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Netanyahu Endorses Two-State Solution

Obama Effect?

Calls for limited Palestinian state in speech.

During his highly-anticipated policy speech this afternoon, Israeli Prime Minister Netanyahu made the call to create a limited Palestinian state provided that the territory under Palestinian control would be disarmed and that Palestinians accept that Israel is a Jewish state. "If we get this guarantee for demilitarization and necessary security arrangements for Israel, and if the Palestinians recognize Israel as the state of the Jewish people, we will be willing in a real peace agreement to reach a solution of a demilitarized Palestinian state alongside the Jewish state," he said. "I call on you, our Palestinian neighbors, and to the leadership of the Palestinian Authority: Let us begin peace negotiations immediately, without preconditions," he said. His speech has already provoked a reponse from Palestinian President Mahmoud Abbas, whose spokesperson said, "Netanyahu's remarks have sabotaged all initiatives, paralysed all efforts being made and challenges the Palestinian, Arab and American positions."

Read it at Associated Press