Leon Charney, Former Carter Foreign Policy Adviser

This is a partial transcript from Your World with Neil Cavuto, June 12, 2003, that was edited for clarity. Click here for complete access to all of Neil Cavuto's CEO interviews.

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TERRY KEENAN, GUEST HOST: Our next guest advised President Jimmy Carter during the Camp David peace accords, has witnessed many attempts at peace, but now he says that this road map is basically dead, and you’ll be shocked at who he’s blaming.

Joining me now Leon Charney. He is former foreign policy adviser to President Carter.

And, Mr. Charney, welcome. OK. Who are you blaming here?

LEON CHARNEY, FORMER CARTER FOREIGN POLICY ADVISER: I think the European Union has been trying to rehabilitate Yasser Arafat, which is negative to what George Bush wanted to do, so Abu Mazen, who’s trying maybe in good faith to accomplish something, can’t move because Yasser Arafat is blocking him.

And, although Israel and the United States try to freeze him out, the European Union keeps going there, they visit him, they rehabilitate him, I’m sure they fund him in their own way, and so Abu Mazen is up against a wall. I don’t think he can do anything.

KEENAN: Well, the Europeans have been funding the Palestinians, sending lots of money to Palestine over the last couple decades, in fact, and you think that’s continuing.

CHARNEY: Yes. If you talk to their new finance minister who looks like a real guy and a guy who really wants to get it together, I think that he’s having a hard time, too, because Arafat just doesn’t want to give up the money and the tentacles that he has on the money.

But, basically, it looks like a slap at George Bush, by the way. The European Union looks like they’re taking a hit at George Bush.

KEENAN: So you’re basically saying the Europeans are doing exactly the same thing in the Israeli-Palestinian situation as they did with Iraq.

CHARNEY: With Iraq, right. And prior to the Aqaba meeting because they weren’t involved. You know, there’s a lot of egos in these countries, like the French, the Germans, et cetera, and so they keep funding and rehabilitating Yasser Arafat.

It’s interesting what the fellow from Saudi Arabia said. Maybe they’re in good faith, but why don’t they recognize Israel? That might calm everything down for a half-hour at least, wouldn’t it?

KEENAN: Yes, yes. Good, good point. And going back to the Europeans here for a second, the wrap on them during the Iraqi situation was they didn’t want us in Iraq because of oil.

CHARNEY: Right.

KEENAN: There’s no oil in Palestine or in Israel.

CHARNEY: No, this is power play, and this is what the European Union wants to do to the United States. You’re a great economist. The Euro is up, and the dollar is down, and they can take advantage of that.

This is a whole interplay here, and I’m sure that, if Yasser Arafat got together with the European people and says really I want to clamp down on Hamas, I believe they could probably do it.

KEENAN: A year from now, will Arafat still be calling the shots, do you think?

CHARNEY: I’m afraid he might be. He might be limping, but he’ll still be ventilating.

KEENAN: All right. Thanks for joining us.

CHARNEY: Thank you.

KEENAN: Interesting insights. Leon Charney.

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