Down to the nitty gritty:

I turn to you, our Palestinian neighbors, led by the Palestinian Authority, and I say:

Let’s begin negotiations immediately without preconditions. Israel is obligated by its international commitments and expects all parties to keep their commitments.

We want to live with you in peace, as good neighbors. We want our children and your children to never again experience war: that parents, brothers and sisters will never again know the agony of losing loved ones in battle; that our children will be able to dream of a better future and realize that dream; and that together we will invest our energies in plowshares and pruning hooks, not swords and spears.

I know the face of war. I have experienced battle. I lost close friends, I lost a brother. I have seen the pain of bereaved families. I do not want war. No one in Israel wants war.

If we join hands and work together for peace, there is no limit to the development and prosperity we can achieve for our two peoples – in the economy, agriculture, trade, tourism and education – most importantly, in providing our youth a better world in which to live, a life full of tranquility, creativity, opportunity and hope.

If the advantages of peace are so evident, we must ask ourselves why peace remains so remote, even as our hand remains outstretched to peace? Why has this conflict continued for more than sixty years?

In order to bring an end to the conflict, we must give an honest and forthright answer to the question: What is the root of the conflict?

In 1947, when the United Nations proposed the partition plan of a Jewish state and an Arab state, the entire Arab world rejected the resolution. The Jewish community, by contrast, welcomed it by dancing and rejoicing.

The Arabs rejected any Jewish state, in any borders.

Those who think that the continued enmity toward Israel is a product of our presence in Judea, Samaria and Gaza, is confusing cause and consequence.

The attacks against us began in the 1920s, escalated into a comprehensive attack in 1948 with the declaration of Israel’s independence, continued with the fedayeen attacks in the 1950s, and climaxed in 1967, on the eve of the six-day war, in an attempt to tighten a noose around the neck of the State of Israel.

All this occurred during the fifty years before a single Israeli soldier ever set foot in Judea and Samaria .

Fortunately, Egypt and Jordan left this circle of enmity. The signing of peace treaties have brought about an end to their claims against Israel, an end to the conflict. But to our regret, this is not the case with the Palestinians. The closer we get to an agreement with them, the further they retreat and raise demands that are inconsistent with a true desire to end the conflict.

I told President Obama when I was in Washington that if we could agree on the substance, then the terminology would not pose a problem.

And here is the substance that I now state clearly:

If we receive this guarantee regarding demilitirization and Israel’s security needs, and if the Palestinians recognize Israel as the State of the Jewish people, then we will be ready in a future peace agreement to reach a solution where a demilitarized Palestinian state exists alongside the Jewish state.

Regarding the remaining important issues that will be discussed as part of the final settlement, my positions are known: Israel needs defensible borders, and Jerusalem must remain the united capital of Israel with continued religious freedom for all faiths.

Full text of the speech:
Prime Minister’s Speech at the Begin-Sadat Center at Bar-Ilan University