Arab and Islamic states want an international conference to help create a land-for-peace deal between Israel and her neighbors that would see Palestinians set up a state on the territories Israel has occupied since 1967.
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"Things have turned around ... There are major new factors involved, including the American retreat in military terms and in Congress, and new Arab-Islamic action," Zahar said.
"Instead of plans being proposed to us that do not meet the Palestinian people's needs, internationally accepted Arab proposals are being made," he said, referring to a 2002 Arab land-for-peace offer welcomed in Europe and which some Israeli officials recently said could be a basis for talks.
"If we develop this, we could take the initiative in the Palestinian issue out of America's hands and into those of the international community, which is fairer."
Reuters