SOURCE: AP (8-2-11)
In a dramatic policy shift, Israel's prime minister has agreed to negotiate the borders of a Palestinian state based on the cease-fire line that marks off the West Bank, according to a TV report.
In a speech about the Middle East in May, Obama proposed negotiations based on the pre-1967 line with agreed swaps of territory between Israel and a Palestinian state. Netanyahu reacted angrily, insisting that Israel would not withdraw from all of the West Bank, though that was not what Obama proposed.
Now Netanyahu is basically accepting that framework, Channel 2 TV reported on Monday, and is offering to trade Israeli territory on its side of the line for West Bank land where its main settlements are located....