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  Ward, who has been based in Europe, has made one trip to Israel and the Palestinian territories since Rice announced his appointment last month.

Rice announced Ward's plan to relocate as the British-led conference got underway.

"The Palestinian Authority needs to reform its security institutions in order to fight terrorism and lawlessness effectively," Rice said. "The United States is prepared to work with partners in the region and around the world to realize this essential goal.

Her remarks came after Palestinian leader Mahmoud Abbas told the conference that the Palestinian Authority has decided to unify its tangled and often competing security services. Rice met with Abbas privately during the session.

Rice praised Egypt and Jordan specifically for their work to improve Palestinian security services. She called the planned Israeli withdrawal from some Palestinian areas historic, but made clear that the United States expects Israel to follow through on all of its promises.

"Israel must also take no action that prejudices a final settlement and must help ensure that a new Palestinian state is truly viable," Rice said. "A state of scattered territories will not work.

Rice also met with United Nations Secretary-General Kofi Annan and was to attend a session with Annan later Tuesday on Israeli and Palestinian progress on implementing an international blueprint for ending violence and establishing a Palestinian state.

The plan calls for an end to Israeli settlement-building and the "dismantling" of Palestinian terrorist groups in the West Bank and Gaza _ steps that both sides have ignored, while in theory accepting the plan.

Rice had harsh words for Syria, which she accused of supporting terrorists who want to undermine the Israeli-Palestinian peace effort and of stamping on the democratic desires of next-door Lebanon.

"The Syrians are out of step with where the region is going and out of step with the aspirations of the people of the Middle East," Rice said after meeting with French Foreign Minister Michel Barnier.

The United States and France issued a joint statement calling for an international investigation of the death in Lebanon of opposition politician Rafik Hariri and for a full pullout of Syrian troops there.

Prior to the conference, Rice said the new Palestinian government must get tougher on terrorists like those responsible for a bombing that rattled the resurgent Mideast peace process.

But she also praised both Israelis and Palestinians for showing restraint and said other countries must help Abbas by contributing money and political support.

The conference is intended to help bolster the Palestinian Authority ahead of Israel's planned withdrawal from the Gaza Strip and four settlements in the West Bank and to prepare for eventual statehood.

The suicide bombing outside a Tel Aviv nightclub on Friday killed five Israelis. Israelis and Palestinians are waiting to see if Israel pulls away from the peace process or if Abbas is powerless to stop further attacks.

"Obviously, when you have Palestinian Islamic Jihad taking responsibility, then something needs to be done about that because they are clearly challenging directly the Palestinian Authority," Rice said en route to London on Monday.

Even so, she said, "We are not in any way distressed by the response to this on either side. I think it's shown considerable maturity on the parts of the parties to know there are going to be some ups and downs and we'll have to get through them."

The London conference, in addition to aiding Abbas' government, is meant to underscore other countries' insistence that he take on terrorists as well as petty crooks.

President Bush has pledged $350 million for the Palestinians this year, although Congress has not yet given its approval. None of the money would go directly to the Palestinian Authority.

© 2005 The Associated Press

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