RAMALLAH, January 10, 2008 (WAFA) - President Mahmoud Abbas described on Thursday the visit of the U.S President George Bush as historic, affirming that peace in the Middle East starts from "the Holy Land in Palestine."

In a joint news conference with visiting U.S. President Bush in Ramallah, President Abbas called on Israel to fulfill its commitments to a Mideast peace plan, saying he hopes "this will be the year for the creation of peace."

President Abbas also hailed Bush's "commitment to achieve his vision of establishing an independent Palestinian statehood." "Our people, who selected the peace as a strategic choice, want to see this vision coming into being by your support and commitment," President Abbas addressed Bush.

"The Palestinian people, who are committed to peace, want to move freely in their country, with no roadblocks, separation fence or settlements. We want to see a different future, without thousands of prisoners in jail and innocent deaths. We want to stop the closure," he continued.

President Abbas said that he and Bush agreed on the points they raised during the meeting. During the press conference, he spelled out Palestinian demands, saying that his people seek a state with "Jerusalem as its capital and an end to the refugee problem, in accordance with UN decisions."

"The talks have focused on all the issues, even those which you did not think about," President Abbas told reporters. "We are agreed on all topics."

"Our people, who selected the peace as a strategic choice, want to see this vision coming into being by your support and commitment," President Abbas said.

For his part, President Bush said he expected that the Palestinians and the Israelis would reach a final peace treaty in 2008 before his term as a president ends.

Bush said that "future Palestinian state must be made of contiguous territory," urging the Israelis and the Palestinians to resolve their differences over the core issues.

Bush said that he had concluded that both the Israelis and the Palestinians were committed to peace, promising that his administration will remain "very much engaged" in peace negotiations.

"I'm confident that with proper help, the state of Palestine will emerge... I am confident that the status quo is unacceptable," he told President Abbas.

Asked about settlement, Bush said that "each side has got obligations under the road map... we have made our concerns about the expansion of settlements known."

Back to the Road Map, which also calls for strengthening the Palestinian security services, Bush said he believes "the security forces are improving... my message to the Israelis is that they ought to help, not hinder, the modernization of the Palestinian security forces," Bush said.