Israeli Prime Minister Benjamin Netanyahu endorsed a Palestinian state beside Israel for the first time on Sunday, reversing himself under U.S. pressure but attaching conditions such as having no army that the Palestinians swiftly rejected.A week after President Barack Obama's address to the Muslim world, Netanyahu said the Palestinian state would also have to recognize Israel as the Jewish state _ essentially saying Palestinian refugees must give up the goal of returning to Israel.
With those conditions, he said, he could accept "a demilitarized Palestinian state alongside the Jewish state."
Watch this clip of Prime Minister Netanyahu's speech
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