for the week ending October 21, 2005

I. Welcoming Abbas to Washington
II. Defense Approps Update
III. New Bills and Resolutions
IV. APN Hill Event Oct. 24 - Chaim Yavin
V. Chafee and Rice on the Record
VI. Frist Welcomes Abbas
VII. Bush-Abbas Press Conference
VIII. Kaptur on Egypt Aid Threat

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I. WELCOMING ABBAS TO WASHINGTON ================================

House Dear Colleague
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Beginning on Friday, October 14th, through mid-morning on October 28th, Reps. Pryce (R- OH) and Menendez (D-NJ) circulated a Dear Colleague seeking co-signers on a letter to Palestinian President Abbas. The principle message of the letter is a warning to President Abbas against permitting Hamas from participating in PA elections. The letter demands that "Any requirements for groups to disarm or disavow racist ideologies must be made prior [italics in the original] to participating in an election, otherwise democracy itself may be threatened. The letter goes on to warn that "We would strongly support any actions you might initiate now to establish such criteria. If not, and if members of Hamas are elected to positions of influence within the PA, relations with the United States may well be seriously damaged. "

The letter was signed, in the end, by 48 members of Congress - on the face of it a low number of signers for this kind of letter. However, a closer look at the list of signers shows that the letter was carefully targeted at key House members - the 48 are virtually the entire House leadership (Republican and Democrat) as well as the majority of the members of the House International Relations Committee - 16 out of 27 of the Committee's Republican members signed the letter (though, notably, not HIRC Chairman Hyde, R-IL) along with 18 out of 23 the Committee's Democratic members.

The Bush Administration
-----------------------
The Administration may be taking a different approach with President Abbas, expressing support for his strategy of holding elections first, and then asking the newly elected Legislative Council to outlaw militias. Palestinian officials have explained that such a strategy allows, on the one hand, the holding of elections that will be truly democratic and inclusive, and on the other hand, action against militants backed by the moral authority of a duly elected body. The full text of the press conference is included in section VIII, below.

The Senate
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There was apparently no Senate version of the House Dear Colleague detailed above. Instead, Abbas was welcomed, instead, by a statement from Majority Leader Bill Frist (R-TN) that made no mention of Hamas or demands regarding the upcoming elections. Full text of the Frist statement is included in section VI, below.

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II. DEFENSE APPROPS UPDATE
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On October 7th the Senate passed their version of HR 2863, the FY06 Defense Appropriations bill by a vote of 97-0. Since their version is substantially different from the House version (passed on June 20th), Senate and House conferees will have to work together to iron out differences and arrive at a compromise version.

The annual defense bill includes substantial funding for a wide range of US-Israel cooperation programs. Generally these programs are not earmarked in the bill but are part of the internal budget process.

The Arrow Missile Program
-------------------------
The one exception is the funding for the Arrow Missile program, which is earmarked for funding every year. The President's request for the Arrow program was $78. 6 million. The House version of HR 2863 closely matched the President's request for the Arrow, providing $77. 6 million; the Senate version increased the Arrow funding to $143. 6 million (closer to Israel's request, which was for around $160 million).

If history is any guide, the final number will be much closer to the Senate figure (and the Israeli request) than the House number: the difference in the House and Senate funding levels mirrors actions on the program in 2005, when the President requested $87. 3 million, Israel requested $167. 3 million, the House version provided $87. 3 million, and the Senate version provided $167. 3 million. The final amount earmarked for the program in the FY05 bill was $155. 3 million.

Other programs
--------------
Israeli requests for FY06 funding for joint defense programs, including the Arrow, totaled around $570 million, and included requests for programs funded in FY05 but for which the Administration requested no new funds for FY06. As noted in the July 23, 2004 edition of the Round-Up, total funding for all of the U. S-Israel joint programs in the FY05 Defense Approps bill was around $355 million (compared to around $650 million in combined Israeli requests).

Many of these programs are earmarked in the Senate committee report that accompanied HR 2863, although they are not identified as U. S-Israel joint programs (the House report does not include the same level of detail). As can be seen from the details provided in the report for the Arrow program (listing $65 million in funding, compared to $143. 6 million provided in the bill text), the report is in no way a comprehensive listing of all programs or expenditures (some programs and funding details are classified). Keeping that in mind, the report indicates Senate funding for the following joint US-Israel defense programs:

Arrow Co-Production Senate FY06:$55 million (note: the bill language indicates that this item was funded at the level of $70 million, apparently reflecting some other Arrow-related expenditure not included in the report. )

Arrow Short Range Ballistic Missile Defense Senate FY06: $10 million

Combating Terrorism Technology Support (TSWG) Senate FY06: $55. 3 million President FY06 request: $55. 3 million FY05 funding: $51. 7 million

F/A-18 Litening Pods Senate FY06: $15 million President's FY06 request: 0 FY05 funding: $3 million

ANG F-16/A-10 Litening Pods Senate FY06: $10 million President's FY06 request: 0 FY05 funding: $44 million

Bradley Reactive Armor Tiles Senate FY06: $25 million President's FY06 request: 0 FY05 funding: $52 million (regular and supplemental)

Improved Tactical Air Launched Decoy (ITALD) Senate FY06: $20 million President's FY06 request: 0 FY05 funding: $17 million

Pioneer TUAV Engines and Avionics Senate FY06: $6. 7 million President's FY06 request: $2 million FY05 funding: $8. 8 million

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III. NEW BILLS AND RESOLUTIONS
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(Israel) S. 1862: Introduced October 7th by Senators Gordon Smith (R-UT), Dianne Feinstein (D-CA) and Tim Johnson (R-SD), "To establish a joint cooperation program within the Department of Energy to fund eligible ventures between United States and Israeli businesses and academic persons in the national interest, and for other purposes. " Referred to the Senate Foreign Relations Committee.

(Egypt) S. 1886: Introduced October 18th by Senate Foreign Relations Committee Chairman Richard Lugar (R-IN) and Ranking Minority Member Joseph Biden (D-DE), "To authorize the transfer of naval vessels to certain foreign recipients. "The bill would authorize the President to transfer, among other things, two OSPREY class minehunter coastal ships to Egypt. The bill would also authorize transfers of ships (by grant or sale) to Greece, Turkey, India, and Pakistan. Passed by the Senate by Unanimous Consent October 18th and sent to the House, where it was referred Oct. 19th to the House International Relations Committee.

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IV. APN HILL EVENT OCT 24 - CHAIM YAVIN ================================

OPEN TO THE PUBLIC

Date: Monday, October 24, 2005 Time: 11:30am - 1:00pm Room: 2200 Rayburn House Office Building

APN presents: A discussion with Chaim Yavin and a screening of excerpts from "Land of the Settlers. "

Chaim Yavin is one of Israel's preeminent broadcast journalists. Known in Israel as "Mr. Television," for the last 40 years he has enjoyed a distinguished career in broadcast news, covering a wide range of topics from Israeli society and politics, to the Arab-Israeli conflict and efforts to achieve peace. In addition to anchoring the news for most of the last 30 years at Israel's Channel One television station (a station he helped found), Yavin has served as an overseas correspondent in the U.S. and Europe, head of news at Israel TV (the national station of Israel), and Director- General of Israel TV. He has also directed approximately 80 documentaries to date. In 1997 the State of Israel presented Yavin with the coveted Israel Prize for his outstanding achievements.

Yavin's documentary series, The Land of the Settlers, was broadcast on Israeli television during the summer of 2005. It quickly proved to be one of the most powerful and talked about TV series in Israeli history. The documentary covers more than two years of excursions into the West Bank and Gaza, documenting Yavin's encounters with Arabs and Israelis from across the political spectrum. In the process, Yavin also reveals his own complicated and conflicted perspective on the occupation and its likely future. (Hebrew with English subtitles).

Please RSVP to 202/728-1893x229 or lfriedman@peacenow. org.

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V. CHAFEE AND RICE ON THE RECORD ===================================

The following exchange took place on October 19th in the Senate Foreign Relations Committee (SCRC), between SFRC Middle East Subcommittee Chairman Sen. Lincoln Chafee (R-RI) and Secretary of State Condoleezza Rice:

CHAFEE: . . . you said that the Palestinian- Israeli conflict and confronting it is a pillar to our success in the region. Those are your words. Now, I was at a dinner -- I think it was Gridiron or something like that -- and humor was encouraged. And the president ran a video of looking for weapons of mass destruction, looking under chairs, looking under the table, where are they, where are the WMD?And, obviously, it was a joke. There were no WMD. It was all a joke. And the laugh was on us. Now the president is talking about the road map. And he's saying, in his words, in May, "Israel must remove unauthorized outposts and stop settlement expansion. "Are we going to someday see the same movie, where's the road map? It must be under here somewhere. It's under this table. It's under this chair. Or are we really working to do what the president's saying? And that is: Remove unauthorized outposts and stop settlement expansion?

RICE: Well, interestingly, Senator, we've had the only return of territory to the Palestinians in the entire history of the conflict. The Israelis are out of the Gaza. And that. . .

CHAFEE: I'm asking about settlement expansion. I'm asking that question.

RICE: Senator, I understand, and I will answer that question. But we can't lose sight of the historic change that has taken place and that the Palestinians are actually now in control of the Gaza. We're working with them on issues of international egress and ingress and matters of that kind. But let's remember that the Israelis took an historic decision to actually leave the territory.

CHAFEE: While 8,000 settlers moved out of Gaza, while 30,000 moved into the West Bank in opposition to the president's stated objective; that's why I'm asking the question.

RICE: Actually, Senator, I don't think 30,000 have moved into disputed territories. . .

CHAFEE: Probably more.

[APN note: According to the Israeli Central Bureau of Statistics, Sen. Chafee is correct. The Road Map was formally released in late December 2002, at which time, according to CBS statistics, the West Bank settler population (not including East Jerusalem) was around 215,000. By year-end 2004, CBS statistics show that this same population had grown to around 236,000 - an increase of around 21,000 settlers. Provisional population statistics compiled by the CBS estimate that this population further increased by 9370 settlers from Jan. 1 - June 30, 2005. So the total number of new settlers since the start of the Road Map process exceeds 30,000. ]

RICE: But, in fact, you have had -- no, it's not more. In fact, you have had settlements that we are concerned about in so-called E-1 around Jerusalem. We have told the Israelis in no uncertain terms that that would contravene American policy. Indeed, we, by law, deduct some of the resources that we are providing to the Israelis as a part of their loan guarantees, because of settlement activity. And we are determined that there is not going to be any prejudging of what a final status agreement might look like.

But it's extremely important not to lose sight of the larger picture here. The Israelis are out of the Gaza. There are contacts and relationships between the Israelis and the Palestinians that are unknown in recent years because of the work that they did in the disengagements in the Gaza.

We're training Palestinian security forces. They're going to have elections in January. This is an area that has started to move ahead. And I think we just have to acknowledge that while there continue to be problems with settlements and even with the root of the (inaudible), that there also has been great progress because of the Gaza withdrawal.

CHAFEE: I only make the point because it's your words that it's a pillar to our success in the Middle East.

RICE: Absolutely.

CHAFEE: And as you look to these Palestinian elections ahead, it's going to be more and more difficult for the moderate Abu Mazens of the world to carry the day while these activities continue, in my view.

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VI. FRIST WELCOME ABBAS
=============================

The following is the text of the floor statement made October 20th by Senate Majority Leader Bill Frist welcoming Palestinian President Abbas to Washington:

Mr. FRIST. Mr. President, on a separate issue, today, several of my Senate colleagues and I will be hosting Palestinian President Mahmoud Abbas and members of his Cabinet here in the United States Capitol.

I have met with President Abbas on several occasions, most recently during my trip to the Middle East in May and his visit to Washington later that month a few weeks after our visit there. President Abbas is here to discuss ways to move the Middle East peace process forward, and how both sides can fulfill their obligations under the roadmap.

Less than 2 months ago, Israel completed its disengagement of settlers and soldiers from all 21 settlements in the Gaza Strip and four settlements in the northern West Bank. The disengagement was conducted in a smooth and generally peaceful manner. This was a bold and courageous move by Prime Minister Ariel Sharon. Now President Abbas and the Palestinian Authority face the challenge of creating a secure and stable environment in Gaza. It is vital, it is critical that they succeed. The Palestinian people need to feel tangible improvements in their everyday lives, in their daily welfare, and they need to see that only peaceful dialog and negotiation can lead to a more prosperous future.

While coordination between the Israelis and Palestinians during the disengagement was not ideal, it did exist. Prior to the withdrawal, Israeli and Palestinian security officials worked to ensure a peaceful disengagement and to establish a basis for returning to the roadmap.

Recently, however, events in the West Bank and the Gaza Strip have taken a turn for the worse. Rocket attacks on Israel continued to be launched from the Gaza Strip. In the last 9 months, 219 Palestinians have died in internecine clashes. In the West Bank city of Ramallah, Hamas has claimed responsibility for abducting and killing an Israeli settler after issuing demands for the release of Palestinian prisoners. This past weekend, three Jewish settlers were killed and five were wounded in shootings in the West Bank. The Al Aqsa Martyr's Brigade has claimed responsibility for these attacks.

These events threaten to derail the peace process and to move both sides backward. We have reached a critical juncture in the Middle East peace process. The Israeli disengagement from Gaza offers a tremendous opportunity to get the peace process and the roadmap back on track. To succeed, both sides must fulfill their responsibilities, but this requires a secure environment in order to act.

For the Palestinians, this means ending incitement, dismantling the terrorist groups, and disarming the militias. This is what I will impress on President Abbas when I meet with him later today. The violence must be renounced, and it must end. Making progress on these issues can set the stage for Israel to move forward on the release of Palestinian prisoners and relieving restrictions on travel.

I commend President Abbas for his leadership. He has made measurable progress in advancing internal reforms in the Palestinian Authority. More is clearly needed, though, and more must be done. For example, the PA security forces must be reformed, unified, and given the mandate to enforce the rule of law and establish order in the West Bank and Gaza. President Abbas needs and deserves our continued support, and the Congress has provided the funding to help the Palestinian people and make reform a reality.

The United States remains committed to President Bush's vision of two democratic states, Israel and Palestine, living side by side in peace and security. We will continue to work with both parties to fulfill their obligations under the roadmap toward a true and lasting peace.

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VII. BUSH-ABBAS PRESS CONFERENCE ===================================

For Immediate Release Office of the Press Secretary October 20, 2005 President Welcomes Palestinian President Abbas to the White House The Rose Garden 10:57 A. M. EDT www. whitehouse. gov/news/releases/2005/10/200 51020. html

PRESIDENT BUSH: Thank you all, thanks. It's my honor to welcome the democratically elected leader of the Palestinian Authority to the White House for the second time this year. We just had some good talks. Mr. President, thanks. A good, open, exchange of ideas. President Abbas is a man devoted to peace and to his people's aspirations for a state of their own. And today the Palestinian people are closer to realizing those aspirations. It's a really interesting period of history, I think. I was just commenting to the President when we were in the Oval Office how much things have changed in the Holy Land. After all, he got elected in January; there were successful Palestinian municipal elections, and then we witnessed the completion of Israel's disengagement from Gaza and parts of the West Bank. It's been an eventful year.

And I say it's an eventful year because the ultimate objective is there --for there to be two states, living side-by-side in peace; two democracies living side-by-side in peace. And I believe that's where we're headed. Israel's withdrawal from Gaza and parts of West Bank was a bold decision, with historic significance. President Abbas and the Palestinian Authority contributed to the success of the withdrawal in significant ways. Mr. President, thank you.

Through the active coordination and ground- level cooperation between Israeli and Palestinian security forces, the disengagement has been completed successfully and calmly. Israeli withdrawal creates new opportunities, creates responsibilities for the Palestinian people.

The way forward must begin by confronting the threat that armed gangs pose to a genuinely democratic Palestine. And those armed gangs must confront the threat that armed gangs pose to lasting peace between the Israelis and the Palestinians.

Now, Mr. President, you ran on a platform of peace. That's why the people voted for you. I strongly support your rejection of terror and your commitment to what you have called one authority, one law, and one gun. The United States, in cooperation with the international community, has helped you achieve this through the efforts of our senior U. S. security coordinator, General Kip Ward. I appreciate your service, General Ward. Thank you for being here, and thank you for all your hard work to help the Palestinian security forces at a critical time. Job well done.

In the coming days, I'll be naming our new coordinator to build on the progress General Ward has made. This person will take on an enhanced mission to help President Abbas and the Palestinian Authority carry out their responsibility to end terror attacks, dismantle terrorist infrastructure, maintain law and order, and, one day, provide security for their own state.

The way forward must include rebuilding the Palestinian economy. This goal has the support of the Quartet: the United States, the United Nations, the European Union, and Russia. Quartet Special Envoy Jim Wolfensohn is coordinating a broad effort to generate economic and financial support from the international community for the Palestinian Authority, and he's doing a good job. I'm going to continue to consult with our Quartet partners to ask Jim to extend his mission until next spring.

It's important that we make quick progress on the issues that Jim has identified as most critical for the Palestinian economy, including opening the Rafah crossing, connecting the West Bank in Gaza, improving the ability of Palestinians to travel in the West Bank, and beginning work on the Gaza seaport. These are all practical steps that will help the Palestinian economy grow and flourish. I believe that Arab states have a particular responsibility to help the Palestinians build a strong and prosperous economy, and I urge them to create an environment in the region that strengthens the possibility of peace.

The way forward must continue to include democratic elections. The upcoming elections for the Palestinian Legislative Council offer an opportunity to open the door to the next generation of Palestinian leaders. They'll be responsible for building a peaceful and hopeful future for their country. In the short-term, the Palestinian Authority must earn the confidence of its peoples, by holding elections and having a functioning government that delivers economic opportunity. The Palestinian Authority must also earn the confidence of its neighbors by rejecting and fighting terrorism.

As I have stated in the past, achieving peace demands action from all parties. Israel must continue to work with Palestinian leaders to help improve the daily lives of Palestinians. At the same time, Israel should not undertake any activity that contravenes its road map obligations, or prejudices the final status negotiations with regard to Gaza, the West Bank, and Jerusalem. This means that Israel must remove unauthorized posts and stop settlement expansion. It also means that the barrier now being built to protect Israelis from terrorist attacks must be a security barrier, rather than a political barrier. Israeli leaders must take into account the impact this security barrier has on Palestinians not engaged in terrorist activities.

This is a time of great possibility in the Middle East. And the people of the region are counting on their leaders to seize the opportunities for peace and progress. This work isn't going to be easy, but the path forward is clear. I want to thank President Abbas for his hard work. I appreciate your service, Mr. President. I assured him that the United States will use our influence to help realize a shared vision of two democratic states, Israel and Palestine, living side-by-side in peace and security. Welcome.

PRESIDENT ABBAS: (As translated) Thank you. Mr. President, I would like to thank you for your warm welcome, and I would like to express my satisfaction with the talks that I conducted with you and your senior aides.

You have emphasized, Mr. President, from this place, about five months ago, the basic counters for the U. S. position regarding the various aspects of the Palestinian-Israeli conflict. This position, which you have reiterated today, contributes fundamentally to advance the chances of reviving and resuming the peace process in the region.

In the last few months, the dismantling of settlements and the withdrawal of Israeli forces from the Gaza Strip was concluded. The Palestinian Authority have worked very hard with all its energy, in order to make sure that this will happen without any incident, in order to have this as a window of an opportunity that will help us to move faster toward achieving additional steps on the way toward realizing just peace, based on your vision and on international resolutions.

This window, Mr. President, must remain open. And this opportunity must be strengthened through resolving all the outstanding issues -- as you have mentioned, the Gaza crossing point and the establishment of a permanent link between Gaza and the West Bank. At the same time, we must immediately start implementing what the road map and the Sharm el-Sheikh agreements regarding the cessation of settlement activities and construction of the wall in the West Bank, particularly in Jerusalem, in addition to withdrawal of the Israeli forces to positions prior to September 28, 2000.

With the removal of the roadblocks, which, unfortunately, turned the lives of Palestinians into hardship, suffering, humiliation, and also a very important sensitive issue, which is the release of prisoners of freedom from Israeli jails. The implementation of these requirements, Mr. President, represents urging the talks on permanent status issues regarding Jerusalem, refugees, settlements, borders, in order to reach, at the end, peace, which would allow for the establishment of an independent, democratic Palestinian state, on all the territories occupied in 1967. That state that would live in a good, neighborly relationship in peace with the state of Israel.

Mr. President, there is approximately 100 days between us and the elections for our legislative council, where the Palestinian people would go to the ballot box to elect for the first time since their -- for the first time in 10 years their representatives. This, for us, represents a very important landmark. On one hand, it comes a whole year since I assumed office, and also these elections would represent a renewal process, rebuilding process of our political process.

Also, these elections would consolidate and reinforce the slogan I ran on during my presidential election, which emphasized clearly the one authority, the one law, the one legal, legitimate law and political pluralism. The new legislative council would be mandated by the people to legislate and issue these slogans and make them a reality.

Once again, we repeat our pride of our democratic experience that has been undertaken by the Palestinian people, and we repeat and we say that democracy can lose a lot of its momentum in the absence of freedom and with the continuation of occupation.

Mr. President, our discussions today have allowed us to inform you of what the Palestinian National Authority is doing and what we are doing in terms of various policies in various spheres. We have worked and we will continue to work to continue to ensure the calm and maintain it. We are also intensifying our work in the field of security. We have taken active steps in imposing the rule of law and public order and banned armed demonstrations.

Our measures are continuing to reinforce the judiciary branch, as well as the administrative reform. We have said and we did during the last week start launching a series of economic projects in the infrastructure and in health and education and agriculture in both Gaza and the West Bank.

And here I would like to salute the United States for its contribution, and also the help that came from a variety of Arab countries and countries around the world. And we hope that all these projects will be activated by the donors' countries in order to increase the number of projects that our people are in need of.

Our discussion of the overall situation in the region has afforded us the opportunity to point out what we reaffirmed repeatedly through the past few weeks on behalf of the Palestine Liberation Organization: We are determined not to interfere in domestic Lebanese affairs. We reiterate that the Palestinian refugees in Lebanon are subject to the authority and the laws of Lebanon as temporary guests awaiting the resolution of the refugee problem in the accordance with the international resolutions.

Mr. President, we reaffirm again here today our commitment to peace and negotiated settlement. We expect that our people's quest in this direction will be supported. The time has come to put an end to the Palestinian-Israeli conflict. The time has come that the Palestinian people will attain their freedom and independence. The time has come to move quickly towards the resumption of permanent status negotiations.

Peace requires a departure from the policies of occupation and the adoption of the principle of freedom. Peace requires departure from the policies of settlements construction, the collective punishment, unilateral acts that undermine your vision toward two states and replace that with progress towards negotiations. Peace and security cannot be guaranteed by the construction of walls, by the erection of checkpoints, and the confiscation of land, but rather by the recognition of rights.

Peace cannot be attained by the enforcement of discriminatory road policies and by the policies of imposition and creation of facts on the ground, but rather through belief in the principles of partnership, parity and mutual respect.

We are presenting, based on wide public support, our positions that call upon the Israeli side to join us in a real partnership for making peace. We are calling for a Palestinian-Israeli partnership for the sake of creating a better future, and for the entire region that can end decades from wars, occupation, and open the doors wide open. We were promised peace, independence and freedom, and we hope that all of this will be achieved.

Mr. President, once again, I thank you, and reaffirm to you, as we did in our last visit, we are leaving Washington more sure and more confident of the possibility of reviving and resuming the peace process, and more determined to forge ahead along with the path of peace, democracy and freedom. Thank you, Mr. President.

PRESIDENT BUSH: We'll take two questions a side. Terry.

[. . . ]

Q President Bush --

PRESIDENT BUSH: Who do you work for?

Q AFP. The road map that your administration backs calls for the creation of a Palestinian state in the Gaza strip and the West Bank. Yet, the Israelis' settlement activities, despite your repeated calls, included today, still continue in the West Bank. What is your administration planning to do to get Israel to put an end to those activities?

And then, President Abbas -- (as translated) -- what are the practical steps that they want Bush -- President Bush to take in order to establish the Palestinian state before the end of his term?

PRESIDENT BUSH: As I said in my -- in my comments, that we expect all parties to adhere to the road map. And we are holding people to account on the pledges that most of the Palestinians and the Israelis have made on the road map. And we do so publicly and we do so privately.

It's -- a lot of these issues that have been very difficult for a long period of time become easier to resolve as there's more trust between the parties. And trust becomes a permanent part of the political process as action on the ground takes place. The Gaza withdrawal is a magnificent opportunity to help develop trust. It's an opportunity to develop trust between the Palestinians and the Israelis. And after all, the world watched strong cooperation between two willing governments to help good disengagement of Gaza, which is a -- right now, I guess, we take it all for granted.

You look back -- I think prior to the disengagement, there was a lot of consternation, a lot of concern. I suspect some of you might have even reported that, you know, better watch out, this disengagement could end up being a very difficult period. And yet thanks to the President's leadership and Prime Minister Sharon's leadership, the disengagement worked, which established trust.

Mr. President has got an -- a job, and that's to establish trust with the Palestinian people. He is a man who said, "I'm running on a peace platform," and therefore, he has talked to us about using security forces to make sure that armed gangs don't disrupt the democratic process. And our job is to help him do that. And so to answer your question, yes, we hold people to account for their promises made on the road map. And many of those promises will be easier to keep for all parties as there's progress on the ground. And we have seen remarkable progress during the past year.

And there's -- and the progress isn't over this year. There will be elections. This is a very hopeful period. I'm very upbeat about being able to achieve this vision. I understand it's hard. Things don't happen overnight. Old feuds aren't settled immediately. And it takes a while.

The key thing, as far as I'm concerned, is that there are partners in peace. Prime Minister Sharon wants there to be peace. President Abbas wants there to be peace. And both men are showing strong leadership toward achieving that objective. And that's why I'm confident. I'm a heck of a lot more confident today than when -- I was when I first came into office. I know it's nearly five years ago, and that's an eternity for some, but there has been remarkable progress in this part of the world. And we'll continue to work with the parties to achieve this important objective: two democratic states living side-by-side in peace.

PRESIDENT ABBAS: (As translated. ) Thank you. The truth is, our answer to that question, we have to change the question: What are we supposed to do -- as Palestinians and Israelis -- to do.

First of all, we have to work. We have to do our part. We have to think as partners. So many years passed by, more than four years we did not have any dialogue. We did not have any talks. And now we have confidence. We need to rebuild and build on that confidence and on the relationship.

And on our side, we are extending our hand to be true partners in the peace process, and we hope that the Israeli side also will do the same, so we can do our parts. And what we ask President Bush to do is what he mentioned during his remarks, the road map and the achievement and the realization of his vision. The road map talks about settlements, about the barrier; all these issues that will facilitate the road to achieving true peace, and will facilitate building the confidence between the two peoples, the Israelis and the Palestinians.

[. . .

Do you want to call on somebody, Mr. President?

Q Thank you, President Abbas. As President Bush referred and said, that the only way to achieve progress and the peace road is combating armed gangs. And you are facing difficulties in doing this. Are you going to seek help and support from American President George Bush, to help you in disarming the resistance movements?

And, President, you say you wanted to see the Palestinian state made before the end of your presidency. Are you still hoping to see something like that? This is number one. Number two, don't you think the time has come to talk about timetables to get the two parties to the issues of final status negotiations?

PRESIDENT ABBAS: (As translated. ) Regarding your questions, I am saying that we are truly in need of help from the United States in a variety of issues -- economic issues, and financial issues, and also security support. And the reason is having General Ward among us, a man who has done a magnificent job, and we appreciate him and appreciate his work very much.

Regarding our internal issues, we are following a policy. I believe it is a successful policy. When we started and we asked everyone to accept the hudna, or the calming, all the organizations that are recognized accepted that. Then we moved into another phase, and that is the phase of banning all public demonstrations with fire arms. All groups accepted that.

Now, all groups are underway to the electoral process, so all groups will become a part of the political Palestinian fabric. I believe this will create a new phase in the life of Palestinian people. It's a phase of democracy and pluralism in full fledge in order to be a solid base for peace in the region.

PRESIDENT BUSH: I believe that two democratic states living side-by-side in peace is possible. I can't tell you when it's going to happen. It's happening. And the reason I can't is because there will be moments of progress, and there will be moments of setback. The key is to keep moving forward, is to have partners in peace to move forward.

But one thing that will not happen is that we will try -- the United States will try to conform and force parties to make decisions based upon the political schedule in America. That doesn't make any sense. What matters is the decisions made by the Palestinians and the Israelis, and the confidence earned as we move forward.

And so you said I would like to see two states before I get out of office. " Not true. I'd like to see two states. And if it happens before I get out of office, I'll be there to witness the ceremony. And if it hadn't -- if it doesn't, we will work hard to lay that foundation so that the process becomes irreversible.

Timetables are interesting -- an interesting thing. Everybody wants a timetable, it seems like, on different issues. And these are very complicated matters where years of conflict and years of mistrust are being resolved by some basic truths. And one of the basic truths is free societies are peaceful societies. And so we can look forward to working with a partner in peace, a person who said, vote for me, I'm for peace, and a man who declares his understanding that the Palestinian people, the long-suffering Palestinian people, will be well served by a democracy, a truly functioning democracy.

And so, Mr. President, we're glad you're back. I want to thank you for your strong leadership, and we wish you all the very best. Thank you, sir. Appreciate you.

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VIII. KAPTUR ON EGYPT AID THREAT ===================================

As discussions continue on the Hill about possible budget cuts to offset costs associated with Hurricane Katrina, U. S. funding for Egypt remains under threat. In response to this threat, Rep. Marcy Kaptur (D-OH) made the following floor statement on October 17th:

"Mr. Speaker, the Bush administration's allies in this Congress are making another truly astounding foreign policy blunder, one that jeopardizes decades of painstaking effort toward peacemaking in the Middle East. Bush allies are proposing to sever our established U. S. military relationship with Egypt at a time when diplomatic ties in the region are more vital than ever.

"At great sacrifice, Egypt has forged a leadership role in the region and remains committed to peace and progress. Yet rather than stemming terrorism, Bush congressional allies are doing, with their retrograde proposal, just what they did with Iraq: Miscalculating, failing to shape robust diplomatic initiatives, and setting the region up for more terrorism, more bloodletting, and more instability. They want to act tough first rather than smart first.

"They are hastening more instability as antagonism to the United States grows. Does anybody in the White House recognize that Middle East terrorism is going up, not down? Does anybody notice that polls across the Middle East show a majority of Arabs are now opposed to U. S. policy?

"Zogby International polls indicate that Arab public attitudes towards the United States are declining. And according to the Pew Research Center, solid majorities in many predominantly Muslim countries surveyed still express unfavorable views of the United States.

"At a time like this, cutting foreign military assistance to a strong ally risks a vital blow to our relationship with this most populous Arab nation and friend in the region. Ultimately, our troops cannot win militarily when the Iraqi war is being lost politically and diplomatically across that region.

"The Bush administration's allies in this House are truly ill-advised and ill-timed to sever America's 25-year military commitment with Egypt. Let us remember it was Egypt's valiant President Anwar Sadat who in 1979 stood shoulder to shoulder in peace efforts with President Jimmy Carter and President Menachem Begin of Israel on the White House lawn. I was there as a witness to that majestic day when the most important peace accord of that era was signed, the Camp David Accords.

"Yes, Egypt's President walked toward peace, and a few months later was assassinated for his vision. We should honor and remember that sacrifice.

"Egypt is the most populous Arab nation and the most influential in the region, strategically positioned adjacent to the Suez Canal on the borders of Gaza, Israel, Libya and Sudan. Egypt is the nation that has sent 750 troops to safeguard the Gaza withdrawal of Israelis to begin historic resettlement of Palestinians.

"The Bush allies are not only dead wrong but absolutely wrong; wrong historically, wrong diplomatically, dangerously wrong. Egypt has been a strong ally to the United States and the Middle East for 25 years. Egypt has provided support in the Middle East peace process. The peace between Egypt and Israel is a template for which peace between Israel and other Arab countries can be achieved.

"Egypt provided troops and facilitated transportation in the region during Desert Storm, and they continue to provide support in Iraq and Afghanistan today. They stand ready and willing to provide needed training for Afghan and Iraqi troops to aid in the stabilization of those countries at no cost, though neither country has taken them up on this offer yet.

"And Egypt has facilitated diplomatic relations among Arab governments and the Iraqi interim government. Not only are they a politically strategic ally; they are also an important economic ally. U. S. -Egypt trade totals almost $4. 5 billion, and last year we had a trade surplus with that country of $1. 8 billion. Funds that we offer in aid to Egypt come back to this country in trade.

"Former President Anwar Sadat had the ultimate vision and courage in 1979. He knew peace required courage. It requires international cooperation as well and mutual support. He understood peace assures human progress, and he gave peace a chance.

"Let us not be unwise and turn our back on America's military relationship with Egypt, an alliance he helped establish, an alliance that has endured, an alliance that has broadened, an alliance that has made peace across that region possible. Possible in our time.

"I would hope that the President's allies in this Congress would remove the proposal they have on the table to sever our foreign military assistance and our relationship with Egypt. It could not be more wrong and more poorly timed.

For more information, contact APN Government Relations Director Lara Friedman at 202/728-1893, or at lfriedman@peacenow. org.