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Israel opposes a full withdrawal to the pre-1967 war boundaries, though both sides have agreed in principle to a West Bank land swap that would give the Palestinians an equal amount of land to that captured in 1967. But agreement on future borders seems far away: The Palestinians have refused to resume negotiations with Israel as long as it refuses to curb settlement construction in the West Bank. Netanyahu on Monday offered to renew the moratorium if the Palestinians would recognize Israel as the Jewish homeland. The Palestinians immediately refused, but Netanyahu also signaled he would be willing to renew the curbs if the U.S. offered an attractive incentive. The Palestinians also say acceptance of Israel as a Jewish state would compromise the rights of Israel's 1.5 million Arab citizens and the rights of Palestinian refugees. They say it is sufficient that they recognize Israel's right to exist.
[Associated
Press;
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