Israeli Prime Minister Benjamin Netanyahu said Israel would accept a demilitarized Palestinian state that recognized Israel as a Jewish state. In a major policy speech Netanyahu also called for immediate peace talks with Palestinian leaders, without preconditions, and said that he was prepared to meet with the leaders of neighboring Arab countries at any time to promote regional peace.
A US government spokesman said that Mr Netanyahu's stance was an "important step forward" but a spokesman for Palestinian leader Mahmoud Abbas said his comments challenged Palestinian, Arab and US positions and that Netanyahu had "paralysed" the peace process.
