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Netanyahu Agrees To Limited Palestinian State


Israeli Prime Minister Benjamin Netanyahu responded on Sunday to uncommon pressure from Washington by finally giving his endorsement -- with conditions -- to the establishment of a Palestinian state. But in a speech answering President Barack Obama's address to the Arab world 10 days ago, the right-wing leader's defense of Jewish settlement on occupied land may fail to dispel tension with the White House, as the two men try to set new terms for the Middle East peace process in their first months in office. Obama called Netanyahu's shift in position on Palestinian statehood as an "important step forward," even as aides to Palestinian President Mahmoud Abbas were denouncing the speech as "sabotaging" negotiations by restating Israel's refusal to share the city of Jerusalem or accept Palestinian refugees.

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