If you are a Jewish Israeli, you go to Gaza, you get the villa of your life, the villa which you did not dream of ever getting in Israel, a beautiful two-story villa with green meadows and so on, practically for nothing. Then you put up hothouses of tomatoes or flowers; you take the very Arabs from whom you grabbed this land and employ them as laborers in your hothouses. Israeli law does not apply in Gaza: There is no minimum wage, no annual vacation, no compensation for dismissal - so you get the work very, very cheap. It is a wonderful setup economically.

Violence [in Palestina] is part of the resistance to occupation. The basic fact is not the violence; the basic fact is the occupation.

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.

It is our responsibility as the stronger party [Israel], as the occupying power, to convince the Palestinians that they can achieve their basic national aims, their just national aspirations, without violence. Unfortunately, the behavior of the Sharon administration, and before this of the Barak administration, has shown the Palestinians the opposite: namely, that they will achieve nothing without violence.

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.

The solution is this: There will be a state of Palestine in all of the Occupied Territories of the West Bank and the Gaza Strip. The Green Line, the border that existed before 1967, will come into being again. Jerusalem will be the shared capital - East Jerusalem will be the capital of Palestine, West Jerusalem will be the capital of Israel. All settlements must be evacuated. The security must be arranged for both people, and there must be a moral solution and a practical solution.

Critics of the war plans (including myself) have pointed to the disastrous political results that must be expected: Iraq would break into three parts (Kurds in the north, Sunnis in the center, Shi'ites in the south), the Middle East would be exposed to the onslaught of Iranian fanaticism, pro-Western Arab regimes would collapse. Israel would be surrounded by aggressive Islamic fundamentalism, like the Crusader kingdom with the advent of Saladin.