You can have a state with borders defined by Israel and Ramallah as your capital. Jerusalem is not going to be divided. Your situation has improved because Fatah has finally realized that its people want to have a life and by doing what Israel has done, the West Bank has blossomed. See what peace can do.
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Death toll from bombings in southern Iraq rises to 32 (Reuters)
from the article: Palestinian PM to Haaretz: We will have a state next year