Washington: United States Secretary of State Colin Powell on December 12 held out hope of a Democratic and viable Palestinian state living side by side with Israel by 2005.

Powell, who was speaking at the Heritage Foundation, a major think tank, called however, for "a new and different" Palestinian leadership to make that possible.

He began by referring first to the Iraq issue, stressing, "The Iraqi regime can either disarm, or be disarmed. The choice is theirs – but it can no longer be postponed."

"We have also a deep and abiding national interest in bringing the Israeli- Palestinian conflict to an end," he said.

"With our friends in the region and the international community, we are working to bring about a lasting peace based on President Bush's vision of two States, living side by side, in peace and security.

"This peace will require from the Palestinians a new and different leadership, new institutions, and an end to terror and violence. As the Palestinians make progress in this direction, Israel will also be required to make hard choices, including an end to all settlement construction activity, consistent with the Mitchell report," Powell said.

"As President Bush has stated, with intensive effort by all, the creation of a Democratic, viable Palestinian State is possible in 2005."

The ultimate goal of the US, said Powell, is a just and comprehensive Arab-Israeli settlement, in which all the peoples of the region are accepted as neighbours, living in peace and security."

He said the US will pursue these goals with "energy and determination".

PTI