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.

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.

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.

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.

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.

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.

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.