Bush acknowledges Middle East Road Map has 'stalled'

US President George W

US President George W. Bush has acknowledged his Middle East peace "road map" has stalled and claimed Palestinian President Yasser Arafat "has failed as a leader."

Speaking at a news conference with Jordan's King Abdullah, Bush said Arafat had undermined former Palestinian Prime Minister Mahmoud Abbas' efforts to consolidate security forces under his leadership and to crack down on militant groups.

"Mr. Arafat has failed as a leader," Bush said. "Prime Minister Abbas was undermined at all turns by the old order. That meant Mr. Arafat. ... That's why we're now stalled," Bush said at the presidential retreat outside Washington.

He said he remained "solidly committed" to a Palestinian state and his peace "road map," and expressed hope for a Palestinian leadership fully committed to fighting terror.

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US National security adviser Condoleezza Rice indicated Washington had yet to form a judgment on the man Arafat has nominated to be the new prime minister, Ahmed Qurie.

The key would be whether the prime minister's office had sufficient authority to control security services, she said.

"The key is going to be the unification of the security services under the Palestinian prime minister, not under some broad committee, not under the president - under the prime minister. ... You've got to have someone who can fight off terror," she said.

"The road map will be there at any time that we can make progress on it," she added. "The main thing is we need a Palestinian interlocutor who can deliver on the obligations of the road map."

From the region, Palestinian Labour Minister Ghassan al-Khatib responded that it was "positive" Bush had reiterated his support for a Palestinian state but maintained the US president was insensitive to the will of Palestinians.

"He continued his approach to Palestinian internal affairs which lacks any sensitivity to the will of the Palestinians to determine their own leadership. This is not constructive and not in harmony with the American commitment to democracy," al-Khatib told Reuters in a telephone interview.

King Abdullah said he and Bush were discussing ways to get the Israelis and Palestinians moving again toward peace.

Bush said the Jordanian leader had "assumed his responsibility" to work for peace in the region.

Although he has urged the region's leaders to cut off financing of terror groups, Bush did not mention a decision by Jordan's central bank yesterday to cancel a ban on banks dealing with top officials of the Hamas militant organisation.