Washington, July 10: President George W. Bush spoke with the leaders of Saudi Arabia and Israel to press his tough line on Yasser Arafat and his call for Israel to reciprocate for recent Palestinian reform efforts. Before leaving the White House to travel to New York for a speech on corporate accountability, Bush yesterday telephoned Crown Prince Abdullah of Saudi Arabia and Israeli Prime Minister Ariel Sharon, said spokesman Ari Fleischer.

"The President discussed with each of them the importance of pursuing the path to peace in the Middle East. He discussed with each of them the responsibilities of the various parties that do their part to help bring about prospects for peace in the Middle East. And it was a very positive conversation with each of them," Fleischer said.

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The Bush administration is adamant in demanding Arafat step aside - even though some reform and reshuffling are already evident in the Palestinian movement. Bush, at a White House news conference Monday, said, "it is necessary for a Palestinian state to emerge that will give us all confidence in its ability to fight off terrorist attacks."

The telephone calls to Abdullah and Sharon came as Secretary of State Colin Powell prepares for Mideast talks next week in New York with top United Nations, European and Russian officials.

The Saudis have quietly endorsed reform within the Palestinian movement but consider Arafat the Palestinians' chosen leader. They and other Arab countries want a Palestinian state set up promptly and want Israel forced to relinquish the West Bank, Gaza and part of Jerusalem.
Bureau Report