While I love Ray's plan overall, this last piece isn't going to fly. The vast majority of the settlers are in larger settlements around Jerusalem. At this point, these areas are now city neighborhoods and suburbs. Israel simply won't be able to move these people (there are just too many and their lives are too entrenched), and I highly doubt that they will stand for becoming citizens of a Palestinian state (in fact I can pretty much guarantee this). In addition, Israel simply won't (nor can't) absorb the same number of refugees into Israel. Sorry, but this just ain't happening. To insist on this is simply to perpetuate the conflict. I can forsee a land swap the would enable Israel to keep the main settlements, but I can't ever forsee real justice for the Palestinian or Jewish refugees. It sucks, I know. I have one idea that might work, but which I don't have room for. I'll put it in another post.
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Diplomat David Govrin appointed Israel's new ambassador to Cairo pending cabinet approval (Haaretz)
from the article: Peace Plan: Trading settler Israelis for refugee Palestinians