It's being called a "historic declaration," but many Israelis can't understand what's so historic about it. U.S. President George Bush said this evening that the solution to the problem of the Arab "refugees" must be found in the "Palestinian" state and not in Israel. "It seems clear," Bush said, "that an agreed, just, fair and realistic framework for a solution to the Palestinian refugee issue as part of any final status agreement will need to be found through the establishment of a Palestinian state and the settling of Palestinian refugees there, rather than Israel."



The U.S. President further said, "It is not realistic to expect that Israel must return to the armistice lines of 1949 as part of the solution."



Islamic Jihad, one of the three leading Palestinian terror groups, reacted, "Bush and Sharon will have to share the responsibility for the renewal of the cycle of terrorism."



Yehoshua Mor-Yosef, the diplomatic secretary of the Yesha Council, said, "He said nothing new. He didn't address one of the main issues, which is how is Israel to deal with the terrorism that is sure to increase after an Israeli withdrawal. It's not me saying this; it's the Chief of Staff Lt.-Gen. Moshe Yaalon, and the head of the Shabak, and the head of IDF Intelligence, and almost every single general in the IDF. I think we should listen to these military experts."



MK Tzvi Hendel (National Union) said that the only thing Bush clarified was that an evacuation from Gaza would be only the first step of a continuing process that would require more and more concessions from Israel in the future.



National Religious Party leader Effie Eitam said, "All the word-plays and intentions that we heard in Washington do not provide an answer to the security dangers and to the unbearable economic price of this plan. The expulsion of thousands of Jews from their homes will create a national trauma."



MK Sha'ul Yahalom (NRP) noted that the Palestinian Authority's reaction to Sharon's "peace plan" was to threaten more terrorism.



Ron Nachman, Mayor of Ariel in the Shomron, said, "We're giving real estate, according to Sharon's plan, and we get words in return. There is no guarantee that the President's words will be honored in Congress. This is a dangerous precedent; tomorrow someone will come along and say that we should give away another 'small' strip of land from Rosh Ha'ayin to Ariel, and we'll be told that we can't give up the chance for real peace for the entire region just because of a few thousand people..."



Bush praised Sharon and said he had taken "courageous and historic actions." It had widely been predicted that Bush would heap praise upon Sharon in order to prop up his domestic standing and increase his standing among the Likud members. The nearly 200,000 Likud party members are to vote on the unilateral withdrawal plan 18 days from now.



Extreme left-wing MK Yossi Sarid said that Sharon had failed to "come up with the goods" from Bush. Though he supports a withdrawal from Gaza, Sarid has no plans to join a Sharon-led government. Labor MKs, on the other hand, are potential members of a future Sharon government - and their reactions to today's developments are therefore more politically significant. "Bush's speech corresponds almost exactly to Labor's position," said Labor leader Shimon Peres - leaving the door open to future political cooperation with Sharon.



The "realities on the ground and in the region have changed greatly," said Bush, "and this must be reflected in any future peace agreement." Bush thus hinted that Israel would not have to give up all the Yesha communities - but did not come near meeting Sharon's request for a recognition for six settlement blocs such as Gush Etzion. He said that Israel's retention of certain communities must be negotiated in the final-status agreement with the Palestinian Authority.



Bush mentioned that the "two sides, the Arab nations, Israel and the Palestinians, should fight terrorism."



Pinchas Wallerstein, head of the Binyamin Regional Council in southern Shomron, said, "The Prime Minister has created a fissure in Israeli society." Wallerstein said that Bush had not fully accepted the three conditions set by Finance Minister Binyamin Netanyahu, and therefore, "the question is will Netanyahu support Sharon in any event."