If there will be a serious Palestinian prime minister who makes a 100 percent effort to end terrorism, then we can have peace. Each side has to take steps. If terror continues, there will not be an independent Palestinian state. Israel will not accept it, if terror continues.

To our Palestinian neighbours, I assure you that we have a genuine intention to respect your right to live independently and in dignity. I have already said that Israel has no desire to continue to govern over you and control your fate.

One must remember that the Jews have one, tiny country, the only place they have the right and capability to defend themselves by themselves. And it is our duty and my responsibility to see that we will never compromise about that.

And Israel, being a tiny, small country, of course has interest to strengthen - we have interest to strengthen our relations with other countries, mostly countries that were hostile for many, many years.

Israel may have the right to put others on trial, but certainly no one has the right to put the Jewish people and the State of Israel on trial.

In Lebanon, there was an agreement not to liquidate Yasser Arafat. In principle, I'm sorry that we didn't liquidate him.

We can also reassure our Palestinian partners that we understand the importance of territorial contiguity in the West Bank for a viable Palestinian state ...