I think Israel wants peace, the problem is the extremist settlers, they are so embedded within the Government, they have no respect for the Law,the IDF or the police, and they carry guns! the Gaza withdrawal was a sample of how a West Bank withdrawal would look like. it will evolve into a civil war, Jewish vs. Israeli. the State of Israel has put itself in a messy predicament.
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from the article: Abbas urges Obama to impose Mideast peace solution