President George W. Bush's senior advisers debated Friday how to create a Palestinian state in the violent Middle East, leaving an anticipated presidential announcement on hold.
"There are still discussions going on," State Department spokesman Richard Boucher said. He offered no prediction when unsettled issues might be resolved.
"This is an evolving process," Boucher said, "but the president has indeed reached some conclusions."
Bush's senior advisers were unable Friday to decide on terms for launching a Palestinian state, leaving an anticipated presidential announcement on hold.
The main unresolved issue is how much democratic reform to require of the Palestinian Authority before launching a preliminary state, a U.S. official told The Associated Press.
Bush remains committed to launching a preliminary Palestinian state that he hopes will develop into a full-fledged state living side-by-side at peace with Israel.
However, there is little precedent for an interim state, and his advisers were not certain whether it could join the United Nations, have a currency and other powers normally associated with statehood, said the official, speaking on condition of anonymity.
Bush met at the White House with Secretary of State Colin Powell, his national security assistant Condoleezza Rice and other senior advisers without reaching conclusions on a wide range of issues, two U.S. officials said.
The president planned to spend the weekend at the White House, instead of going to his retreat at Camp David, and keep in touch with his advisers, one of the officials said.
"There are still discussions going on," State Department spokesman Richard Boucher said. He offered no prediction when unsettled issues might be resolved.
In Florida Bush was blunt about his schedule. "If you're talking about the speech," he told reporters, "I'll give the speech when I'm ready to give the speech."
"But I strongly condemn the series of attacks," Bush said. "I fully recognize that Israel's got the right to defend herself, and all parties who are interested in getting on the path to peace must do everything they can to reject this terror. It is outrageous, and it's got to be stopped."
Bush had been expected to disclose this week his prescription for launching a Palestinian state. He held back as terror attacks against Israel hardened Israelis' attitudes toward settling with the Palestinians and Israeli retaliation added to the unsettled conditions.
Even before the attacks, some of Bush's top advisers questioned whether Arafat was up to the job of countering terrorism.
Under U.S. pressure to curb attacks on Israeli civilians, Arafat appealed this week for Palestinian activists to end the violence.
Boucher said Friday that Arafat must started confronting Palestinian militants who have carried out the attacks.
Bush intends to make Palestinian statehood contingent on changes within the Palestinian Authority to make the system more democratic. Among undecided issues is whether a timeline should be set for announcing the state and for Israel and the Palestinians to negotiate.
"The president and his advisers continue to meet to discuss various elements of the way forward," Boucher said. "The president will decide when he wants to speak and what he wants to say at the appropriate time."