Military

DATE=06/25/02

TYPE=CORRESPONDENT REPORT

TITLE=BUSH/U-N REACT (L-O)

NUMBER=2-291400

BYLINE=ELAINE JOHANSON

DATELINE=UNITED NATIONS

CONTENT=

VOICED AT:

INTRO: U-N Secretary General Kofi Annan expressed caution about President Bush's proposal for new Palestinian leadership to replace Chairman Yasser Arafat. V-O-A correspondent Elaine Johanson reports from U-N headquarters in New York:

TEXT: Mr. Annan urged Israelis and Palestinians "to muster the courage and political will" to reach a final peace settlement within three years, as President Bush suggested. At the same time, he warned against insisting on a speedy departure for Yasser Arafat, indicating that what some may consider questionable leadership is better than no leadership at all:

///ANNAN ACT///

There has been a call for new Palestinian leadership. What happens between now and until the new leadership exists? Do we work with the government that we have, or do we create a vacuum? These are issues that I think are on everybody's mind and we need to work out.

///END ACT///

The Secretary-General also suggested that elections to replace Mr. Arafat might be premature at this point:

///ANNAN ACT///

Can you hold elections in the current atmosphere? And, of course, Senator (George) Mitchell's concerns are something that we should take seriously. The time for the elections is not optimal. You could find yourself in the situation that the radicals are the ones who get elected. And it would be the result of a democratic process. And we have to accept that.

///END ACT///

Secretary-General Annan believes these issues have to be worked out before any plan is set in motion.

Mr. Annan is part of the so-called "quartet" that meets regularly to try to promote a negotiated settlement in the Middle East. The group also includes the United States, Russia and the European Union.

///REST OPT///

Mr. Annan says he intends to discuss the controversial points of the Bush plan, probably as early as this week, when he meets his diplomatic counterparts at the G-eight summit in Montreal. (Signed)

NEB/NY/EJ/SAB