July 30, 2003 -- WASHINGTON - Israeli Prime Minister Ariel Sharon yesterday told President Bush that Israel will continue to build a security fence, despite concerns raised by the White House.

Sharon, at his eighth White House summit with Bush, said the fence "will continue to be built" to keep out Palestinian homicide bombers and other terrorists from the West Bank.

"Good fences make good neighbors," Sharon told Bush during their meeting.

Bush alluded to his disagreement with Sharon during a press conference when he called on the Israeli leader "to carefully consider all the consequences of Israel´s actions" and to take steps to improve the daily lives of Palestinians.

But the president, standing next to Sharon at a Rose Garden press conference, did not publicly press the Israelis to halt the fence, which Bush last week called "a problem" after he met with Palestinian Prime Minister Mahmoud Abbas.

Israel began building the fence more than a year ago. It is not specifically mentioned in Bush´s "road map" peace plan, but has become a source of friction between the parties.

Neither Bush nor Sharon mentioned Israeli press reports that Sharon may halt construction of a particularly controversial part of the fence, near large West Bank settlements, for six months.

Sharon told The Post it was no secret "the U.S. didn´t favor the settlements or the security fence," but said his meeting with Bush was "one of the best summits we´ve had." (Copyright 2003 NYP Holdings, Inc. 07/30/03)