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(NECN/ABC) - President Bush is spending a second day in Israel. Mr. Bush was the honored guest at the Israeli parliament Thursday, where he addressed the lawmakers and the nation.

The President in the Israeli Knesset - the parliament, often the scene of passionate and noisy debate.

"I am honored to stand before one of the world's great democratic assemblies."

Here to celebrate Israel's 60th anniversary with personal words of support and solidarity, at times betraying his own religious convictions.

"Our friendship runs deeper than any treaty. It is grounded in the shared spirit of our people, the bonds of the book."

Earlier in the day he and the First Lady visited Masada, the ancient desert fort once the scene of heroic Jewish resistance and defeat in the face of Roman Occupation. A place of special symbolism.

"Masada will never fall again."

There was uncompromising rhetoric on terrorism and extremism. Timely, in the light of last night's rocket attack in Ashkelon.

"The fight against terror and extremism is the defining challenge of our time. It is more than a clash of arms, it is a clash of visions."

Hamas, Hezbollah and Iran all named, and denounced. The President focusing on one of Israel's greatest fears.

"For the sake of peace, the world must not allow Iran to have a nuclear weapon."

As to the future the President promised a rosy picture of a democratic Middle East.

This was President

ABC's Simon McGregor-Wood reports from Jerusalem.