The New Nation - Internet Edition

AFP, Washington

US President George W. Bush assured Palestinian leader Mahmud Abbas Thursday he was "confident" about reaching an agreement on creating a Palestinian state before he leaves office.

"I assured the president that a Palestinian state's a high priority, for me and my administration-a viable state, a state that doesn't look like Swiss cheese, a state that provides hope," said Bush, whose terms ends in January.

During brief statements in the Oval office, Abbas thanked the US president for reviving stalled Middle East peace talks at a November peace conference in Annapolis, Maryland, but warned "we are in a race against time." "We believe that you actually are truly seeking a true, genuine and lasting peace in the Middle East. And I am certain that you would like to see an agreement and settlement before the end of your term," said Abbas, to which Bush nodded in agreement. The negotiations are due to tackle some of the toughest issues in the Israeli-Palestinian conflict including the fate of Jerusalem and Palestinian refugees, and what to do about Jewish settlements on the West Bank.

But Abbas suspended the fortnightly talks at the beginning of March after an Israeli military operation in Gaza killed more than 130 people. They were only renewed earlier this month. The situation has also been complicated by the violence in Gaza, which is run by Hamas militants, who seized control of the region last year.

Bush and Abbas agreed the peace project faces daunting obstacles, but expressed confidence that the two sides can, by year's end, at least agree on what a Palestinian state would look like.