7:52am UK, Thursday April 15, 2004

President George Bush has been accused of inflaming the situation in the Middle East after he backed Israel's plan to start the withdrawal of settlements from Gaza and parts of the West Bank.

He was speaking after meeting Israeli Prime Minister Ariel Sharon in Washington.

Leaders held talks

Mr Bush described Mr Sharon's disengagement plan as "historic and courageous" and stressed his commitment to the "security of Israel as a vibrant, Jewish state."

However, Palestinian officials reacted angrily to the development.

Mr Bush added that the final decision over borders for Israel and a Palestinian state would have to be decided by the current realities in the country.

He said "realities on the ground and in the region have changed greatly", meaning it would be "unrealistic" to expect a final peace deal to pull Israel's borders to the armistice lines of 1949.

His words have major implications as they reflect the fact that Israel has many settlers in the West Bank, land which the Palestinians claim is theirs.

They mark a reversal in US policy in the Middle East by endorsing plans for some large Israeli settlements in the West Bank to remain. 

Mr Bush added that Palestinian refugees must settle in an eventual Palestinian state, essentially saying they must give up the right of return to lands in Israel.

Mr Sharon said his plan could create conditions for a resumption of peace talks with Palestinians.

Tony Blair was quick to give his backing to Mr Sharon's plan.

The Prime Minister said: "I welcome Prime Minister Sharon's announcement that Israel intends to withdraw the Israeli Defence Forces from the Gaza Strip and dismantle all Israeli settlements there as well as some in the West Bank."

However, Palestinians officials disagreed and criticised the leaders.

Palestinian Prime Minister Ahmed Qurei said the assurance to Israel that it could keep some West Bank territory was unacceptable.

"Bush is the first US President to give legitimacy to Jewish settlements on Palestinian land. We reject this, we will not accept it."

Meanwhile, senior official Yasser Abed Rabbo said: "Bush and Sharon are trying to protect each others' political future but are endangering the political future of Israel, the Palestinians and the whole region."