The position of the United States on settlements has not changed and will not change," said Clinton. "We do not accept the legitimacy of continued settlement activity. We believe their continued expansion is corrosive not only to peace efforts and the two-state solution, but to Israel’s future itself." In my opinion Israel best interest is to put on hold any building activity in the Territories at least outside the fence even if this is not the condition presented by Palestinians.
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from the article: Clinton: Palestinian state achieved through negotiations is inevitable