"Nobody, neither Israeli nor Palestinian, wants war and bloodshed. Israelis are in seach of their security and Palestinians are in search of their land and liberty," Michel Sabbah told a press conference at his Jerusalem headquarters.

"However, in order to reach peace, one must believe that the other is capable of wanting peace and of edifying it with us. The rulers must begin by professing this," he said.

"The voices that are now being heard from among the people and the diverse initiatives that call for peace and for an official change of attitude show that the two peoples want peace and that peace is indeed possible."

When prompted in a question-and-answer session to elaborate on his vision for peace, Sabbah said in Arabic: "They must sit at the negotiations table ... but there must be mutual trust.

Israeli Prime Minister Ariel "Sharon must believe (Palestinian leader Yasser) Arafat wants peace and Arafat must believe that Sharon wants peace."

Both leaders "when they go to the peace talks must be sincere in their hoping for peace and not meet only for maneuver," he added in English.

"If they want proof, there is a will from the people ... there was an agreement in Geneva. If there is a real will, you will find a way for peace."

The peace initiative drawn up jointly by Israeli left-wingers and leading Palestinian figures was launched in great media fanfare on December 1 in Switzerland.

Unlike previous addresses during the 38-month-old intifada, the Latin patriarch refrained from putting the onus on any one party for the stalled peace process.

But when specifically asked whether one side had to make more efforts to revive talks, he said: "The more responsible is the Israeli side because it is occupying the land of the Palestinians.

"It is up to the stronger side to go back (withdraw). Where can the Palestinians go back to? They are where they are on the small land they have."

"I pray that God can grant a change of hearts on both sides ... that He can make Sharon ... realize that Palestinians want peace," he said, adding that Sharon's proposed "disengagement plan" was not acceptable.

"Peace should come from both sides. One cannot make peace alone," he said.

But he said the Palestinians had "to make the intellectual, the psychological effort to accept and make peace."

Sabbah also deplored Israel's construction of a separation barrier along the West Bank -- a montage of fencing, concrete and razor wire that the Jewish state argues is essential to prevent infiltrations by would-be Palestinian attackers.

Palestinians say the barrier, which often juts deep into the West Bank, will pre-empt the border of their future state.

"The separation wall that is being erected is a measure that pushes peace futher away, delaying peace until this same wall comes falling down," Sabbah said.

"With its fall will also come crashing down the hostility in the hearts, and blood will stop flowing."

Sabbah said the barrier "prevents normal life" for Palestinians and would not bring security, but he acknowledged that "Israel is right to ask to do whatever is right for its security but the wall is not the way for security.

"The way for security is (in) the hearts of Palestinians if they become friendly, and they can become friendly if their land is given back to them, if their freedom is given back to them."

Sabbah, who will conduct the Christmas midnight mass in the West Bank town of Bethlehem, did not make any comment on Arafat being barred by Israel from attending the event for the third consecutive year.

WAR.WIRE