Binyamin Netanyahu threw down the gauntlet to the US last night, grudgingly agreeing to a limited Palestinian state that would be demilitarised and not in control of its airspace or borders. The hawkish Prime Minister insisted that Israel would never give up a united Jerusalem as its capital, and said that established Jewish settlements in the West Bank would continue to expand — despite explicit objections from Washington.
In a keynote speech that referred to a Palestinian “entity” far more frequently than an actual state, Mr Netanyahu tried to advance elements of his economic peace plan — whereby the Palestinians would get increased investment but only limited sovereignty — while still conceding to US insistence on the creation of an independent Palestinian country.
The right-wing Israeli leader said the moderate Palestinian leadership in the West Bank must agree to recognise Israel as the homeland of the Jewish people, as well as fight the Islamic hardliners Hamas, who now control Gaza, in return for the resumption of peace talks. MORE HERE on Times Online
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