Every negotiation should begin with a start off position. To prove that he is serious Netanyahu could state his, which is in my opinion as follows: "The borders of Palestinian State are within Gaza," Israel keeps everything else. The Palestinians would be allowed to move to Gaza or elsewhere, and the Palestinian authority would be abolished.
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Gaza education ministry shuts 2 Shejaiyeh schools citing fear of Israeli artillery fire (Haaretz)
from the article: Palestinians: Peace negotiations with Israel have ended