His Majesty King Abdullah and US President George W. Bush on Thursday said Palestinian-Israeli final status issues should not be prejudiced, and should be mutually agreed upon by the two sides.



Urging Israel to withdraw from the territory it occupied in the 1967 war, Bush told a joint press conference that final status issues must be negotiated against the backdrop of UN Security Council resolutions.



"The US will not prejudice the outcome of those negotiations," Bush said yesterday in a letter to King Abdullah. His remarks were regarded as a break away from last month's assurance to Israeli Prime Minister Ariel Sharon, supporting the Jewish state's retention of some settlements in the West Bank, and a clear indication that the King has put the peace process back on track.



"I am encouraged by what I heard from you [Bush] today that these issues are not to be prejudiced, and should be mutually agreed by the parties," King Abdullah said. "Jordan believes all final status issues, including borders, refugees, Jerusalem and settlements should be a matter for the parties to decide," he added.



The King stressed that a viable, sovereign and independent Palestinian state on the basis of the 1967 borders was important to the region and within Jordan's national interest. "Failing to achieve such an outcome will invoke other options, all of which will endanger my country's interests and that of the region. This is one of the reasons why Jordan insists on a two-state solution, and why it supports the roadmap as the mechanism to get there," the King said. He reiterated Jordan's commitment to a final and comprehensive permanent status agreement based on the foundations of the Madrid conference, the principle of land-for-peace, UN Security Council resolutions 242, 338 and 1397, as well as agreements reached by both sides, and the Arab peace initiative.



Insisting that any unilateral Israeli withdrawal from Gaza and the West Bank should be part of the Quartet-backed roadmap, King Abdullah said Jordan was ready to help the Palestinian Authority rebuild its capability and assume full control of the security situation.



Bush said during the press conference he was sending a letter to Palestinian Prime Minister Ahmed Qureia to explain his administration's views on Middle East peace prospects. "We will expand dialogue between the US and the Palestinians," he added.



Thursday's talks were regarded as positive indications that quelled fears by Arab states that final status issues would not be prejudiced by Sharon's controversial disengagement plan.



Bush had surprised the international community, and angered Arab states, by embracing Israel's pullout plan and rejecting a longstanding Palestinian and Arab demand that refugees be allowed to return to land they lost to Israel.



According to analysts, US' one-sided negotiations with Israel over the situation in the West Bank and Palestinian territories were unacceptable and carried dangerous repercussions for the entire region. The statements were regarded as undermining the Palestinians egotiating position and marred US credibility as a peace broker. They said the US had no right to decide on behalf of the Palestinians and Arab states.



Last month, the King postponed a meeting with Bush in Washington, seeking clarifications of the US administration's position on the Israeli-Palestinian conflict.



Jordan had reportedly requested assurances, similar to those given to Israel, guaranteeing the right of return to Palestinians. The Kingdom hosts more than 1.7 million Palestinian refugees.



"The leadership of the United States is crucial in all our efforts to reach a just and lasting peace in the Middle East," the King said, expressing concern over the critical phase the region was witnessing. "It is very important for the moderate voices seeking peace in our region to prevail, so that we can break out of the cycle of violence which has held us back for too long, and put the region on a new path to stability and prosperity," the Monarch said during the conference.



He said Jordan was ready to shoulder with the US and the international community the common fight against terrorism, adding that terrorists' political agendas should not be allowed to succeed.



He expressed Jordan's commitment to Iraqis' quest to regain their sovereignty, rebuild their institutions, and establish a society based on freedom and democracy. He also spoke of Jordan's political and economic reform process, saying a far-reaching plan addressing the key areas of good governance, political freedoms, women's rights, judicial reform, educational reform and the liberalisation of the economy was introduced.



The King also met with US Secretary of State Colin Powell, National Security Adviser Condoleezza Rice and other senior administration officials.