Israel wants to ANNEX territory that does not belong to it. Israel can only do that if the Palestinians agree to CEDE that territory to it, precisely because a "unilateral annexation" is illegal. Once you get your head around that concept then what Meridor is saying starts to make sense: if Israel needs the PLO to CEDE the settlement blocks then the PLO will expect a quid pro quo i.e. the PLO will want Israel to CEDE an equal amount of territory toit. Ying and Yang. Cede and Annex.
Neurologist and author Oliver Sacks dies at 82 (Haaretz)
from the article: Deputy PM: Israel must cede land to remain Jewish and democratic