Bush to Set Out Middle East Policy Next Week

President Bush said yesterday that he would make a declaration on Middle East policy after a round of meetings in the next few days with the leaders of Egypt and Israel.

It is unclear what the statement will say and indeed whether the administration has entirely made up its mind.

But diplomats and observers said they expected Mr Bush to suggest guidelines for Israeli-Palestinian negotiations at a planned international conference in Turkey next month.

Mr Bush told reporters that the statement would be made after meetings with President Hosni Mubarak at Camp David yesterday and today, and the Israeli prime minister, Ariel Sharon, on Monday.

"I'll talk to our country about how I think we should go forward," he said, adding that he had not decided whether he would issue a policy paper or make a speech.

A diplomat said the president's advisers were still weighing up the possible contents of the declaration, including a timetable for the creation of a Palestinian state, the resolution of its borders, the future of Palestinian refugees, and the fate of Jerusalem.

"There are still a lot of points to be decided," the diplomat said. "There is the timeline issue; he could go further in taking a position on boundaries; he could say something fairly clear on settlements."

"There is a trade-off here. How do you say things bold enough to give the process momentum without going so far it closes off lines of negotiation. The critical moment will come when clear distance opens up between this [administration] and the Israelis. Then it's a test of nerves."

Mr Sharon arranged to visit the White House when it became clear that it was planning a policy declaration.

He will seek to persuade Mr Bush not to impose deadlines or give a US commitment to establishing borders based on those which existed before the 1967 war gave Israel the West Bank. The Arab states want those boundaries to be the starting point for talks.

Officials say the one certain element is fundamental reform of the Palestinian Authority, to make it more transparent and to unify its security forces: a process the CIA director, George Tenet is overseeing in the West Bank and Gaza.

"Progress is being made," Mr Bush said. "The Arab world now understands the need to be involved in pushing for peace, and fighting against the terrorist actions that make it very difficult to achieve a peace."

Mr Bush repeated that the Palestinian leader, Yasser Arafat, "needs to cut off the terrorist activities", but Mr Mubarak said before flying to Camp David: "[Mr Arafat] has no control. He has no police, no intelligence. How do you ask him to control that?"