UPDATE 5-Bush says committed to Middle East peace efforts

Reuters: [2008-05-17 19:23:00]

(Updates throughout with Bush, Abbas, Gheit comments)

By Matt Spetalnick and Tabassum Zakaria

SHARM EL-SHEIKH, Egypt, May 17 (Reuters) - U.S. President George W. Bush, responding to Arab dismay about his praise for Israel, said on Saturday he was confident a deal on Palestinian statehood could be reached before he leaves office.

Despite scepticism over his chances of securing a peace agreement by the end of his term in January, Bush expressed optimism that a deal could be done.

Speaking after a meeting with Palestinian President Mahmoud Abbas in the Red Sea resort of Sharm el-Sheikh, Bush said he told Abbas that he was "absolutely committed" to working with Palestinians and Israelis to get a Palestinian state defined.

"I do so for a couple of reasons. One, it breaks my heart to see the vast potential of the Palestinian people really wasted," he said.

"It'd be an opportunity to end the suffering that takes place in the Palestinian territories," Bush said. "And the second reason I'm for it is because it's the only way for lasting peace."

Palestinians say the Israeli occupation in the West Bank has created great hardship for them.

Abbas did not mention Bush's speech to Israel's parliament on Thursday in which he heaped praise on Israel but made only one reference to Palestinians' aspirations for a state of their own.

"We know very well that you personally as well as your administration are committed to reach peace before the end of 2008," Abbas said. "We are delighted to continue our engagement with you."

Bush, who will address Palestinian issues in a speech Sunday to the World Economic Forum, said the creation of a Palestinian state would be "an opportunity to end the suffering in the Palestinian territories."

ANNIVERSARY VISIT

Egyptian President Hosni Mubarak had raised the issue of Bush's speech to the Knesset in a meeting earlier on Saturday.

"We detect on the American side some optimism and we told them that we have the same information but it is results that will reveal whether this progress which the parties speak of is real," Egyptian Foreign Minister Ahmed Aboul Gheit told reporters.

"Time will tell how able the U.S. administration is to achieve its objectives but we must keep trying. We cannot leave the Palestinians in this tragic situation which we see in Gaza, or the West Bank," he said.

On the way from the airport on the last leg of his Middle East tour, Bush's motorcade passed a "peacemakers" mural on the side of the road, a reminder of past efforts on diplomacy in the region by his predecessors.

Bush's visit to Israel to celebrate its 60th anniversary raised fresh doubts in the Arab world over his ability to act as an even-handed broker between Israel and the Palestinians.

He hailed Israel as a "homeland for the chosen people" and pledged that Israelis could forever count on American support against enemies like Hamas and Iran.

Abbas, who wants Bush to put more pressure on Israel, has little leverage and is weak at home, governing only in the West Bank while the Islamists of Hamas control Gaza.

Israeli Prme Minister Ehud Olmert is also on the ropes, facing a corruption scandal that could force his resignation and possibly derail the peace process altogether.

Bush's Middle East tour, his second this year, follows a U.S.-hosted conference in Annapolis, Maryland, in November where Israeli and Palestinian leaders pledged to try to reach a peace agreement by the end of Bush's term.

Since then, talks have bogged down over Israeli settlement expansion in the occupied West Bank and violence in and around the Gaza Strip, where Hamas cross-border rocket fire has triggered a tough Israeli military response.

(Additional reporting by Jonathan Wright; Editing by Keith Weir) ((Reuters Messaging: matt.spetalnick.reuters.com@reuters.net; +1 202 898 8300, fax +1 202 898 8383))

Keywords: BUSH MIDEAST/

WRAPUP 5-Lebanese leaders tackle core issues at Qatar talks

Reuters: [2008-05-17 17:25:00]

* Committee makes progress on election law

* Sheikh Hamad holds consultations on government set-up

(Adds details)

By Nadim Ladki

DOHA, May 17 (Reuters) - Rival leaders tackled divisive issues at the heart of Lebanon's political crisis on Saturday at Qatari-mediated talks aimed at pulling their country back from the brink of civil war.

Government and opposition leaders left a conference room separately in the morning, after 90 minutes of tense talks ending a standoff that has paralysed the government for 18 months and left Lebanon with no president since November.

Delegates said a six-member committee established at that session and asked to lay a framework for a new election law had already made progress.

Qatari Prime Minister Sheikh Hamad bin Jassim bin Jabr al-Thani is holding consultations to bring rival leaders closer to a deal on the framework for a new government.

"The impression, thank God, from the session, shows the desire among all the factions to reach an understanding ... that will bring us to the beginning of a solution to this crisis," Prime Minister Fouad Siniora told Voice of Lebanon radio.

"We have to have faith and trust that we will do the impossible until we find solutions to this difficult stage that Lebanon has faced the past two weeks."

On Thursday, Arab mediators reached a deal to end Lebanon's worst internal fighting since the 1975-1990 civil war and create a framework for the talks hosted by Qatar.

The clashes killed 81 people and worsened sectarian tensions between Shi'ites loyal to Iranian-backed Hezbollah and Druze and Sunni followers of the U.S.-supported ruling coalition.

Washington blames Syria and Iran for Hezbollah's brief seizure of parts of Beirut last week which forced the government to rescind two decisions that had triggered the escalation.

The opposition has demanded more say in a cabinet controlled by factions opposed to Syrian influence in Lebanon.

The ruling coalition's refusal to yield to the opposition's demand for veto power in cabinet triggered the resignation of all Shi'ite ministers in November 2006, crippling a political system build around the delicate sectarian balance.

HEZBOLLAH WEAPONS

Power-sharing in a new government and the basis of an election law are the core issues on the agenda. The ruling coalition also raised the matter of Hezbollah's weapons after the anti-Israel group turned its guns against political rivals.

Delegates said politicians from the Western-backed camp and Hezbollah had got into a heated debate over the prickliest issue and the one that led to the recent clashes -- Hezbollah's arms.

Sheikh Hamad intervened to end that debate, which he said should be postponed until after a deal is clinched to end the political stalemate and allow for the election of a president.

Hezbollah says its arms are meant to protect Lebanon against its Israeli foe. Opponents, trounced in the fighting, argue they undermine the sovereignty of the state.

"There is a real will on all sides; everyone lost with what happened. The winner (Hezbollah) is the bigger loser, because it opened up the important issue of the use of weapons," said Michel Pharaon, a minister in the U.S.-backed government.

"It is imperative that there be discussions on the sovereignty of the state ..."

There has been no deadline set for the talks but some politicians said a deal could be reached within a few days.

"The issue is not simple," government minister Ahmad Fatfat said. "Everyone will work day and night to reach a solution."

Syria, which backs the opposition and is an ally of Iran, said it supported the Qatari-led Arab League initiative. The anti-Damascus factions have long accused the opposition of seeking to restore Syrian domination over Lebanon, which ended in 2005 when Syria withdrew its troops in the face of international pressure and Lebanese protests.

Saudi Arabia, a strong backer of the ruling coalition, also stated its support for the deal.

A deal would lead to the election of army commander General Michel Suleiman as president. Both sides have accepted his nomination for a post reserved for a Maronite Christian in Lebanon's sectarian power-sharing system. (Additional reporting by Yara Bayoumy in Beirut, Writing by Nadim Ladki and Lin Noueihed) ((for a factbox outlining the disputes, click on [nL16555975]))

Keywords: LEBANON/

Jordan says pirates attack ship off Somalia

Reuters: [2008-05-17 17:18:00]

AMMAN, May 17 (Reuters) - Jordanian authorities lost contact with a Jordanian-flagged ship off Somalia on Saturday and suspect it was attacked by pirates, a Jordanian official said on Saturday.

"It is believed that the ship was subjected to piracy," Jordan's state news agency Petra quoted Minister of Transportation Alaa Batayneh as saying.

He said the ship "Victoria", owned by a United Arab Emirates company, was carrying 4,200 tons of sugar from Denmark in humanitarian assistance to the Somali capital Mogadishu.

Authorities lost contact with the ship while it was making its way from India to Mogadishu. The crew of around 12 people included Pakistani, Indian, Bangladeshi and Tanzanian nationalities, Batayneh said.

Piracy is common in the waters off Somalia.

Under an agreement with Jordan, Denmark provides protection to ships carrying the Jordanian flag in Somali waters.

Last month four countries introduced a draft resolution at the U.N. Security Council urging maritime powers to fight piracy off Somalia's coast and authorizing them to arrest pirates in Somali waters.

The resolution is aimed at combating a surge in ship hijackings for ransom in the waters off the coast of lawless Somalia that have made them one of the world's most dangerous shipping zones. (Writing by Dina al-Wakeel; editing by Philippa Fletcher; Amman Newsroom +9626 4623776)

Keywords: JORDAN SOMALIA/SHIP

UPDATE 2-Kuwaitis go to the polls, economy tops agenda

Reuters: [2008-05-17 16:36:00]

(Adds turnout, fresh quotes)

By Ulf Laessing and Rania El Gamal

KUWAIT, May 17 (Reuters) - Kuwaitis voted in a parliamentary election on Saturday that they hoped would bring in fresh faces able to bury political feuds and push through economic reforms.

Some 275 candidates are running for the 50-seat National Assembly, among them 27 women hoping for their first success after failing to win a single seat in 2006.

Women won the right to vote and stand for office in 2005 but face an uphill struggle attracting voters in a Gulf Arab country where many still believe a woman's place is in the home.

"I'm against women in parliament. I think everybody should stay in his place," said Samira al-Azm, a voter in her fifties.

Nearly 362,000 Kuwaitis, over half of them women, are eligible to vote, but polling got off to a slow start on a hot, dusty weekend. By noon an average 25.6 percent of voters had cast their ballots, state new agency KUNA said.

Kuwait's ruler, Sheikh Sabah al-Ahmad al-Sabah, dissolved parliament in March to end a standoff with the cabinet that had delayed economic reforms aimed at preparing Kuwait for the era when its vast oil reserves run out.

The last assembly focused on questioning ministers over their conduct, forcing several to resign. The OPEC producer has yet to appoint an oil minister since the last quit in November.

Amid the political squabbles, reforms such as a bill to attract foreign investment were left on the back burner.

"I expect many of the old assembly not to make it. Their performance was not good enough. They were pursuing their own interests, not solving Kuwait's problems," said Hanaa, 33.

REFORM HOPES

Kuwait's bourse, the second-largest in the Arab world, rose after parliament was dissolved on hopes the new chamber would be more business-friendly but has since shed some of its gains.

"Investors now want to see some action," said Mustafa Behbehani, a director at Gulf Consulting Co in Kuwait.

The two-month campaign has been marred by protests, arrests and confusion after a new law redrew electoral districts to ensure a more balanced representation in a parliament that has tended to be dominated by Islamist blocs and tribal alliances.

Candidates have also been detained on vote-buying allegations and, under the new rules that have cut the number of constituencies from 25 to five, no one can predict who will win.

Analysts said the main Islamist and tribal blocs would do well in the enlarged districts where independents may struggle.

"They will enter the parliament. They are a big part of the society," said Amani Bouresli, a finance professor at Kuwait University. "But we expect a big change, almost 40-50 percent change, because of the five constituencies. There will a change in the faces but not in the formation of the assembly."

Kuwait, which sits on 10 percent of the world's oil, wants to wean its economy off energy exports and emulate the success of neighbours like Dubai and Bahrain which have transformed themselves into financial centres and tourist destinations.

Oil makes up over 90 percent of Kuwaiti government revenues and 55 percent of the gross domestic product in 2006, according to official data. That compares to 3 percent of GDP in Dubai.

Part of the problem is that ordinary Kuwaitis oppose reforms that would cut their benefits. They pay no taxes and are content with state jobs and handouts and free health and schools.

Many Kuwaitis are also fed up with a state which, despite its oil wealth, allows roads, hospitals and schools to crumble.

Reforms will be even harder to push through with global food prices rising and inflation at a record 9.5 percent in January. (for more Kuwait elections see factbox on reform [L17396506], factbox on political system [nL17415668] and facts on Kuwait [nL13895566]) (Editing by Lin Noueihed and Philippa Fletcher) ((+965 246 03 50, ulf.laessing.reuters.com@reuters.net))

Keywords: KUWAIT ELECTIONS/

UPDATE 4-Bush says committed to Middle East peace efforts

Reuters: [2008-05-17 16:30:00]

(Updates with Bush comments throughout)

By Matt Spetalnick and Tabassum Zakaria

SHARM EL-SHEIKH, Egypt, May 17 (Reuters) - U.S. President George W. Bush said on Saturday he remained confident a deal on Palestinian statehood could be achieved before he leaves office, as he sought to ease Arab doubts about his commitment to even-handed peacemaking.

In the Red Sea resort of Sharm el-Sheikh for the final stop of his Middle East tour, Bush faces growing scepticism over his chances of securing an Israeli-Palestinian peace deal before he leaves office in January.

Egyptian President Hosni Mubarak, in a private meeting with Bush, sought reassurances that the U.S. president was firmly committed to the peace process and would work hard toward the goal of a Palestinian state.

"In my speech tomorrow I'll make it clear that I believe that we can get a state defined by the end of my presidency, and we'll work hard to achieve that objective," said Bush, who is due to address the World Economic Forum on Sunday.

Standing next to Afghan President Hamid Karzai, with their backs to the Red Sea, Bush sought to ease Arab concerns that Palestinians were slighted during his three-day visit to Jerusalem where he lavished praise on Israel.

Bush said he had spoken with Prime Minister Ehud Olmert and other Israeli officials in Jerusalem about his Middle East peace goals, and will hold discussions with Palestinian President Mahmoud Abbas later on Saturday.

"Every one of these meetings helps advance the process," Bush said.

"Every one of these meetings helps us inch toward the goal of getting a state defined with borders and the refugee issue, as well as security concerns defined by the end of my presidency," he said. "And I believe we can do that, and I know it's going to be important for the peace in the Middle East."

On the way from the airport, Bush's motorcade passed a "peacemakers" mural on the side of the road, a reminder of past efforts on Middle East diplomacy by his predecessors.

PALESTINIAN TALKS

Palestinians were dismayed that Bush, in his speech to Israel's parliament on Thursday, made only one reference to their aspirations for a state of their own and did not use the occasion to press Israelis to make compromises.

Bush's visit to Israel to celebrate its 60th anniversary raised fresh doubts in the Arab world over his ability to act as an even-handed broker between Israel and the Palestinians.

He hailed Israel as a "homeland for the chosen people" and pledged that Israelis could forever count on American support against enemies like Hamas and Iran.

Abbas will make his case for Bush to put more pressure on Israel, but he has little leverage and is weak at home, governing only in the West Bank while Hamas controls Gaza.

Olmert is also on the ropes, facing a corruption scandal that could force his resignation and possibly derail the peace process altogether.

Bush's Middle East tour, his second this year, follows a U.S.-hosted conference in Annapolis, Maryland, in November where Israeli and Palestinian leaders pledged to try to reach a peace agreement by the end of Bush's term.

Since then, talks have bogged down over Israeli settlement expansion in the occupied West Bank and violence in and around the Gaza Strip, where Hamas cross-border rocket fire has triggered a tough Israeli military response.

Bush has voiced optimism that a deal can be reached as he tries to carve out a foreign policy legacy beyond the unpopular war in Iraq.

Israelis gave Bush a hero's welcome, many seeing him as the best friend the Jewish state has ever had in the White House.

Critics said Bush showed insensitivity by heaping praise on Israel on the day Palestinians annually mark what they call the "Nakba," or catastrophe, when some 700,000 Arabs fled or were forced from their homes during the war over Israel's creation.

"He should have told the Israelis no one can be free at the expense of others," Palestinian negotiator Saeb Erekat said. "He missed this opportunity and we are disappointed." (Editing by Matthew Tostevin) ((Reuters Messaging: matt.spetalnick.reuters.com@reuters.net; +1 202 898 8300, fax +1 202 898 8383))

Keywords: BUSH MIDEAST/