President George W. Bush said Friday that after the death of Yasser Arafat there was now a "great chance" to create an independent Palestinian state living at peace with Israel by the time he leaves office in 2009. He said after a summit with British Prime Minister Tony Blair, dominated by the Middle East and Iraq, the United States wants to see a Palestinian leadership that is committed to fighting terror and carrying out democratic reforms.
"I believe we've got a great chance to establish a Palestinian state," he said. "I would like to see it done in four years. I think it is possible."
Bush said he and Blair "share a vision of a free, peaceful, a democratic broader Middle East."
"We meet at a crucial time, where it is important that we revitalise and reinvigorate the search for a genuine, lasting and just peace in the Middle East," Blair told the press conference.
Both leaders emphasised their commitment to a two state solution, support for Palestinian elections and the need to help the creation of a Palestinian state.
Bush said: "Our sympathies are with the Palestinian people as they begin a period of mourning. Yet the months ahead offer a new opportunity to make progress toward a lasting peace."
Bush said the choosing of a new Palestinian president "is the first step in creating lasting, democratic political institutions through which a free Palestinian people will elect local and national leaders.
"We're committed to the success of these elections and we stand ready to help.
"I look forward to working with the Palestinian leadership that is committed to fighting terror and committed to the cause of democratic reform."
He said the United States would help international efforts to revive the Palestinian economy, "to build up the Palestinian security institutions to fight terror, to help the Palestinian government fight corruption, and to reform the Palestinian political system and build democratic institutions."
Bush also said that progress was being made in the offensive against insurgents in the Iraqi city of Fallujah.
"American and Iraqi forces have made substantial progress in the last several days," he said adding that preparations for elections in January were on course.
"As those elections draw near, the desperation of the killers will grow and the violence could escalate. Success of democracy in Iraq will be a crushing blow to the forces of terror and the terrorists know it."
He added: "The United States and Great Britain have shown our determination to help Iraqis achieve their liberty and to defend the security of the world. We'll continue to stand with our friends and we will finish the job."
Blair spoke of the need to work together to restore stability to Iraq, boost democracy in Afghanistan and revive the Middle East peace process.
Blair, who has held himself out as a bridge between Washington and the Europeans after the rupture produced by the Iraq war, said he supported "very strongly" Bush's hope to strengthen the trans-Atlantic alliance.
"I think there is a tremendous desire and willingness, certainly (on) our part and the European Union to make sure that that alliance is strong," he said.
"It's necessary for us to be able to tackle many of the problems that confront us. I look forward to working with the president over these coming months in order to try and secure that progress that we have laid out for you today."
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