Kelly.

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