Nov 26 (Reuters) - For U.S. President George W. Bush, Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas, Tuesday's conference at Annapolis, Maryland, on Palestinian statehood amounts to a collective gamble.

Short of the declared goal of laying the foundations for a Palestinian state, here is what the leaders hope to achieve:

BUSH: The initiative comes at least in part in response to pressure from Arab allies to make a last-ditch effort to address the Israeli-Palestinian conflict before Bush steps down in 14 months. By doing so, Bush could shore up Arab support for his policies in the region, particularly in isolating non-Arab Iran and its interests and allies in the area, including Hamas Islamists who seized control of the Gaza Strip in June.

Brokering even a partial agreement on a Palestinian state could also bolster Bush's legacy after years of controversy over the occupation of Iraq. If it fails, Bush could at least make the case his administration made an effort, however late.

OLMERT: Battered politically by last year's war in Lebanon and a string of corruption scandals, centrist Kadima leader Olmert is fighting for political survival. Right-wing Likud party leader Benjamin Netanyahu and Labour boss Ehud Barak are already busy positioning themselves for eventual elections that could be called if Olmert and the U.S. peace process falter.

Simply taking part in talks has won Olmert Washington's support and made it hard for rivals to oust him for now.

Ultimately, Israel hopes peace with Palestinians can end the threats it faces, though few Israeli leaders believe Abbas can deliver security and so expectations are that Annapolis may help contribute somewhat to curbing militant attacks.

The presence of Saudi Arabia, Syria and other Arab states at Annapolis is a benefit for Israel, which would like to see more trade and other ties with its neighbours as well as with the Palestinians.

Olmert's room to manoeuvre is limited. Any concessions might spark a revolt by various coalition partners, triggering elections that could freeze peace moves until Bush steps down.

ABBAS: Like Olmert, the conference and its aftermath could make or break Abbas. He succeeded the late Yasser Arafat in 2004 but his Fatah faction then lost a parliamentary election to Hamas Islamists in 2006 and then lost control of the Gaza Strip in fighting with Hamas in June this year.

Abbas hopes the conference will regain the Palestinians international support after the collapse of peace talks in 2000 and a string of suicide bomb attacks by militant groups. At a minimum, Abbas needs to show tangible progress towards statehood to fend off political challenges, both from Hamas and within his own faction. No matter what the outcome, Hamas will try to portray the conference as a failure.

Israel has rebuffed Abbas's call for a deadline for concluding negotiations on a Palestinian state and the two sides have yet to agree on a joint document on how to proceed. If the effort collapses, violence could break out. Abbas could also try to cut a new power-sharing deal with Hamas. That would at least temporarily bring any dialogue with Israel to an end.

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