Clinton peace proposals envisage pre-1967 borders for Palestinian state

President Clinton's peace plan contains proposals aimed at solving some of the most contentious issues at the heart of the decades…

President Clinton's peace plan contains proposals aimed at solving some of the most contentious issues at the heart of the decades-old conflict between Israel and the Palestinians.

Jerusalem: Arab neighbourhoods of occupied East Jerusalem would be transferred to the Palestinians, while Jewish neighbourhoods would remain under Israeli sovereignty. The al-Aqsa mosque compound in the Old City, the third holiest site in Islam also known as Haram al-Sharif, would be under Palestinian sovereignty. The abutting Western Wall, the holiest site in Judaism, the Jewish quarter and most of the Armenian quarter of the Old City would remain Israeli.

Refugees: Palestinian refugees would be granted the right to return to their "homeland" defined as a future Palestinian state, and would have no right of return to Israel. However, Israel would absorb some tens of thousands out of the 3.7 million refugees on a "humanitarian basis".

Land: The borders between a Palestinian state and Israel would be based on the lines before Israel seized the West Bank, Gaza Strip and East Jerusalem in the June 1967 war, with "minor adjustments". Israel would withdraw from 95 per cent of the West Bank and 100 percent of the Gaza Strip. About 80 per cent of the settlements, where about 200,000 Jewish settlers live, would be evacuated.

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End of Conflict: Both sides would declare an "end to the conflict" upon signing an agreement, which would then be implemented in two three-year stages.