BBC NEWS | Middle East | Israel sets terms for Palestinian state
Israeli Prime Minister Benjamin Netanyahu has announced he will back a Palestinian state - but only if it is completely demilitarised.
He said a Palestinian state must have no army, no control of its air space and no way of smuggling in weapons.
In a landmark speech, weeks after the US president urged him to agree a two-state plan, he said the Palestinians must accept Israel as a Jewish state. \
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