Excerpts from Prime Minister Sharon\'s speech to the nation last night:



\"…We are currently in the midst of a difficult campaign forced upon us - a brutal campaign of terrorism… These are not easy times. A rasping cry is heard from some quarters in these days when we must - more than ever - remain calm, reasonable and restrained. When it comes to matters of war and peace, we must not act rashly. There is a time for everything - not too late and not too early. This is the only way to win a war and the only way to achieve sustainable peace.

\"We are a nation that has accumulated vast experience in confronting problems and we have an inexhaustible source of talent and the ability to pull ourselves out. If there is anything that concerns me it is not our ability to confront and solve problems, but the gap between our true capability, and this unfounded doubt that we have in our ability...

\"…The State of Israel is not collapsing and will not collapse. Everything is in our hands, and future developments depend on us - our conduct, our courage. It depends on the attainment of complete unity between us, on forgoing all disputes and personal ambitions, facing the dangers together and striding together toward hope. We… yearn for peace with our neighbors, even at the price of painful concessions. All we seek is to maintain our freedom and our way of life…

\"Unfortunately, our neighbors… fail to understand our domestic disagreements, which are not only the lifeblood of our democracy but also one of the sources of our strength. They are wrong in their estimate that our nation is faltering. Expressions of disobedience naturally encourage terrorist organizations and motivate them to intensify their actions.

\"But they are wrong. The people of Israel are much stronger and resilient than they imagine.

\"…We will not rest until terrorism is eradicated, until the terrorist organizations infrastructure is dismantled and their weapons are confiscated and destroyed. Simultaneously, we will continue to do everything in our power to promote a cease fire - one which will lead, eventually, to a settlement, an agreement, peace.

\"…The political echelon has placed no constraints on the security forces in taking whatever action is deemed necessary to fight terrorism… I strongly reject all the unfounded publicity suggesting that Israel is prevented from taking action because of international pressure. The United States… knows and understands that it is our duty to protect the lives of our citizens.

\"…I will continue to meet with Palestinian officials and… make every effort to avoid escalation and deterioration into an all-out war.

\"To enhance the security of the citizens of Israel, and for the purpose of achieving a security separation, we have decided to establish buffer zones. During a discussion by the \"extended kitchenette\" it was decided to immediately begin marking buffer zones and placing obstacles along them.

\"…My aim is to achieve [an agreement that] will be predicated on two stages. The first stage: an armistice agreement that creates a situation of non-warfare. A complete demilitarization of the Palestinian zone is categorical. The second stage: the permanent settlement that will determine the final borders for ourselves and the Palestinians...

\"It must be remembered that there are no magical solutions, and we must not be duped by false prescriptions proffered by \"experts and commentators.\" Negotiations on a political settlement can only take place after a complete cease-fire…

\"I turn from here also to the Palestinian people to say what I have said in the past - I know that it is not easy being a Palestinian. I turn to those Palestinians who do not want war and are not involved in terrorism. Those Palestinians whose sole purpose is to support their families and afford clothes for their children. You watch us Israelis yearningly, and see Israel\'s many achievements. In the last 53 years Israel has developed flourishing industries and agriculture, among the most advanced in the world; our hi-tech industry will prosper again with the recovery of the world economy; one of the most advanced food industries in the world; modern cities with hundreds of thousands of citizens, education and health systems that are envied across the world… I suggest that you think long and hard what you and your children would want to achieve in the coming years. Will you continue to follow those who lead you to ruin, destruction and despair? Will you continue to be misled by those who call upon your sons to commit suicide, or will you follow those who choose to progress and to thrive?

\"Today I promise you all, Jews and Arabs alike, when quiet prevails and you stop encouraging hatred, we will all prosper.

\"…As I have stated in the past, restraint is strength. I am telling you today - determination is also strength. We have proven this to be true. We are having a difficult time - I am having a difficult time - but I am asking you to continue to live by those principles today. The economic and security situations are not easy, but together - only together - we can overcome them.

\"…I would also like to turn to those who are talking about a collapse, despair and loss of hope. This is not the time to utter words of disaster - it is the time to stand firm and united and assist wherever you can. This is the time for demonstrating the unity that is at the core of the character of the Jewish people. This is the time to demonstrate that we are proud to be Israelis and Jews in the Land of Israel…

\"We will always continue to aspire for peace - [but] our war against those who are trying to destroy our people will continue to be painful and uncompromising. We have always stood united in our common goal, and when we reach a cease-fire that will bring quiet - then we will be able to talk peace.\"