Barak told the Hebrew-language newspaper Haaretz in an interview published Wednesday that he believes the best chance for peace lies in a peace deal in which all the Arab neighborhoods in Jerusalem would be handed over to the PA in order to create a capital for a new Arab country.
The peace plan described by Barak includes the following:
* two states for two nations
* an end to the conflict and the end of all future demands
* demarcation of a border "that will run inside the Land of Israel" dividing a demilitarized PA state from an Israel that includes the "settlement blocs"
* retrieving and relocating the "isolated settlements" into the settlement blocs or within Israel
* a solution to the refugee problem within the PA state, or rehabilitating them through international aid
* comprehensive security arrangements
* a "solution to the Jerusalem problem."
Netanyahu promised the packed hall, "We have demonstrated in the past, and will continue to demonstrate our commitment to a complete, undivided Jerusalem... Everyone knows what will happen if we were to leave those areas and divide Jerusalem. Someone will enter - and that someone will be Hamas."