The reason Netanyahu demands it is that he can then say:The Palestinian refugees cannot return to the Jewish state. But the refugee problem has to be discussed as part of the deal, not as a "trick". For Abbas to recognize Israel as the homeland for the Jews is to demand from him some determination about history. What Abbas knows as a historical fact is that Israel was part of the homeland of the Palestinian people (as defined today). The Jewish claim is debated by historians (although I, and most Jews, believe it as a certainty. If Abbas is willing to decide historical claims, he might say: Israel and Palestine are the homelands for the Jewish people and for the Palestinian people. (Indeed, Judea and Samaria are the homeland of the Jews more than Israel proper). But such a historical determination by Abbas will be of no use for Netanyahu. I think Yahoo should reconsider his pointless demand.
Five arrested in anti-terror raids in Sydney (DPA)
from the article: Netanyahu to U.S. congressman: Mideast peace possible within year