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With Israel defying him, President Bush called Prime Minister Ariel Sharon on Saturday to express "deep concern" about the escalating Israeli offensive in the West Bank. The president said Israeli forces must withdraw immediately.

Mr. Bush's blunt message to Sharon in a 20-minute phone conversation reinforced what the president said at a news conference just hours earlier.

In Israel, Sharon's office said the prime minister told Mr. Bush that Israel would expedite its offensive in the West Bank and that Israel "is conscious of the American desire to see the operation ended quickly."

Government spokesman Danny Seaman said Mr. Bush and Blair "are among the greatest supporters of the state of Israel. Therefore, we give a lot of weight to their opinions. At this point our mission continues. We will try to conclude it as quickly as possible," Seaman added.

A senior administration official, speaking on condition of anonymity, said Mr. Bush wanted action - not just words - from Sharon.

Mr. Bush warned that delay could undermine Secretary of State Colin Powell's upcoming peace mission to the region, a senior administration official said.

"The president urged Ariel Sharon to withdraw so the peace mission can succeed," the official said, adding: "He told the prime minister that he meant what he said, that Israel needs to withdraw without delay. He told the prime minister Israel needs to make progress now."

The terse exchange of official statements came shortly after a joint news conference with Mr. Bush and British Prime Minister Tony Blair, the president's staunchest overseas ally.

In addition to intensifying pressure on Sharon, the leaders agreed the world would be better off without Saddam Hussein's regime, but said they have not settled on a way to deal with the Iraqi president.

"I can't imagine people not seeing the threat and not holding Saddam Hussein accountable for what he said he would do," Mr. Bush said of Saddam's pursuit of weapons of mass destruction. "And we're going to do that."

Mr. Bush was answering critics, including European allies and even members of Blair's own Labor Party, who do not want the U.S. military to try to overthrow Saddam.

During the news conference, Mr. Bush again called on Israel to withdraw "without delay" from Palestinian cities it has occupied in its military campaign and insisted yet again that the Palestinian leadership order an immediate cease-fire and crack down on terrorist activity.

"My words to Israel are the same today as they were a couple of days ago: withdraw without delay," Mr. Bush declared.

Despite Mr. Bush's demand Thursday that Israel withdraw from Palestinian areas as a precursor to a truce, fighting spread Saturday and there more deaths in both the West Bank and Gaza.

"I don't expect them to ignore. I expect them to heed the call, heed the call from their friends the United States, and heed the call from their friends, the people of Great Britain and the leadership of Great Britain," Mr. Bush said.

Blair said: "I think that most people in Israel will realize that they don't have two greater friends in the world than the United States of America or Britain. And we both understand, as well, the appalling nature of the acts of terrorism that they have been subject to."

Mr. Bush continued to pressure Palestinian President Yasser Arafat, saying he had failed the test of leadership by not halting Palestinian attacks against Israel.

In his opening statement, Mr. Bush said he and Blair have agreed on what each side must do. Palestinians must order "an immediate and effective cease-fire" and control terrorists.

"And we agree that Israel should halt incursions in the Palestinian-controlled areas and begin to withdraw without delay from those cities it has recently occupied," Mr. Bush said, emphasizing the words "without delay."

Furthermore, Mr. Bush called on Arab nations "to step up and lead: to lead against terror, to get an immediate cease-fire."

Blair came to the ranch hesitant about the use of military force against Iraqi leader Saddam Hussein despite Mr. Bush's appeals that the world must deal with him out of concern that he is developing weapons of mass destruction that could produce catastrophic results if transferred into the hands of terrorists.

Mr. Bush and Blair agreed Iraq must allow U.N. weapons inspectors back into the country but papered over their differences over the possible use of American force against Iraq, in an effort to display a picture of unity.

The president said he explained to Blair that the "policy of my government is the removal" of Saddam and that all options are on the table.

Blair told reporters, "It has always been our policy that Iraq would be better without Saddam Hussein. How we now proceed in this situation ... that is a matter that is open for discussions."

Added Mr. Bush: "We support regime change."

U.S. military action against Saddam risks the revolt of Arab nations currently supporting the war on terrorism.

The violence between Israelis and Palestinians has thrown the region into turmoil and further polarized the Arabs, which makes an American military move against Iraq politically more unlikely, with or without its allies, says CBS News correspondent Joie Chen.

As thunderstorms blew in and out across the prairies of Mr. Bush's ranch, the two leaders spoke at the gym in nearby Crawford High School.

Mr. Bush declined to answer a direct question on whether he considers Palestinian leader Yasser Arafat a terrorist.

"In order to earn my trust someone must keep his word and Chairman Arafat has not kept his word," Mr. Bush said.

He called on Arafat to speak out — in Arabic — and to order his people to end terrorist violence against Israelis. "At the very minimum he ought to at least say something," Mr. Bush said.

Secretary of State Powell leaves for the region Sunday night on his quest for a cease-fire that could draw both sides into long-term peacemaking.

For now, he has no plans to meet with Arafat, another sign that the administration is seeking to marginalize the chairman of the Palestinian Authority in favor of other Arab leaders who might be more trustworthy in Mr. Bush's eyes.

After the news conference, Mr. Bush and Blair returned to the ranch for more talks and a dinner party for about 30 people on Saturday night, including their wives Laura and Cherie.

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