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Bush-Abbas Meeting; Mideast Reaction; Zarqawi Wounded?

Aired May 26, 2005 - 10:59   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: Let's take a look at what's happening "Now in the News."
Iraqi officials confirm today they have credible information that Abu Musab al-Zarqawi is wounded. Government ministers wouldn't explain how they have details; however, Iraq's new prime minister tells CNN he knows nothing about this. Zarqawi is thought to be calling the shots in the Iraqi insurgency. He has pledged his allegiance to Osama bin Laden.

Prosecutors will put on more rebuttal witnesses when the Michael Jackson trial resumes this hour now that the defense has rested. The jury could begin considering the child molestation and conspiracy charges by the middle of next week.

A Senate panel is taking a look at the safety of ocean shipping containers today. Congress did tighten shipping security rules in 2002, but investigators found only 17 percent of high-risk cargo was inspected for possible terror connections before it left overseas ports.

John Bolton's controversial nomination appears headed for a vote today in the Senate. Democrats say they'll try to delay it unless they get documents they've been asking for. Republicans think they have the votes to send Bolton to the U.N. as U.S. ambassador.

And the runaway bride is making good with her hometown. The mayor of Duluth, Georgia, says a tentative deal calls for Jennifer Wilbanks to pay $13,000 to the city. That would cover overtime costs associated with her search. Wilbanks is facing a felony count of making false statements to police, as well as a misdemeanor.

It's the time of day when we like to check the time around the world. 11:00 a.m. in Washington, D.C., 6:00 p.m. in Jerusalem, and 7:00 p.m. in Baghdad. Good morning once again. I'm Daryn Kagan.

We're going to begin this hour at the White House, where President Bush and Palestinian leader Mahmoud Abbas are huddled in important talks. About 20 minutes from now we expect both men to emerge from the Oval Office and address the news media.

Our National Correspondent Bob Franken is at the White House this morning. We also have Guy Raz with reaction from the Middle East.

First, to Bob Franken to describe what is at stake.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, what's at stake is a genuine start, some traction in a Middle East process, a peace process, that, of course, has been faltering for decades of hostility. This is one that has so many different parties involved, but the two are meeting face to face, President George W. Bush and President Mahmoud Abbas.

The first time that a head of the Palestinian Authority has met with a U.S. president in five years. The last one was Yasser Arafat. Those talked collapsed after an effort to reach an accord then did not succeed.

In any case now, there is this very, very delicate choreography that's going on involving the U.S. and the Palestinians and, of course, the Israelis. The Palestinians are looking for signs of support from the United States for getting the negotiations going. That's what was already being discussed when the two of them got together in the Oval Office.

Signs of support, nothing more tangible than direct money, millions of dollars -- we'll find out the figure in all probability at the Rose Garden announcements -- will be going directly to the Palestinian Authority. But it goes beyond that.

The Palestinians are looking for the United States to put pressure on Israel, with whom the U.S. has such a traditional relationship, to try and truly negotiate and be prepared to make some of the tough decisions that the Israelis are going to make. Meanwhile, the U.S. is trying to tell the Palestinians, tough decisions have to be made there, not the least of which is to reign in the groups the U.S. calls terrorists and try and provide assurances that there will no longer be attacks against Israel.

This is very complicated, but the process is on the way now -- Daryn.

KAGAN: Bob Franken at the White House. Thank you

No one doubts the enormous difficulty of forging a permanent peace settlement in the Middle East. Recent statements by both the Israeli and Palestinian leaders stress the process can only go forward if both parties are willing.

(BEGIN VIDEO CLIP)

MAHMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (through translator): Regarding this issue of handing over the cities, there is an agreement between us and Israelis to hand over five cities. So far, only Jericho and Tukaram have been handed over to the Palestinian Authority. And I can say that we have full and total security control on those two -- to those cities.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

ARIEL SHARON, ISRAELI PRIME MINISTER: I call upon the leaders of the Palestinian Authority to meet the challenge and coordinate the disengagement with us.

(APPLAUSE)

SHARON: This successful coordination of the disengagement plan will allow us to embark on a new era of trust and build our relations with the Palestinian Authority.

(END VIDEO CLIP)

KAGAN: A direct aide to the Palestinian government is one of the more significant developments at this stage of Mideast diplomacy. It signals a legitimacy the U.S. has been reluctant to give to Palestinian leadership in the past. Former Secretary of State Madeleine Albright spoke about that earlier today here on CNN.

(BEGIN VIDEO CLIP)

MADELEINE ALBRIGHT, FMR. SECRETARY OF STATE: What happened when Abbas was prime minister before was that there really was not enough support given to him so that he didn't have the credibility. And at this stage, I think the issue is one where he requires this kind of support from us and from other countries, by the way, to show that he can deliver some goods to the people and that jobs are created. That is part of, also, the problem here, is there needs to be employment in Gaza.

(END VIDEO CLIP)

KAGAN: For some perspective on how the Palestinian president's White House visit is playing at home, let's go live now to Jerusalem. Our Guy Raz standing by with reaction there.

Guy, hello.

GUY RAZ, CNN CORRESPONDENT: Hello, Daryn.

The Palestinian leader will be looking for more than just platitudes and statements from President Bush. He wants to return home with a firm guarantee from the White House that it's prepared to push both Israelis and Palestinians back to the negotiating table.

Now, for the past three weeks, Mr. Abbas has been circling the globe, meeting with international leaders in a bid to shore up international support for the Palestinian cause.

(BEGIN VIDEOTAPE)

RAZ (voice-over): The Abu Mazen road show now in its third week. The Middle East's latest frequent flyer just back from Egypt, a visit to Pakistan, a courtesy call in Indian, China and Japan. All the while, trouble brewing at home with Palestinian militants taking on Palestinian police, no end in sight to Israel's construction of the separation barrier, and millions of Palestinians wondering whether their new leader can ease their situation.

Mahmoud Abbas has a lot on his plate. MAHMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (through translator): I can't make any commitment to President Bush, or anyone else, for that matter, if I can't show the Palestinian people that I am delivering results. We are doing all we can to carry out our end of bargain, but ultimately, we need to return to negotiation. That is the only way to achieve peace.

RAZ: The White House has hailed Abbas as a pragmatist. Secretary of State Condoleezza Rice paid him a visit in January, and President Bush, who met Abbas in 2003, has called him a partner for peace. But words alone may not be enough.

MAHDI ABDUL-HADI, PALESTINIAN ACADEMIC SOCIETY: What is really needed, this chemistry between Mahmoud Abbas and Mr. Bush on where we go from here. We trust each other, we respect each other, and we want to do it together. Can we or can't we?

RAZ: As Israel prepares to end its formal occupation in Gaza, its hold on parts of the West Bank is strengthening. The proposed route of this barrier casts a long shadow over prospects that peace is any closer. Israel says it's designed to thwart suicide bombers, but Palestinians bitterly oppose it because current projections show it will leave about 10 percent of the West Bank in Israeli hands.

(END VIDEOTAPE)

RAZ: Daryn, the bottom line from Mahmoud Abbas is whether he can re-establish the Palestinian relationship with the White House. If he's perceived among Palestinians as having made an impression, there's no question it will bolster and strengthen his position at home -- Daryn.

KAGAN: Guy, I want to use you here to do a little primer in advance of this news conference that we're waiting on here. Inevitably, what's going to come up is Gaza and the West Bank. And you mentioned that, of course, in your piece. But if you can explain a little bit more about what's coming out of Gaza, what's going into the West Bank, and how what one person considers a gesture of peace, another considers a distraction for what is taking place elsewhere.

RAZ: Well, Daryn, essentially, the Gaza disengagement plan was conceived as a unilateral measure by Israeli Prime Minister Ariel Sharon when Yasser Arafat, the former Palestinian leader, was still alive. Essentially, it will end Israel's formal military and civilian occupation of the Gaza Strip after 37 years.

Now, that plan is expected to take place this summer. By the end of the summer, all 8,500 Israeli settlers living in Gaza will be evacuated. But at the same time, there is considerable criticism of Mr. Sharon, criticism by Palestinians who essentially believe that he is strengthening Israel's grip on existing settlements in the West Bank.

The West Bank, of course, part of the territory that Palestinians hope to establish their future state. And all of that territory and Mr. Sharon has been criticized by Palestinian leaders for essentially strengthening Israel's hold on those West Bank settlements, expanding them at the same time -- Daryn.

KAGAN: Guy Raz, live from Jerusalem. Thank you

Well, Mr. Abbas at the White House sends an important signal to the Middle East, especially Palestinians. Middle East expert Rob Malley joins us from Washington to explain the significance of the meeting. He is with the international crisis group, also held several senior advisory positions in the Clinton administration.

Rob, good morning. Thanks for being here with us.

ROB MALLEY, INTERNATIONAL CRISIS GROUP: Good to be here.

KAGAN: How significant is it to you that a Palestinian leader is being welcomed at the White House today?

MALLEY: Well, it's significant because no other -- there's been no Palestinian president who's met with President Bush since he decided to snub President Arafat. But the real significance of the meeting will be in what comes out of it.

Palestinians seem to be generally satisfied with what President Abbas has delivered in terms of what he could do on his own: securing a cease-fire, bringing the Islamist organization Hamas into the political process, beginning a process of reform of Palestinian institutions. Where they've not been fully satisfied is what he's been able to extract from others, Israel, of course, but also the United States.

So they're going to be looking to see what he can get since he's a much more acceptable international leader than Yasser Arafat was. What can he get from the United States.

KAGAN: Yes. And let's talk about something that he wants big time. At the top of his list, he wants a commitment from President Bush that President Bush is going to pressure the Israelis to start these Middle East peace talks. If you were advising President Bush, would you advise him to give that commitment?

MALLEY: Well, he has to give something. President Abbas is perhaps the best last hope that Israelis and Palestinians have of forging a peace in the short term.

It's a difficult task, there's no guarantee. But if he doesn't do it, it's hard to see who will again in the coming years.

And resolving the conflict means at least for the United States to start putting on the table, after Israel's disengagement, its understanding of how to resolve this conflict, what the parameters, what the principles of the end of conflict could be. If it's not done, Palestinians are going to quickly lose hope that President Abbas, or anyone else, for that matter, is going to be able to negotiate a solution with the Israelis.

So if President Bush wants to achieve what he says he wants to achieve, he's going to have to do more than simply giving money and diplomatic support to the Palestinians. He's going to have to push forward with peace negotiations at some time in the not too distant future.

KAGAN: So much was made of Yasser Arafat as being a blockade to peace. You know, as we mentioned, President Bush wouldn't even deal with him, wouldn't welcome him to the White House. Are you surprised and/or disappointed that more hasn't happened since his death?

MALLEY: Well, I think a lot of people expected more to happen. Certainly Palestinians feel that on the ground things haven't changed dramatically in terms of checkpoints, in terms of the closures, in terms of the settlement construction.

There still is time. There's not eternal time. There still is time though, to turn this around.

We know that there's a disengagement from Gaza, which if it goes well will provide some boost. But time is running short, and, again, I think people are urging the president to get more involved and to push the process forward. If he truly does want to achieve something on this in his second term, and I believe he does, he's going to have to invest more political capital than what he's done so far.

KAGAN: Well, in the very, very near future, this news conference is going to begin in about 10 minutes, a little bit more, at the White House. We'll be listening in. And Rob Malley, I want to say thank you for your insight today

MALLEY: Thank you.

KAGAN: And a reminder. We are expecting the presidents, Bush and Abbas, to come before the meeting in about 10, 15 minutes. CNN will bring that to you live when it does happen.

We, meanwhile, continue to keep an eye on a developing story right here in Atlanta. It's a standoff atop a construction crane, moving into its 18th hour. This man has been up there since yesterday afternoon. We'll tell you why and what police are trying to do to bring this to a safe ending after the break.

(COMMERCIAL BREAK)

KAGAN: More now on the hunt for the most wanted man in Iraq. Is Abu Musab al-Zarqawi wounded, perhaps dead? There is new information from Iraq this morning. Our Jane Arraf is watching developments in Baghdad today. And she joins me live.

Jane, hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Hi, Daryn.

Well, a bit of a difference of opinion here at the highest levels. The interior minister has told journalists that, yes, indeed, the most wanted man in Iraq, Abu Musab al-Zarqawi, has been wounded.

Now, we asked him how he knew that and to please give us details. He wouldn't. But he did say when I asked him about it after the press conference, it is categorically true that he has indications, concrete indications that he has been wounded.

But just to muddy the waters, Daryn, after that, I met with the prime minister who is holding an informal get-together with journalists. I asked him about the Zarqawi reports that he had been wounded, and the prime minister of Iraq said he had no accurate information that he had.

Now, the only thing I can add to that is that some government officials say whether it's true or not, this could point to an interesting and vital split within the insurgency, with some of the insurgents believing that they have to get rid of Zarqawi as he's caused enough damage, killing civilians. That they are engaging in in-fighting and that there's a real split there, that whether he's been injured or not could mean that this could be a lessening in the insurgency -- Daryn.

KAGAN: Jane, I know things work differently in Iraq than they do here, obviously. But is that unusual, to have the defense minister saying one thing and the al-Jaafari saying something else?

ARRAF: I so wish I could say it was unusual, but it's really not, particularly with a brand new government. Now, we have to remember the interior minister does have his finger on the pulse of the intelligence services and all the other services whom we would assume would know, but the prime minister, of course, is basically the interior minister's boss.

So not quite sure where that takes us, except that while it may be true, U.S. military officials we keep asking say they don't have any indication yet that it is. So it is still up in the air.

KAGAN: All right.

ARRAF: But interestingly, Daryn...

KAGAN: Go ahead.

ARRAF: We'll get to the operation on Baghdad another time. Forty thousand troops, biggest Iraqi operation ever, coming soon to Baghdad. It's going to be quite something -- Daryn.

KAGAN: Right, and that is in -- that is in reaction to all the attacks that have taken place. We've seen a lot of these operations in recent weeks, and more in the western part of the country. This one is coming and going to have a huge impact on civilian life in Baghdad.

ARRAF: Absolutely. It is a potential nightmare. They're talking about cordoning the city, this capital city of more than five million people, blocking off every entrance, doing house-to-house searches in some neighborhoods, setting up emergency checkpoints, all with 40,000 Iraqi troops and police backed by American troops.

KAGAN: It's going to be big. Jane Arraf live from Baghdad. Thank you.

ARRAF: Thank you.

KAGAN: We want to go back to the al-Zarqawi conversation. And U.S. Defense Secretary Donald Rumsfeld was at Fort Bragg earlier today speaking with some soldiers. He was asked about Zarqawi. This is what he had to say.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: Consider the terrorist Zarqawi, who recently advocated killing innocent Muslim women and children to advance his cause. Reminiscent of Hitler in his bunker, this violent extremist, failing to achieve his military and political objectives, now appears committed to trying to destroy everything and everyone around him. History teaches us that this kind of evil, over time, fails. And it will.

(END VIDEO CLIP)

KAGAN: You heard Jane Arraf talk about this operation that's going to begin in Baghdad very soon to crack down on insurgent attacks there. Here's an idea of what just happened today.

A very bloody 70 minutes in Baghdad earlier today. Keep in mind, just a little over an hour here, the city was hit with a car bombing, a roadside bomb blast, two drive-by shootings and the stabbing death of a politician. All tolled, eight people were killed, around a dozen wounded.

In the northwestern city of Talahar (ph), the U.S. military says that a child died in a shootout between insurgents and American forces. The military says insurgents often use Iraqi children as shields when they tangle with U.S. troops.

And at Camp Lejeune, North Carolina, murder charges against a Second Lieutenant Ilario Pantano were dismissed today. That Marine had been killed of killing two insurgents. Pantano claimed it was in self-defense.

We are minutes away from a joint news conference with President Bush and Palestinian Authority leader Mahmoud Abbas. They've been meeting in the White House, and they will be in the Rose Garden shortly. We will go live there as soon as it begins.

(COMMERCIAL BREAK)

KAGAN: Well, we've been talking about this most of the morning, President Bush and Palestinian leader Mahmoud Abbas expected to speak with reporters following their meeting in the Oval Office. That event is about to get under way. It was scheduled for 11:25 a.m. Eastern. This president does tend to run on time.

While we wait for that to happen, let's take a look ahead at what happens next with our Bob Franken, who is at the White House today.

Hi, Bob.

FRANKEN: Hello.

Well, first of all, the meeting that is occurring right now, that's just about to wrap up, was pretty much prescripted. This is the formal meeting where the two are going to rubberstamp the announcements they're going to make.

We're being told that President Bush will announce that he is making a donation -- not a donation, but a foreign grant to the Palestinian Authority. It's going to be a direct grant which has a huge amount of significance. It is an obvious, very, very tangible step toward establishing the bonafides of the United States as it deals with this very complex effort at trying to get a Middle East peace.

Of course, Abbas represents the U.S.'s most -- the greatest hope, meeting with the U.S. president for the first time, that a head of the Palestinians has met with a chief executive in the U.S. in five years. The last one was Yasser Arafat, who did not have very much credibility by that time with any of the other parties.

Abbas is now the duly-elected head of the Palestinian Authority. And he is trying very hard to overcome all the decades of hostility and get his people on board so he can speak with credibility when it comes time to negotiate with the Israelis.

Under discussion, the president of the U.S. demanding that Abbas come up with various ways to end what is charged to be just pervasive corruption within the Palestinian Authority. And even probably more difficult to come up with a credible security force. And as a result, put a halt, a credible halt -- that word "credibility" keeps coming up -- a halt to the attacks against Israel.

Israel, for obvious reasons, has made that a primal demand. Also, the Israelis are making plans for settlements that the Palestinians are saying are going to have to be pulled back.

What you have here is a reality. If there is going to finally, after all the generations, be any progress toward Middle East peace, which George W. Bush would love to have as a legacy, as has every president, if there is progress, there are going to have to be decisions that look to be so difficult that they're almost impossible. But the art of diplomacy, among other things, is to wait things out, to move in very small steps.

But some of these very small steps today could have a huge amount of influence. We're going to find out when they go into the Rose Garden exactly what they've decided to announce, which will constitute those small steps. The president of the U.S. welcoming Mahmoud Abbas as the latest hope for him to get the ball rolling when it comes to Middle East peace -- Daryn.

KAGAN: All right. We expect that ball to get rolling in mere minutes. Bob Franken at the White House, you'll be with us.

We do expect that to start soon. When it does, we'll go there live.

Right now is a good time to take a break. We're back after this.

(COMMERCIAL BREAK)

KAGAN: All right. We're within the two-minute warning window from the White House, the Rose Garden. Any minute we expect the Palestinian leader, Mahmoud Abbas, to come out and hold a news conference with President Bush.

This is the first time a Palestinian leader has been invited to the White House in four years. Significant because of that. Also, much of the world watching to see what the next step might be in the Middle East peace process.

While we wait in the next minute, Bob, you have about 30 to 45 seconds to say something brilliant.

FRANKEN: Well, I probably couldn't do it if I had 30 to 45 minutes, but I do want to point out one other thing. They announced at a briefing this morning that, after this meeting, after this meeting, there would be a working lunch, a working lunch where the two of them will sit down and try and hammer out what amount to the next steps. That's probably going to be the most substantive efforts that are made here in Washington.

As I mentioned just a moment ago, what occurs here in the Rose Garden will be an announcement of what had been decided at other working lunches. And there's really so much to talk about.

We discussed the questions of corruption and settlements and all that, but really what is important here is the building blocks -- are the building blocks that are going to make it possible for the Palestinians and Israelis to coexist. Issues such as sewage and water rights, that type of thing. It sounds mundane, but it's the kind of negotiation that can really get sticky. There was, of course, such a cliche that the devil is in the details, but there are generations of details that have to be ironed out here. What you get is the grand geopolitical vision, when they come out to the Rose Garden with all the history that's involved in that. But really the working lunches here and in the region are the ones that really matter.

And of course some of them are life-and-death issues, such as, what can Abbas really do to guarantee, or come up with as much of a guarantee as possible, that the violence against Israel is going to stop? How will he be able to meet the demands of the Bush administration that he discard so-called terrorist groups. One of those is Hamas. And the Abbas approach so far has been not so much to discard them, as to absorb them. Those are difficult, difficult problems that have to be resolved. There are all kinds of reconciliations that are going to have to occur. Now we're them walk out, and we'll hear their opening statements, and then each will take a couple of questions.

KAGAN: All right, I'll take it over from here. As we see, Palestinian leader Mahmoud Abbas and President Bush. Let's listen in.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you.

Mr. President, it is my honor to welcome the democratically elected leader of the Palestinian people to the White House.

We meet at a time when a great achievement of history is within reach: the creation of a peaceful, democratic Palestinian state.

President Abbas is seeking that goal by rejecting violence and working for democratic reform.

I believe the Palestinian people are fully capable of justly governing themselves in peace with their neighbors.

I believe the interests of the Israeli people would be served by a peaceful Palestinian state.

And I believe that now is the time for all parties of this conflict to move beyond old grievances and act forcefully in the cause of peace.

President Abbas' election four months ago was a tribute to the power and appeal of democracy and an inspiration to the people across the region.

BUSH: Palestinians voted against violence and for sovereignty, because only the defeat of violence will lead to sovereignty.

Mr. President, the United States and the international community applaud your rejection of terrorism.

All who engage in terror are the enemies of a Palestinian state and must be held to account.

We will stand with you, Mr. President, as you combat corruption, reform the Palestinian security services and your justice system, and revive your economy.

BUSH: Mr. President, you have made a new start on a difficult journey, requiring courage and leadership each day. And we will take that journey together.

As we work for peace, other countries must step up to their responsibilities. Arab states must take concrete measures to create a regional environment conducive to peace. They must offer financial assistance to support the peaceful efforts of President Abbas, his government and the Palestinian people. And they must refuse to assist or harbor terrorists.

Israel must continue to take steps toward a peaceful future and work with the Palestinian leadership to improve the daily lives of Palestinians, especially their humanitarian situation.

Israel should not undertake any activity that contravenes road map obligations or prejudice final status negotiations with regard to Gaza, the West Bank and Jerusalem.

BUSH: Therefore, Israel must remove unauthorized outposts and stop settlement expansion.

The barrier being erected by Israel as a part of its security effort must be a security rather than political barrier. And its route should take into account, consistent with security needs, its impact on Palestinians not engaged in terrorist activities.

As we make progress toward security and in accordance with the road map, Israeli forces should withdraw to their positions on September the 28th, 2000.

BUSH: Any final status agreement must be reached between the two parties, and changes to the 1949 armistice lines must be mutually agreed to.

A viable two-state solution must ensure contiguity on the West Bank and a state of scattered territories will not work. There must also be meaningful linkages between the West Bank and Gaza.

This is the position of the United States today. It will be the position of the United States at the time of final status negotiations.

The imminent Israeli disengagement from Gaza and parts of the West Bank presents an opportunity to lay the ground work for a return to the road map.

BUSH: All parties have a responsibility to make this hopeful moment in the region a new and peaceful beginning. That is why I assigned General Kip Ward, who is with us today, to support your efforts, Mr. President, to reform the Palestinian security services and to coordinate the efforts of the international community to make that crucial task a success.

The United States also strongly supports the mission of the quartet's special envoy, Jim Wolfensohn, to make sure that the Gaza disengagement brings Palestinians a better life.

To help ensure that the Gaza disengagement is a success, the United States will provide to the Palestinian Authority $50 million to be used for new housing and infrastructure projects in the Gaza.

BUSH: These funds will be used to improve the quality of life of the Palestinians living in Gaza where poverty and unemployment are very high.

I've also asked Secretary Rice to travel to Jerusalem and Ramallah before the beginning of the Israeli withdrawal.

Secretary Rice will consult with Israelis and Palestinians on the disengagement, their shared commitments and the way back on the road map.

As we work to make the disengagement succeed, we must not lose sight of the path ahead.

The United States remains committed to the road map as the only way to realize the vision of two democratic states living side by side in peace and security.

BUSH: It is through the road map that the parties can achieve a final, permanent status agreement through direct negotiations.

The people of the Middle East have endured a long period of challenge and now we have reached a moment of hope.

Leaders from around the world have made a moral commitment: We will not stand by as another generation in the Holy Land grows up in an atmosphere of violence and hopelessness.

With concrete actions by the United States, the Palestinians, Israel and other nations, we can transform this opportunity into real momentum.

Mr. President, we will work with you to help realize the dream of a free and democratic Palestine, to bring greater freedom, security and prosperity to all peoples in the region and to achieve the lasting peace we all seek.

BUSH: Welcome back to the White House.

PRES. MAHMOUD ABBAS, PALESTINIAN AUTHORITY (through translator): Thank you very much, Mr. President.

I would like to thank you for this warm welcome and express my view in order to strengthen the relationship between Palestine and the United States.

The Palestinian people share with the American people the same values of peace, freedom and democracy. We are confident that the two peoples will benefit from continuing and developing this relationship.

Today, we have conducted very intensive and constructive discussions with you, Mr. President, and with your senior administration officials. We discussed ways to support the opportunities to revive and resume the peace process in the Middle East.

These discussions afford us with the opportunity to emphasize the central and essential role played by you, Mr. President, and by your administration in supporting and advancing the peace process toward the realization of your vision of ending the Israeli occupation that started in 1967, and the establishment of a democratic, free and independent Palestine to live side by side with the state of Israel in order to create a better future for the peoples of the region.

We have reiterated again to you, Mr. President, our strong commitment to the peace option.

And through negotiations the two sides can achieve their objectives. We also discussed the efforts that have been undertaken by the Palestinian Authority throughout the past few months to bring about calm. These efforts have brought about the reduction of violence to the lowest level in four years and once again reopened the window of hope for progress toward peace.

We emphasized our determination to maintain and preserve this calm.

The Palestinian Authority exerts a deal of efforts in reforming our security organizations. And the truth is, our efforts are fully supported by our own people, who repeatedly reaffirmed their commitment to peace and negotiations.

In our talks, we also discussed the ongoing democratic process in Palestine.

This process has successfully presented, through the presidential elections and the local and municipal elections, that the Palestinians have succeeded in carrying out transparent and fair elections under very difficult circumstances; another example of the capability of our people and their ability to build an independent, democratic state once we achieve our freedom and our independence.

We expect that our people will be helped and supported to make their democratic experiment a successful one.

We look forward to the free movement and the freedom of movement and the removal of Israeli roadblock and checkpoints and the Israeli withdrawal to positions prior to September 28th, 2000.

And as well as implementing the various understandings that we have reached with the Israeli government at Sharm el-Sheikh.

We stress that democracy cannot flourish under occupation and in the absence of freedom.

In this regard, we expressed our deep concern over the continuous Israeli settlement activities and the construction of the wall on our land, particularly in the area of Jerusalem.

These settlement activities, in addition to undermining President Bush's vision in establishing a Palestinian and contiguous state, that it is a viable state that can live side by side by the state of Israel, it also contributes to the feeling of frustration and despair and the loss of hope. Stopping this is one of the requirements of the road map.

Time is becoming our greatest enemy. We should end this conflict before it is too late.

We are extending our hands to the Israeli people in good intention. We're saying that peace and dialogue and the recognition of the other side's rights is what will create a good neighborhood and achieve security and prosperity for our people and the peoples in the region. We have assured the president that the Palestinian Authority is ready to coordinate with the Israeli side in order to ensure the success of its withdrawal from Gaza and the West Bank upon the Israeli evacuation.

We see this evacuation as a part of ending the occupation, and it should not be at the expense of the West Bank.

We must then immediately move toward permanent status negotiations to deal with the issues of al-Quds, East Jerusalem, as the capital of the future state of Palestine, the issues of refugees, settlements, borders, security and water on the basis of President Bush's vision and on the basis of U.N. resolutions and the basis of the Arab initiative.

It is time for the Palestinian-Israeli conflict to end right now. It is the time for our people, after many decades of suffering and dispossessions, to enjoy living in freedom and independence on their own land.

And we should accelerate the freedom of our prisoners in order to be a part of peace making.

Mr. President, we end our discussions in Washington and we are more determined to move forward in the path of freedom, reform and democracy.

We depart Washington, we are more confident about the role that you will play and the role that your administration will play in order to move the process forward and achieve lasting peace.

Mr. President, at the end I would like to thank you very much for your hospitality and expressing the American support and demonstrating the American support to the Palestinian administration and the Palestinian people.

We continue to look forward to work with you ahead in order to achieve our common objectives of peace, security and democracy and freedom.

Thank you very much, Mr. President.

BUSH: Good job. Good job.

Now we'll answer some questions on this side, starting with Terry.

QUESTION: Thank you, Mr. President.

Mr. President, you just spoke about the rejection of terror. Are you satisfied that President Abbas is moving aggressively enough, doing everything he can to shut down terror groups? And do you think that he should, for example, close Hamas or remove from positions of power associates of Yasser Arafat?

BUSH: I believe that, and I know, the president's committed to democracy. After all, he ran on a platform that said, "Vote for me. I'm for peace, and I believe in democracy." That's what he told the Palestinian people when he ran.

And he won with 62 percent of the vote, I think it was.

In other words, he's committed. That's what he said he was going to do, and he's now fulfilling it.

BUSH: Our position on Hamas is very clear. It's a well-known position and it hasn't changed about Hamas.

Hamas is a terrorist group. It's on the terrorist list for a reason.

As the elections go forward, of course, we want everybody to participate in the vote. There's something healthy about people campaigning, saying, "This is what I'm for."

The president ran on a peace platform. Maybe somebody will run on a war platform -- you know, "Vote for me, I promise violence."

I don't think they're going to get elected, because I think Palestinian moms want their children to grow up in peace just like American moms want their children to grow up in peace.

As a matter of fact, I think the people that campaign for peace will win.

BUSH: The goal is, of course, a Palestinian state, based upon rule of law. And you cannot have a democracy based upon rule of law if you have armed bands of people who will use their weapons to try to achieve a political outcome.

We discussed this with the president, and he can give you his own views. I will just tell you he believes strongly in democracy and understands that aspect of democracy.

And so, I think there's something healing about asking people to vote. And hopefully as more people participate and more people see progress on the ground, in terms of real, tangible benefits when it comes to democracy, like being able to make a living or being able to send your child to a school that works, or being able to get good, quality health care, that more and more people will reject the notion that the only state based upon violence is a positive state.

QUESTION (THROUGH TRANSLATOR): President Abbas, regarding settlements and the erection of the wall, are your positions before that you gave to your voters among the Palestinian public?

And question to President Bush, we heard your remarks, you talked about clear American position about the issue of settlements, but Israel continues to build settlements and continues to seize Palestinian territories.

QUESTION (THROUGH TRANSLATOR): What is your position, Mr. President? BUSH: And that's exactly what I said when I was in Crawford, by the way, when Prime Minister Sharon was there as well.

When you say you're going to accept the road map, you accept the road map. And part of the obligations of the road map is not the expansion of settlements.

And we continue to remind our friends, the Israelis, about their obligations under the road map; just like we remind President Abbas about the obligations under the road map that the Palestinians have accepted.

So nothing's changed.

ABBAS (through translator): Regarding the issue of settlements and the wall, our position is very clear from the beginning.

When we talk about two states, we are talking about a Palestinian state within the boundaries of 1967. That means that those boundaries, in our view, should go back to the Palestinian people. This is what the road map states and this is what is in various U.N. Security Council resolutions.

Also, President Bush talked about ending the occupation that started in 1967. In our views, there is no justification for the wall and it is illegitimate as well as settlements -- it is illegitimate and we should not allow.

We heard from the president that these activities should stop.

I believe this is an important step in order to get to the permanent status negotiations. During the permanent status negotiations, we put all these issues on the table and we express our views that does not contradict international legitimacy.

QUESTION: Mr. President, President Bush, the first lady under the Egyptian pyramids this week enthusiastically endorsed Mubarak's first steps toward direct presidential elections. Two days later, Mubarak supporters attacked the opposition in the streets.

Was it premature to back Mubarak? What's your message to Mubarak now?

BUSH: I also embraced President Mubarak's first steps and said that those first steps must include people's ability to have access to TV, and candidates ought to be allowed to run freely in an election, and that there ought to be international monitors.

And the idea of people expressing themselves in opposition to the government, then getting beaten is not our view of how a democracy ought to work. It's not the way that you have free elections.

People ought to be allowed to express themselves. And I'm hopeful that the president will have open elections that everybody can have trust in.

Final question here.

Oh, sorry.

QUESTION: To President Bush.

BUSH: Too bad. That's what happens when you don't get called on.

QUESTION: To President Bush.

Mr. President, Israel insists on controlling the Gaza airspace as well as the port after its unilateral withdrawal.

What practical steps are you prepared to take, sir, to deter Israel from doing so and ensuring that the Gaza disengagement remains an integral part of the road map?

(THROUGH TRANSLATOR): President Abbas, in the article that was published in the Wall Street Journal today, you emphasized the link between democracy and freedom.

Do you feel concern that the new Palestinian democracy could go back under the occupation and under the lack of freedom?

BUSH: Actually, my answer, kind of, ties into the question you asked the president.

You know, one of the things -- when you are in the position I'm in, I'm able to observe attitudes and opinions. And clearly there's a lot of mistrust, and you can understand why. There's been war, violence, bloodshed.

The only way to achieve all the objectives is for there to be a democracy living side by side with a democracy.

And the best way to solve problems that seem insoluble now is for there to be a society which evolves based upon democratic principles.

And so, there's going to be a lot of issues that come up as this process evolves that are going to be difficult issues. But as more people trust each other, then those issues become easier to solve.

And so one of my cautions to both sides in this very important problem is to make sure that we stay focused on getting things right initially.

And what needs to happen is that the Palestinians, with the world's help, fill the void created by the withdrawal from Gaza with a society which is hopeful. And that means people can find work and people can send their kids to school, the health care system functions well.

I told the president there's a lot of international help that will be available, particularly as his government earns the trust of the donors.

And the best way to earn the trust of the donors is to work to develop -- to take advantage of this opportunity and develop a state.

Israel has obligations to help. You notice in my statement, I said help improve the humanitarian situation on the ground.

And America wants to help.

As a democracy evolves and people see that this is a government fully capable of sustaining democratic institutions and adhering to rule of law and transparency and puts strong anti-corruption devices in place, answers to the will of the people, that it becomes easier to deal with issues such as airspace.

The West Bank will become an easier issue for everybody to meet obligations.

We've got a fantastic opportunity now.

And I told the president, "There's no doubt in my mind we can succeed."

President Abbas is a man of courage. Part of his success is going to require courageous decision by the president.

And I take great faith in not only his personal character, but the fact that he campaigned on a platform of peace. He said, "Vote for me, I am for peace."

And the Palestinians voted overwhelming to support him.

And so there will be a series of issues that come up -- how do we deal with this issue? How do you deal with that issue? -- all of which will become easier to deal with as the government succeeds in Gaza.

And the United States stands with the government to help them succeed.

ABBAS (through translator): Regarding the democracy and freedom, I am saying that when we have chosen democracy as a way of life, this was not an adventure. This was a determination and a strategy that democracy is the only way to move forward and for life among different nations.

But democracy is like a coin. It has two sides. On one side it's democracy, on the other side of the coin it's freedom.

It's true. Now we lack freedom. And we are in dire need to have freedom. We do not live in freedom in our homeland. This will weaken the hope to continue this democracy and will weaken the democratic march. But we will not go back.

Our strategy is clear and we are determined to achieve our freedom in order to complete and achieve both sides of the coin and we can live a normal life.

KAGAN: All right. That is a quick end to the news conference between President Abbas and President Bush. The two leaders meeting at the White House. Significant that this meeting is even taking place, the first time in four years a Palestinian leader has been invited to the White House.

And what a difference a new leader makes. Of course Yasser Arafat was persona non grata there at the White House with President Bush, but this a man Mahmoud Abbas described as a man of great faith. President Bush obviously quite fond of him, talking about his personal character, and admiring that he ran on a platform of peace.

Of course a lot of differences between where they think the Middle East peace process should go from here, and what involvement the U.S. should have and what involvement the Israelis should have. President Abbas coming here looking for a commitment from President Bush to pressure the Israelis to participate in Middle East talks.

Of great importance and great difference is what's happening in Gaza and the West Bank. The -- much is being made of Israel's withdraw of Gaza, 6,000 settlers, actually more than 7,000, being moved from their home in Gaza. Some people consider that a gesture of peace. Others consider it a distraction to what is taking place on the West Bank, where more buildings and an additional 30,000 Jewish settlers continue to build homes and to move into the West Bank land that the Palestinians believe is their's.

We're going to have much more on this, of course, with Wolf Blitzer. He takes over at the top of the hour.

I'm Daryn Kagan. I'll be with you right here tomorrow morning. Have a great day.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired May 26, 2005 - 10:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Let's take a look at what's happening "Now in the News."
Iraqi officials confirm today they have credible information that Abu Musab al-Zarqawi is wounded. Government ministers wouldn't explain how they have details; however, Iraq's new prime minister tells CNN he knows nothing about this. Zarqawi is thought to be calling the shots in the Iraqi insurgency. He has pledged his allegiance to Osama bin Laden.

Prosecutors will put on more rebuttal witnesses when the Michael Jackson trial resumes this hour now that the defense has rested. The jury could begin considering the child molestation and conspiracy charges by the middle of next week.

A Senate panel is taking a look at the safety of ocean shipping containers today. Congress did tighten shipping security rules in 2002, but investigators found only 17 percent of high-risk cargo was inspected for possible terror connections before it left overseas ports.

John Bolton's controversial nomination appears headed for a vote today in the Senate. Democrats say they'll try to delay it unless they get documents they've been asking for. Republicans think they have the votes to send Bolton to the U.N. as U.S. ambassador.

And the runaway bride is making good with her hometown. The mayor of Duluth, Georgia, says a tentative deal calls for Jennifer Wilbanks to pay $13,000 to the city. That would cover overtime costs associated with her search. Wilbanks is facing a felony count of making false statements to police, as well as a misdemeanor.

It's the time of day when we like to check the time around the world. 11:00 a.m. in Washington, D.C., 6:00 p.m. in Jerusalem, and 7:00 p.m. in Baghdad. Good morning once again. I'm Daryn Kagan.

We're going to begin this hour at the White House, where President Bush and Palestinian leader Mahmoud Abbas are huddled in important talks. About 20 minutes from now we expect both men to emerge from the Oval Office and address the news media.

Our National Correspondent Bob Franken is at the White House this morning. We also have Guy Raz with reaction from the Middle East.

First, to Bob Franken to describe what is at stake.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, what's at stake is a genuine start, some traction in a Middle East process, a peace process, that, of course, has been faltering for decades of hostility. This is one that has so many different parties involved, but the two are meeting face to face, President George W. Bush and President Mahmoud Abbas.

The first time that a head of the Palestinian Authority has met with a U.S. president in five years. The last one was Yasser Arafat. Those talked collapsed after an effort to reach an accord then did not succeed.

In any case now, there is this very, very delicate choreography that's going on involving the U.S. and the Palestinians and, of course, the Israelis. The Palestinians are looking for signs of support from the United States for getting the negotiations going. That's what was already being discussed when the two of them got together in the Oval Office.

Signs of support, nothing more tangible than direct money, millions of dollars -- we'll find out the figure in all probability at the Rose Garden announcements -- will be going directly to the Palestinian Authority. But it goes beyond that.

The Palestinians are looking for the United States to put pressure on Israel, with whom the U.S. has such a traditional relationship, to try and truly negotiate and be prepared to make some of the tough decisions that the Israelis are going to make. Meanwhile, the U.S. is trying to tell the Palestinians, tough decisions have to be made there, not the least of which is to reign in the groups the U.S. calls terrorists and try and provide assurances that there will no longer be attacks against Israel.

This is very complicated, but the process is on the way now -- Daryn.

KAGAN: Bob Franken at the White House. Thank you

No one doubts the enormous difficulty of forging a permanent peace settlement in the Middle East. Recent statements by both the Israeli and Palestinian leaders stress the process can only go forward if both parties are willing.

(BEGIN VIDEO CLIP)

MAHMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (through translator): Regarding this issue of handing over the cities, there is an agreement between us and Israelis to hand over five cities. So far, only Jericho and Tukaram have been handed over to the Palestinian Authority. And I can say that we have full and total security control on those two -- to those cities.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

ARIEL SHARON, ISRAELI PRIME MINISTER: I call upon the leaders of the Palestinian Authority to meet the challenge and coordinate the disengagement with us.

(APPLAUSE)

SHARON: This successful coordination of the disengagement plan will allow us to embark on a new era of trust and build our relations with the Palestinian Authority.

(END VIDEO CLIP)

KAGAN: A direct aide to the Palestinian government is one of the more significant developments at this stage of Mideast diplomacy. It signals a legitimacy the U.S. has been reluctant to give to Palestinian leadership in the past. Former Secretary of State Madeleine Albright spoke about that earlier today here on CNN.

(BEGIN VIDEO CLIP)

MADELEINE ALBRIGHT, FMR. SECRETARY OF STATE: What happened when Abbas was prime minister before was that there really was not enough support given to him so that he didn't have the credibility. And at this stage, I think the issue is one where he requires this kind of support from us and from other countries, by the way, to show that he can deliver some goods to the people and that jobs are created. That is part of, also, the problem here, is there needs to be employment in Gaza.

(END VIDEO CLIP)

KAGAN: For some perspective on how the Palestinian president's White House visit is playing at home, let's go live now to Jerusalem. Our Guy Raz standing by with reaction there.

Guy, hello.

GUY RAZ, CNN CORRESPONDENT: Hello, Daryn.

The Palestinian leader will be looking for more than just platitudes and statements from President Bush. He wants to return home with a firm guarantee from the White House that it's prepared to push both Israelis and Palestinians back to the negotiating table.

Now, for the past three weeks, Mr. Abbas has been circling the globe, meeting with international leaders in a bid to shore up international support for the Palestinian cause.

(BEGIN VIDEOTAPE)

RAZ (voice-over): The Abu Mazen road show now in its third week. The Middle East's latest frequent flyer just back from Egypt, a visit to Pakistan, a courtesy call in Indian, China and Japan. All the while, trouble brewing at home with Palestinian militants taking on Palestinian police, no end in sight to Israel's construction of the separation barrier, and millions of Palestinians wondering whether their new leader can ease their situation.

Mahmoud Abbas has a lot on his plate. MAHMOUD ABBAS, PRESIDENT, PALESTINIAN AUTHORITY (through translator): I can't make any commitment to President Bush, or anyone else, for that matter, if I can't show the Palestinian people that I am delivering results. We are doing all we can to carry out our end of bargain, but ultimately, we need to return to negotiation. That is the only way to achieve peace.

RAZ: The White House has hailed Abbas as a pragmatist. Secretary of State Condoleezza Rice paid him a visit in January, and President Bush, who met Abbas in 2003, has called him a partner for peace. But words alone may not be enough.

MAHDI ABDUL-HADI, PALESTINIAN ACADEMIC SOCIETY: What is really needed, this chemistry between Mahmoud Abbas and Mr. Bush on where we go from here. We trust each other, we respect each other, and we want to do it together. Can we or can't we?

RAZ: As Israel prepares to end its formal occupation in Gaza, its hold on parts of the West Bank is strengthening. The proposed route of this barrier casts a long shadow over prospects that peace is any closer. Israel says it's designed to thwart suicide bombers, but Palestinians bitterly oppose it because current projections show it will leave about 10 percent of the West Bank in Israeli hands.

(END VIDEOTAPE)

RAZ: Daryn, the bottom line from Mahmoud Abbas is whether he can re-establish the Palestinian relationship with the White House. If he's perceived among Palestinians as having made an impression, there's no question it will bolster and strengthen his position at home -- Daryn.

KAGAN: Guy, I want to use you here to do a little primer in advance of this news conference that we're waiting on here. Inevitably, what's going to come up is Gaza and the West Bank. And you mentioned that, of course, in your piece. But if you can explain a little bit more about what's coming out of Gaza, what's going into the West Bank, and how what one person considers a gesture of peace, another considers a distraction for what is taking place elsewhere.

RAZ: Well, Daryn, essentially, the Gaza disengagement plan was conceived as a unilateral measure by Israeli Prime Minister Ariel Sharon when Yasser Arafat, the former Palestinian leader, was still alive. Essentially, it will end Israel's formal military and civilian occupation of the Gaza Strip after 37 years.

Now, that plan is expected to take place this summer. By the end of the summer, all 8,500 Israeli settlers living in Gaza will be evacuated. But at the same time, there is considerable criticism of Mr. Sharon, criticism by Palestinians who essentially believe that he is strengthening Israel's grip on existing settlements in the West Bank.

The West Bank, of course, part of the territory that Palestinians hope to establish their future state. And all of that territory and Mr. Sharon has been criticized by Palestinian leaders for essentially strengthening Israel's hold on those West Bank settlements, expanding them at the same time -- Daryn.

KAGAN: Guy Raz, live from Jerusalem. Thank you

Well, Mr. Abbas at the White House sends an important signal to the Middle East, especially Palestinians. Middle East expert Rob Malley joins us from Washington to explain the significance of the meeting. He is with the international crisis group, also held several senior advisory positions in the Clinton administration.

Rob, good morning. Thanks for being here with us.

ROB MALLEY, INTERNATIONAL CRISIS GROUP: Good to be here.

KAGAN: How significant is it to you that a Palestinian leader is being welcomed at the White House today?

MALLEY: Well, it's significant because no other -- there's been no Palestinian president who's met with President Bush since he decided to snub President Arafat. But the real significance of the meeting will be in what comes out of it.

Palestinians seem to be generally satisfied with what President Abbas has delivered in terms of what he could do on his own: securing a cease-fire, bringing the Islamist organization Hamas into the political process, beginning a process of reform of Palestinian institutions. Where they've not been fully satisfied is what he's been able to extract from others, Israel, of course, but also the United States.

So they're going to be looking to see what he can get since he's a much more acceptable international leader than Yasser Arafat was. What can he get from the United States.

KAGAN: Yes. And let's talk about something that he wants big time. At the top of his list, he wants a commitment from President Bush that President Bush is going to pressure the Israelis to start these Middle East peace talks. If you were advising President Bush, would you advise him to give that commitment?

MALLEY: Well, he has to give something. President Abbas is perhaps the best last hope that Israelis and Palestinians have of forging a peace in the short term.

It's a difficult task, there's no guarantee. But if he doesn't do it, it's hard to see who will again in the coming years.

And resolving the conflict means at least for the United States to start putting on the table, after Israel's disengagement, its understanding of how to resolve this conflict, what the parameters, what the principles of the end of conflict could be. If it's not done, Palestinians are going to quickly lose hope that President Abbas, or anyone else, for that matter, is going to be able to negotiate a solution with the Israelis.

So if President Bush wants to achieve what he says he wants to achieve, he's going to have to do more than simply giving money and diplomatic support to the Palestinians. He's going to have to push forward with peace negotiations at some time in the not too distant future.

KAGAN: So much was made of Yasser Arafat as being a blockade to peace. You know, as we mentioned, President Bush wouldn't even deal with him, wouldn't welcome him to the White House. Are you surprised and/or disappointed that more hasn't happened since his death?

MALLEY: Well, I think a lot of people expected more to happen. Certainly Palestinians feel that on the ground things haven't changed dramatically in terms of checkpoints, in terms of the closures, in terms of the settlement construction.

There still is time. There's not eternal time. There still is time though, to turn this around.

We know that there's a disengagement from Gaza, which if it goes well will provide some boost. But time is running short, and, again, I think people are urging the president to get more involved and to push the process forward. If he truly does want to achieve something on this in his second term, and I believe he does, he's going to have to invest more political capital than what he's done so far.

KAGAN: Well, in the very, very near future, this news conference is going to begin in about 10 minutes, a little bit more, at the White House. We'll be listening in. And Rob Malley, I want to say thank you for your insight today

MALLEY: Thank you.

KAGAN: And a reminder. We are expecting the presidents, Bush and Abbas, to come before the meeting in about 10, 15 minutes. CNN will bring that to you live when it does happen.

We, meanwhile, continue to keep an eye on a developing story right here in Atlanta. It's a standoff atop a construction crane, moving into its 18th hour. This man has been up there since yesterday afternoon. We'll tell you why and what police are trying to do to bring this to a safe ending after the break.

(COMMERCIAL BREAK)

KAGAN: More now on the hunt for the most wanted man in Iraq. Is Abu Musab al-Zarqawi wounded, perhaps dead? There is new information from Iraq this morning. Our Jane Arraf is watching developments in Baghdad today. And she joins me live.

Jane, hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Hi, Daryn.

Well, a bit of a difference of opinion here at the highest levels. The interior minister has told journalists that, yes, indeed, the most wanted man in Iraq, Abu Musab al-Zarqawi, has been wounded.

Now, we asked him how he knew that and to please give us details. He wouldn't. But he did say when I asked him about it after the press conference, it is categorically true that he has indications, concrete indications that he has been wounded.

But just to muddy the waters, Daryn, after that, I met with the prime minister who is holding an informal get-together with journalists. I asked him about the Zarqawi reports that he had been wounded, and the prime minister of Iraq said he had no accurate information that he had.

Now, the only thing I can add to that is that some government officials say whether it's true or not, this could point to an interesting and vital split within the insurgency, with some of the insurgents believing that they have to get rid of Zarqawi as he's caused enough damage, killing civilians. That they are engaging in in-fighting and that there's a real split there, that whether he's been injured or not could mean that this could be a lessening in the insurgency -- Daryn.

KAGAN: Jane, I know things work differently in Iraq than they do here, obviously. But is that unusual, to have the defense minister saying one thing and the al-Jaafari saying something else?

ARRAF: I so wish I could say it was unusual, but it's really not, particularly with a brand new government. Now, we have to remember the interior minister does have his finger on the pulse of the intelligence services and all the other services whom we would assume would know, but the prime minister, of course, is basically the interior minister's boss.

So not quite sure where that takes us, except that while it may be true, U.S. military officials we keep asking say they don't have any indication yet that it is. So it is still up in the air.

KAGAN: All right.

ARRAF: But interestingly, Daryn...

KAGAN: Go ahead.

ARRAF: We'll get to the operation on Baghdad another time. Forty thousand troops, biggest Iraqi operation ever, coming soon to Baghdad. It's going to be quite something -- Daryn.

KAGAN: Right, and that is in -- that is in reaction to all the attacks that have taken place. We've seen a lot of these operations in recent weeks, and more in the western part of the country. This one is coming and going to have a huge impact on civilian life in Baghdad.

ARRAF: Absolutely. It is a potential nightmare. They're talking about cordoning the city, this capital city of more than five million people, blocking off every entrance, doing house-to-house searches in some neighborhoods, setting up emergency checkpoints, all with 40,000 Iraqi troops and police backed by American troops.

KAGAN: It's going to be big. Jane Arraf live from Baghdad. Thank you.

ARRAF: Thank you.

KAGAN: We want to go back to the al-Zarqawi conversation. And U.S. Defense Secretary Donald Rumsfeld was at Fort Bragg earlier today speaking with some soldiers. He was asked about Zarqawi. This is what he had to say.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: Consider the terrorist Zarqawi, who recently advocated killing innocent Muslim women and children to advance his cause. Reminiscent of Hitler in his bunker, this violent extremist, failing to achieve his military and political objectives, now appears committed to trying to destroy everything and everyone around him. History teaches us that this kind of evil, over time, fails. And it will.

(END VIDEO CLIP)

KAGAN: You heard Jane Arraf talk about this operation that's going to begin in Baghdad very soon to crack down on insurgent attacks there. Here's an idea of what just happened today.

A very bloody 70 minutes in Baghdad earlier today. Keep in mind, just a little over an hour here, the city was hit with a car bombing, a roadside bomb blast, two drive-by shootings and the stabbing death of a politician. All tolled, eight people were killed, around a dozen wounded.

In the northwestern city of Talahar (ph), the U.S. military says that a child died in a shootout between insurgents and American forces. The military says insurgents often use Iraqi children as shields when they tangle with U.S. troops.

And at Camp Lejeune, North Carolina, murder charges against a Second Lieutenant Ilario Pantano were dismissed today. That Marine had been killed of killing two insurgents. Pantano claimed it was in self-defense.

We are minutes away from a joint news conference with President Bush and Palestinian Authority leader Mahmoud Abbas. They've been meeting in the White House, and they will be in the Rose Garden shortly. We will go live there as soon as it begins.

(COMMERCIAL BREAK)

KAGAN: Well, we've been talking about this most of the morning, President Bush and Palestinian leader Mahmoud Abbas expected to speak with reporters following their meeting in the Oval Office. That event is about to get under way. It was scheduled for 11:25 a.m. Eastern. This president does tend to run on time.

While we wait for that to happen, let's take a look ahead at what happens next with our Bob Franken, who is at the White House today.

Hi, Bob.

FRANKEN: Hello.

Well, first of all, the meeting that is occurring right now, that's just about to wrap up, was pretty much prescripted. This is the formal meeting where the two are going to rubberstamp the announcements they're going to make.

We're being told that President Bush will announce that he is making a donation -- not a donation, but a foreign grant to the Palestinian Authority. It's going to be a direct grant which has a huge amount of significance. It is an obvious, very, very tangible step toward establishing the bonafides of the United States as it deals with this very complex effort at trying to get a Middle East peace.

Of course, Abbas represents the U.S.'s most -- the greatest hope, meeting with the U.S. president for the first time, that a head of the Palestinians has met with a chief executive in the U.S. in five years. The last one was Yasser Arafat, who did not have very much credibility by that time with any of the other parties.

Abbas is now the duly-elected head of the Palestinian Authority. And he is trying very hard to overcome all the decades of hostility and get his people on board so he can speak with credibility when it comes time to negotiate with the Israelis.

Under discussion, the president of the U.S. demanding that Abbas come up with various ways to end what is charged to be just pervasive corruption within the Palestinian Authority. And even probably more difficult to come up with a credible security force. And as a result, put a halt, a credible halt -- that word "credibility" keeps coming up -- a halt to the attacks against Israel.

Israel, for obvious reasons, has made that a primal demand. Also, the Israelis are making plans for settlements that the Palestinians are saying are going to have to be pulled back.

What you have here is a reality. If there is going to finally, after all the generations, be any progress toward Middle East peace, which George W. Bush would love to have as a legacy, as has every president, if there is progress, there are going to have to be decisions that look to be so difficult that they're almost impossible. But the art of diplomacy, among other things, is to wait things out, to move in very small steps.

But some of these very small steps today could have a huge amount of influence. We're going to find out when they go into the Rose Garden exactly what they've decided to announce, which will constitute those small steps. The president of the U.S. welcoming Mahmoud Abbas as the latest hope for him to get the ball rolling when it comes to Middle East peace -- Daryn.

KAGAN: All right. We expect that ball to get rolling in mere minutes. Bob Franken at the White House, you'll be with us.

We do expect that to start soon. When it does, we'll go there live.

Right now is a good time to take a break. We're back after this.

(COMMERCIAL BREAK)

KAGAN: All right. We're within the two-minute warning window from the White House, the Rose Garden. Any minute we expect the Palestinian leader, Mahmoud Abbas, to come out and hold a news conference with President Bush.

This is the first time a Palestinian leader has been invited to the White House in four years. Significant because of that. Also, much of the world watching to see what the next step might be in the Middle East peace process.

While we wait in the next minute, Bob, you have about 30 to 45 seconds to say something brilliant.

FRANKEN: Well, I probably couldn't do it if I had 30 to 45 minutes, but I do want to point out one other thing. They announced at a briefing this morning that, after this meeting, after this meeting, there would be a working lunch, a working lunch where the two of them will sit down and try and hammer out what amount to the next steps. That's probably going to be the most substantive efforts that are made here in Washington.

As I mentioned just a moment ago, what occurs here in the Rose Garden will be an announcement of what had been decided at other working lunches. And there's really so much to talk about.

We discussed the questions of corruption and settlements and all that, but really what is important here is the building blocks -- are the building blocks that are going to make it possible for the Palestinians and Israelis to coexist. Issues such as sewage and water rights, that type of thing. It sounds mundane, but it's the kind of negotiation that can really get sticky. There was, of course, such a cliche that the devil is in the details, but there are generations of details that have to be ironed out here. What you get is the grand geopolitical vision, when they come out to the Rose Garden with all the history that's involved in that. But really the working lunches here and in the region are the ones that really matter.

And of course some of them are life-and-death issues, such as, what can Abbas really do to guarantee, or come up with as much of a guarantee as possible, that the violence against Israel is going to stop? How will he be able to meet the demands of the Bush administration that he discard so-called terrorist groups. One of those is Hamas. And the Abbas approach so far has been not so much to discard them, as to absorb them. Those are difficult, difficult problems that have to be resolved. There are all kinds of reconciliations that are going to have to occur. Now we're them walk out, and we'll hear their opening statements, and then each will take a couple of questions.

KAGAN: All right, I'll take it over from here. As we see, Palestinian leader Mahmoud Abbas and President Bush. Let's listen in.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you.

Mr. President, it is my honor to welcome the democratically elected leader of the Palestinian people to the White House.

We meet at a time when a great achievement of history is within reach: the creation of a peaceful, democratic Palestinian state.

President Abbas is seeking that goal by rejecting violence and working for democratic reform.

I believe the Palestinian people are fully capable of justly governing themselves in peace with their neighbors.

I believe the interests of the Israeli people would be served by a peaceful Palestinian state.

And I believe that now is the time for all parties of this conflict to move beyond old grievances and act forcefully in the cause of peace.

President Abbas' election four months ago was a tribute to the power and appeal of democracy and an inspiration to the people across the region.

BUSH: Palestinians voted against violence and for sovereignty, because only the defeat of violence will lead to sovereignty.

Mr. President, the United States and the international community applaud your rejection of terrorism.

All who engage in terror are the enemies of a Palestinian state and must be held to account.

We will stand with you, Mr. President, as you combat corruption, reform the Palestinian security services and your justice system, and revive your economy.

BUSH: Mr. President, you have made a new start on a difficult journey, requiring courage and leadership each day. And we will take that journey together.

As we work for peace, other countries must step up to their responsibilities. Arab states must take concrete measures to create a regional environment conducive to peace. They must offer financial assistance to support the peaceful efforts of President Abbas, his government and the Palestinian people. And they must refuse to assist or harbor terrorists.

Israel must continue to take steps toward a peaceful future and work with the Palestinian leadership to improve the daily lives of Palestinians, especially their humanitarian situation.

Israel should not undertake any activity that contravenes road map obligations or prejudice final status negotiations with regard to Gaza, the West Bank and Jerusalem.

BUSH: Therefore, Israel must remove unauthorized outposts and stop settlement expansion.

The barrier being erected by Israel as a part of its security effort must be a security rather than political barrier. And its route should take into account, consistent with security needs, its impact on Palestinians not engaged in terrorist activities.

As we make progress toward security and in accordance with the road map, Israeli forces should withdraw to their positions on September the 28th, 2000.

BUSH: Any final status agreement must be reached between the two parties, and changes to the 1949 armistice lines must be mutually agreed to.

A viable two-state solution must ensure contiguity on the West Bank and a state of scattered territories will not work. There must also be meaningful linkages between the West Bank and Gaza.

This is the position of the United States today. It will be the position of the United States at the time of final status negotiations.

The imminent Israeli disengagement from Gaza and parts of the West Bank presents an opportunity to lay the ground work for a return to the road map.

BUSH: All parties have a responsibility to make this hopeful moment in the region a new and peaceful beginning. That is why I assigned General Kip Ward, who is with us today, to support your efforts, Mr. President, to reform the Palestinian security services and to coordinate the efforts of the international community to make that crucial task a success.

The United States also strongly supports the mission of the quartet's special envoy, Jim Wolfensohn, to make sure that the Gaza disengagement brings Palestinians a better life.

To help ensure that the Gaza disengagement is a success, the United States will provide to the Palestinian Authority $50 million to be used for new housing and infrastructure projects in the Gaza.

BUSH: These funds will be used to improve the quality of life of the Palestinians living in Gaza where poverty and unemployment are very high.

I've also asked Secretary Rice to travel to Jerusalem and Ramallah before the beginning of the Israeli withdrawal.

Secretary Rice will consult with Israelis and Palestinians on the disengagement, their shared commitments and the way back on the road map.

As we work to make the disengagement succeed, we must not lose sight of the path ahead.

The United States remains committed to the road map as the only way to realize the vision of two democratic states living side by side in peace and security.

BUSH: It is through the road map that the parties can achieve a final, permanent status agreement through direct negotiations.

The people of the Middle East have endured a long period of challenge and now we have reached a moment of hope.

Leaders from around the world have made a moral commitment: We will not stand by as another generation in the Holy Land grows up in an atmosphere of violence and hopelessness.

With concrete actions by the United States, the Palestinians, Israel and other nations, we can transform this opportunity into real momentum.

Mr. President, we will work with you to help realize the dream of a free and democratic Palestine, to bring greater freedom, security and prosperity to all peoples in the region and to achieve the lasting peace we all seek.

BUSH: Welcome back to the White House.

PRES. MAHMOUD ABBAS, PALESTINIAN AUTHORITY (through translator): Thank you very much, Mr. President.

I would like to thank you for this warm welcome and express my view in order to strengthen the relationship between Palestine and the United States.

The Palestinian people share with the American people the same values of peace, freedom and democracy. We are confident that the two peoples will benefit from continuing and developing this relationship.

Today, we have conducted very intensive and constructive discussions with you, Mr. President, and with your senior administration officials. We discussed ways to support the opportunities to revive and resume the peace process in the Middle East.

These discussions afford us with the opportunity to emphasize the central and essential role played by you, Mr. President, and by your administration in supporting and advancing the peace process toward the realization of your vision of ending the Israeli occupation that started in 1967, and the establishment of a democratic, free and independent Palestine to live side by side with the state of Israel in order to create a better future for the peoples of the region.

We have reiterated again to you, Mr. President, our strong commitment to the peace option.

And through negotiations the two sides can achieve their objectives. We also discussed the efforts that have been undertaken by the Palestinian Authority throughout the past few months to bring about calm. These efforts have brought about the reduction of violence to the lowest level in four years and once again reopened the window of hope for progress toward peace.

We emphasized our determination to maintain and preserve this calm.

The Palestinian Authority exerts a deal of efforts in reforming our security organizations. And the truth is, our efforts are fully supported by our own people, who repeatedly reaffirmed their commitment to peace and negotiations.

In our talks, we also discussed the ongoing democratic process in Palestine.

This process has successfully presented, through the presidential elections and the local and municipal elections, that the Palestinians have succeeded in carrying out transparent and fair elections under very difficult circumstances; another example of the capability of our people and their ability to build an independent, democratic state once we achieve our freedom and our independence.

We expect that our people will be helped and supported to make their democratic experiment a successful one.

We look forward to the free movement and the freedom of movement and the removal of Israeli roadblock and checkpoints and the Israeli withdrawal to positions prior to September 28th, 2000.

And as well as implementing the various understandings that we have reached with the Israeli government at Sharm el-Sheikh.

We stress that democracy cannot flourish under occupation and in the absence of freedom.

In this regard, we expressed our deep concern over the continuous Israeli settlement activities and the construction of the wall on our land, particularly in the area of Jerusalem.

These settlement activities, in addition to undermining President Bush's vision in establishing a Palestinian and contiguous state, that it is a viable state that can live side by side by the state of Israel, it also contributes to the feeling of frustration and despair and the loss of hope. Stopping this is one of the requirements of the road map.

Time is becoming our greatest enemy. We should end this conflict before it is too late.

We are extending our hands to the Israeli people in good intention. We're saying that peace and dialogue and the recognition of the other side's rights is what will create a good neighborhood and achieve security and prosperity for our people and the peoples in the region. We have assured the president that the Palestinian Authority is ready to coordinate with the Israeli side in order to ensure the success of its withdrawal from Gaza and the West Bank upon the Israeli evacuation.

We see this evacuation as a part of ending the occupation, and it should not be at the expense of the West Bank.

We must then immediately move toward permanent status negotiations to deal with the issues of al-Quds, East Jerusalem, as the capital of the future state of Palestine, the issues of refugees, settlements, borders, security and water on the basis of President Bush's vision and on the basis of U.N. resolutions and the basis of the Arab initiative.

It is time for the Palestinian-Israeli conflict to end right now. It is the time for our people, after many decades of suffering and dispossessions, to enjoy living in freedom and independence on their own land.

And we should accelerate the freedom of our prisoners in order to be a part of peace making.

Mr. President, we end our discussions in Washington and we are more determined to move forward in the path of freedom, reform and democracy.

We depart Washington, we are more confident about the role that you will play and the role that your administration will play in order to move the process forward and achieve lasting peace.

Mr. President, at the end I would like to thank you very much for your hospitality and expressing the American support and demonstrating the American support to the Palestinian administration and the Palestinian people.

We continue to look forward to work with you ahead in order to achieve our common objectives of peace, security and democracy and freedom.

Thank you very much, Mr. President.

BUSH: Good job. Good job.

Now we'll answer some questions on this side, starting with Terry.

QUESTION: Thank you, Mr. President.

Mr. President, you just spoke about the rejection of terror. Are you satisfied that President Abbas is moving aggressively enough, doing everything he can to shut down terror groups? And do you think that he should, for example, close Hamas or remove from positions of power associates of Yasser Arafat?

BUSH: I believe that, and I know, the president's committed to democracy. After all, he ran on a platform that said, "Vote for me. I'm for peace, and I believe in democracy." That's what he told the Palestinian people when he ran.

And he won with 62 percent of the vote, I think it was.

In other words, he's committed. That's what he said he was going to do, and he's now fulfilling it.

BUSH: Our position on Hamas is very clear. It's a well-known position and it hasn't changed about Hamas.

Hamas is a terrorist group. It's on the terrorist list for a reason.

As the elections go forward, of course, we want everybody to participate in the vote. There's something healthy about people campaigning, saying, "This is what I'm for."

The president ran on a peace platform. Maybe somebody will run on a war platform -- you know, "Vote for me, I promise violence."

I don't think they're going to get elected, because I think Palestinian moms want their children to grow up in peace just like American moms want their children to grow up in peace.

As a matter of fact, I think the people that campaign for peace will win.

BUSH: The goal is, of course, a Palestinian state, based upon rule of law. And you cannot have a democracy based upon rule of law if you have armed bands of people who will use their weapons to try to achieve a political outcome.

We discussed this with the president, and he can give you his own views. I will just tell you he believes strongly in democracy and understands that aspect of democracy.

And so, I think there's something healing about asking people to vote. And hopefully as more people participate and more people see progress on the ground, in terms of real, tangible benefits when it comes to democracy, like being able to make a living or being able to send your child to a school that works, or being able to get good, quality health care, that more and more people will reject the notion that the only state based upon violence is a positive state.

QUESTION (THROUGH TRANSLATOR): President Abbas, regarding settlements and the erection of the wall, are your positions before that you gave to your voters among the Palestinian public?

And question to President Bush, we heard your remarks, you talked about clear American position about the issue of settlements, but Israel continues to build settlements and continues to seize Palestinian territories.

QUESTION (THROUGH TRANSLATOR): What is your position, Mr. President? BUSH: And that's exactly what I said when I was in Crawford, by the way, when Prime Minister Sharon was there as well.

When you say you're going to accept the road map, you accept the road map. And part of the obligations of the road map is not the expansion of settlements.

And we continue to remind our friends, the Israelis, about their obligations under the road map; just like we remind President Abbas about the obligations under the road map that the Palestinians have accepted.

So nothing's changed.

ABBAS (through translator): Regarding the issue of settlements and the wall, our position is very clear from the beginning.

When we talk about two states, we are talking about a Palestinian state within the boundaries of 1967. That means that those boundaries, in our view, should go back to the Palestinian people. This is what the road map states and this is what is in various U.N. Security Council resolutions.

Also, President Bush talked about ending the occupation that started in 1967. In our views, there is no justification for the wall and it is illegitimate as well as settlements -- it is illegitimate and we should not allow.

We heard from the president that these activities should stop.

I believe this is an important step in order to get to the permanent status negotiations. During the permanent status negotiations, we put all these issues on the table and we express our views that does not contradict international legitimacy.

QUESTION: Mr. President, President Bush, the first lady under the Egyptian pyramids this week enthusiastically endorsed Mubarak's first steps toward direct presidential elections. Two days later, Mubarak supporters attacked the opposition in the streets.

Was it premature to back Mubarak? What's your message to Mubarak now?

BUSH: I also embraced President Mubarak's first steps and said that those first steps must include people's ability to have access to TV, and candidates ought to be allowed to run freely in an election, and that there ought to be international monitors.

And the idea of people expressing themselves in opposition to the government, then getting beaten is not our view of how a democracy ought to work. It's not the way that you have free elections.

People ought to be allowed to express themselves. And I'm hopeful that the president will have open elections that everybody can have trust in.

Final question here.

Oh, sorry.

QUESTION: To President Bush.

BUSH: Too bad. That's what happens when you don't get called on.

QUESTION: To President Bush.

Mr. President, Israel insists on controlling the Gaza airspace as well as the port after its unilateral withdrawal.

What practical steps are you prepared to take, sir, to deter Israel from doing so and ensuring that the Gaza disengagement remains an integral part of the road map?

(THROUGH TRANSLATOR): President Abbas, in the article that was published in the Wall Street Journal today, you emphasized the link between democracy and freedom.

Do you feel concern that the new Palestinian democracy could go back under the occupation and under the lack of freedom?

BUSH: Actually, my answer, kind of, ties into the question you asked the president.

You know, one of the things -- when you are in the position I'm in, I'm able to observe attitudes and opinions. And clearly there's a lot of mistrust, and you can understand why. There's been war, violence, bloodshed.

The only way to achieve all the objectives is for there to be a democracy living side by side with a democracy.

And the best way to solve problems that seem insoluble now is for there to be a society which evolves based upon democratic principles.

And so, there's going to be a lot of issues that come up as this process evolves that are going to be difficult issues. But as more people trust each other, then those issues become easier to solve.

And so one of my cautions to both sides in this very important problem is to make sure that we stay focused on getting things right initially.

And what needs to happen is that the Palestinians, with the world's help, fill the void created by the withdrawal from Gaza with a society which is hopeful. And that means people can find work and people can send their kids to school, the health care system functions well.

I told the president there's a lot of international help that will be available, particularly as his government earns the trust of the donors.

And the best way to earn the trust of the donors is to work to develop -- to take advantage of this opportunity and develop a state.

Israel has obligations to help. You notice in my statement, I said help improve the humanitarian situation on the ground.

And America wants to help.

As a democracy evolves and people see that this is a government fully capable of sustaining democratic institutions and adhering to rule of law and transparency and puts strong anti-corruption devices in place, answers to the will of the people, that it becomes easier to deal with issues such as airspace.

The West Bank will become an easier issue for everybody to meet obligations.

We've got a fantastic opportunity now.

And I told the president, "There's no doubt in my mind we can succeed."

President Abbas is a man of courage. Part of his success is going to require courageous decision by the president.

And I take great faith in not only his personal character, but the fact that he campaigned on a platform of peace. He said, "Vote for me, I am for peace."

And the Palestinians voted overwhelming to support him.

And so there will be a series of issues that come up -- how do we deal with this issue? How do you deal with that issue? -- all of which will become easier to deal with as the government succeeds in Gaza.

And the United States stands with the government to help them succeed.

ABBAS (through translator): Regarding the democracy and freedom, I am saying that when we have chosen democracy as a way of life, this was not an adventure. This was a determination and a strategy that democracy is the only way to move forward and for life among different nations.

But democracy is like a coin. It has two sides. On one side it's democracy, on the other side of the coin it's freedom.

It's true. Now we lack freedom. And we are in dire need to have freedom. We do not live in freedom in our homeland. This will weaken the hope to continue this democracy and will weaken the democratic march. But we will not go back.

Our strategy is clear and we are determined to achieve our freedom in order to complete and achieve both sides of the coin and we can live a normal life.

KAGAN: All right. That is a quick end to the news conference between President Abbas and President Bush. The two leaders meeting at the White House. Significant that this meeting is even taking place, the first time in four years a Palestinian leader has been invited to the White House.

And what a difference a new leader makes. Of course Yasser Arafat was persona non grata there at the White House with President Bush, but this a man Mahmoud Abbas described as a man of great faith. President Bush obviously quite fond of him, talking about his personal character, and admiring that he ran on a platform of peace.

Of course a lot of differences between where they think the Middle East peace process should go from here, and what involvement the U.S. should have and what involvement the Israelis should have. President Abbas coming here looking for a commitment from President Bush to pressure the Israelis to participate in Middle East talks.

Of great importance and great difference is what's happening in Gaza and the West Bank. The -- much is being made of Israel's withdraw of Gaza, 6,000 settlers, actually more than 7,000, being moved from their home in Gaza. Some people consider that a gesture of peace. Others consider it a distraction to what is taking place on the West Bank, where more buildings and an additional 30,000 Jewish settlers continue to build homes and to move into the West Bank land that the Palestinians believe is their's.

We're going to have much more on this, of course, with Wolf Blitzer. He takes over at the top of the hour.

I'm Daryn Kagan. I'll be with you right here tomorrow morning. Have a great day.

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