In a letter written by George Bush to Sharon, Bush accepted Israel's right to retain major settlement blocs close to the Green Line and not to return to the 1967 borders (Shindler, History of Modern Israel, Cambridge University Press, 2008, p. 325). Bush "formally recognized settlements that had been established on territory conquered in 1967" (ibid). You somehow fail to note this in your post (which you have repeated how many times now with your usual complete absence of evidence?) but the Palestinians were not so oblivious; they regarded it as a "second Balfour Declaration" (ibid.).
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from the article: Peres blames Netanyahu for breaching Jerusalem status quo