The New Arab Peace Plan

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g Abdullah II of Jordan is a ruler whose realm is surrounded by the crises of the Middle East. Iraq is to the east and his neighbors to the West are the Israelis and Palestinians. The 44-year-old monarch was uncharacteristically pessimistic last week during an hour-long interview with TIME at Basman Palace in Amman. The highlight of the interview, however, was Abdullah's willingness to disclose the outlines of a new Arab peace plan, based on the initiative adopted by Arab states in Beirut in 2002 and being driven by Saudi Arabia, Egypt and Jordan. Abdullah said that he believes it is one of the last chances to solve the Israeli-Palestinian conflict and thus enable the region to more effectively address other looming threats, from the war in Iraq to the regional ambitions of Iran. Excerpts:

TIME: Five years after 9/11, has the war on terrorism made the world safer?

Abdullah: What it's done is make it more complicated. We are still not addressing the root causes. The Lebanese war dramatically opened all eyes to the fact that if we don't solve the Palestinian issue, the future looks pretty bleak for the Middle East. Unless we solve the core problems, terrorism in its strength will always be with us.

TIME: Why stress the Palestinian issue?

Abdullah: The next year or two are going to be the definitive years for the Middle East. People have got to wake up to the fact that if we really don't get our act together over the next six months, then— I'm one of the most optimistic people you'll come across, for the first time I started becoming pessimistic toward the region. There needs to be some sort of Palestinian integral geographic state, today and not tomorrow. If we don't achieve that, the trend is maybe Israel doesn't want peace, maybe the Americans don't want peace. That's what we moderates are having to fight. We are running out of arguments. If we don't see tangible results on the ground by 2007, then I don't think there will ever be a Palestinian state. Then I think we are doomed to another decade or decades of violence between Israelis and Arabs, which affects everybody.

TIME: Why so dire?

Abdullah: A lot of people in the area feel that because Israel is not invincible as people thought, maybe dialogue is not the way to discuss issues with Israel. The street is saying you know, we have tried the peace process. They see that the only way you can get America's attention or Israel's attention is though confrontation. I don't think people are taking us [moderates] seriously. The moderate voice now has been neutralized. People around the world in a way just don't care anymore. There is a feeling I get in the international community, " You know what, let the Israelis and Arabs have a go at each other. " Are we going to resign our region for another decade of violence, or are we going to put this to rest once and for all?

TIME: What can you do?

Abdullah: We are re-launching the Arab initiative, reaching out to the Israeli public, saying, " Look, it is Beirut Plus now. " There is movement by core Arab and Muslim countries saying, " Look, if we solve the Palestinian issue, it is one major step forward in bringing peace and stability to the region. " We are expanding from Arab to Islamic countries, saying, " We want peace with you. " And I'm hoping the response is, " So do we. " And then going straight to some practical solutions and being able to move Israel forward. I think this is really one of the last chances.

TIME: What's new, considering your Beirut initiative went nowhere?

Abdullah: Maybe it was not P.R.-ed in the right way. It wasn't picked up on the Israeli or American radar.

TIME: What's new with Beirut Plus?

Abdullah: The short-term objective is to get straight back to negotiations. But we want to jump ahead to something tangible. We need to get to the point where people want to sign on the dotted line. We want to move to a two-state solution but we are not going to go back and forth with lawyers until we get there. We need to start building things on the ground. What we have seen with Israel and its Arab neighbors is a unilateral approach. I think it has finally dawned on our friends in Israel that doesn't work. How serious is Israel from one side and how serious is the Palestine National Authority on the other? Leaders in Israel and in the PNA need to stand up to the challenge.

TIME: What are some of the specifics?

Abdullah: I know from personal experience there is always the issue of "security before politics. " I don't think that works. It has to go hand in hand. In the past what has been asked of the Palestinians [on security issues] are things that I know the Palestinians can't deliver. I think that was a tactic. Today we can't afford that.

TIME: What does this plan have for the Israelis?

Abdullah: Security guarantees by the Arabs. The assurance that they are fully integrated socially, economically, politically and culturally into the Middle East. Do Israelis want to have to still walk out of their houses with an Uzi on their shoulder? Do mothers have to still worry whether or not their children are going to come back safely from a mall or a restaurant? We need to know from the Israelis right now their long- term vision of what they see as peace. Is this going to be fortress Israel? Or is Israel going to be integrated into the area.

TIME: Is the Bush Administration on board?

Abdullah: The back and forth is very positive. The question I would throw back to you is, Don't you think we all need it? I don't think there is any one of the players that we are talking about that doesn't need some wins at this stage. You have an Administration that will want to show to its people and to the world that things are moving in the right direction.

TIME: What about Israeli Prime Minister Ehud Olmert?

Abdullah: He is a man that I trust will commit to peace and deliver. I think there is no doubt that he has some major obstacles to overcome, and he won't be able to overcome them by himself.

TIME: What about the Arab street-it is cheering Hizballah's Hassan Nasrallah, not Jordan's King Abdullah?

Abdullah: Right. And the reason for that is because Israel is not committed to a process of peace. Once we can show in the next couple of months hope to the Palestinian people and to the Arabs that there is going to be serious movement, I think that balance will switch away. The overwhelming majority, both sides, does want peace. They do want to solve their problems. I think that is reflective of the rest of the Middle East.

TIME: Why should Israel deal with Hamas when you don't trust it either?

Abdullah: Because the stakes are higher. I don't think that Israel is looking just at having a problem with Hamas. It is looking further afield and seeing major security challenges to the integrity of Israel. The region is going through throes where there are other regional powers that are vying for supremacy in this area. Usually when that happens the net result is conflict and violence. [The Palestinian issue] is the core issue, one that should be dealt with very easily because there is something looming over the horizon that is a lot worse.

TIME: If you mean Iran, does President Mahmoud Ahmadinejad scare you?

Abdullah: Nobody scares me. If you know Jordanian history, we have been surrounded by testosterone for many, many decades.

TIME: How do you read Iran's intentions?

Abdullah: Iran is an integral part of the Islamic world, it is a very big country and it is a very capable country. I think part of the Iranian policy is to say, "I am here, people, take me seriously. " I am worried about people on both sides of the camp taking advantage of their own policies to put Islam against each other. There would be nothing worse than there be an inter-religious conflict. I think sensible people would not want to see that. But on the ground we are seeing a lot of this, of tension between Shiite and Sunni communities, which for us as Hashemites is just the red line.

TIME: How tough should the U.S. get with Iran over its nuclear program?

Abdullah: We are hoping that negotiation and communication is always the best way to reach out to each other. I don't think the Middle East could afford another war. And a war with Iran would open a Pandora's Box, one that I don't think the Middle East would recover from.

TIME: Worries about Iraq?

Abdullah: The next couple months are critical. When I saw the fight develop inside Baghdad, that's a precursor of worse things to come. If stability can be brought back to Baghdad, we are back to moving in the right direction. If it continues to spiral, then the only conclusion I can come from that is civil war. Iraqis are working to get the end in sight for a withdrawal of coalition troops, but practically that's not going to be for another year at least.

TIME: The threat to Jordan?

Abdullah: We've been surrounded by bullies for many decades and Jordan is still here. We are averaging 9-12 months between crises and they are getting worse and worse. All of us in the area including the Israelis are feeling more and more insecure. Nobody knows where this is taking us. The peace camp needs to turn the boat around in the other direction. If not, we sink, all of us.