Netanyahu happens to be talking to the current 'dictator' of the Palestinians, Abbas. I believe that the main issue is not so much what this dictator personally wants, but that the arabic (oil-) powers behind it are more important. In an independent Palestine, long-term stability will depend much less on Abbas than on financial- and religious influence from large and powerful islamic countries. The arabic league initiative promises that most Islamic countries will open diplomatic ties with Israel. Even the announcement of doing so would lead to widespread riots in most of these countries. It simply can't be done at the moment. Of course one must talk to Abbas too. However, it is more important to have a binding agreement with Jordan, Saudi Arabia, Qatar, Egypt and some large Islamic states of how to keep Palestine stable and how to stop vilification of Israel in all these countries, as to give it a chance to function as a normal nation accepted by all. Whatever Abbas says now matters as much what Mursi says. Israel will surely only lose by holding on to the Westbank, but why not make the process conditional on eg lifting travel restrictions for Israeli citizens and on other forms of Israel-normalization in Islamic countries? This is what these countries signed for in the end of the day. Pulling out uni-laterally and relying on promises by a local leader may turn out not to be such a safe bet in the end. I wish Israel a lot of negotiation success.
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