United States President George W. Bush, (right), greets children waving U.S. and Israeli flags as he arrives at the Israeli President's residence for a meeting with Israeli President Shimon Peres, (second right), in Jerusalem, yesterday. U.S. President George W. Bush, seeking to pull Israel and the Palestinians toward serious negotiations, said yesterday that he comes to Israel with high hopes that a Mideast peace pact can be achieved before he leaves office early next year.

JERUSALEM (AP):

Seven years of violence have bludgeoned expectations for Mideast peacemaking, and Israelis and Palestinians are greeting U.S. President George W. Bush's belated drive to solve their decades-old conflict with deep scepticism

The major concession required to make it happen - an Israeli withdrawal from the West Bank - looks increasingly unlikely because of the rise of Islamic militants in the Palestinian territories and vehement domestic opposition in Israel.

Palestinians say Israel's refusal to freeze settlement activity in the West Bank sours the atmosphere for peacemaking. Israel says it can't abandon more territory without assurances against a repeat of what happened after it left the Gaza Strip two years ago: a takeover by Hamas militants and a constant barrage of rocket attacks from the lands Israel evacuated.

"You can't expect the Israelis, and I certainly don't, to accept a state on their border that would become a launching pad for terrorist activities,'' Bush said on the first day of a three-day trip to Israel and the West Bank his first visit to the Holy Land since becoming president.

At the same time, Bush said 'illegal' Israeli settlement outposts in the West Bank have got to go.