President Bush called on Israeli and Palestinian leaders Thursday to make "painful" concessions to reach a peace agreement, including dismantling "terrorist infrastructure" and ending Israel's occupation of Palestinian territories.
"There should be an end to the occupation that began in 1967," Bush told reporters in Jerusalem. "The agreement must establish a Palestine as a homeland for the Palestinian people, just as Israel is a homeland for the Jewish people."
Bush also called on Palestinians to confront terrorists and dismantle "terrorist infrastructure." "Security is fundamental," Bush said. "No agreement and no Palestinian state will be born of terror." Bush also appealed for "Arab countries to reach out to Israel." Watch more on Bush's comments 
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