Bush ready to support interim Palestinian state

Momentum is building for President George Bush to announce his peace plan for the Middle East, possibly supporting the declaration of an interim Palestinian state.

Mr Bush is to unveil his proposals next week. Yesterday he met Prince Saud al-Faisal, the Saudi Foreign Minister, and "exchanged a variety of ideas". He has already met Ariel Sharon, the Israeli Prime Minister, and Hosni Mubarak, the Egyptian President.

Mr Bush may announce his support for the declaration of an independent Palestinian state in an effort to improve the situation in the Middle East. Despite his lack of trust in the Palestinian leadership, Mr Bush seems certain to support the rebuilding of key Palestinian institutions and the revival of talks between the Palestinians and Israel.

Prince Faisal said: "I was very pleased with what I heard from the President." Speculation about Mr Bush's proposals has been mounting since Colin Powell, the Secretary of State, said this week that an interim state might have to be established. In comments that some observers interpreted as evidence of a rift between Mr Bush and General Powell, the White House said the Secretary's suggestions were not official policy.

Arriving in Canada for the G8 summit, General Powell appeared to soften his stance, saying: "What I have been doing is trying to help the press and the public understand the advice that the President has been receiving." But while General Powell's comments may have been somewhat premature, he and Mr Bush seem to be essentially in agreement. Mr Bush announced last year his belief that a two-nation solution was the only credible option. There were unconfirmed reports he had already told Mr Sharon of his intention to announce support for an interim state.

In the Middle East, General Powell's comments received a cautious response. Saeb Erekat, a Palestinian negotiator, said: "I don't know what he means by that. The main thing is to end the Israeli occupation."