Israeli PM: 'Let's make peace -- both diplomatically and economically'
Jerusalem Post, July 12,

Palestinian recognition of the Jewish nature of Israel is an essential condition to peace, as well as their willingness to relinquish the demand that the descendents of Palestinian refugees be allowed to resettle in the Jewish state, Prime Minister Binyamin Netanyahu said Sunday.

“The key to peace lies in explicit and unequivocal recognition of Israel as the Jewish state on the part of the Palestinians. They must once and for all give up the demand to resettle inside of Israel the descendents of the refugees,” Netanyahu said during a Jerusalem memorial ceremony marking 105 years since the death of Theodor Herzl.

According to Netanyahu, the leaders of the Palestinians must say, “We have had enough of this conflict; we recognize Israel as Jewish; we will live alongside you in true peace.

“As soon as that is stated,” Netanyahu continued, “a huge window to peace will be opened.”