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SHARM EL SHEIKH, Egypt, Jan. 16 /Standard Newswire/ -- The following text is of remarks by President Bush and President Hosni Mubarak of Egypt:

Royal Suite Garden

Four Seasons Resort

Sharm el Sheikh, Egypt

1:46 P.M. (Local)

PRESIDENT MUBARAK:  (As translated.)  I'd like to welcome President Bush here in Egypt, and particularly in Sharm el Sheikh City.  It is the City of Peace.  

We briefed Mr. Bush -- he briefed us on the outcome of his visits in the region, and we had very important presentations which dealt with the security situation now, and bilateral and mutual efforts for the sake of peace, security and stability in the Middle East. 

I emphasized through our presentations the Egyptian situation, underscoring and supporting peace, and our aspirations that Mr. Bush follows up on negotiations between both Israeli and Palestinian sides, and also said that I wish to reach a peace agreement before the end of his term.  I emphasized that the Palestinian question, of course, is the core of problems and conflict in the Middle East, and it is the entry to contain the crisis and tension in the region, and the best means to face what's going on in the world, and our region -- I mean by that, the escalation of violence, extremism and terrorism.  

I also underscored the strategic importance we focus on here in Egypt, that because its peoples -- sisterly peoples and states, they are part and parcel of the national security of Egypt, the security of the Middle East and the world.  The Egyptian-American relations actually have been very important, and this importance has been getting more important.  And this importance addressed the interests of both the people and also the region's interests in the Middle East.

Our consultations today showed that we believe and understand the mutual interests of both sides in continuing our dialogue and consultations -- and I mean by that, strategic consultations -- for the sake of peace, security and stability of the Middle East, and the development of its states and prosperity of its people.  I also emphasized that we in Egypt, we are keen on supporting peace efforts that we're ready, hand-in-hand with the United States of America and the Quartet, and all other regional and international stakeholders of parties, for the sake of comprehensive and just peace, to put an end to this Israeli-Palestinian conflict, and finally, to open new horizons for the Middle East, for a more peaceful and security future -- more justice and security in the region.

I reiterate our welcome words for Mr. Bush, and I hope that his efforts in the sake of peace will reach a success.  And I'll give you the floor, sir.

PRESIDENT BUSH:  Mr. President, thank you, sir.  It's a pleasure to be back in Egypt.  This is such a beautiful sight, Mr. President.  Thank you for hosting my visit here.   As you mentioned, I've been on a long trip and I can't think of a better place to end it than right here with you in this beautiful setting.

PRESIDENT MUBARAK:  You need much more days.

PRESIDENT BUSH:  Yes -- he wants me back -- okay.  (Laughter.)  He's extended an invitation, and thank you for that, sir. 

It's an important stop for me because the United States has a longstanding friendship with Egypt.  It's important for the people of Egypt to understand our nation respects you, respects your history, respects your traditions and respects your culture.  Our friendship is strong.  It's a cornerstone of -- one of the main cornerstones of our policy in this region, and it's based on our shared commitment to peace, security and prosperity.

I appreciate the opportunity, Mr. President, to give you an update on my trip.  And I appreciate the advice you've given me.  You've seen a lot in your years as President; you've got a great deal of experience, and I appreciate you feeling comfortable in sharing that experience once again with me.

I really appreciate Egypt's support in the war on terror.  I appreciate the fact that you've given peacekeepers for Sudan.  I did brief you on my talks in Israel and with the Palestinians, and they were positive talks.  And I said I'm optimistic an agreement can be reached.  And the reason I am is because I believe the leadership in Israel and the leadership of the Palestinians is committed to a two-state solution.  And I know nations in the neighborhood are willing to help, particularly yourself.  And I appreciate your strong, constructive support for the process. 

And I told the President I'm going to stay -- there's a wonder whether or not the American President, when he says something, whether he actually means it.  When I say I'm coming back to stay engaged, I mean it.  And when I say I'm optimistic we can get a deal done, I mean what I'm saying.  And so I appreciate the chance to talk. 

We also talked about Lebanon, and we agree it's important for nations in this region to support Prime Minister Siniora.  It's important to encourage the holding of immediate and unconditional presidential elections according to the Lebanese constitution, and to make it clear to Syria, Iran and their allies they must end their interference and efforts to undermine the process.

We talked -- and by the way, when it came to the Israeli-Palestinian peace talks, I want to thank you for your support of Annapolis.  It was important that you were there.  As a matter of fact, you didn't hesitate, because you knew that both those parties had to have supportive people in the region.  And I thank you very much for that.

We spent time on Iraq.  The President asked me how I thought things were going there.  The decision to send more troops is working.  Violence is down.  Secretary Rice came back from Iraq yesterday and briefed me that she was able to see life returning back to the streets.  The moms are out with their children,   normal life is coming back.  And political life is moving. 

Mr. President, I'm sure you followed the fact that the Council of Representatives passed the deBaathification law as part of an important reconciliation package.  The government isn't perfect, but nevertheless progress is being made, and I assured you, Mr. President -- I want to share this with the press corps -- that the United States will continue to help the Iraqi people secure their democracy. 

I also talked about Egypt's role in the world.  Egypt is an important nation -- that sends a clear signal.  People watch Egypt.  I appreciate very much the long and proud tradition that you've had for a vibrant civil society.  I appreciate the fact that women play an important role in your society, Mr. President.  I do so because not only I'm a proud father of two young professional women, I also know how important it is for any vibrant society to have women involved in constructive and powerful ways.  And I appreciate the example that your nation is setting. 

Progress toward greater political openness is being led by the Egyptians themselves, by pioneering journalists -- some of whom even may be here -- bloggers, or judges insisting on independence, or other strong civic and religious leaders who love their country and are determined to build a democratic future. 

Because of the predominate role you play, and because I strongly believe that Egypt can play a role in the freedom and justice movement -- you and I have discussed the issue, you have taken steps toward economic openness -- and I discussed that with your Prime Minister -- and democratic reform.  And my hope is that the Egyptian government will build on these important steps, and give the people of this proud nation a greater voice in your future.  I think it will lead to peace, and I think it will lead to justice. 

Our friendship with Egypt is deep and broad.  Egypt will continue to be a vital strategic partner of the United States.  We will work together to build a safer and more peaceful world.  And, Mr. President, I thank your leadership on the issue of peace and security.

I've had a great trip.  I've been impressed by the warmth and the energy of the people I have met.  It's a dynamic part of the world that is seeing significant changes.  I wish my fellow citizens would be able to come and see firsthand the vibrancy and excitement in the Middle East.  People here are working to embrace the opportunities of a modern global economy, and in doing so, are not abandoning their traditions or cultures or their faith. 

This isn't easy work, as we head into the 21st century, and it's going to require social, economic and political reform.  And it takes time for people to resolve the challenges in their respective societies -- same in my country.  But I'm absolutely confident the people of the Middle East are working hard to build a society based upon justice.  And I've assured them that as they make the journey, the United States will be a steady friend and partner. 

Thank you for your time.  God bless.

PRESIDENT MUBARAK:  Thank you.

END  2:57 P.M. (Local)