VOR, well, I think you have it right, but for the wrong reason. I don't think Israel has or ever had any intentions of relinquishing the occupied territories. They are perfectly willing to engage in low-level conflict in order to retain the terrorities forever. Israel has violated every agreement they ever signed. Another reason they want the territories is that ALL of the territories that Issrael has retained have something Israel wants - that is WATER.
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Diplomat David Govrin appointed Israel's new ambassador to Cairo pending cabinet approval (Haaretz)
from the article: Following the path of Sharon's sins