Transcript: President Bush and Jordan's King Abdullah II

BUSH: Yes? 

QUESTION: ... (OFF-MIKE) which will also be articulated in the coming (OFF-MIKE). What will be the role of the United States in the coming (OFF-MIKE)? And when it comes to reform, how would the United States help the Arab world and Jordan, in particular, in the peace process?

BUSH: Well, I appreciate that question. 

First, let's start with Jordan. 

One of the things we've done is enter into trade negotiations with Jordan so that commerce between our countries can flow better. 

It's much easier to reform when there's prosperity, when people are able to see His Majesty's vision about a prosperous future. 

And the other way to encourage reform is to herald examples of reformers, people who are willing to put mechanisms in place that respond to the voice of the people. And His Majesty has done that. 

We look forward to hearing the results of the conference in Algeria. The foreign minister briefed us on His Majesty's plans and the Jordanian government's plans to have accountability measures in place so as to help measure as to whether or not reforms are going forward. 

As for the Palestinian-Israeli issue, the role of the United States will be to continue to urge both parties to make the sacrifices and necessary sacrifice, meaning that Israel must withdraw from the settlements, there must be contiguous territory into which a Palestinian state can grow. 

The Palestinians, on their part, must continue to work hard to fight any terrorist activities within the territories. And the Arab world must continue to work together to help Palestine build the necessary structures for democracy. 

And I believe progress is being made. 

I said in my State of the Union address to our country that I believe peace is within hand and that the United States government would do that which is necessary to help move the process forward. 

One of the things we've done is we've recently sent a general, Your Majesty, to the region to help the Palestinians have an effective security force. 

BUSH: I believe President Abbas is desirous of developing a state that will live side by side with Israel in peace. And we recognize that the Palestinians need help in consolidating security forces and training security forces to defeat the terrorists who would like to stop the march of freedom.