US President George W Bush has called Israel´s West Bank security fence "a problem" in a joint appearance with Palestinian Prime Minister Mahmoud Abbas.

He also said the US would take new measures to improve the Palestinian economy.

Mr Abbas - also known as Abu Mazen - was in Washington for the highest-level visit by a Palestinian to the White House since Mr Bush took office.

Speaking about the Israeli security fence, Mr Bush said: "It is very difficult to develop confidence between the Palestinians and Israelis with a wall snaking through the West Bank.

"I´ve discussed that with [Israeli Prime Minister] Ariel Sharon. I will continue to discuss this issue very clearly with the prime minister," he said.

Israel has been under pressure to introduce confidence-building measures in connection with the US-backed peace plan known as the roadmap.

Commitment

As Mr Bush was meeting Abu Mazen, the Israeli Government announced it was lifting three roadblocks in the West Bank.

The checkpoints are to be removed between Ramallah and Jerusalem, Ramallah and Nablus, and Bethlehem and Hebron.

Mr Sharon also gave a commitment to look at further releases of Palestinian prisoners.

Mr Bush did not press Israel on prisoners the way he did on the West Bank fence, which Israel says is to prevent militant infiltrations into Israel.

The US president said the release of any prisoners would be on a "case by case" basis.

No "cold-blooded killers" would be released if there was any hint of derailing the peace process, he said.

The president said he and Mr Abbas shared a "common goal" to find peace in the Middle East.

Improving economy

He spoke of setting up of a new joint US-Palestinian economic group.

For his part Abu Mazen called the meeting "fruitful" and said his authority appreciated the "relentless efforts" made by the Bush administration in pursuit of peace.

"Security for all is an essential element in progress," he said.

And he laid accused Israel of hindering the process - calling for a freeze on settlements and the removal of the wall.

The Palestinian prime minister had earlier held talks with senior members of the United States Congress, at the start of his first visit to Washington since he came to office.

Abu Mazen took office in June - after Washington refused to deal with Palestinian leader Yasser Arafat. (© BBC MMIII 07/25/03)