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.
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.
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.
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.
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.