A peaceful resolution to the Israeli-Palestinian conflict will likely depend to a great extent on the economic development of a future Palestinian state. As I have argued before, private sector investment - especially in the West Bank - is going to prove crucial in creating the right political and social context for peace.
If America is truly Israel's greatest ally, we should not be asking it to put its citizens and future at risk by forcing the establishment of a hostile Palestinian state as the only option.
I enter negotiations with Chairman Arafat, the leader of the PLO, the representative of the Palestinian people, with the purpose to have coexistence between our two entities, Israel as a Jewish state and Palestinian state, entity, next to us, living in peace.
Both peoples, both nations, deserve a nation-state of their own. Palestinians, if they wish so, will go to the Palestinian state; Jews, if they so wish, can go to the Jewish state. And we'll have to have security and demilitarization agreements between us.
Both during the elections and as Prime Minister, I have repeatedly and publicly said that I support the establishment of a Palestinian state alongside the State of Israel.