Israeli Foreign Ministry spokesman Mark Regev said the US administration had expressed a "vision" for how to move forward on the peace process.
"Israel is totally on board with that vision, and we hope that the new leadership on the Palestinian side will make the implementation of that vision possible," Regev said.
But in Cairo, Islamic Jihad leader Ramadan Shallah dismissed Bush's words.
"Bush is a big liar," Shallah said. "Bush speaks about the details with Sharon and Israel about how to cut the road on Palestinians getting back their rights, and talk about Arabs about generalities and in festivities."
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