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.

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.

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 that Israel must concede to the Palestinian right of return in principle. Israel must, first of all, assume its responsibility for what happened in 1948, as far as we are to blame - and we are to blame for a great part of it, if not for all - and we must recognize in principle the right of refugees to return.

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.

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.

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.