"I intend to work very hard in the course of this year to create a Palestinian state," U.S. President George W. Bush told President Shimon Peres in their meeting Wednesday afternoon, according to Channel 2.
Regarding the idea of an influx of Arab "refugees" into Israel, Bush told Peres that the creation of a Palestinian state would make that problem moot, since they would have a state to return to.
Peres said the conversation was a "very good" one.