(Underscores Bush Administration's Commitment to Roadmap Effort) (800) Secretary of State Colin Powell told ABC news June 2 in Egypt that circumstances were ripe for renewing efforts to end the Palestinian-Israeli conflict. "We have a new Prime Minister of the Palestinian Authority. The Palestinian people have decided that they needed new leadership. Saddam Hussein is gone, a threat to Israel. As you know, Prime Minister Sharon won his elections a couple of months ago, so he's got a new government in place now," Powell said. He added that President Bush is determined to take advantage this opportunity to pursue negotiations leading to a Palestinian state void of terror. Questioned about the issue of Jewish settlements, Powell said he believed Israeli Prime Minister Sharon "knows that sooner or later a Palestinian state will have to be created to take into its borders, to take into its heart, the Palestinian people, and I am absolutely convinced of his sincerity to move in this direction." Secretary Powell was speaking from Sharm el-Sheikh, Egypt, where he is accompanying President Bush for discussions with regional leaders on the Middle East peace Roadmap, drawn up by the United States, the United Nations, the European Union and Russia. Following is the complete text of Secretary Powell's June 2, ABC interview. (begin transcript) U.S. DEPARTMENT OF STATE Office of the Spokesman June 2, 2003 AS AIRED INTERVIEW Secretary of State Colin L. Powell On ABC's World News Tonight with Peter Jennings June 2, 2003 Sharm el-Sheikh, Egypt (6:35 p.m. EDT) QUESTION: How much real leverage do you think you have? Not just influence but real leverage -- with the Palestinians, with the Israelis, with the other Arab leaders -- to do things your way? SECRETARY POWELL: It's not a matter of doing things our way. It's a matter of using the roadmap that's been put before the parties to get started toward that vision of two states living side by side in peace. We have a new Prime Minister of the Palestinian Authority. The Palestinian people have decided that they needed new leadership. Saddam Hussein is gone, a threat to Israel. As you know, Prime Minister Sharon won his elections a couple of months ago, so he's got a new government in place now. And everybody knows we can't stay where we are. The Palestinian economy has been destroyed. The Israeli economy is in difficulty. Israel doesn't want to keep its troops deployed forever in these cities and towns. So I think all the pieces have come together, and we are here at Sharm el-Sheikh to take advantage of the new elements that are in the equation and this window of opportunity that's opened. QUESTION: You know from experience in this region there's a huge amount of skepticism, not least about whether or not Prime Minister Sharon actually means what he says when he says it is time for the occupation to end and the settlements to be dismantled. SECRETARY POWELL: Well, I think Prime Minister Sharon is anxious to move forward toward peace. He knows that sooner or later a Palestinian state will have to be created to take into its borders, to take into its heart, the Palestinian people, and I am absolutely convinced of his sincerity to move in this direction. At the same time, he is the Prime Minister of Israel and he has to make sure that the Israeli people are secure, and therefore terror and violence have to end. QUESTION: You know there is skepticism in the region, and some at home as well, about President Bush's staying power on this issue. What do you think? SECRETARY POWELL: His guidance to me was very, very clear. We've dealt with Saddam Hussein. We have what we were asking for: new leadership from the Palestinian people in the form of Prime Minister Abbas. Let's help him and let's take this moment of opportunity. And I am committed. QUESTION: On the subject of your credibility and his, you're getting hammered on this question of weapons of mass destruction both at home and in the region. Do you think it hurts your credibility as you begin this extraordinary challenge? SECRETARY POWELL: No, our credibility is intact. Everybody knows that Iraq had weapons of mass destruction. QUESTION: You and the British were both accused today of using faulty intelligence, at best. SECRETARY POWELL: In due course, as the inspections continue, with our new exploitation teams that have been brought in, people will find that we presented a solid case, a case that is there and was there and will remain there. And all the skepticism that's being demonstrated now, all the charges that are being levied now, in due course will be found to be incorrect.