President Bush spent a busy three days in Israel last week. He visited with Olmert and Abbas, toured some important sites, and gave a number of key speeches. Here’s one where he discusses new proposals for advancing the peace process.

Watch the video of Bush’s speech here.

THE PRESIDENT: Good afternoon. I’d like to, first, thank Prime Minister Olmert and President Abbas for their hospitality during my trip here to the Holy Land. We had very good meetings, and now is the time to make difficult choices.

I underscored to both Prime Minister Olmert and President Abbas that progress needs to be made on four parallel tracks. First, both sides need to fulfill their commitments under the road map. Second, the Palestinians need to build their economy and their political and security institutions. And to do that, they need the help of Israel, the region, and the international community. Third, I reiterate my appreciation for the Arab League peace initiative, and I call upon the Arab countries to reach out to Israel, a step that is long overdue.

In addition to these three tracks, both sides are getting down to the business of negotiating. I called upon both leaders to make sure their teams negotiate seriously, starting right now. I strongly supported the decision of the two leaders to continue their regular summit meetings, because they are the ones who can, and must, and — I am convinced — will lead.

I share with these two leaders the vision of two democratic states, Israel and Palestine, living side by side in peace and security. Both of these leaders believe that the outcome is in the interest of their peoples and are determined to arrive at a negotiated solution to achieve it.

The point of departure for permanent status negotiations to realize this vision seems clear: There should be an end to the occupation that began in 1967. The agreement must establish Palestine as a homeland for the Palestinian people, just as Israel is a homeland for the Jewish people. These negotiations must ensure that Israel has secure, recognized, and defensible borders. And they must ensure that the state of Palestine is viable, contiguous, sovereign, and independent.

It is vital that each side understands that satisfying the other’s fundamental objectives is key to a successful agreement. Security for Israel and viability for the Palestinian state are in the mutual interests of both parties.

Continue reading the transcript…