In return, the Palestine Liberation Organization promised to abandon terrorism.
Neither man has illusions about the I.R.A.'s readiness to abandon terrorism.
And despite a requirement in the Security Council cease-fire resolution that Iraq abandon terrorism, its intelligence services are as active as ever.
Those steps would have given new hope to Palestinian moderates and thereby increased the political pressure on Hamas to abandon terrorism.
Israel claimed that Arafat was in ultimate control over these organizations and therefore had not abandoned terrorism.
This caused the movement to, at least officially, abandon terrorism.
The Palestinians have agreed to abandon terrorism and dismantle militant groups that operate outside the Palestinian Authority.
"We have abandoned terrorism and are ready for a peace accord," he wrote to the daily newspaper La Repubblica in answer to written questions.
He clarified that he had abandoned terrorism and seeks the opportunity to make Libya's new position known.
Then President Bush committed to a two-state outcome, but insisted, as a precondition, that the Palestinians abandon terrorism.