RICE: MIDEAST PEACE IN JEOPARDY
By Anne Flaherty

Associated Press
Wednesday October 24, 2007 6:31 PM

WASHINGTON (AP) – Secretary of State Condoleezza Rice said Wednesday
that a "two-state solution" in the Middle East was in jeopardy,
and described a narrow window of opportunity to push Israel and the
Palestinians toward peace.

In a House hearing interrupted by anti-war protesters, Rice said an
upcoming peace conference in Annapolis, Md., is needed to give hope
to moderate Palestinian forces. She blamed Iran for fanning flames
in the region, including what she called "troubling" new support for
Hamas militants.

"Our concern is growing that without a serious political prospect for
the Palestinians that gives to moderate leaders a horizon that they
can show to their people that indeed there is a two-state solution
that is possible, we will lose the window for a two-state solution,"
Rice told the Foreign Affairs Committee.

Rice’s testimony was punctuated by Iraq war protesters, including one
female who rushed Rice as she entered the room and waved her hands –
painted red to look like blood – in front of the secretary’s face. She
shouted that Rice was a "war criminal" and should be taken to the
Hague, a reference to international war tribunals.

Rice was stoic and proceeded with business as normal as the protester
was immediately spirited from the room. Other protesters were likewise
escorted away at the behest of committee chairman Tom Lantos, D-Calif.

Despite the protesters’ effort to focus on the war, the
Israeli-Palestinian conflict and Iran dominated much of the
hearing. Sharp questions included ones from Lantos on whether the
Bush administration was doing enough to pressure Egypt to crack down
on Hamas sympathizers and whether Bush was calling for the peace
conference to salvage his political legacy.

Rice dismissed suggestions that the conference was a political ploy.

"There are probably easier foreign policy tasks to take on than the
Israeli-Palestinian conflict," she said. "The timing comes down to
what it is we need to do to give moderate forces in the region a
boost and to deal a blow to forces of extremism."

The conference has not been scheduled, but should happen by the end
of the year, she said.

She also said the U.S. will ask Congress for more money to support
the Palestinian government. She did not disclose the amount.

On a separate issue, Rice said an emergency State Department review
found serious problems with the way private security guards operate
in Iraq and that more changes to government policy for contractors
may be needed.

Rice said she and Defense Secretary Robert Gates have told their No. 2
officials to study the situation further. Rice has already ordered
two rounds of changes to the rules for security contractors intended
to provide greater oversight from Washington.

On Iran, Rice said the administration shares Congress’ goal of imposing
tougher sanctions. But, she said, a multilateral approach is necessary
and urged lawmakers to work with the administration.

Last month, the House passed, by a 397-16 vote, legislation aimed
at blocking foreign investment in Iran, in particular its lucrative
energy sector. The bill, sponsored by Lantos, would specifically bar
the president from waiving U.S. sanctions.

When asked whether the administration is considering a military strike
in Iran and if Vice President Dick Cheney was leading the charge,
Rice said the administration – including Cheney – is committed to
a diplomatic approach but would not take any of its options off
the table.

Rice said sanctions imposed by the international community, and
companies voluntarily refusing to invest in Iran is the best bet.

"Frankly, the international community has to get a lot tougher if
it’s going to get resolved diplomatically," she said. "The Iranians
are not a state, I don’t think, that will change their behavior just
through talking to them."

On Iranian ties to Hamas, Rice said it was a disturbing new trend.

"To see Iranian actual penetration now of these more radical elements
of the Palestinian terrorist groups is really quite troubling,"
she said.

On other issues:

– Rice said the Iraqis are taking steps to crack down on PKK
fighters in Turkey, including closing PKK offices, stopping the
movement of party members and dispatching a senior delegation to
Turkey. The U.S. has told Turkey that retaliatory attacks would have a
"destabilizing effect," she said.

– Rice cited delicate relations with Turkey as she urged lawmakers
not to pursue a resolution that would label as genocide the killings
of Armenians by Ottoman Turks a century ago. "This is something
that was a horrible event, in the mass killings that took place,
but at the time of the Ottoman Empire. These are not the Ottomans,"
she said of Turkey’s current regime.

– Rice said the U.S. embassy in Iraq will be completed within budget,
at a price tag of $592 million, and that construction delays were
being addressed. She declined to estimate when it would be finished.