A lie should be tried in a place where it will attract the attention of the world.

Legitimate steps of self-defence which Israel takes in its war against Palestinian terror - actions which any sovereign state is obligated to undertake to ensure the security of its citizens - are presented by those who hate Israel as aggressive, Nazi-like steps.

We do not build new Jewish communities in Samaria, Judea and Gaza. The United States has never accepted our building of communities or of the fence. Yet, I've managed to develop relations between Israel and the United States even though President Bush never supported settlements.

To the citizens of Israel, I say: We have passed difficult years, faced the most painful experiences and overcome them. The future lies before us. We are required to take difficult and controversial steps, but we must not miss the opportunity to try to achieve what we have wished for, for so many years: security, tranquillity and peace.

Israel is a wonderful country. It's a beautiful country. It is ours. But it is a country with 10,000 problems that we have to solve and deal.

If there will be a serious Palestinian prime minister who makes a 100 percent effort to end terrorism, then we can have peace. Each side has to take steps. If terror continues, there will not be an independent Palestinian state. Israel will not accept it, if terror continues.

A rabbi told me that when you have two problems - one near, one not so near - concentrate on the immediate one.