U.S. balances outrage and caution in Mideast strategy

Secretary of State Powell, right, accompanied by Afghan Foreign Minister Abdullah, talks to reporters in Washington, Thursday.

WASHINGTON (CNN) -- With Israeli and Jordanian leaders due in Washington next week, the Bush administration is attempting to balance caution and outrage in its response to the day-to-day violence in the Middle East and maintain focus on its ambitious plan for change in the region.

The administration's goals are to reform Palestinian institutions and encourage Israel to take steps to improve the living conditions of Palestinians, and it is couching its response to daily events in this context.

On Friday's shooting by Palestinian gunmnen of four Israeli settlers driving along a settler road in Hebron, one State Department official simply said: "Naturally we condemn attacks like this but we are focused on what we do next."

The same went for Israel's actions on Friday, when in Gaza City, two metal workshops were mined and blown up by Israeli forces, injuring four people, Palestinian security sources said. Israel said the workshops were used to produce Qassam rockets.

The official noted that Friday's action in Gaza took place as Israeli and Palestinian officials were to meet on security cooperation.

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"You have to question what the calculus is," this official said. "If you are hoping to sour the atmosphere the best way to do that is to take an action like this."

U.S. efforts with the three other members of the "Quartet" -- Russia, the European Union and the United Nations -- and Arab states over the past few weeks to push forward Palestinian reforms hit a roadblock over Israel's attack this week on the apartment building of a Hamas commander.

The attack, undertaken with American-made F-16s, killed 14 Palestinian civilians, including women and children.

The Bush administration condemned the attack as "heavy-handed" and told the Israelis the action did not contribute to international peace efforts.

"The Palestinians are digging in their heels. It's difficult to get them to move forward now," the State Department official said, adding that Palestinian leaders are hesitant to institute reforms unless the United States invokes the "Export Control Act," which imposes penalties on countries that use U.S. military assistance for offensive purposes.

Although U.S. officials say they are examining potential Israeli violations of U.S. export controls, the State Department official said it was unlikely any punitive action would be taken.

Jordan's King Abdullah is expected at the White House Thursday for meetings with President Bush, when the administration hopes to shore up Arab support for Secretary of State Colin Powell's plan for a revamped Palestinian security apparatus.

Powell discussed the ideas with members of the Quartet and the Egyptian, Jordanian and Saudi foreign ministers last week.

U.S. officials and Arab and European diplomats familiar with the security plan, developed by CIA Director George Tenet, say the new Palestinian security forces would be trained by the Jordanians on the West Bank and the Egyptians in Gaza.

The United States would vet the agents to see if they were capable of handling security before a phased Israeli withdrawal.

Additionally, a five-party committee, made up of officials from the CIA, Israeli, Egyptian and Jordanian intelligence agencies and the new Palestinians security agency would share information on potential attacks and terrorist activity.

The entire operation would be funded by the Saudi government. Tenet is expected to send an assessment team to the region in the coming weeks.

Israeli Foreign Minister Shimon Peres also is expected in Washington next week, where administration officials will press Israel to take steps to improve the humanitarian situation in the Palestinian territories.

He also will be urged to create the conditions needed for Palestinian reform, such as withdrawing troops from Palestinian areas, easing up on curfews and allowing movement of Palestinians, allowing more work permits for Palestinians and releasing more tax funds owed to the Palestinians.