U.S. Policy Seen as Big Loser in Palestinian Vote

U.S. Policy Seen as Big Loser in Palestinian Vote:

Standing in a sunny Rose Garden on June 24, 2002, surrounded by his top foreign policy advisers, President Bush issued a clarion call for resolving the deadly Israeli-Palestinian conflict: "I call on the Palestinian people to elect new leaders, leaders not compromised by terror."

This week, Palestinians gave their answer, handing a landslide victory in national legislative elections to Hamas, which has claimed responsibility for dozens of suicide bombings and desires the elimination of Israel. Bush's statement calling for new leaders was aimed at the late Palestinian leader Yasser Arafat, but in the same speech he also said it was necessary to thwart Hamas -- formally the Islamic Resistance Movement -- and other militant groups

The election outcome signals a dramatic failure in the administration's strategy for Middle East peace, according to analysts and some U.S. officials. Since the United States cannot deal with an organization labeled a terrorist organization by the State Department, Hamas's victory is likely to curtail U.S. aid, limit official U.S. contacts with the Palestinian government and stall efforts to create an independent Palestinian state.

"More broadly, Hamas's victory is seen as a setback in the administration's campaign for greater democracy in the Middle East. Elections in Iran, Iraq, Egypt and now the Palestinian territories have resulted in the defeat of secular and moderate parties and the rise of Islamic parties hostile to U.S. interests.

The administration has long been criticized for being reluctant to get involved in the Israeli-Palestinian conflict; even after Bush's 2002 speech, the policy drifted except for occasional high-profile speeches and events. But after Arafat's death in late 2004 and the beginning of the new presidential term, Bush vowed things would be different, saying he would invest 'political capital' in ensuring a Palestinian state before he leaves office three years from now.

The effort went wrong on three fronts, according to interviews inside and outside the administration:

*The administration put its hopes on the Palestinian president, Mahmoud Abbas, and poured hundreds of millions of dollars to fund public works projects. But it failed to back him when he asked for concrete help, especially in his dealings with the Israelis.

*The administration was highly attuned to the shifts of Israeli politics but tone-deaf to the upheaval in Palestinian society. It was so focused on facilitating Israel's withdrawal from the Gaza Strip that it did not press Israel to end settlement expansion, release additional prisoners or take other measures that might have reduced Palestinian indignation.

*Despite deep Israeli misgivings, the administration late last year shifted policy and decided Hamas could participate in the elections even though it had not disarmed its militias, in contrast to rules set for elections in Afghanistan and Northern Ireland.