PM Netanyahu: Israel is willing to make painful concessions if Palestinians choose road to peace

             Prime Minister Binyamin Netanyahu promised that Israel is willing to make painful concessions if the Palestinians choose the road to peace. Speaking in the Knesset on Monday evening, the prime minister said any Palestinian state would have to be demilitarized, the settlement blocs and the Jordan Valley would remain under Israel's control and Jerusalem would be Israel's soverign capital. In addition, Netanyahu stressed that the problem of the Palestinian refugees would have to be resolved outside of the state of Israel. He said that the real tragedy is that no Palestinian leadership prepared to accept an historic compromise has come forward. Netanyahu said that Israel must stop blaming itself for the cycle of violence and start looking at the reality of the situation with open eyes. He said that the root of the conflict is Palestinian refusal to recognize the right of a Jewish state to exist. (22,00)