With much at stake to move forward the Middle East peace process, US President George W. Bush on Tuesday urged Israel to consider the consequences of its actions.

"Much hard work remains to be done by Israelis and Palestinians and by their neighbors," Bush said at a joint press conference with Israeli Prime Minister Ariel Sharon in the Rose Garden of the White House.

"In our discussions, I encouraged the prime minister (Sharon) to take further steps to improve the daily conditions faced by Palestinians. Israelis and Palestinians deserve the same chance to live normal lives, free from fear, free from hatred and violence and free from harassment," Bush said.

"I also urge the prime minister to carefully consider all the consequences of Israel's actions as we move forward on the road to peace," he added.

Bush also said terrorism is "a fundamental obstacle to peace" and the Palestinian Authority "must undertake sustained, targeted and effective operations to confront those engaged in terror and to dismantle terrorist capabilities and infrastructure."

The US president vowed that his commitment to the security of Israel is "unshakable."

Sharon, who was here for the eighth time as Israeli prime minister, accused the Palestinian Authority of failing to dismantle terrorist organizations despite the relative quiet in the region.

"While relative quiet currently prevails in Israel, terror has not yet completely ceased," he said.

"We are thankful for every hour of increased quiet and less terrorism, and for every drop of blood that is spared," Sharon continued. "At the same time, we are concerned that this welcome quiet will be shattered any minute as a result of the continued existence of terror organizations which the Palestinian Authority is doing nothing to eliminate or dismantle."

As to the controversial security fence being built by Israel through the West Bank, Sharon argued that the fence is necessary for Israeli security, saying that Israel will continue to build it.

Aware of US opposition to the move, Sharon said Israel will build it in a way that would limit disruption to the life of Palestinians.

"I said we shall continue building the fence. But I shall choose ways which will disturb the Palestinians as little as possible," the prime minister said.

Bush, who has described the building of the fence as a "problem," agreed that the most effective way to fight terror is to dismantle terrorist organizations like Hamas but he also suggested that the fence might send a wrong signal to the Palestinians.

"The fence is a sensitive issue, I understand, and the prime minister made it very clear to me that it was a sensitive issue," the US president said.

"My promise to him is we'll continue to discuss in the dialogue how best to make sure that the fence sends the right signal; that not only is security important, but the ability for the Palestinians to live a normal life is important as well," Bush added.

Sharon arrived here Sunday for a three-day visit. Palestinian Prime Minister Mahmoud Abbas also met Bush in the White House fourdays ago.

(Xinhua News Agency July 30, 2003)