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American Morning

President Bush Delivers Long-Awaited Speech on Middle East

Aired June 25, 2002 - 09:01   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.
BILL HEMMER, CNN ANCHOR: Up front this morning, this hour, President Bush has delivered long-awaited speech on the Middle East. He set a new condition for Palestinian statehood. He has also said that Yasser Arafat, essentially, must go.

White House correspondent Kelly Wallace reading between the lines on the words from yesterday, and again, the fallout today.

Kelly, good morning.

KELLY WALLACE, CNN CORRESPONDENT: Good morning, Bill.

The selling of President Bush's plan already under way. Secretary of State Colin Powell has been working the phones, and President Bush is on his way to meet with some world leaders. The president left the White House earlier this morning. His first stop will be in Arizona to tour the fire damage there.

Then he heads to Canada, near Calgary, for the summit of the world's wealthiest nations, plus Russia, the so-called G-8 Summit. And there, the president will definitely spend a great deal of time briefing fellow world leaders on his plan.

The most controversial part of the plan, Mr. Bush never mentioning Yasser Arafat by name. But making it clear he must go. The president saying peace requires -- quote -- "new and different Palestinian leadership."

And what is interesting so far, Yasser Arafat seems to be putting the best spin on Mr. Bush's speech, saying it represents a -- quote -- serious contribution to move the peace process forward." But it is an open question whether Yasser Arafat will be willing to move to the side and what other Palestinian leaders might emerge.

As for Israeli Prime Minister Ariel Sharon and his aides, they are delighted by the president's speech. They are saying it backs exactly what they have been saying all along, that you must have an end to the terror and reform to the Palestinian Authority and new leadership in order for their truly to be some resolution between the Israelis and the Palestinians.

But another very big question for this administration is exactly how the Arab world will respond. So far, initial reaction has been somewhat positive. But this administration knows it will take time to see exactly what people think and what impact this plan will have. Secretary Powell is likely to make a return trip to the region sometime soon, although no formal schedule has been announced -- Bill.

HEMMER: Kelly, you bring up a very interesting prospect at the end there. Arab support is so critical, and I know it is still early. Have there been any guarantees from the White House, from any Arab leader, that they will indeed back the call for new leadership for the Palestinians?

WALLACE: No guarantee so far, Bill. And these leaders, President Mubarak of Egypt, King Abdullah of Jordan as well. They have been saying all along this administration should recognize Yasser Arafat because he is the leader of the Palestinian people. Senior administration officials when asked if the Arab leaders are on board, all they will say is these Arab leaders know the situation needs to change in the region.

So it will really -- remains to be seen how many of these Arab leaders will go along with this. They will make a decision. They clearly want to end the violence in the region and obviously change the situation, but are they not going to no longer back Yasser Arafat? That's an open question right now, Bill.

HEMMER: Takes two in this one. Kelly, thanks. Kelly Wallace on the Front Lawn.

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