"In this meeting we have made progress on a broad agenda," the US president said after the summit in the Red Sea resort of Sharm el-Sheikh hosted by Egypt's President Hosni Mubarak.

"We are determined to keep moving forward."

In an outdoor address, the sea behind him and Mubarak by his side, he hailed a pledge by five Arab leaders to crack down on violence and said if all sides met their obligations, progress could be made to Palestinian statehood and a secure Israel.

"Today I am pleased to stand with leaders of the Arab world who are committed to these principles," he said.

Amid tight security, Bush met Mubarak before they both joined Saudi Crown Prince Abdullah, Jordan's King Abdullah, Bahrain's King Hamad and Palestinian Prime Minister Mahmoud Abbas, making his debut on the international stage.

Syria and Lebanon, two front-line Arab states that have yet to make peace with Israel, were absent from the meeting.

In a conciliatory gesture to his Arab hosts Bush said before the talks that Israel had to deal with Jewish settlements.

"Israel has got responsibilities. Israel must deal with the settlements. Israel must make sure there is a continuous territory that the Palestinians can call home," he said.

Freezing settlement is central to the road map drafted by the United States, United Nations, European Union and Russia.

US hopes for progress have been buoyed by word Israeli Prime Minister Ariel Sharon is to announce plans to uproot some rogue Jewish settler outpost, though it is unclear how many.

The international community considers the settlements illegal, although Israel disputes this.

"We see the potential for the birth of a new and Palestinian state, we see the potential for a broader peace among the peoples of this region," Bush said after the talks.

"Achieving these goals will require courage and moral vision on every side from every leader. America is committed and I am committed to helping all the parties reach the hard and heroic decisions that will lead to peace."

Mubarak said Arab states welcomed the road map and added:

"We support the Palestinian Authority's insistence on meeting its responsibilities for ending violence."

Bush, meeting Abbas for the first time, wants support for the road map, the farthest-reaching peace plan of Bush's 2-1/2 years in office. It outlines reciprocal steps by Palestinians and Israelis leading to a Palestinian state by 2005.

The high-level talks have raised hopes for ending 32 months of Israeli-Palestinian violence, but doubts remain over each side's commitment to implementing the plan.

In a goodwill gesture, Israel began freeing dozens of Palestinian prisoners yesterday. But in a sign of the obstacles ahead, Israeli troops shot dead a Palestinian security man in the Gaza Strip and wounded stone-throwers in the West Bank.

Bush, who arrived in Egypt from the Group of Eight (G8) summit in France, moves on today to hold a landmark summit with Sharon and Abbas in the Jordanian port city of Aqaba.

The US president had refused to meet veteran Palestinian leader Yasser Arafat, who still wields influence among Palestinians who see him as the father of their struggle.

Abbas took office as the Palestinians' first prime minister in late April. He has been an outspoken opponent of the Palestinians' use of violence.

Bush comes to the peace process after waging a war against Iraq that inflamed anti-American passions in the Arab world.

Arabs worry Israel could undermine the road map as Sharon only backed it after Washington vowed to address his concerns.