Israel doesn't respond because doing so means accepting that territory can not be annexed at the point of a gun. The regime chokes at that thought because their vision for the state is predicated upon future territorial self-aggrandisement e.g. East Jerusalem today, "Eretz Israel" tommorow, and up to the Litani River sometime down the track....
Saudi Arabian king cuts France trip short after beach controversy (Reuters)
from the article: After 8 years, why hasn't Israel responded to the Arab peace initiative?