Following is an excerpt from the transcript of Bush's news conference containing his comments about the Middle East:

August 24, 2001

Q: Thank you, Mr. President. You mentioned thinking long and hard about these nominations. I'd like to ask you about another long deliberation. The United Nations conference on racism convenes in just one week. Do you want your administration represented there? If so, at what level?

And are the Zionism and reparations agenda items absolutely prohibitive to any U.S. participation?

PRESIDENT BUSH: She's referring to a conference that will be taking place in South Africa.

We have made it very clear, through Colin Powell's office, that we will have no representative there so long as they pick on Israel, so long as they continue to say Zionism is racism. If they use the forum as a way to isolate our friend and strong ally, we will not participate. The secretary of State is working hard to resolve that issue. We've made it very clear from the get-go -- I remember explaining to President Mbeki our position. As I understand, the reparations issue has been solved, at least the last information I had was that that issue has -- looks like it's been resolved.

But the fundamental question is whether or not Israel will be treated with respect at the conference, and if not, then we'll assess prior to the beginning. I'm not exactly sure where we stand at this moment. I do know what our administration's position is, and the position is we will not participate in a conference that tries to isolate Israel and denigrates Israel.

Q: Participate at any level?

PRESIDENT BUSH: That's my feeling.

Yeah?

Q: Mr. President, as long as you're on Israel, as well following up on that. Today the Israelis pushed further into Palestinian territory, attacking two houses in Hebron. So far, the peace talks that were agreed to between Peres and Arafat haven't happened. I know you say that the U.S. is engaged, but Egyptians, Palestinians are calling for more U.S. involvement. What is it going to take for the U.S. to actually get more involved, take more action in order to help find -- bring about peace in the Middle East?

PRESIDENT BUSH: Well, let's start with this. In order for there to be any peace talks in the Middle East, the first thing that must happen is that both parties must resolve to stop violence. The Israelis have made it very clear that they will not negotiate under terrorist threat. And if Mr. Arafat is interested in having a dialogue that could conceivably lead to the Mitchell process, then I strongly urge him to urge the terrorists, the Palestinian terrorists, to stop the suicide bombings, to stop the incursions, to stop the threats.

At the same time, we've worked very closely with Prime Minister Sharon to urge him to show restraint. Terrorism is prevalent now in the Middle East, and the first thing that all parties who are concerned about peace in the Middle East must do is work to stop the terrorist activities. The Israelis will not negotiate under terrorist threat. As simple as that. And if the Palestinians are interested in a dialogue, then I strongly urge Mr. Arafat to put a hundred percent effort into -- into -- into solving the terrorist activity, into stopping the terrorist activity.

And I believe he can do a better job of doing that.

Go ahead. Follow up. Yeah.

Q: Well, then, what's your reaction to the fact that the -- I mean, the Israelis are moving into Palestinian territory again?

PRESIDENT BUSH: My reaction is, is that I would hope that the Israelis would show restraint on all fronts. And we -- we -- we continue to urge restraint with both parties. We're constantly in dialogue. But it requires two willing participants. People have got to make up their mind this is what they want to have happen, in order for there to be the beginnings of peace discussion.

We've got a framework for -- for a peaceful resolution. It's called the Mitchell plan. And our administration, as have most of the world, embraced the Mitchell plan. But in order to get to Mitchell requires there to be a cessation of -- of terrorist activity -- if not a cessation, a hundred percent effort to get to a cessation. And we haven't seen that hundred percent effort yet.

And if what you're -- if what you're asking me is, do we hear the Palestinians' call for discussions, of course we do. But my attitude is, if they are that interested in peaceful dialogue, they ought to do everything they can to stop the terrorist activity that has -- that has accelerated in recent months. And we will see whether or not the will is there.