Beyond the issue of the US failure with the settlements freeze, this means Israel has decided not to accept the 1967 borders. In that light, since the West is too timid in forcing Israel to adhere to the international law, the only smart tactic for the Palestinians would be to reject the two states solution and to go for the one state solution.
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Sudan summons U.S. envoy over Darfur sanctions draft resolution (Reuters)
from the article: Palestinians question U.S. ability to forge Middle East peace