Saudi Proposes Mideast Action Led by the U.S.
The Saudi proposal, presented during Abdullah's meeting with Mr. Bush on Thursday, calls for an American-led effort to provide aid and help with reconstruction to Palestinians. The Saudis view a commitment of American aid to the Palestinians as a way of restoring trust with the Arab world and demonstrating American commitment to a balanced peace strategy, one that shows "solidarity" with Palestinians as well as Israelis.

The Bush administration has endorsed aid to Palestinians and reconstruction efforts, although progress has been stymied by violence.

The Saudi plan also calls for a renunciation of violence by both sides, as well as an end to construction of Israeli settlements on lands that would be part of a new Palestinian state should Israel accept the peace initiative offered in Beirut in March by Arab leaders. That initiative, proposed by the Saudi crown prince, offers Arab recognition of Israel and normalization of relations in return for Israel's withdrawal to the borders that existed before the 1967 war.

Officials in Washington said today that the Bush administration did not want to appear to be acting under pressure in responding to the proposals after Saudi officials warned on Thursday of "grave consequences" if the United States failed to curb the ongoing Israeli military campaign in the Palestinian territories.

Officials close to the Saudi delegation said that Abdullah, after delivering a sober warning to the White House on Thursday that a "deep rift" was coming in relations between Saudi Arabia and the United States over the Bush administration's Middle East policy, was hoping for an administration response before the crown prince leaves the country on Sunday, after dining with oil industry executives here Saturday night.
http://www.nytimes.com/2002/04/27/international/middleeast/27DIPL.html