In the heart of the Middle East a hopeful story is unfolding. After decades of shattered promises and stolen lives, peace is within reach in the Holy Land. The Palestinian people have expressed their desire for sovereignty and peace in free and fair elections. President Abbas has rejected violence and taken steps toward democratic reform. This past week, Prime Minister Sharon and the Israeli people took a courageous and painful step by beginning to remove settlements in Gaza and parts of the northern West Bank. The Israeli disengagement is an historic step that reflects the bold leadership of Prime Minister Sharon.

Both Israelis and Palestinians have elected governments committed to peace and progress, and the way forward is clear. We're working for a return to the road map. We're helping the Palestinians to prepare for self-government and to defeat terrorists who attack Israel, and terrorists who oppose the establishment of a peaceful Palestinian state. We're providing $50 million in direct assistance to the Palestinians for new housing and infrastructure projects in Gaza. We remain fully committed to defending the security and well-being of our friend and ally, Israel, and we demand an end to terrorism and violence in every form, because we know that progress toward peace depends on an end to terror.

We'll continue working for the day when the map of the Middle East shows two democratic states, Israel and Palestine, living side-by-side in peace and security.

As more nations replace tyranny with liberty and replace hatred with hope, America will be more secure. Our nation has accepted a mission, and we're moving forward with resolve. Spreading freedom is the work of generations, and no one knows it better than you. Freedom has contended with hateful ideologies before. We defeated fascism; we defeated communism; and we will defeat the hateful ideology of the terrorists who attacked America.

Each of these struggles for freedom required great sacrifice. From the beaches of Normandy to the snows of Korea, courageous Americans gave their lives so others could live in freedom. Since the morning of September the 11th, we have known that the war on terror would require great sacrifice, as well. We have lost 1,864 members of our Armed Forces in Operation Iraqi Freedom, and 223 in Operation Enduring Freedom. Each of these men and women left grieving families and loved ones back home. Each of these heroes left a legacy that will allow generations of their fellow Americans to enjoy the blessings of liberty. And each of these Americans have brought the hope of freedom to millions who have not known it. We owe them something. We will finish the task that they gave their lives for. We will honor their sacrifice by staying on the offensive against the terrorists, and building strong allies in Afghanistan and Iraq that will help us win and fight — fight and win the war on terror.