Powell tells plans for peace conference on Middle East

WASHINGTON -- The United States joined with the United Nations, the European Union and Russia on Thursday in calling for an international Middle East peace conference. President Bush set tough terms for a Palestinian state.

Bush, at a news conference said such a state must be democratic and not based on a foundation of terror and corruption. The president also renewed his description of Israel's hold on the West Bank as an "occupation" and said it must yield to Palestinian statehood.

Secretary of State Colin Powell, after meeting with U.N., European and Russian officials, announced they had agreed to plan an international conference for early this summer to try to advance the peace efforts. It probably would be in Europe.

He said the conference would deal with security, economic reform, humanitarian issues and "the political way forward" to a Palestinian state. "It's something that the parties in the region will welcome," he said.

Meanwhile, Powell urged Israel to lift restrictions on Palestinian travel and said Palestinian leader Yasser Arafat should take steps to bring calm to the region since he's now free from Israeli confinement.

Also, Powell said, "something will have to be done about the settlements" on the West Bank. "Mr. Arafat, I hope, will understand that he doesn't have many more chances to seize this kind of opportunity," Powell said.

Bush, too, called on Arafat to "show he can lead."

"I'm optimistic we're making good progress," the president said. "After all, a week ago, Yasser Arafat was boarded up in this building in Ramallah. ... He's now free to show leadership."

A senior U.S. official said that the reference to corruption by the president obviously referred to Arafat's organization and that the Palestinian leader needed to take steps toward peace if he were to remain a pivotal figure.

Bush was not specific about how much land he wants Israel to relinquish for a Palestinian state. That critical issue is likely to be aired at a White House meeting Tuesday with Israeli Prime Minister Ariel Sharon.

Incursion must end

Last month, in demanding Israel reverse its incursion in search of terror suspects, Bush said "the occupation must end" in accord with 1967 and 1973 U.N. Security Council resolutions.

The resolutions did not specify whether Israel ought to withdraw totally from the land the Arabs lost in the 1967 Mideast war and failed to regain in the 1973 conflict. But Arab and European leaders are insisting on a complete pullout. U.N. Secretary-General Kofi Annan has called Israel's actions in the area illegal, but Bush did not.

Annan, standing alongside Powell at their joint news conference, said he expected a U.N. report to be prepared on Israel's attack on the Jenin refugee camp "even if you cannot get on the ground."

Annan decided on Wednesday to abandon an inspection mission because of Israeli opposition. But he said Thursday there still would be an effort to collect information about events at the camp.

Bush was unusually tough on what he expects of the Palestinians.

"A Palestinian state must be achieved by negotiation of an end to occupation," he said. "And such a state cannot be based on a foundation of terror or corruption."