You have to fight for the soul of your people, you have to fight for the souls of millions of people on both sides, to overcome the legacy of this struggle [between Palestine and Israel] and create a readiness for peace.

Palestinians want a state of their own. They want to live in freedom. They want to get rid of the terrible misery in which they are living. They are ready after fifty years to accept a state of their own in 22 percent of what used to be the country of Palestine. I think it is the height of stupidity on our part if we don't grasp this opportunity.

I have always been conscious of the importance and the strength of nationalism, and this has led me straight to the acknowledgment of the nationalism of the Palestinian people. I believe there is no way around this: We have to have a solution based on two national states, which will hopefully live and grow together and establish a relationship between them in something like a European Union.

There are lots of grounds for hope in Israeli society. We are seeing Israelis getting fed up with war, looking for solutions. The youngest soldiers are refusing to serve in the Occupied Territories. Some are volunteering for army combat units but are refusing to serve in the Occupied Territories. We have the elite of the Israeli army, the air force pilots, some of them refusing orders which they consider illegal.

There are lots of signs that average Israelis want peace. But after such a long war - this conflict has been going on now for 120 years - you have a fifth generation being born into it on both sides. Such a conflict creates hatred, fears, stereotypes, and demonizations of the other. It would be an illusion to believe you can put an end to this overnight.

It is manifestly idiotic to believe that Israel, with five million Jewish citizens and one million Arab citizens, will concede to the return of four million refugees. It will not happen. We can wish it, we can think it's just, that it's moral - it will not happen. No country commits suicide.

One of the main aims of Sharon is to prevent a Palestinian state - a real, viable, sovereign, free Palestinian state. It has been the major task of his life for the last forty years. What Sharon wants to do is "shorten the lines," in military slang. He wants to give up some positions which are untenable, or which cost too much to keep, and to withdraw to where he wants Israel to be.