NEW YORK — Thousands marched up Fifth Avenue in the annual Salute to Israel parade Sunday as President Bush prepared for a peace summit with Israeli and Palestinian leaders.

"We all pray that peace comes out of this," said Mayor Michael Bloomberg, who led the parade with other New York and Israeli elected officials. "Israel cannot, at the same time, jeopardize its safety. And America has got to stand with Israel."

Bush arranged this week's meeting with Israeli Prime Minister Ariel Sharon and Palestinian Prime Minister Mahmoud Abbas to discuss the "road map" — a U.S.-sponsored plan to a two-state solution of the standoff.

"No one has objections to the road map, but the violence must end first," said Sen. Charles Schumer, D-N.Y., the grand marshal of the parade celebrating the Jewish state's 55th birthday. "The Palestinian people must show that they will eliminate the terrorists within their midst, and then the two parties can sit down and negotiate a true and a real peace."

At one point along the parade route, several dozen pro-Palestinian counterdemonstrators chanted "Occupation is a crime! Israel out of Palestine!"

"We want to make a statement about U.S. aid to Israel and the fact that it goes to finance human rights violations," said Anne Rettenberg, who carried a sign that said, "Stop Demolishing Homes."

There were no immediate reports of trouble between the opposing groups.

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