4 - The Michigan Daily - Wednesday, October 3, 2001 NATION/WORLD Bush supports Palestinian state WASHINGTON (AP) - The Bush administra- tion made clear yesterday that it foresees the cre- ation of a Palestinian nation as the outcome of any successful Mideast agreement. "The idea of a Palestinian state has always been a part of a vision, so long as the right to an Israeli state is respected," President Bush said. But the first goal, the president said, is reducing the level of violence that has hit the region this year. "I fully understand that progress is made in centimeters in the Middle East," Bush said. "And we believe we're making some progress.", . Peacemaking efforts have new urgency after the Sept. I1 terrorist attacks. An end to Israeli- Arab violence is a priority for the Arab states that Bush has asked to help -in the U.S. fight against terrorism, especially Saudi Arabia, Jor- dan and Egypt. Jordan's King Abdullah II, speaking in his country after meeting with Bush in Washington last week, said he told Bush that a solution to the Israeli-Palestinian conflict - under U.S. sponsor- ship - could lessen terrorism worldwide, remov- ing a key cause taken up by extremists. "I told him that we need a speedy resolution to the Palestinian issue and a quick one, too, for the issue of Jerusalem," Abdullah said in remarks car- ried by the official Petra news agency. Secretary of State Colin Powell and White House spokesman Ari Fleischer denied the presi- dent's position was anything new. U.S. officials have always envisioned a Palestinian state and have been encouraging both sides to end violence, they said. "We were hard at work before the I Ith of Sep- tember on trying to help in the region, and we are hard at work after the I1ith of September," Powell said. But a senior U.S. official said Monday night that the terrorist attacks had temporarily side- tracked a peace initiative by the Bush administra- tion, planned to be made public at a Sept. 24 special session of the U.N. General Assembly that was postponed after the terror attacks. The resumption of high-level talks last week between Israel and the Palestinians, arranged through persistent telephone urging by Powell, has revived the momentum of the U.S. drive, the offi- cial said, speaking on condition of anohymity. State Department spokesman Richard Boucher denied a connection between peace efforts and efforts to stitch together an anti-terror coalition. But he added: "We know that people in the region who are working with us ... we know that they also care about the status of efforts in the Middle East. They welcome the steps that we've tried to take." U.S. officials had viewed the scheduled U.N. meeting as a key moment in peace efforts, Bouch- er said. "And we wanted to make sure it was a moment when there was something positive going on," he said. Boucher denied, though, that a speech outlining a major new peace initiative had been scheduled. In the weeks leading up to that meeting, Powell had begun quietly pressing Israeli Prime Minister Ariel Sharon and Palestinian leader Yasser Arafat to reopen the peace talks that broke down at the end of the Clinton administration. Fleischer said the first step needed in the region was an end to violence, followed by talks on secu- rity between the two sides, and then political talks. "And at the end of the political talks, the vision does include a Palestinian state," Fleischer said. But an influential pro-Israeli group in the Unit- ed States immediately criticized any support for the creation of a Palestinian state. The group, the American Israel Public Affairs Committee, said it was "unthinkable" to give U.S. support for a Palestinian state until Arafat took more action to crack down'on violence against Israelis. Violence in the region ,began a year ago. A cease-fire announced last week is shaky, although both sides say they remain committed to it. Eighteen Palestinians have been killed in the past week by Israeli troops. Last night, a Palestin- ian gunman broke into a Jewish settlement in the Gaza Strip, opening fire and killing two Israeli youths. Fleischer said Bush felt Arafat needed to do more to control violence. "That's why the presi- dent has called on all parties to make a 100 per- cent effort." NEWS IN BRIEF [HEADLINES FROM AROUND THE WORLD l WASHINGTON a. .rf Interest rates cut to lowest in 39 years The Federal Reserve, faced with an economy that went from bad to worse after the terror attacks, cut a key interest rate yesterday by a half-point, driving it down to a level not seen since 1962. The rate cut, the ninth this year, is aimed at getting consumers and businesses - whose confidence has been badly shaken by the Sept. 11 attacks - to spend and invest to keep the economy from becoming even weaker. After a closed-door meeting, Federal Reserve Chairman Alan Greenspan and his colleagues announced they were cutting the target for the federal funds rates, the interest banks charge each other on overnight loans, to 2.50 percent, the low- est level since May 1962. In response, JP Morgan Guaranty, Chase Manhattan and Bank of America were among the commercial banks reducing their prime lending rates, the benchmark for millions of consumer and business loans, by a half-point to 5.50 percent, the lowest since Oct. 3, 1972, when the prime rate matched that level. On Wall Street, stocks rose in a last-minute rally that overcame investors' ini- tially lukewarm response to the Fed's action. The Dow Jones industrial average closed up 113.76 points at 8,950.59, according to preliminary calculations. Nas- daq, meanwhile, rose 11.83 points to 1,492.29. 0 0 WASHINGTON Thurmond collapses in Senate, hospitalized Sen. Strom Thurmond of South Carolina, 98 and ailing, fainted in the Senate chamber yesterday and was staying overnight in a hospital for observation and tests. While Thurmond has been to the hospital several times - including a Febru- ary stay for fatigue'- this was the first time health problems affected him while in the Senate chamber. Thurmond reported feeling weak to colleagues and then slumped over at his desk shortly after 10:30 a.m., said Sen. Ben Nelson (D-Neb.), who was presiding over the Senate at the time. After an aide called for help, the senior Republican was moved to the floor in the aisle between the Senate desks, where Sen. Bill Frist (R-Tenn.), a heart sur- geon, and several medical personnel worked on him for several minutes. "Dr. Frist checked his response and the best way to describe his condition was that he was woozy," said Sen. Wayne Allard, (R-Colo.). AftereThurmond's legs were raised, "he started getting less woozy," Allard said. "Senator Thurmond was conscious the entire time." TODAY is the Annual Study Abroad Fair Michigan Union Ballroom 4 to 6 pm ) Learn about U-M's Study Abroad Programs on 6 different continents! a Get all of your questions answered by former participants, financial aid reps, academic advisors, excharnge students, lp staff, and more! ( Talk to representatives from U-M departments about other international opportunities available to you! 0 0 SARASOTA, Fla. Katherine Harris to run for Congress Florida Secretary of State Katherine Harris, who was vilified by Democrats and feted by Republicans for her cen- tral role in the Florida recount that gave George W. Bush the presidency, announced yesterday that she is run- ning for Congress. "In light of the recent tragedy, I am more committed than ever to serving the president and our nation," she said, referring to the terrorist attacks. "I can't put on a uniform. I can fight for this president in another capacity." Harris, 44, wants to succeed GOP Rep. Dan Miller, who is not seeking a sixth term in 2002. The Democrats, who have yet to field a candidates, reacted with glee, saying they wanted Harris to run so they can use her as their poster girl for everything that was wrong with the election last fall. Har- ris "will help us in our turnout," said state Democratic chairman Bob Poe. BOSTON Logan Aitport takes new security steps Acting Gov. Jane Swift unveiled new security steps yesterday that include a new chief of security at Logan Interna- tional Airport, where hijackers boarded the two planes that smashed into the World Trade Center. State Police Superintendent Col. John DiFava replaces Joseph Lawless, who was reassigned to oversee security at the Port of Boston. "That two of those lanes took off from Logan airport is particularly painful for us,"Swift said. She also announced the creation of a State Police anti-terrorism unit and a new cabinet-level position - Direc- tor of Commonwealth Security - that mirrors President Bush's decision to create an Office of Homeland Security. She urged officials in Washington to federalize security at airports, which is now provided by airlines. WASHINGTON Condit's apartment in D.C. up for sale Rep. Gary Condit's Washington apartment is for sale. The California Democrat and his wife, Carolyn, are asking S130,000 for the one-bedroom, one-and-a-half bathroom top-floor con- dominium in the Adams Morgan neigh- borhood. It has high, ceilings and a washer and dryer and may be seen by appointment only, according to a com- puterized real estate listing. Brian Hong, an agent with Pardoe Real Estate, confirmed that the apart- ment was for sale but declined further comment. Condit has yet to announce whether he will run for re-election. His current term runs through the end of next year. Pictures of Condit entering or leaving the building were staples of news coverage at the height of interest in his relationship with Chandra Levy, a 24-year-old from Modesto, Calif., who disappeared in Washington five months ago. - Compiled from Daily wire reports. 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