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Source: http://www.whitehouse.gov/news/releases/2008/01/20080110-3.html
Bush: Israeli-Palestinian Peace Agreement Must Ensure "Defensible Borders" for Israel
[White House] President Bush said in Jerusalem on Thursday: "There should be an end to the occupation that began in 1967. The agreement must establish Palestine as a homeland for the Palestinian people, just as Israel is a homeland for the Jewish people. These negotiations must ensure that Israel has secure, recognized, and defensible borders. And they must ensure that the state of Palestine is viable, contiguous, sovereign, and independent." "While territory is an issue for both parties to decide, I believe that any peace agreement between them will require mutually agreed adjustments to the armistice lines of 1949 to reflect current realities and to ensure that the Palestinian state is viable and contiguous. I believe we need to look to the establishment of a Palestinian state and new international mechanisms, including compensation, to resolve the refugee issue." "I know Jerusalem is a tough issue. Both sides have deeply felt political and religious concerns. I fully understand that finding a solution to this issue will be one of the most difficult challenges on the road to peace, but that is the road we have chosen to walk. Security is fundamental. No agreement and no Palestinian state will be born of terror. I reaffirm America's steadfast commitment to Israel's security."