In a small saucepan combine green or sweet red pepper, onion, the 2 tablespoons water, and garlic. Cook over medium-high heat, covered, until vegetables are tender. Stir in soft bread crumbs; set aside.
Meanwhile, cut veal into 6 equal pieces. Place between sheets of plastic wrap. With a meat mallet, pound each piece to 1/8-inch thickness.
Lay one half-slice ham over each piece of veal; top with some of the pepper mixture. Fold in sides, then overlap ends, forming bundles. Secure with wooden toothpicks.
Spray a large skillet with nonstick cooking spray. Preheat skillet over medium heat. Brown veal rolls about 5 minutes, turning once. Add chicken broth and tarragon to the skillet. Cover; simmer 15 minutes or until veal is tender. Remove veal rolls from skillet, reserving juices. Discard toothpicks.
Strain juices; return to skillet. Combine cornstarch and the 1 tablespoon water; add to liquid in skillet. Cook and stir until thickened and bubbly. Cook and stir 2 minutes more. Spoon over veal rolls. If desired, serve with couscous. Makes 6 servings.