Bush hails 'hopeful day' in Middle East crisis

George W Bush says the Israeli-Palestinian deal to end the siege of Yasser Arafat's compound marks a "hopeful day" in the Middle East crisis.

But he demands that Arafat - freed from house arrest - must step up his efforts to end terrorism in the region.

Mr Bush called Sharon three times at the weekend and dispatched diplomats to negotiate directly with Arafat.

"Chairman Arafat is now free to move around and free to lead, and we expect him to do so," Bush told reporters.

But he added: "One of things he must do is condemn and thwart terrorist activities."

Bush has won agreement on his proposal that US and British non-military personnel guard six Palestinians who are wanted by Israel on assassination charges.

They are currently being kept in Arafat's headquarters at Ramallah, besieged for a month.

In turn, Israeli troops would withdraw from Ramallah and Arafat would be allowed to leave his compound and move freely in the Palestinian areas of the West Bank and the Gaza Strip.