| CLINTON SPEECH ON MIDEAST PEACE PARAMETERS
 REMARKS BY THE PRESIDENT AT ISRAEL POLICY FORUM GALA
 The Waldorf Astoria Hotel New York, New York
 January 7, 20019:45 P.M. EST
 THE PRESIDENT: 
                            Thank you very much. Thank you. (Applause.) I want 
                            to thank all of you for making me feel so welcome 
                            tonight, and also for making Hillary and Chelsea feel 
                            welcome. I thank Michael Sonnenfeldt who, like me, 
                            is going out after eight years -- (laughter) -- and 
                            will doubtless find some other useful activity. But 
                            he has done a superb job, and I'm very grateful to 
                            him. (Applause.) I thank my friend, Jack Bendheim, for his many kindnesses 
                            to me and to Hillary. Yesterday, he had a birthday 
                            and now, like me, he's 54. Unlike me, he has enough 
                            children to be elected President of the United States. 
                            (Laughter.) And he's had a wonderful family and a 
                            wonderful life, and I'm delighted that he's so active 
                            in the Israel Policy Forum. (Applause.) I'd like to 
                            thank Judith Stern Peck for making me feel so welcome 
                            and for her leadership. I thank Lesley Stahl; it's good to see you, and thank 
                            you for your kind remarks. I thank the many members 
                            of Congress who are here; and also the members of 
                            my Middle East peace team, Secretary Albright and 
                            Sandy Berger and others have been introduced. But 
                            Secretary Dan Glickman is here and Kerry Kennedy Cuomo 
                            is here, and I thank them for being here. (Applause.) I want to thank the New York officials who are here 
                            -- Carl McCall, Mark Green and any others who may 
                            be in the crowd for your many kindnesses to me over 
                            the last eight years. New York has been great to me 
                            and Al Gore and even greater to my wife on Election 
                            Day, so I thank you for that. (Applause.) We just reenacted her swearing-in at Madison Square 
                            Garden. And I was reminded of one of the many advantages 
                            of living in New York -- Jessye Norman sang, Toni 
                            Morrison read and Billy Joel sang. Meanwhile, at least 
                            at half time, the Giants were ahead. (Laughter and 
                            applause.) And so I said, I felt sort of like Garrison 
                            Keillor did about Lake Wobegone. I was glad to be 
                            in New York where all the writers, artists and sports 
                            teams were above average -- (laughter) -- and all 
                            the votes were always counted. (Applause.) Let me also say a word of warm welcome and profound 
                            respect to the Speaker of the Knesset, Speaker Burg, 
                            for his wonderful and kind comments to me. (Applause.) 
                            And to Cabinet Secretary Herzog, for his message from 
                            the government of Israel. I want to say a little more 
                            about that in a moment. I want to congratulate Dwayne Andreas, my good friend 
                            -- I wish he were here tonight -- and thank him for 
                            his many kindnesses to me. Congratulations, Louis 
                            Perlmutter; Susan Stern who has been such a great 
                            friend to Hillary, and you gave a good talk tonight, 
                            I think you've got a real future in this business. 
                            And your mother sat by me and she gave you a good 
                            grade, too. (Laughter.) And Alan Solomont, who has done as much for me as 
                            I suppose any American, and he and Susan and their 
                            children have been great friends, and I thank you 
                            for what you've done, sir. I thank all of you. (Applause.) I'd also like to say how much I appreciated and was 
                            moved by the words of Prime Minister Barak. He was 
                            dealt the hard hand by history. And he came to office 
                            with absolute conviction that in the end, Israel could 
                            not be secure unless a just and lasting peace could 
                            be reached with its neighbors, beginning with the 
                            Palestinians. That if that turned out not to be possible, 
                            then the next best thing was to be as strong as possible 
                            and as effective in the use of that strength. But his knowledge of war has fed a passion for peace. 
                            And his understanding of the changing technology of 
                            war has made him more passionate, not because he thinks 
                            the existence of Israel is less secure -- if anything, 
                            it's more secure -- but because the sophisticated 
                            weapons available to terrorists today mean even though 
                            they still lose, they can exact a higher price along 
                            the way. I've been in enough political fights in my life to 
                            know that sometimes you just have to do the right 
                            thing -- and it may work out and it may not. Most 
                            people thought I had lost my mind when we passed the 
                            economic plan to get rid of the deficit in 1993. And 
                            no one in the other party voted for it, and they just 
                            talked about how it would bring the world to an end 
                            and America's economy would be a disaster. I think 
                            the only Republican who thought it would work was 
                            Alan Greenspan. (Laughter.) He was relieved of the 
                            burden of having to say anything about it. But no dilemma I have ever faced approximates in 
                            difficulty or comes close to the choice that Prime 
                            Minister Barak had to make when he took office. He 
                            realized that he couldn't know for sure what the final 
                            intentions of the Palestinian leadership were without 
                            testing them. He further realized that even if the 
                            intentions were there, there was a lot of competition 
                            among the Palestinians and from outside forces, from 
                            people who are enemies of peace because they don't 
                            give a rip how the ordinary Palestinians have to live 
                            and they're pursuing a whole different agenda. He knew nine things could go wrong and only one thing 
                            could go right. But he promised himself that he would 
                            have to try. And as long as he knew Israel in the 
                            end could defend itself and maintain its security, 
                            he would keep taking risks. And that's what he's done, 
                            down to these days. There may be those who disagree 
                            with him, but he has demonstrated as much bravery 
                            in the office of Prime Minister as he ever did on 
                            the field of battle and no one should ever question 
                            that. (Applause.) Now, I imagine this has been a tough time for those 
                            of you who have been supporting the IPF, out of conviction 
                            for a long time. All the dreams we had in '93 that 
                            were revived when we had the peace with Jordan, revived 
                            again when we had the Wye River accords -- that was, 
                            I think, the most interesting peace talks I was ever 
                            involved in. My strategy was the same used to break 
                            prisoners of war, I just didn't let anybody sleep 
                            for nine days and, finally, out of exhaustion, we 
                            made a deal -- just so people could go home and go 
                            to bed. (Laughter.) I've been looking for an opportunity 
                            to employ it again, ever since. There have been a lot of positive things, and I think 
                            it's worth remembering that there have been positive 
                            developments along the way. But this is heartbreaking, 
                            what we've been through these last few months, for 
                            all of you who have believed for eight years in the 
                            Oslo process; all of you whose hearts soared on September 
                            19, 1993, when Yasser Arafat and Yitzhak Rabin signed 
                            that agreement. For over three months we have lived through a tragic 
                            cycle of violence that has cost hundreds of lives. 
                            It has shattered the confidence in the peace process. 
                            It has raised questions in some people's minds about 
                            whether Palestinians and Israelis could ever really 
                            live and work together, support each other's peace 
                            and prosperity and security. It's been a heartbreaking 
                            time for me, too. But we have done our best to work 
                            with the parties to restore calm, to end the bloodshed 
                            and to get back to working on an agreement to address 
                            the underlying causes that continuously erupt in conflicts. Whatever happens in the next two weeks I've got to 
                            serve, I think it's appropriate for me tonight, before 
                            a group of Americans and friends from the Middle East 
                            who believe profoundly in the peace process and have 
                            put their time and heart and money where their words 
                            are, to reflect on the lessons I believe we've all 
                            learned over the last eight years, and how we can 
                            achieve the long sought peace. From my first day as President, we have worked to 
                            advance interests in the Middle East that are long 
                            standing and historically bipartisan. I was glad to 
                            hear of Senator Hagel's recitation of President-elect 
                            Bush's commitment to peace in the Middle East. Those 
                            historic commitments include an ironclad commitment 
                            to Israel's security and a just, comprehensive and 
                            lasting agreement between the Palestinians and Israelis. Along the way since '93, through the positive agreements 
                            that have been reached between those two sides, through 
                            the peace between Israel and Jordan, through last 
                            summer's withdrawal from Lebanon in which Israel fulfilled 
                            its part of implementing U.N. Security Counsel resolution 
                            425 -- along this way we have learned some important 
                            lessons, not only because of the benchmarks of progress, 
                            because of the occasional eruption of terrorism, bombing, 
                            death and then these months of conflict. I think these 
                            lessons have to guide any effort, now or in the future, 
                            to reach a comprehensive peace. Here's what I think 
                            they are. Most of you probably believed in them, up 
                            to the last three months. I still do. First, the Arab-Israeli 
                            conflict is not just a morality play between good 
                            and evil. It is a conflict with a complex history, 
                            whose resolution requires balancing the needs of both 
                            sides, including respect for their national identities 
                            and religious beliefs. Second, there is no place for violence, and no military 
                            solution to this conflict. The only path to a just 
                            and durable resolution is through negotiation. Third, 
                            there will be no lasting peace or regional stability 
                            without a strong and secure Israel, secure enough 
                            to make peace, strong enough to deter the adversaries 
                            which will still be there, even if a peace is made 
                            in complete good faith. And clearly that is why the 
                            United States must maintain its commitment to preserving 
                            Israel's qualitative edge in military superiority. Fourth, talks must be accompanied by acts -- acts 
                            which show trust and partnership. For goodwill at 
                            the negotiating table cannot survive forever ill intent 
                            on the ground. And it is important that each side 
                            understands how the other reads actions. For example, on the one hand, the tolerance of violence 
                            and incitement of hatred in classrooms and the media 
                            in the Palestinian communities, or on the other hand, 
                            humiliating treatment on the streets or at checkpoints 
                            by Israelis are real obstacles to even getting people 
                            to talk about building a genuine peace. Fifth, in the resolution of remaining differences, 
                            whether they come today or after several years of 
                            heartbreak and bloodshed, the fundamental, painful, 
                            but necessary choices will almost certainly remain 
                            the same whenever the decision is made. The parties 
                            will face the same history, the same geography, the 
                            same neighbors, the same passions, the same hatreds. 
                            This is not a problem time will take care of. And I would just like to go off the script here, 
                            because a lot of you have more personal contacts than 
                            I do with people that will be dealing with this for 
                            a long time to come, whatever happens in the next 
                            two weeks. Among the really profound and difficult problems 
                            of the world that I have dealt with, I find that they 
                            tend to fall into two categories. And if I could use 
                            sort of a medical analogy, some are like old wounds 
                            with scabs on them, and some are like abscessed teeth. What do I mean by that? Old wounds with scabs eventually 
                            will heal if you just leave them alone. And if you 
                            fool with them too much, you might open the scab and 
                            make them worse. Abscessed teeth, however, will only 
                            get worse if you leave them alone, and if you wait 
                            and wait and wait, they'll just infect the whole rest 
                            of your mouth. Northern Ireland, I believe, is becoming more like 
                            the scab. There are very difficult things. If you 
                            followed my trip over there, you know I was trying 
                            to help them resolve some of their outstanding problems, 
                            and we didn't get it all done. But what I really wanted 
                            to do was to remind people of the benefits of peace 
                            and to keep everybody in a good frame of mind and 
                            going on so that all the politicians know that if 
                            they really let the wheel run off over there, the 
                            people will throw them out on their ears. Now, why is that? Because the Irish Republic is now 
                            the fastest-growing economy in Europe, and Northern 
                            Ireland is the fastest-growing economy within the 
                            United Kingdom. So the people are benefiting from 
                            peace, and they can live with the fact that they can't 
                            quite figure out what to do about the police force 
                            and the reconciliation of the various interests and 
                            passions of the Protestants and Catholics. And the 
                            other three or four things. Because the underlying 
                            reality has changed their lives. So even though I wish I could solve it all, eventually 
                            it will heal, if it just keeps going in the same direction. 
                            The Middle East is not like that. Why? Because there 
                            are all these independent actors -- that is, independent 
                            of the Palestinian Authority and not under the direct 
                            control of any international legal body -- who don't 
                            want this peace to work. So that even if we can get 
                            an agreement, and the Palestinian Authority works 
                            as hard as they can, and the Israelis works as hard 
                            as they can, we're all going to have to pitch in, 
                            send in an international force like we did in the 
                            Sinai, and hang tough, because there are enemies of 
                            peace out there, number one. Number two, because the enemies of peace know they 
                            can drive the Israelis to close the borders if they 
                            can blow up enough bombs. They do it periodically 
                            to make sure that the Palestinians in the street cannot 
                            enjoy the benefits of peace that have come to the 
                            people in Northern Ireland. So as long as they can 
                            keep the people miserable, and they can keep the fundamental 
                            decisions from being made, they still have a hope, 
                            the enemies of peace, of derailing the whole thing. 
                            That's why it's more like an abscessed tooth. The fundamental realities are not going to be changed 
                            by delays. And that's why I said what I did about 
                            Ehud Barak. I know that -- I don't think it's appropriate 
                            for the United States to deal with anybody else's 
                            politics, but I know why -- you can't expect poll 
                            ratings to be very good when the voters in the moment 
                            wonder if they're going to get peace or security, 
                            and think they can no longer have both and may have 
                            to choose one. I understand that. But I'm telling you, the reason he has continued 
                            to push ahead on this is that he has figured out, 
                            this is one of those political problems that is like 
                            the abscessed tooth. The realities are not going to 
                            change. We can wait until all these handsome young 
                            people at this table are the same age as the honorees 
                            tonight, and me, we can wait until they've got kids 
                            their age, and we've got a whole lot more bodies and 
                            a lot more funerals, a lot more crying and a lot more 
                            hatred, and I'll swear the decisions will still be 
                            the same ones that will have to be made that have 
                            to be made today. That's the fundamental deal here. And this is a speech 
                            I have given, I might add, to all my Israeli friends 
                            who question what we have done, and to the Palestinians. 
                            And in private, God forgive me, my language is sometimes 
                            somewhat more graphic than it has been tonight. But 
                            anybody that ever kneeled at the grave of a person 
                            who died in the Middle East knows that what we've 
                            been through these last three months is not what Yitzhak 
                            Rabin died for and not what I went to Gaza two years 
                            ago to speak to the Palestinian National Council for 
                            either, for that matter. So those are the lessons I think are still operative, 
                            and I'm a little concerned that we could draw the 
                            wrong lessons from this tragic, still relatively brief, 
                            chapter in the history of the Middle East. The violence 
                            does not demonstrate that the quest for peace has 
                            gone too far or too fast. It demonstrates what happens 
                            when you've got a problem that is profoundly difficult 
                            and you never quite get to the end, so there is no 
                            settlement, no resolution, anxiety prevailed, and 
                            at least some people never get any concrete benefits 
                            out of it. And I believe that the last few months demonstrate 
                            the futility of force or terrorism as an ultimate 
                            solution; that's what I believe. (Applause.) I think 
                            the last few months show that unilateralism will exacerbate, 
                            not abate, mutual hostility. I believe that the violence 
                            confirms the need to do more to prepare both publics 
                            for the requirements of peace, not to condition people 
                            for the so-called glory of further conflict. Now, what are we going to do now? The first priority, 
                            obviously, has got to be to drastically reduce the 
                            current cycle of violence. But beyond that, on the 
                            Palestinian side, there must be an end to the culture 
                            of violence and the culture of incitement that, since 
                            Oslo, has not gone unchecked. (Applause.) Young children 
                            still are being educated to believe in confrontation 
                            with Israel, and multiple militia-like groups carry 
                            and use weapons with impunity. Voices of reason in 
                            that kind of environment will be drowned out too often 
                            by voices of revenge. Such conduct is inconsistent with the Palestinian 
                            leadership's commitment to Oslo's nonviolent path 
                            to peace and its persistence sends the wrong message 
                            to the Israeli people, and makes it much more difficult 
                            for them to support their leaders in making the compromises 
                            necessary to get a lasting agreement. For their part, the Israeli people also must understand 
                            that they're creating a few problems, too; that the 
                            settlement enterprise and building bypass roads in 
                            the heart of what they already know will one day be 
                            part of a Palestinian state is inconsistent with the 
                            Oslo commitment that both sides negotiate a compromise. 
                            (Applause.) And restoring confidence requires the Palestinians 
                            being able to lead a normal existence, and not be 
                            subject to daily, often humiliating reminders that 
                            they lack basic freedom and control over their lives. These, too, make it harder for the Palestinians to 
                            believe the commitments made to them will be kept. 
                            Can two peoples with this kind of present trouble 
                            and troubling history still conclude a genuine and 
                            lasting peace? I mean, if I gave you this as a soap 
                            opera, you would say they're going to divorce court. 
                            But they can't, because they share such a small piece 
                            of land with such a profound history of importance 
                            to more than a billion people around the world. So 
                            I believe with all my heart not only that they can, 
                            but that they must. At Camp David, I saw Israeli and Palestinian negotiators 
                            who knew how many children each other had, who knew 
                            how many grandchildren each other had, who knew how 
                            they met their spouses, who knew what their family 
                            tragedies were, who trusted each other in their word. 
                            It was almost shocking to see what could happen and 
                            how people still felt on the ground when I saw how 
                            their leaders felt about each other and the respect 
                            and the confidence they had in each other when they 
                            were talking. The alternative to getting this peace done is being 
                            played out before our very eyes. But amidst the agony, 
                            I will say again, there are signs of hope. And let 
                            me try to put this into what I think is a realistic 
                            context. Camp David was a transformative event, because the 
                            two sides faced the core issue of their dispute in 
                            a forum that was official for the first time. And 
                            they had to debate the tradeoffs required to resolve 
                            the issues. Just as Oslo forced Israelis and Palestinians 
                            to come to terms with each other's existence, the 
                            discussions of the past six months have forced them 
                            to come to terms with each other's needs and the contours 
                            of a peace that ultimately they will have to reach. That's why Prime Minister Barak, I think, has demonstrated 
                            real courage and vision in moving toward peace in 
                            difficult circumstances while trying to find a way 
                            to continue to protect Israel's security and vital 
                            interests. So that's a fancy way of saying we know what we have 
                            to do and we've got a mess on our hands. So where 
                            do we go from here? Given the impasse and the tragic 
                            deterioration on the ground, a couple of weeks ago 
                            both sides asked me to present my ideas. So I put 
                            forward parameters that I wanted to be guide toward 
                            a comprehensive agreement; parameters based on eight 
                            years of listening carefully to both sides and hearing 
                            them describe with increasing clarity their respective 
                            grievances and needs. Both Prime Minister Barak and Chairman Arafat have 
                            now accepted these parameters as the basis for further 
                            efforts. Both have expressed some reservations. At 
                            their request, I am using my remaining time in office 
                            to narrow the differences between the parties to the 
                            greatest degree possible. (Applause.) For which I 
                            deserve no applause. Believe me, it beats packing 
                            up all my old books. (Laughter.) The parameters I put forward contemplate a settlement 
                            in response to each side's essential needs, if not 
                            to their utmost desires. A settlement based on sovereign 
                            homelands, security, peace and dignity for both Israelis 
                            and Palestinians. These parameters don't begin to 
                            answer every question, they just narrow the questions 
                            that have to be answered. Here they are. First, I think there can be no genuine 
                            resolution to the conflict without a sovereign, viable, 
                            Palestinian state that accommodates Israeli's security 
                            requirements and the demographic realities. That suggests 
                            Palestinian sovereignty over Gaza, the vast majority 
                            of the West Bank, the incorporation into Israel of 
                            settlement blocks, with the goal of maximizing the 
                            number of settlers in Israel while minimizing the 
                            land annex for Palestine to be viable must be a geographically 
                            contiguous state. (Applause.) Now, the land annexed into Israel into settlement 
                            blocks should include as few Palestinians as possible, 
                            consistent with the logic of two separate homelands. 
                            And to make the agreement durable, I think there will 
                            have to be some territorial swaps and other arrangements. Second, a solution will have to be found for the 
                            Palestinian refugees who have suffered a great deal 
                            -- particularly some of them. A solution that allows 
                            them to return to a Palestinian state that will provide 
                            all Palestinians with a place they can safely and 
                            proudly call home. All Palestinian refugees who wish 
                            to live in this homeland should have the right to 
                            do so. All others who want to find new homes, whether 
                            in their current locations or in third countries, 
                            should be able to do so, consistent with those countries' 
                            sovereign decisions. And that includes Israel. All refugees should receive compensation from the 
                            international community for their losses, and assistance 
                            in building new lives. Now, you all know what the rub is. That was a lot 
                            of artful language for saying that you cannot expect 
                            Israel to acknowledge an unlimited right of return 
                            to present day Israel, and at the same time, to give 
                            up Gaza and the West Bank and have the settlement 
                            blocks as compact as possible, because of where a 
                            lot of these refugees came from. We cannot expect 
                            Israel to make a decision that would threaten the 
                            very foundations of the state of Israel, and would 
                            undermine the whole logic of peace. And it shouldn't 
                            be done. (Applause.) But I have made it very clear that the refugees will 
                            be a high priority, and that the United States will 
                            take a lead in raising the money necessary to relocate 
                            them in the most appropriate manner. (Applause.) If 
                            the government of Israel or a subsequent government 
                            of Israel ever -- will be in charge of their immigration 
                            policy, just as we and the Canadians and the Europeans 
                            and others who would offer Palestinians a home would 
                            be, they would be obviously free to do that, and I 
                            think they've indicated that they would do that, to 
                            some extent. But there cannot be an unlimited language 
                            in an agreement that would undermine the very foundations 
                            of the Israeli state or the whole reason for creating 
                            the Palestinian state. (Applause.) So that's what 
                            we're working on. Third, there will be no peace, and no peace agreement, 
                            unless the Israeli people have lasting security guarantees. 
                            (Applause.) These need not and should not come at 
                            the expense of Palestinian sovereignty, or interfere 
                            with Palestinian territorial integrity. So my parameters 
                            rely on an international presence in Palestine to 
                            provide border security along the Jordan Valley and 
                            to monitor implementation of the final agreement. 
                            They rely on a non-militarized Palestine, a phased 
                            Israeli withdrawal, to address Israeli security needs 
                            in the Jordan Valley, and other essential arrangements 
                            to ensure Israel's ability to defend itself. Fourth, I come to the issue of Jerusalem, perhaps 
                            the most emotional and sensitive of all. It is a historic, 
                            cultural and political center for both Israelis and 
                            Palestinians, a unique city sacred to all three monotheistic 
                            religions. And I believe the parameters I have established 
                            flow from four fair and logical propositions. First, Jerusalem should be an open and undivided 
                            city, with assured freedom of access and worship for 
                            all. It should encompass the internationally recognized 
                            capitals of two states, Israel and Palestine. Second, 
                            what is Arab should be Palestinian, for why would 
                            Israel want to govern in perpetuity the lives of hundreds 
                            of thousands of Palestinians? Third, what is Jewish 
                            should be Israeli. That would give rise to a Jewish 
                            Jerusalem, larger and more vibrant than any in history. 
                            Fourth, what is holy to both requires a special care 
                            to meet the needs of all. I was glad to hear what 
                            the Speaker said about that. No peace agreement will 
                            last if not premised on mutual respect for the religious 
                            beliefs and holy shrines of Jews, Muslims and Christians. I have offered formulations on the Haram Ash-Shareef, 
                            and the area holy to the Jewish people, an area which 
                            for 2,000 years, as I said at Camp David, has been 
                            the focus of Jewish yearning, that I believed fairly 
                            addressed the concerns of both sides. Fifth and, finally, any agreement will have to mark 
                            the decision to end the conflict, for neither side 
                            can afford to make these painful compromises, only 
                            to be subjected to further demands. They are both 
                            entitled to know that if they take the last drop of 
                            blood out of each other's turnip, that's it. It really 
                            will have to be the end of the struggle that has pitted 
                            Palestinians and Israelis against one another for 
                            too long. And the end of the conflict must manifest 
                            itself with concrete acts that demonstrate a new attitude 
                            and a new approach by Palestinians and Israelis toward 
                            each other, and by other states in the region toward 
                            Israel, and by the entire region toward Palestine, 
                            to help it get off to a good start. The parties' experience with interim accords has 
                            not always been happy -- too many deadlines missed, 
                            too many commitments unfulfilled on both sides. So 
                            for this to signify a real end of the conflict, there 
                            must be effective mechanisms to provide guarantees 
                            of implementation. That's a lot of stuff, isn't it? 
                            It's what I think is the outline of a fair agreement. 
                            (Applause.) Let me say this, I am well aware that it will entail 
                            real pain and sacrifices for both sides. I am well 
                            aware that I don't even have to run for reelection 
                            in the United States on the basis of these ideas. 
                            I have worked for eight years without laying such 
                            ideas down. I did it only when both sides asked me 
                            to, and when it was obvious that we had come to the 
                            end of the road, and somebody had to do something 
                            to break out of the impasse. Now, I still think the benefits of the agreement, 
                            based on these parameters, far outweigh the burdens. 
                            For the people of Israel, they are an end to conflict, 
                            secure and defensible borders, the incorporation of 
                            most of the settlers into Israel, and the Jewish capital 
                            of Jerusalem, recognized by all, not just the United 
                            States, by everybody in the world. It's a big deal, 
                            and it needs to be done. (Applause.) For the Palestinian people, it means the freedom 
                            to determine their own future on their own land, a 
                            new life for the refugees, an independent and sovereign 
                            state with al Quds as its capital, recognized by all. 
                            (Applause.) And for America, it means that we could 
                            have new flags flying over new embassies in both these 
                            capitals. (Applause.) Now that the sides have accepted the parameters with 
                            reservations, what's going to happen? Well, each side 
                            will try to do a little better than I did. (Laughter.) 
                            You know, that's just natural. But a peace viewed 
                            as imposed by one party upon the other, that puts 
                            one side up and the other down, rather than both ahead, 
                            contains the seeds of its own destruction. Let me say those who believe that my ideas can be 
                            altered to one party's exclusive benefit are mistaken. 
                            I think to press for more will produce less. There 
                            can be no peace without compromise. Now, I don't ask 
                            Israelis or Palestinians to agree with everything 
                            I said. If they can come up with a completely different 
                            agreement, it would suit me just fine. But I doubt 
                            it. I have said what I have out of a profound lifetime 
                            commitment to and love for the state of Israel, out 
                            of a conviction that the Palestinian people have been 
                            ignored or used as political footballs by others for 
                            long enough, and they ought to have a chance to make 
                            their own life with dignity. (Applause.) And out of 
                            a belief that in the homeland of the world's three 
                            great religions that believe we are all the creatures 
                            of one God, we ought to be able to prove that one 
                            person's win is not, by definition, another's loss; 
                            that one person's dignity is not, by definition, another's 
                            humiliation; that one person's work of God is not, 
                            by definition, another's heresy. There has to be a 
                            way for us to find a truth we can share. (Applause.) There has to be a way for us to reach those young 
                            Palestinian kids who, unlike the young people in this 
                            audience, don't imagine a future in which they would 
                            ever put on clothes like this and sit at a dinner 
                            like this. There has to be a way for us to say to them, struggle 
                            and pain and destruction and self-destruction are 
                            way overrated, and not the only option. There has 
                            to be a way for us to reach those people in Israel 
                            who have paid such a high price and believe, frankly, 
                            that people who embrace the ideas I just outlined 
                            are nuts, because Israel is a little country and this 
                            agreement would make it smaller; to understand that 
                            the world in which we live and the technology of modern 
                            weaponry no longer make defense primarily a matter 
                            of geography and of politics and the human feeling 
                            and the interdependence and the cooperation and the 
                            shared values and the shared interests are more important 
                            and worth the considered risk, especially if the United 
                            States remains committed to the military capacity 
                            of the state of Israel. (Applause.) So I say to the Palestinians: there will always be 
                            those who are sitting outside in the peanut gallery 
                            of the Middle East, urging you to hold out for more, 
                            or to plant one more bomb. But all the people who 
                            do that, they're not the refugees languishing in those 
                            camps -- you are. They're not the ones with children 
                            growing up in poverty whose income is lower today 
                            than it was the day we had the signing on the White 
                            House Lawn in 1993 -- you are. All the people that are saying to the Palestinian 
                            people: Stay on the path of no, are people that have 
                            a vested interest in the failure of the peace process 
                            that has nothing to do with how those kids in Gaza 
                            and the West Bank are going to grow up and live and 
                            raise their own children. (Applause.) To the citizens of Israel who have returned to an 
                            ancient homeland after 2,000 years, whose hopes and 
                            dreams almost vanished in the Holocaust, who have 
                            hardly had one day of peace and quiet since the state 
                            of Israel was created, I understand, I believe, something 
                            of the disillusionment, the anger, the frustration 
                            that so many feel when, just at the moment peace seemed 
                            within reach, all this violence broke out and raised 
                            the question of whether it is ever possible. The fact is that the people of Israel dreamed of 
                            a homeland. The dream came through; but when they 
                            came home, the land was not all vacant. Your land 
                            is also their land, it is the homeland of two people. 
                            And, therefore, there is no choice but to create two 
                            states and make the best of it. If it happens today, it will be better than if it 
                            happens tomorrow, because fewer people will die. And 
                            after it happens, the motives of those who continue 
                            the violence will be clearer to all than they are 
                            today. Today, Israel is closer than ever to ending a 100-year-long 
                            era of struggle. It could be Israel's finest hour. 
                            And I hope and pray that the people of Israel will 
                            not give up the hope of peace. Now, I've got 13 days and I'll do what I can. We're 
                            working with Egypt and the parties to try to end the 
                            violence. I'm sending Dennis Ross to the region this 
                            week. I met with both sides this week. I hope we can 
                            really do something. And I appreciate more than I 
                            can say the kind, personal things that you said about 
                            me. But here's what I want you to think about. New York 
                            has its own high-tech corridor called "Silicon 
                            Alley." The number one foreign recipient of venture 
                            capital from Silicon Alley is Israel. Palestinians 
                            who have come to the United States, to Chile, to Canada, 
                            to Europe, have done fabulously well -- in business, 
                            in the sciences, in academia. If we could ever let a lot of this stuff go and realize 
                            that a lot of -- that the enemies of peace in the 
                            Middle East are overlooking not only what the Jewish 
                            people have done beyond Israel, but what has happened 
                            to the state of Israel since its birth, and how fabulously 
                            well the people of Palestinian descent have done everywhere 
                            else in the world except in their homeland, where 
                            they are in the grip of forces that have not permitted 
                            them to reconcile with one another and with the people 
                            of Israel -- listen, if you guys ever got together, 
                            10 years from now we would all wonder what the heck 
                            happened for 30 years before. And the center of energy and creativity and economic 
                            power and political influence in the entire region 
                            would be with the Israelis and the Palestinians because 
                            of their gifts. It could happen. But somebody has 
                            got to take the long leap, and they have to be somebodies 
                            on both sides. All I can tell you is, whether you do it now or whether 
                            you do it later, whether I'm the President or just 
                            somebody in the peanut gallery, I'll be there, cheering 
                            and praying and working along the way. (Applause.) 
                            And I think America will be there. I think America 
                            will always be there for Israel's security. But Israel's 
                            lasting security rests in a just and lasting peace. 
                            I pray that the day will come sooner, rather than 
                            later, where all the people of the region will see 
                            that they can share the wisdom of God in their common 
                            humanity and give up their conflict. Thank you and God bless you. (Applause.) Distributed by the Office of International Information 
                            Programs, U.S. Department of State. Web site: 
                            http://usinfo.state.gov.
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