Washington: Amidst a mounting insurgency and hostage-taking spree in Iraq, US President George W Bush and Britain's Prime Minister Tony Blair today (Apr 16, 2004) reaffirmed their commitment to transfer sovereignty to Iraqis on June 30, while endorsing a UN plan for a Government in the war-torn country.

Vowing that they "will not waver" in bringing democracy to Iraq, the leaders in a joint appearance endorsed the plan forwarded by UN special envoy Lakhdar Brahimi on the type of Government that would be formed and whose details are being worked out.

Turning to the issue of Israel Prime Minister Ariel Sharon's plan for withdrawal from Gaza and some of the West Bank settlements, they said the disengagement provide a "historic opportunity" to move forward the road map for creating a viable, Palestinian State.

They also stressed that the support for Sharon's plan in no way prejudices the final status talks between the Israelis and Palestinians.

Both emphasised their determination to fight on until the terrorists are vanquished and to help Iraq become a "stable and prosperous democracy" that would be a symbol of hope for the entire Middle East.

On Brahimi's plan, Bush said, "This week we have seen the outlines of a new Iraqi Government that will take the keys of sovereignty. We welcome the proposals presented by the UN Special Envoy Brahimi. He has identified a way forward to establishing an interim Government that is broadly acceptable to the Iraqi people."

"Our coalition partners will continue to work with the UN to prepare for nationwide elections that will choose a new Government in January of 2005," he said.

"Our nations face a stark choice...Britain and America and our allies can either break our word to the people of Iraq, abandon them in their hour of need and consign them to oppression or we can help them defeat the enemies of a free Iraq and build the institutions of liberty," Bush said.

"Iraq will be free... independent...a peaceful nation and we will not waver in the face of fear and intimidation.

"The past few weeks have been hard and the days ahead will surely bring their own challenges. What we are seeing in Iraq is an attempted power grab by extremists and terrorists. They will fail," Bush said.

"The extremists will fail because our coalition will not allow Iraq's future to be stolen by a violent few. They will also fail because they are not widely supported by the Iraqi people, who have no desire to trade one tyrant for another."

On the planned transfer of sovereignty to Iraqis, Bush said, "One of the essential commitments the coalition has made to the Iraq people is that they will control their own country."

"No citizen of America or Britain would want the Government of their nation in the hands of others and neither do Iraqis. And this is why the June 30 date for the transfer of sovereignty will be kept," Bush said.

"The transfer will demonstrate to the Iraqi people that our coalition has no interest in occupation. On that date the Coalition Provisional Authority will cease to exist. But coalition forces will remain in Iraq to help the new Government succeed."

In response to a question, Blair denied the Sharon plan means an end to Palestinians' dream for statehood. "I don't think that this ends anyone's dream. I think what it does is give us at least the possibility of moving it forward."

Bush said that Sharon had told him that he "supported a Palestinian State. Obviously there is a caveat."

"He wants a peaceful Palestinian State. And he wants somebody who will promote peace, not violence, somebody who is willing to join with a lot of us to fight off terror," Bush said.

"A peaceful Palestinian State that gets help from the world is a State that can help small businesses grow, help an education system develop, help a healthcare system develop, that provides basic services to its people. I think this is a great opportunity," he said.

Bush called upon the Palestinian leadership to "rise to the challenge".

He again said that all final status issues must still be negotiated.