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Source: http://www.whitehouse.gov/news/releases/2008/01/20080109-4.html
Bush in Israel: Palestinian State Cannot Be Launching Pad for Terrorists
[White House] President Bush said in Jerusalem on Wednesday: "We're in conflict with radicals and extremists who are willing to murder innocent people to achieve a dark vision. And this is an historic opportunity for the world to fight those terrorists." "I believe that two democratic states, Israel and Palestine, living side-by-side in peace, is in the best interests of America and the world. I believe it's in the long-term security interests of Israel....[But] there has to be a firm commitment by a Palestinian government to deal with extremists and terrorists who might be willing to use Palestinian territory as a launching pad into Israel....You can't expect the Israelis, and I certainly don't, to accept a state on their border which would become a launching pad for terrorist activities."