e reached between the Palestinians and the Israelis in
November 2006.

--Support for a Palestinian national unity government.

--Sustainable negotiations leading to a final peace settlement along
the lines of President Bush's two-state solution, which would address
the key final status issues of borders, settlements, Jerusalem, the
right of return, and the end of conflict.

Afghanistan

At the same time, we must not lose sight of the importance of the
situation inside Afghanistan and the renewed threat posed by the
Taliban. Afghanistan's borders are porous. If the Taliban were to
control more of Afghanistan, it could provide al Qaeda the political
space to conduct terrorist operations. This development would
destabilize the region and have national security implications for the
United States and other countries around the world. Also, the
significant increase in poppy production in Afghanistan fuels the
illegal drug trade and narco-terrorism.

The huge focus of U.S. political, military, and economic support on
Iraq has necessarily diverted attention from Afghanistan. As the
United States develops its approach toward Iraq and the Middle East,
it must also give priority to the situation in Afghanistan. Doing so
may require increased political, security, and military measures.

RECOMMENDATION 18: It is critical for the United States to provide
additional political, economic, and military support for Afghanistan,
including resources that might become available as combat forces are
moved from Iraq.

B. The Internal Approach: Helping Iraqis Help Themselves

The New Diplomatic Offensive will provide the proper external
environment and support for the difficult internal steps that the
Iraqi government must take to promote national reconciliation,
establish security, and make progress on governance.

The most important issues facing Iraq's future are now the
responsibility of Iraq's elected leaders. Because of the security and
assistance it provides, the United States has a significant role to
play. Yet only the government and people of Iraq can make and sustain
certain decisions critical to Iraq's future.

1. Performance on Milestones

The United States should work closely with Iraq's leaders to support
the achievement of specific objectives--or milestones--on national
reconciliation, security, and governance. Miracles cannot be expected,
but the people of Iraq have the right to expect action and