All sounds lovely - 2-state solution, Palestinian Embassy in W. Jerusalem, Israeli Embassy in E. Jerusalem. Just one small fly in the ointment - the Palestinians want it all. No Jews on Arab land. And the Arab land in question is pre and post-1967 Israel. Don't you listen? They're saying it loud and clear. Very loudly. Very clearly. Nothing has changed since 1967 and the three Nos of Khartoum: No recognition, No negotiation, No peace.
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Details of secret talks for Israeli unity government revealed (Haaretz)