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Bush Talks Borders, Payments In Mideast

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Published: January 11, 2008

JERUSALEM - President Bush on Thursday outlined in the clearest terms so far the shape of a two-state peace treaty he is hoping to broker between Israel and the Palestinians by the end of his term.

He called for redrawing borders and compensating Palestinians and their descendants for homes they left in what is now Israel.

Speaking after two days of meetings with Prime Minister Ehud Olmert of Israel and Palestinian President Mahmoud Abbas, Bush said, "I believe that any peace agreement between them will require mutually agreed adjustments to the armistice lines of 1949 to reflect current realities and to ensure that the Palestinian state is viable and contiguous."

He added, "I believe we need to look to the establishment of a Palestinian state and new international mechanisms, including compensation, to resolve the refugee issue."

In the face of deep skepticism from both sides, Bush expressed confidence a final treaty would be signed during his last year in office.

"I'm on a timetable," he said when he met with Abbas in the West Bank city of Ramallah, only minutes after saying he would not impose timetables on the negotiators for either side. "I've got 12 months left in office."

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