Mr BARRESI (2:02 PM) —My question is to the Minister for Foreign Affairs. Would the minister inform the House of the government's reaction to the successful talks held overnight between Israel and the Palestinians?

Mr DOWNER (Minister for Foreign Affairs) —I thank the honourable member for Deakin for his question. I know he was an observer at the Palestinian election. He did an excellent job, and we look forward to reading his report. The elections there were very positive.

Australia welcomes the summit meeting that took place yesterday in Sharm El Sheikh, in Egypt, between Prime Minister Ariel Sharon and the new President of the Palestinian Authority, Mahmoud Abbas. We are encouraged by the announcement out of this summit of a cessation of violence, which of course is a fundamental prerequisite for peace. After four years of violent conflict and with some 4,700 people having been killed by both sides during the intifada, this clearly is a very important step forward. We would urge both sides to do what they can to try to take advantage of this agreement and maintain the momentum for peace.

These are the best prospects we have seen for quite some time for a just and lasting peace in the Middle East. The two-state solution, which must be the solution to the dispute between the Israelis and the Palestinians, is now within reach. The road map to peace in the Middle East, as the peace process is called, is really the only path forward, and it is important that it be embraced by all.

We continue to provide our practical support as best we can to the Palestinian people through our aid program. This financial year we budgeted for $12 million worth of aid for the Palestinian people, and we urge the Palestinians to do everything they can within their power to stop extremists committing acts of violence. We also urge the Israelis to fulfil their part of the road map.

It is not a question of being rosy-eyed about this. We have to think clearly about it and understand the risks and dangers. This encouraging development has followed on from what I think were enormously important elections within the Palestinian territories. The government is enormously encouraged that we are increasingly seeing democracy in places where democracy was, at best, half-hearted. We have seen elections in the Palestinian territories. In the Ukraine there was finally a free and democratic election. In Afghanistan, there were democratic elections, which so many people said would not be possible. Above all, in Iraq, and despite the intimidation, we have seen a free election with a very substantial turnout. It is an enormous moment for the international community to see democracy spreading. The international community can rest assured that Australia will always be there to support it.