The Palestinians recognized the state of Israel in 1993. All they are asking in return is that Israel recognize the state of Palestine i.e. they do not insist that Israel recognize the "Arab state of Palestine", any more than they accept that they have to recognize the "Jewish state of Israel".
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Attempted stabbing reported near Hebron's Tomb of the Patriarchs; assailant shot at scene (Haaretz)
from the article: Abbas: Britain and France would recognize Palestinian state