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.

How do we solve the problem by allowing a number of refugees to return to Israel, allowing a number of refugees to return to the Palestinian state, and allowing a number of refugees to settle, with general compensation, where they want to settle? It is not an abstract problem. It involves four million human beings, and more than fifty years of various sorts of misery. But it is not an insolvable problem. It involves some good will, and a readiness to give up historic myths on both sides.

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.

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.

Sharon's so-called two-state solution will be, let's say, twelve Palestinian enclaves, which will be called a Palestinian state. It will be connected by, perhaps, a series of bridges, tunnels, and highways, which can be cut off at any moment at the whim of the Israeli government or Israeli army.

In 1949, the country of Palestine was partitioned after the war in such a way that the State of Israel-proper consisted of 78 percent of this country of Palestine. What was left to the Arabs was 22 percent, the West Bank and the Gaza Strip.

By that time it was already clear that the next prime minster was going to be Golda Meir, a woman whom I frankly detested - a mutual sentiment, I might add. I knew her as an opinionated, obstinate person, primitive in her outlook, rigid in her attitudes, with a genius for reaching and exploiting the deepest fears and prejudices of the Jewish masses. I was certain that with her as prime minister, all peace efforts would come to a total standstill.