One historic concession deserves another. Just four months after Israeli Prime Minister Ariel Sharon -- the father of the settlement movement -- stunned Israelis by pledging to evacuate some settlements, he got his payback from President Bush, who reversed decades of U.S. policy by recognizing Israel's claim to parts of the West Bank.
It was compensation, with interest: Sharon had scored perhaps the most stunning diplomatic triumph in the U.S.-Israeli alliance in a generation.
"In light of new realities on the ground, including already existing major Israeli population centers, it is unrealistic to expect that the outcome of final-status negotiations will be a full and complete return to the armistice lines of 1949," Bush said Wednesday at a White House appearance with Sharon after the two leaders met. "It is realistic to expect that any final-status agreement will only be achieved on the basis of mutually agreed changes that reflect these realities."
The statement, reiterated in a letter to Sharon, represents the first time the U.S. government has provided a formal commitment to Israel's claim on parts of the West Bank.
Bush's commitment came without any mention of land from Israel and was widely seen as a significant shift in U.S. policy in the region. It was a soaring historical moment fraught with grinding political realities.
Bush needs a Middle East success to bolster a reputation as a bold foreign policy leader that flags with each U.S. casualty in Iraq.
For his part, Sharon needs to show Israelis that his leadership through some of the nation's most traumatic years is resulting in a diplomatic breakthrough.
In addition, Sharon faces a May 2 Likud Party referendum on his plan to withdraw from the Gaza Strip, and other Likud figures have vowed to challenge any uprooting of settlements.
When talks on the dimensions of a withdrawal began in February, the Americans rejected out of hand any recognition of Israeli claims in the West Bank. Subsequently, U.S. officials said they would consider such a recognition depending on the breadth of the withdrawal.
According to a senior Israeli official, the disengagement plan Sharon presented to Bush calls for an Israeli withdrawal from all of the Gaza Strip and four settlements in the West Bank.
The settlements, encompassing 500 settlers, include Ganim, Homesh, Kadim and Sanur, all in the northern West Bank. The withdrawal from these settlements would provide contiguity for the Palestinians between Jenin and Nablus, a major Palestinian concern.
The official said any future withdrawal would depend on how the Palestinians respond to this proposal and whether they live up to their commitments.
No one expected Bush to so explicitly bury years of U.S. policy, which traditionally said all the land Israel captured in 1967 was up for negotiation.
At best, Bush was expected to recognize vague "demographic realities." Instead, he said it was "unrealistic" to expect Israel to return to its pre-1967 lines.
Bush moreover threw in an endorsement of Israel's controversial security barrier as it is now routed.
"The barrier being erected by Israel as a part of that security effort should, as your government has stated, be a security rather than political barrier," he said.
Finally, Bush expressed his most emphatic rejection to date of the Palestinian demand that Arab refugees and their descendants be allowed to return to land in Israel that they left in 1948.
"It seems clear that an agreed, just, fair and realistic framework for a solution to the Palestinian refugee issue as part of any final-status agreement will need to be found through the establishment of a Palestinian state and the settling of Palestinian refugees there rather than Israel," he said.
Sharon gave very little in return. Against Bush's repeated assurances that the Gaza withdrawal would spur forward the U.S.-led "road map" peace plan and its goal of a Palestinian state, Sharon referred only obliquely to "your vision" in his public remarks Wednesday.
The biggest political loser Wednesday appeared to be the Palestinians, who were paying the price for a leadership that refused to stop terrorism and never successfully engaged Bush.
"He is the first president who has legitimized the settlements in the Palestinian territories when he said that there will be no return to the borders of 1967," Palestinian Authority Prime Minister Ahmed Qurei was quoted as saying by Israel's Ha'aretz newspaper.
Qurei's outlook was bleak.
"We as Palestinians reject that, we cannot accept that, we reject and refuse it," he said.
Senior Bush administration officials, however, said the Palestinians should view the letters as an opportunity.
"What we want is a situation where Palestinian leaders, committed to democracy and fighting terror, have a chance to take control of that territory as a down payment on the way toward a Palestinian state," one said. "And we propose to engage very vigorously with the Palestinian Authority to try and create the institutions that will allow them to do that."