United Nations Secretary-General Kofi Annan on Wednesday criticized US President George W. Bush for his statement on the issues of Palestinian refugees and Jewish settlements.

After meeting Israeli Prime Minister Ariel Sharon earlier in the day, Bush made a statement endorsing Israel's plan to keep some settlements in the West Bank. He also ruled out the possibility of Palestinian refugees' return to lands lost to Israel in 1948.

The statement has been seen as a historic policy shift of the US administration and drawn sharp criticism from the Palestinians.

"The secretary-general reiterates his position that final status issues should be determined in negotiations between the parties based on relevant Security Council resolutions," said UN spokesman Stephane Dujarric in a statement.

"He strongly believes that they should refrain from any steps that would prejudice or preempt the outcome of such talks," he said.

Palestinian Prime Minister Ahmed Qurei called Bush "the first president who has legitimized the (Israeli) settlements in Palestinian territories."

"We as Palestinians reject that," he said. "We cannot accept that. We reject it and we refuse it."

Source: Xinhua