JEDDAH, 27 June — The Palestinian people alone should choose their leader democratically, and whomever they elect should then be acceptable to the American administration and the rest of the international community, Foreign Minister Prince Saud Al-Faisal told a press conference here yesterday.

The press conference followed a meeting between Prince Saud and his French counterpart, Dominique de Villepin.

Earlier, Villepin and Saudi Minister of Finance and National Economy Ibrahim Al-Assaf signed an investment protection treaty. (See Page 2)

"The history between our two countries is rich and goes back a long way. France was one of the first countries to recognize the Kingdom of Saudi Arabia. We continue to enjoy a strong strategic relationship and we hope to promote investment in Saudi Arabia in different sectors," Villepin said.

Prince Saud gave reporters the Kingdom’s first official response to US President George W. Bush’s speech at the White House on Monday. He said that it is now possibly the first step toward permanent peace and stability in the region.

Prince Saud also emphasized that the Palestinian elections in January 2003 will be an important step in the democratic process, the results of which should be respected.

"Only the Palestinian people can choose their own leader," he emphasized.

The prince went on to say: "The Kingdom looks forward to seeing what President Bush asks of Secretary of State Colin Powell. We need a strategic plan that will bring about a complete solution to the issue of peace and stability in the region and the normalization of relations. This is what was started by the Arab summit in Beirut and is supported by the whole international community."

The French foreign minister backed Saudi Arabia’s role in the Middle East and stressed the that France will continue to play a central role in the region. He added that France will push for a Palestinian state and that Israel should negotiate with whomever is chosen as their leader.

Prince Saud also stated that Saudi Arabia had been sent a summary of the content of Bush’s speech a few hours in advance by Secretary Powell.

The political process is essential in order to curb violence in the region, and without the political process violence can only be stopped temporarily, Prince Saud said.

"This is why identifying the sequence to the proposals that were in the presidents speech is most important," he stated. "Although we wish that the Palestinians had held elections much earlier, it is never too late — and I doubt that anyone, including the United States, will question this democratic process," Prince Saud said.

Prince Saud also stated in a later statement that Bush’s speech included several "positive points" such as his emphasis of the Palestinian people’s right to live with freedom and dignity in an independent state and the withdrawal of Israeli forces to pre-1967 borders.