Israeli conflict, the United States and the Kingdom of Saudi Arabia desire a just, negotiated settlement wherein two democratic states, Israel and Palestine, live side by side in peace and security. We will continue our efforts to achieve this objective, and reiterate our support for the efforts of the Palestinian Authority to bring democracy, peace and prosperity to all Palestinians. The United States thanks Crown Prince Abdullah for his bold initiative - adopted unanimously by the Arab Summit in 2002- that seeks to encourage an Israeli- Palestinian and Israel-Arab peace. We believe that an Israeli withdrawal from Gaza and parts of the West Bank will be a significant step forward toward implementation of the Road Map. It is our firm conviction that resolving the Palestinian-Israeli conflict will remove a major source of tension and contribute to stability and progress in the region. --More 0007 Local Time 2107 GMT