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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Netanyahu bows to Obama, accepts Palestinian "state" Sun Jun 14, 2009 8:41pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Ori Lewis RAMAT GAN, Israel (Reuters) - 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. Netanyahu, who has refused to back a state for Palestinians since he took office in March, said he would now endorse the establishment of a such a state -- but only if Israel received in advance international guarantees the new nation would have no army and Palestinians recognized Israel as a Jewish state. "If we receive this guarantee regarding demilitarization and Israel's security needs, and if the Palestinians recognize Israel as the state of the Jewish people, then we will be ready in a future peace agreement to reach a solution where a demilitarized Palestinian state exists alongside the Jewish state," Netanyahu said at Bar Ilan University near Tel Aviv. "If (Obama) looks at the glass as half-full, this should be sufficient," Israeli political scientist Eitan Gilboa said of the speech as a whole. "But if he is looking for confrontation with Israel, he would say the glass if half-empty." A senior European diplomat in the Middle East questioned how far it changed the substance of Israel's approach. "It's goodwill and good words but I don't think it's going to appease the Americans," the diplomat said. "He's trying to gain time." WHITE HOUSE WELCOME "The president welcomes the important step forward in Prime Minister Netanyahu's speech," the White House said. "The president is committed to two states, a Jewish state of Israel and an independent Palestine, in the historic homeland of both peoples." Palestinian leaders have rarely made an issue of Israel's insistence that their future state should not have an army in a position to threaten its neighbor, but they have rejected the demand that they explicitly accept Israel as a Jewish state. To do so, they have argued, weakens the position of the 20 percent of Israel's citizens who are Muslim and Christian Arabs, and undermine a key demand for a right of return to what is now Israel for millions of Palestinians classed as refugees since the flight of Arabs during Israel's creation in 1948. The White House reference to Obama's support of "a Jewish state of Israel" may reassure Israelis, who will also hear in his reference to "the historic homeland of both peoples" an echo of Netanyahu's robust defense on Sunday of the Jews' 3,000-year-old claim to the land and to the city of Jerusalem. Palestinian leaders voiced their opposition, especially to the Israeli premier's flat rejection of any right of return for refugees or of a division of Jerusalem, where Palestinians want to have the capital of their new state. Abbas spokesman Nabil Abu Rdainah said: "Netanyahu's remarks have sabotaged all initiatives, paralyzed all efforts being made and challenges the Palestinian, Arab and American positions." Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Vedanta to up note portion of Asarco offer -WSJ Afghanistan and Pakistan Fighting the Taliban A growing insurgency in Afghanistan is also spreading deep into Pakistan, making both countries crucial to U.S. war efforts in the region. Full Coverage More International News Iran bans planned Mousavi rally in Tehran | Video Pakistan orders offensive against Taliban chief | Video Taliban raids increase, plan to disrupt Afghan poll: government Nigerian rebels say hit another Chevron facility Airbus urges patience on crash, says A330 safe More International News... Video Israel bombs Gaza tunnels Play Video More Video... Related News Netanyahu offers Obama room to maneuver 14 Jun 2009 Abbas says Netanyahu "sabotages" peace efforts 14 Jun 2009 Israel cabinet names Nissan new budget director 14 Jun 2009 Israel parliament to start budget debate this week 14 Jun 2009 Highlights from Netanyahu speech 14 Jun 2009 SNAP ANALYSIS: Netanyahu bends on statehood but not settlements 14 Jun 2009 INSTANT VIEW: Reactions to Israeli PM Netanyahu's speech 14 Jun 2009 Full text of Netanyahu speech on peace process 14 Jun 2009 Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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