Israeli Prime Minister Benjamin Netanyahu says he backs the setting up of a Palestinian state but only if it does not have an army of its own. In setting out his policy on the issue, he said the Palestinians would have to recognise Israel before a demilitarised Palestinian state could be established.

He went on to undertake that no new Jewish settlements would be constructed in the Palestinian Territories. However, he believes present settlements should be allowed to grow. In this, he is opposed to United States President Barack Obama who has said that all construction on the settlements must stop.

Senior Palestinian negotiator Saeb Erekat was critical of Mr Netanyahu's comments, saying it was obvious that Israel would go on enlarging the settlements. He also dismissed the idea of a Palestinian state with no army, arguing that the Israeli prime minister would not in 1000 years find a Palestinian who would back such an idea.

photo: epa