Israel disingenuously suggested it would "allow" underground tunnels to be built that would connect the Palestinian cantons together -in order to bypass Bill Clinton and Obama's stipulation that any Palestinian state be contiguous and viable. The Peres offer also didn't include control of water resources. Israel currently controls these assets and takes 80 percent of the Palestinian water for itself, while allowing the Palestinians just 20 percent.
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Security cabinet to convene Friday morning to discuss Gaza escalation (Haaretz)
from the article: Peres to Haaretz: Israel could reach a peace deal with Abbas