Israel should say "We'll open negotiations if you like. Here's our favourite solution: Israel occupying all current Israeli land plus all areas Arabs are claiming as Palestine. This means no Palestinian State. It at least mirrors the PA preferred solution of all of Israel's land and no Israeli State."

Once the world gets over its apoplexy, Israel and the Arabs now have two more-or-less equal, albeit opposite, positions to bargain between. Would also give the Palestinian Arabs a way of saying "I've stopped beating my wife!" but they'd have to admit "Yes, I've been beating my wife" first...

Wade.