Following are Prime Minister Ariel Sharon's remarks at the beginning of his meeting this evening (Tuesday), 5.2.2002, with President Moshe Katsav, at the latter's Jerusalem residence:

"The position of the US in regard to terrorism is well-known. The US and President Bush are conducting an aggressive and vigorous war against terrorism and understand that today terrorism is the greatest danger to both regional stability and the free world. Everyone knows that Israel is committed to peace and will make every effort to reach a solution, a peace agreement, but we will assure the life of the State of Israel, and our position on this issue is well known. It will continue and there is no connection to my visit to the US."

In response to a question whether US President Bush has asked Israel not to respond:

"I don't know where you get this information from but it is our right to defend ourselves. This is not the kind of issue for which we need anybody's approval or regarding which someone can forestall us. Everyone knows that Israel is prepared to make painful compromises for a true peace, but there will be no concessions on the security of Israel and its citizens. This is the position of the government that I head and it is well known. Today, I spoke with several heads of state and government, including Russian President Vladimir Putin, British Prime Minister Tony Blair and Spanish Prime Minister Jose Maria Aznar. In all of these talks, our position was again made clear; nobody challenged it. Our primary obligation is to provide security. If we stand on this, we will also reach a settlement and, I hope, future peace as well."

In response to a question on the Iranian issue:

"The citizens of Israel need to know that the IDF and the government are taking all necessary measures in order to defend them. We must be patient and calm, and be more self-confident. If this will be done, I estimate that there will be quiet and that it will be possible to make progress towards peace."

Regarding the budget:

"I am convinced that as soon as we pass the budget, it will be one of growth. We will have to make a major effort this year so that the economy will emerge from the recession and achieve growth. I believe that with all of Israel's great talents, we can indeed do so. I am optimistic."