Bush tries to convince Arab sceptics on peace push

By Matt Spetalnick

SHARM EL-SHEIKH, Egypt, May 18 (Reuters) - U.S. President George W. Bush will try on Sunday to convince a sceptical Arab world that his outspoken support for Israel does not mean he is blind to the Palestinians' aspirations for statehood.

Wrapping up his Middle East tour in the Egyptian resort of Sharm el-Sheikh, Bush is looking to ease Palestinian dismay over his visit to Israel, where he lavished the Jewish state with praise, hailing it as a "homeland for the chosen people."

Bush assured Palestinian President Mahmoud Abbas on Saturday he remained "absolutely committed" to getting a peace deal, including agreement on Palestinian statehood, before he leaves office in January -- a deadline widely viewed as unrealistic.

Bush insisted that a state "would be an opportunity to end the suffering that takes place in the Palestinian territories."

Though he did not directly criticize Israel, he seemed to be alluding to the hardship that Palestinians face from Israeli roadblocks and barriers in the occupied West Bank, measures they call collective punishment but which Israel says are to defend it against militant attacks.

"It breaks my heart to see the vast potential of the Palestinian people really wasted," Bush told reporters with Abbas at his side.

Bush's more sympathetic language on the Palestinians' plight appeared aimed at countering Arab doubts, reinforced by his visit last week for Israel's 60th anniversary celebration, about his ability to act as an even-handed peace broker.