First of all, Arafat is wrong. Jerusalem is Israel's capital, will never be divided, and will remain the capital of the State of Israel, the capital of the Jewish people, for ever and ever.

Jerusalem must remain the Jewish capital.

We want Israel as a democratic and Jewish state. So you have to maintain a Jewish majority, and you want to do that by legal means, by democratic means.

I think that peace will require two states, a Palestinian state that recognizes the Jewish state.

The purpose of the Jewish state is to secure the Jewish future. That is why Israel must always have the ability to defend itself, against any threat.

Both peoples, both nations, deserve a nation-state of their own. Palestinians, if they wish so, will go to the Palestinian state; Jews, if they so wish, can go to the Jewish state. And we'll have to have security and demilitarization agreements between us.