So, We May Lose Some Local Arabs?

Prime Minister Ehud Olmert is examining a new framework for peace in which Israel will propose transferring to the Palestinian state areas equivalent to 100 percent of the territories conquered in 1967.

Israel will suggest to the Palestinians to conduct negotiations for adequate territorial compensation from Israel's sovereign territory, in exchange for settlement blocs amounting to about 5 percent of the West Bank's area.

Israel is also examining various options of exchanging settlement blocs with Arab community blocs within Israel, in agreement with the residents. An agreement on this issue would enable Yisrael Beiteinu, headed by Avigdor Lieberman, to remain in the coalition.