*EPF307 06/04/2003
Transcript: Rice Welcomes Arab Leader Agreement to Curb Terrorist Financing
(National Security Advisor says leaders also gave support to Palestinian leader Abbas) (1570)

President Bush received commitments from Arab leaders at the Egyptian seaport of Sharm El-Sheikh June 3 that they would efforts to end financing for terrorist groups, National Security Advisor Condoleezza Rice said.

"We ... wanted from the Arab leaders support for fighting terrorism generally, because it's not possible to say that you want a peace process and to still have cases of support for terrorist financing coming from within one's territory. And we got that support today," Rice said.

Rice, speaking June 3 with ABC's Peter Jennings in Sharm el-Sheikh, Egypt, said that "in a very dramatic way," Bush came to Egypt "to meet with those leaders, to seek their advice, to solicit commitments from them, to live up to their responsibilities."

She said that the Arab leaders affirmed their support for Palestinian Prime Minister Mahmoud Abbas' efforts to reform the Palestinian Authority with democratic institutions and more transparency in its finances, to build more effective and accountable Palestinian security forces, and to fight terrorism.

Rice said Prime Minister Abbas could ultimately be an important leader for the Palestinians if he delivers for them.

"He's already a very important step forward, because he's someone who is devoted and has devoted his life to trying to help the Palestinian people, and believes that that cannot be done through violence and terrorism," she said.

Israel's Prime Minister Ariel Sharon can be reassured that the United States "cares about the security of the Israelis," she said, but "security and peace are only going to be found through the existence of two states."

"Prime Minister Sharon has said that he is committed to that vision, and we believe it," said Rice.

Rice added that President Bush expects that Israel "will help to bring into being a democratic, viable and contiguous Palestinian state."

"The important thing, though, is that we've launched a process here under conditions in which we now have interlocutors who are talking to each other, Prime Minister Abbas and Prime Minister Sharon," said Rice.

"[S]teps are being taken to try and improve the lives of the Palestinian people, in which the whole neighborhood today committed itself to fighting terrorism, no matter what its motivation and no matter what its justification. And those are important new conditions, and we will try to move forward," she said.

Following is a transcript of National Security Advisor Rice speaking with ABC's Peter Jennings:

(begin transcript)

THE WHITE HOUSE
Office of the Press Secretary
(Sharm el-Sheikh, Egypt)
June 4, 2003

INTERVIEW OF NATIONAL SECURITY ADVISOR CONDOLEEZZA RICE
BY PETER JENNINGS, ABC

The InterContinental Garden Reef Resort
Sharm el-Sheikh, Egypt

6:00 P.M. (L) June 3, 2003

QUESTION: Was it you, or was it the Secretary -- I couldn't hear at the back very well -- who said you had had an in-depth discussion with the Arab leaders today. Fair comment?

DR. RICE: Fair comment.

Q: How can you have an in depth discussion in two and a half years -- two and a half hours?

DR. RICE: Well, two and a half hours among leaders is pretty in depth. And an hour and a half of that was with no aides, only leaders and interpreters.

Q: And what specifically did you want of them individually?

DR. RICE: What we wanted of the Arab leaders, as a collective group, was support for several things -- support for the efforts of Prime Minister Abbas to reform the Palestinian Authority, to build democratic institutions, to solidify the security forces into an effective and accountable force, to deal with Palestinian finances in a transparent way and to fight terrorism.

We also wanted from the Arab leaders support for fighting terrorism generally, because it's not possible to say that you want a peace process and to still have cases of support for terrorist financing coming from within one's territory. And we got that support today.

Q: It is said in this region -- and I think you are aware -- that too much American enthusiasm for Prime Minister Abbas is a liability, at least in the short-run. Do you agree with that?

DR. RICE: When Prime Minister Abbas came to this meeting today, I think he appreciated the support of President Bush. But President Bush understands that this is someone who has to deliver for the Palestinian people.

That's ultimately what is going to make him an important leader for his people. He's already a very important step forward, because he's someone who is devoted and has devoted his life to trying to help the Palestinian people, and believes that that cannot be done through violence and terrorism. But it is delivering for the Palestinian people that will ultimately make him an important leader.

Q: Ten years ago Prime Minister Sharon of Israel said that Palestine was in Jordan and that he would never break down a settlement. Why do you think he's changed?

DR. RICE: Prime Minister Sharon is now the Prime Minister of Israel. He has different responsibilities and he has said that he wants to bring peace to the region. He said just the other day that it is time to divide this historic land between the Palestinians and the Israelis. He clearly cares deeply for the security of Israel and for the security of its people. The United States cares about the security of the Israelis.

But as the President said, all the way back in his first United Nations General Assembly speech, security and peace are only going to be found through the existence of two states, Israel and Palestine, living side-by-side in peace. And he said that in his June 24th speech. Prime Minister Sharon has said that he is committed to that vision, and we believe it.

Q: Do you think that Prime Minister Sharon and President Bush have the same view of what Palestine is supposed to look like -- how many, if any, Jewish settlements there will be there?

DR. RICE: There are clearly a lot of issues that will have to be negotiated. A lot of difficult issues are ahead of us. This would have been solved a long time ago had it been easy. So there are hard issues ahead. But what is important here is commitment to the principle of two states living side-by-side. And as the President said today, he expects that Israel will help to bring into being a democratic, viable and contiguous Palestinian state.

Q: The President said in California that Israel had the right to exist as a Jewish state. Does this mean he is apposed to any Palestinian right of return?

DR. RICE: Israel's right to exist as a Jewish state has been said a number of times by Secretary Powell, by the President. Obviously that is the foundation of Israel. Nonetheless, there are important issues that will have to be resolved about right of return, about the status of Jerusalem, about the final borders.

The important thing, though, is that we've launched a process here under conditions in which we now have interlocutors who are talking to each other, Prime Minister Abbas and Prime Minister Sharon, in which steps are being taken to try and improve the lives of the Palestinian people, in which the whole neighborhood today committed itself to fighting terrorism, no matter what its motivation and no matter what its justification. And those are important new conditions, and we will try to move forward.

Q: But the question is specifically about a Palestinian right to return to what is now Israel, or would be Israel within its 1967 borders. Will the President support that, in any way?

DR. RICE: Well, as we've said, these are matters for negotiation. And all of these issues, these difficult issues, will have to be dealt with.

Q: If you read both the Arab and Israeli press in the last couple of days, you'll know that they believe the trip has a -- your trip has a very significant political component to it -- they think it, anyway.

I notice that Karl Rove is here. Why is he here? Is this a political trip?

DR. RICE: Karl is a senior advisor to the President. He travels with the President from time to time. The President is here because he believes that there is an opportunity to make peace. He believes that the victory in Iraq, he believes that the creation of a prime ministership and the accession to that position of Prime Minister Abbas has created new circumstances. He said in his American Enterprise Institute speech, shortly before the onset of the Iraqi war, that he would make every attempt and take every opportunity to push forward the prospects for peace.

He's also said that whenever he thought it would make sense to meet with leaders from the region, he would do it. And in a very dramatic way, he's come here, to the Middle East, to Egypt, to meet with those leaders, to seek their advice, to solicit commitments from them, to live up to their responsibilities. And tomorrow he will go on to do the same with Prime Minister Abbas and Prime Minister Sharon. That's the reason for this trip.

Q: Many thanks.

DR. RICE: Thank you.

6:06 P.M. (L)

(end transcript)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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