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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Africa Europe Latin America Middle East North America Search Search: Netanyahu calls for demilitarised Palestinian state AFP - 2 hours 34 minutes ago RAMAT GAN, Israel (AFP) - - Israeli Prime Minister Benjamin Netanyahu on Sunday endorsed for the first time the creation of a Palestinian state after weeks of pressure from Washington, but said it must be demilitarised. ADVERTISEMENT He also said during a key address on the Middle East peace process that the Palestinians must recognise Israel as a "Jewish state," a condition Palestinian president Mahmud Abbas has long rejected. "If we have the guarantees on demilitarisation and if the Palestinians recognise Israel as the state of the Jewish people, then we arrive at a solution based on a demilitarised Palestinian state alongside Israel," Netanyahu said. "The Palestinian territory will be without arms, will not control air space, will not be able to have arms enter, without the possibility of striking alliances with Iran or (Lebanese Shiite militia) Hezbollah." Netanyahu also ruled out a complete halt to settlement activity -- which the Palestinians have said is a condition for relaunching negotiations -- and said Palestinian refugees would not be resettled inside Israel's borders. "The key condition is that the Palestinians recognise in a clear and public manner that Israel is the state of the Jewish people," Netanyahu said. "The heart of the (Middle East) conflict has always been the Arabs' refusal to accept the existence of the Jewish state," he said. "The withdrawals that Israel has carried out in the past have not changed this reality." The Palestinians have said they will not return to the negotiating table until Israel halts all settlement activity, and a spokesman for Abbas slammed the speech. "This speech torpedoes all peace initiatives in the region," Nabil Abu Rudeina told AFP. The speech was billed as a response to Obama's address to the Muslim world 10 days ago in which he reiterated Washington's "unbreakable" bond with Israel but also said the Palestinian situation was "intolerable." Obama has vowed to aggressively pursue a two-state solution and in recent weeks Washington had ramped up pressure on Israel's new government to endorse the idea of a Palestinian state and halt all settlement activity. The blunt words to Israel from Obama's administration have raised fears in the Jewish state that Washington may ease its support as it tries to improve its relations with the Muslim world. Former US president Jimmy Carter told the Israeli Haaretz daily on Sunday that Israel risked a head-on collision with Washington over the settlements. Washington provides Israel with 2.4 billion dollars of annual military aid as well as diplomatic support, making the United States its most important ally. Netanyahu faces a delicate balancing act in responding to American pressure, as most in his largely right-wing 10-week-old coalition oppose US demands on settlements and would probably quit the government if he caves in to the pressure, analysts say. Israel and the Palestinians relaunched their negotiations at a US conference in November 2007, but the talks made little progress and were suspended during Israel's blistering war on Gaza in December and January. Following Obama's June 4 speech in Cairo, support by Israelis for a Palestinian state alongside the Jewish state rose from 59 percent to 63 percent, a poll released on Sunday by Hebrew University's Truman Centre said. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: World Reports: Italy seizes radioactive biomass fuelAP - Monday, June 15 Netanyahu endorses Palestinian independenceAP - 1 hour 37 minutes ago Texas teen hopes to raise $1 million for hospitalAP - Monday, June 15 Pastor Jakes says he barely avoided home blastAP - Monday, June 15 Netanyahu to accept Palestinian state, official saysReuters - Monday, June 15 Enlarge Photo Palestinian security forces show their skills during a training exercise in the West Bank town of Jenin. Israeli Prime Minister Benjamin Netanyahu on Sunday for the first time endorsed the creation of a Palestinian state, saying such an entity would have to be demilitarised and recognise Israel as a home of the Jewish people. 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