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SECRETARY RICE: All right, I thought we would spend a few minutes before I go to the Middle East -- I leave tomorrow -- and this is now an opportunity first to have a series of bilateral talks with Abu Mazen and with Prime Minister Olmert and then to have the trilateral that we described when I was last in the region. The purpose of the trilateral is just really to begin a conversation to look at how they can move forward on what everybody agrees to be the most important goal, which is the establishment of two states living side by side. It is all done within the context of the roadmap; that's very important because no one can envision a Palestinian state in which the conditions of the roadmap have not been fulfilled. If you simply go back and look at those conditions, you can see why the sequence is as it is.

But I also think and I think the parties have agreed that it's important to start sketching out broader political issues, not just those that are associated on any given day with access and movement or the more daily issues that they really are intending to continue to do in the bilateral channel.

It's obviously more complicated because of the uncertainties surrounding the national unity government. We are going to await the formation of that government before we make any decisions about it, but I think as was clear from the Quartet statement, the Quartet principles remain the principles on which we will judge any government. Because of course, it's extremely important that a Palestinian government that is going to represent the Palestinian people and ultimately one that will govern a Palestinian state would have to recognize the partner for peace.

That said, Abu Mazen is someone who has recognized those principles and who has acted on them as the President of the Palestinian Authority and who is without controversy the member of the Palestinian political class who is to discuss with and negotiate with Israel. And so the fact that he accepts those principles, has lived according to them, has many times in the past renounced violence and I believe did so again today, makes it, I think, very important to maintain the links between President Abbas and Israel, and between President Abbas and the United States and Israel.

And so I look forward to going out there, and then I'll go on to Germany and we'll have a Quartet meeting to follow up on the trilateral. So with that, I'm happy to take questions. Glenn.

QUESTION: A couple of things. It appears that this unity government was brought together because of Saudi Arabia's help and there seems to be maybe a disconnect between what the Saudi goals are and what our -- what the United States goals are, in that the Saudis would like to have peace among the Palestinians and bring Hamas back into the Sunni camp, whereas the United States, unless you somehow manage to change the character of Hamas, wants to, you know, keep Hamas -- you've outlined this vision of the divide within the Middle East and you've put Hamas on the side of extremists. That's one question.

Secondly, what are you hoping the Arabs will do as this process unfolds? And I think you're going to meet with them in -- some Arab leaders in Amman. Are you expecting that if this political horizon is sketched out that the Arabs will begin the process of implementing the Arab League initiative, you know, so that there's something that at least Olmert can point to that things are happening as he's moving towards making agreements with Abbas?

SECRETARY RICE: Yeah, on the second point, I would certainly hope that the Arab initiative and some of the very good things in it would provide a basis for moving forward toward Israeli-Arab reconciliation, which is important, equally important as Palestinian-Israeli -- resolving the Palestinian-Israeli conflict.

I would hope that as we all begin to talk about and move toward a political horizon that the Arab states would understand that that political horizon does have to include them and it has to include a relationship between them and Israel. And yes, that's something that I've talked about in the GCC+2, it's something I'll talk about whenever I am with Arab leaders, and indeed to provide support for any process that goes forward because, I mean, one of the issues in the past has been that this can't just be an American proposal, an American initiative; it has to have the support of, first and foremost, the Arab states, the regional states, but then the international community more broadly. So yes, I would hope that we could start to talk about a basis for Israeli-Arab reconciliation as well. I think that's extremely important.

As to the unity government, we want calm between the Palestinians as well. I don't think anybody wants to see innocent Palestinians dying because of factional fighting of the kind that was going on over the last several weeks. I also know that all of the Arab states that are signed on to the roadmap want a Palestinian government that accepts the tenets of the roadmap. They've said that on many occasions. And we'll see what happens when this government is formed, but eventually you're going to have to get to a Palestinian government that accepts that it is to live side by side in peace with an Israeli neighbor. And I don't think there's any doubt that that's understood in the Arab world as well.

QUESTION: I guess to put it more plainly, I mean, are the Saudis working at cross-purposes with the United States?

SECRETARY RICE: No, no. Look, first of all, we're going to wait until this government is formed. We're not saying yes or no. We're going to wait until this government is formed. But I think the effort to try and get the Palestinians to live in peace, to stop fighting, to end the factional fighting, is something that we well understand and well support it.

Now, whether or not we can then support the government that came out of that, I think we've been very clear that the Quartet principles have to be respected if you're going to have the kind of engagement with the government that we would hope to have. But we're going to hold our judgment until that government is actually --

QUESTION: Just real quickly on that --

QUESTION: Just to clarify, there's an AP story out of the Middle East that says that David Welch has called Mahmoud Abbas and told him that the U.S. will not recognize this Palestinian unity government because Hamas has not recognized Israel.

SECRETARY RICE: What we have said is that the Quartet principles have to be respected and that we will -- we will see what -- there isn't a government yet, and so talking about recognizing or not recognizing a government -- there isn't one yet. When there is one, then the United States will make a determination. But we're not going to jump the gun here. We've made our views clear to not just the Palestinian leadership but to Europeans and others, but we're not going to make a judgment here until we have something that's firm.

QUESTION: But does it make a difference for the United States whether you have a unity government like the one that you will be waiting for and the one that just resigned, the Hamas-led government? In other words, do you -- would you base your decisions to see or support U.S. aid on the fact that now you have Fatah in that government? Is that any different if it doesn't recognize the principles of the Quartet if it were just a Hamas government?

SECRETARY RICE: Nick, I'm not going to get into comparisons between something that doesn't exist and something that does exist. Our position toward the Hamas government was very clear: it did not meet the international test. I have to say that we have not yet seen any evidence that this one will, but I don't want to -- we're not going to say yes or no until we know what we're looking at. I think there's a lot to know still.

QUESTION: Even if this government doesn't recognize the three principles, and by all indications it doesn't look like it will, isn't it still a step forward towards progress to have a unity government itself? Is there any --

SECRETARY RICE: Well, I certainly hope that the Saudi initiative is going to result in continued calm on behalf of the Palestinians. I also hope that any government is going to be dedicated to the renunciation of violence and to stopping attacks of, for instance, Qassam rockets on Israel. I certainly hope that that would be the case. I would certainly hope that any government is going to work for the release of Corporal Shalit, which would then unlock a number of other possibilities. So those are all things that I think we can hope for with this government; but there isn't a government yet, so let's wait and see what we're actually looking at.

But in terms of what I want to do, I think it's important to inject energy and confidence into a process that really has already begun between Abu Mazen and Olmert, but to try and help move that forward. And it will be very -- it is more complicated with the horizon of a government that we don't yet know what it will -- what its character will be. But then in the Middle East, if you wait for the perfect circumstances, I think you would probably never take the airplane. So I'm not going to let the fact that the circumstances are not perfect at this particular point in time delay what I think is extremely important work to be done.

QUESTION: Don't you risk sort of leaving Abu Mazen out there on a limb if you do not sort of support this government and his efforts more fully? I mean, he went to Mecca and tried to get this going. He's got to show something to his people and it doesn't seem like he's getting much from us.

SECRETARY RICE: Well, look, he's certainly, I think, going to be able to show his people that the United States and the international community supports the Palestinian Authority which has accepted the right of Israel to exist, which has accepted the renunciation of violence. And I would hope too that this process of developing a political horizon will show to the Palestinian people what is at stake, what is possible. And that, I think we want to do. It's another reason why it's important to go ahead with this.

But I just really want to be understood very clearly: We will make decisions about this government when it's time to make decisions about this government, not before then.

QUESTION: This is certain to change the character of Abu Mazen to some extent, or to a large extent in that at the moment you've had a certain convenience because he's been separate and, I don't know, clean to some extent, or moderate as you've described it. But if he joins a government that doesn't abide by the three core principles, it's hard to -- I would think it would be harder to describe him as a moderate at that point and to continue to engage with him in the same sort of sense.

SECRETARY RICE: This is somebody who has devoted his whole life to nonviolence really, and someone who has accepted these principles as a part of the last decade or decade and a half or so of Palestinian leaders who accept the -- through the PLO documents, through all of the agreements that they've signed, though the roadmap, through the Arab initiative. He is one of the core leaders of that part of the Palestinian political leadership and he ought to be treated in that context.

We also have to remember that these are, in fact, three separate parts of the Palestinian political system; there's a Palestinian legislative council, there's a Palestinian government and then there's the Palestinian Authority and his role as head of the PLO. And so as head of the PLO, he is the one who handles discussions, negotiations with Israel, and he is committed to that. And I think it would be a very big mistake to not continue to deal with him and to not continue to build on his commitment to a two-state solution and to nonviolence.

QUESTION: But just to clarify what you were saying to Neil, so it doesn't really matter if he joins a government that --

SECRETARY RICE: He doesn’t join a government -- let's be clear on what happens.

QUESTION: Well, but I mean -- well, Fatah --

SECRETARY RICE: Fatah joins--

QUESTION: His Fatah move -- I misspoke there. I withdraw that. (Laughter.)

QUESTION: Granted. (Laughter.)

QUESTION: It's been one of those trial weeks. (Laughter.) So but if Fatah joins this government and he -- and as Neil noted, he is -- he went to Mecca, he helped broker an agreement, he agreed to it, he's going to appoint the Hamas leader as prime minister. Doesn't that negate some of what you just said about him?

SECRETARY RICE: Okay, I just have to keep reminding, Glenn, we're not going to make any decisions about this until we know what we're looking at. But even knowing what we know till now, I think you will find that President Abbas remains committed -- and I believe he has said it -- that he remains committed to the principles that the Palestinian legislative -- I'm sorry, the Palestinian -- the PLO has been committed to for the time since Oslo, that he remains committed to the roadmap which is very explicit about these issues, that he’s committed to the Arab initiative and that he's committed to the Quartet principles.

I, again, think it would be a mistake to not take advantage of his commitment and the commitment of that part of the Palestinian leadership to work toward a realization of a political horizon for the Palestinian people so that the Palestinian people know what is at stake for them in the future. Without a political horizon, and we've been -- this is something that people have been saying to us and I think they're right. Without a political horizon it is going to be difficult to show why this course, the course of Abu Mazen, is better than other courses that others may try to get them to follow.

And so I think dealing with Abu Mazen, continuing to work with him on making life better for the Palestinian people, continuing to work with him on access and movement issues, and continuing to promote an effort to talk about the political horizon are all very important. And, Glenn, I've said several times I don't deny that it's more complicated, that it was -- to use your word -- clear, more black and white, not because I think Abu Mazen somehow has changed or his views have changed or his position has changed, but yes, because Fatah is now in the -- and would be if it comes out this way in the government should this government come to be.

But you have two choices at that point. You say all right, it's too complicated, it's too messy, it's not exactly as we would like, and therefore we're going to wait for all of this to clarify itself and we're going to wait until all of the Palestinian political leadership, all of the Palestinians, are in one place, and then we'll start to look at what the horizon looks like. Or you can say we're going to take the part of the Palestinian leadership that is committed to that and we're going to work with that political horizon and see if we cannot make sure that all Palestinian people know that that's the preferred course for the Palestinians. And I think that's our better choice.

QUESTION: You're not denying that David Welch passed this message along to the Palestinian Authority, are you?

SECRETARY RICE: Now, you know that I'm not going to talk about what we've done diplomatically. But our comments publicly and privately have been the same. We've told people what the standard is and our -- and have been the same. But what we are not doing is to make decisions about what it means until we know what it is.

QUESTION: Your colleagues in France and Russia, I believe, have already said that this is a step forward. Are you worried that you're going to see divisions within the Quartet over how to handle this new government?

SECRETARY RICE: Well, I think maybe Lavrov said it best. There can be individual or unilateral views, but then there is an international organization and an international instrument called the Quartet which has a view that I think has very strong bearing on how the international community will behave. And Russia is a part of that Quartet and you saw the statement coming out of the Quartet.

But I can't begin to predict what the international reaction is going to look like right now. I will say that I have heard everyone say for the most part -- I mean, to say it's a welcome step is not to say that you're going to embrace the government. To say that it's a welcome step is to say it's a good thing that the Palestinians are not fighting among themselves. All of those are good things.

But I think you're going to see, probably starting with our Quartet meeting in Berlin, further discussion of how we navigate through what is admittedly a more complicated period. But I don't think there's any doubt that people would like to see the contacts between Abu Mazen and Olmert go on, that they would like to see the process of developing this political horizon go on, because as I said, you can't wait for the perfect circumstances.

QUESTION: Can I ask you about North Korea unless there's another Middle East question?

SECRETARY RICE: Oh, North Korea?

QUESTION: Please.

SECRETARY RICE: That was yesterday's story, right? (Laughter.)

QUESTION: It's tomorrow's, too, I'm afraid. I'd be interested in your assessment. Is there opposition to the six-party deal within the U.S. Government, and how serious is that? And can you help us understand how the decisions were reached, both the Chris Hill meeting in Berlin and the six-party talks really rapidly moving? Did you brief the President and get the approval to go ahead and that's how it happened, or did it get chopped through the usual interagency process?

SECRETARY RICE: Well, first of all, the U.S. Government is the U.S. Government, and so the decision has been taken; and since people are loyal to decisions that are taken, I think that everybody expects there to be loyalty to this decision.

QUESTION: What's to keep the North Koreans from pocketing the 50,000 tons, getting through the winter and then, you know, testing a nuke again or something?

SECRETARY RICE: The North Koreans are now in a position in which this agreement is between all of the major parties that can help them in any way -- China, South Korea, Russia. And if they disappoint the expectations of all of those parties, then they're going to have nowhere to go for help. And that's the essential difference. And after they tested, I think they got a sense of that in the response of the five parties to that test.

QUESTION: Can we do one on Iran?

QUESTION: I'll finish on this very quickly. Sorry, Warren. I apologize.

In that same vein, except for these conditions about which you've talked about, the six parties and what's happened in the past six years, on March 7th, 2001, the President said that he does not trust Kim Jong-il and that any agreement North Korea signs up to it will violate. Why except for these conditions that I mentioned you've talked about, why does the President now think that he could trust North Korea?

SECRETARY RICE: Well, first of all, we're going to have to have verification that they're living up to what they have agreed to. I can't tell you that they won't violate it. But I can tell you that the consequences for violating it in a six-party context are much graver than the consequences of violating an agreement with the United States, which is where we were in 2001.

QUESTION: Can I get in a Russia question?

SECRETARY RICE: Sure.

QUESTION: ElBaradei obviously hasn't reported yet, but I think everybody agrees he's probably going to say that the Iranians haven't complied. The original feeling, I think, was that a second resolution wasn't worth the time and the effort given what you had to do to get the first. But Nick Burns yesterday indicated that maybe you are going to go for a second one.

So the question: Have you made a tentative decision? What would it look like in terms of sanctions and do you think you can get the Russians to go along?

SECRETARY RICE: Well, we're talking to the other parties about whether to do a second resolution and what it might entail. And we've already begun discussing that because -- in anticipation of what might happen. Maybe the Iranians will surprise us and decide to stop, but I think you have to be prepared that they may not.

We've had good discussions with everyone about it. I think that what we really did see after the first resolution was that the fact of a Chapter 7 resolution that was so strong in terms of 15-0 had a very profound effect inside of Iran. And so I think we have to look at whether we think a further resolution is going to have further effect in helping or making the Iranians question the road that they're on or not. But it's not a decision that we've made yet, but we're certainly exploring it. And I think we probably think at this point it's likely we would pursue one, but we haven't made the decision.

Last -- a Russia question.

QUESTION: Yes, thank you. As someone who studied the words out of the Kremlin carefully for a long time, did Putin's speech in Munich tell you anything new about him or his Russia that will affect our dealings with the government there?

SECRETARY RICE: I have a difficult time explaining that speech. It doesn't accord with either the world as we see it nor with the character of our interactions with the Russians. I think I've been in all of the meetings that the President has had with the Russian President, and they are meetings in which they have problem-solved together, in which they can have the most candid discussions about what's going on inside Russia, in which they can talk about and strategize how to deal with the Iranian program and the North Korean program. You know, we've just had a success with the Russians at the table as a part of the six-party talks. We've just together signed a major agreement on nuclear terrorism. We've just had a WTO -- U.S.-Russia successful WTO negotiation. I think we're actually doing rather well.

And I think, you know, Russia is a major power. We've been clear about some of our concerns, particularly about internal developments in Russia and about some of Russia's relations and attitudes towards their neighbors. But for a relationship that is as big as the relationship is with Russia and as complex as the U.S.-Russian relationship is, we've certainly made a lot of progress.

QUESTION: Just one quick one?

SECRETARY RICE: Sure.

QUESTION: I was just wondering about Quds force in Iraq and whether or not -- is this supplying of weapons the only negative thing you guys see them doing or is there a larger picture of their negative influence in the country?

SECRETARY RICE: Well, the question of supplying militias as well I think was a negative issue. The reason we focused on the enhanced IED problem is that it's a force protection issue. And therefore, you know, when you have a situation in which your forces are endangered by this, I think it's very important. And it's not as if we haven't raised this with the Iranian Government before.

But no, I think the activities with militias is also a problem. But we're not the only ones who have raised concerns about Iranian activities. I think the Iraqis have raised concerns about Iranian activities with the Iranians directly, and that's as it should be. Iran is a neighbor and Iran ought to try and behave in a way that is going to help stabilize the situation, not destabilize it.

Okay, thank you.

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