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What Happened in 2002

Pressured by continued spasms of violence and terrorism in the Middle East, the Bush Administration, which initially was reluctant to become mired in the Israeli-Palestinian peace process, became increasingly active in searching for a way to jump-start the moribund peace talks. However, as a result of the January 3, 2002, interception of a Palestinian ship carrying 50 tons of weapons that were purchased from Iran and Arafat's continued lying about Palestinian involvement in that affair, the Bush Administration denounced Arafat's duplicity and refused to meet with him at a high diplomatic level.

The Bush Administration's growing disgust with Arafat's continued support for terrorism led President George W. Bush to make a landmark speech on June 24, 2002, in which he declared, "Peace requires a new and different Palestinian leadership, so that a Palestinian state can be born." The speech injected a degree of common sense and realism into U.S. policy that was sorely lacking throughout the Clinton Administration. Bush set forth a "two state" solution for the Israeli-Palestinian conflict, but recognized that the United States could not work to revive peace negotiations as long as Yasser Arafat, the principal architect of Palestinian terrorism, continued to dominate Palestinian politics.

By calling on the Palestinian people "to elect new leaders, not compromised by terror," Bush identified the chief obstacle to peace and placed the onus clearly on the Palestinians to take action to halt terrorism. Bush also placed Israel's struggle against Palestinian terrorism in the context of the global war against terrorism. He declared that "to be counted on the side of peace, nations must act," and he specifically called on all nations to take action against Hamas, Palestine Islamic Jihad, and Hezballah-three terrorist groups who seek to destroy Israel.

Bush also warned Syria that it must "choose the right side in the war on terror by closing terrorist camps and expelling terrorist organizations." Syria is a well-chosen target for American pressure because it is the most important frontline Arab state that still supports terrorism against Israel. An end to Syrian support for Palestinian terrorism would help change the balance of power within the Palestinian camp and make it easier for Palestinian pragmatists to oust radicals still wedded to terrorism as a political strategy.

The President also called on Israel to make some hard sacrifices, notably: a return to the military positions that existed before the outbreak of the intifadah in September 2000; an end to new settlement activity in the disputed territories; and, ultimately, a return to the "land for peace" deal envisioned under U.N. Resolution 242, which saw peace negotiations based on the return of territory occupied by Israel in the 1967 Arab-Israeli war in exchange for peace. Significantly, the Israelis will not be asked to surrender more land until the Palestinians have demonstrated that they are capable of delivering peace. This places an immediate burden on the Palestinians to break with Yasser Arafat's failed policies and to cooperate in building a genuine peace if they are to succeed in obtaining a state of their own. Such an outcome would be a huge step in the right direction.

Following Bush's speech, Secretary of State Colin Powell met with leaders from the United Nations, Russia, and the European Union on July 16, 2002, to lay out a road map for renewed negotiations. Regrettably, the net outcome of this meeting undermined Bush's announcement of Washington's clean break with Arafat, for it implied a continuing working relationship with Arafat's Palestinian Authority. Additionally, Arafat has sought to make an end run around the Bush Administration's demand for reform of the Palestinian Authority by calling for Palestinian elections in January 2003. If Arafat wins the elections, as is likely given his domination of Palestinian politics, the Bush Administration's call for the creation of a responsible Palestinian democracy will be rendered moot.

What to Do in 2003

The Bush Administration should stay the course and make it clear that Yasser Arafat can play no role in a U.S.-sponsored peace process. The wily Palestinian leader, who rose to power through terrorism, has given ample evidence over the past decade that he will never abandon the violent tactics that have brought him to power. The Bush Administration should break off diplomatic relations with Arafat's Palestine Liberation Organization and close down its offices inside the United States. Washington also should press its European allies to condition continued economic aid to the Palestinians on the creation of a Palestinian Authority that rejects terrorism, combats corruption, and renounces Arafat's disastrous leadership. Ultimately, a genuine Israeli-Palestinian peace is impossible without a fundamentally reformed Palestinian leadership.

James Phillips is a Research Fellow in the Kathryn and Shelby Cullom Davis Institute for International Studies at The Heritage Foundation.

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