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It also calls for uprooting some Israeli settlements and creating a Palestinian state in 2005.
The peace plan lays out reciprocal steps toward ending three years of violence and creating a Palestinian state by 2005.
Asked about removing Jewish settlements from the West Bank and creating a Palestinian state between Jerusalem and the Jordan river, Mr Bennett breezily replies that "It just ain't gonna happen".
He said that in return for Israel withdrawing to pre-1967 lines, and creating a Palestinian state with Jerusalem as its capital, the Arab League would offer Israel "full peace".
Before he announced his Middle East policy on June 24, Mr. Bush had consulted extensively with leaders in the region about how to proceed with concrete action toward ending the violence and creating a Palestinian state.
Still, some aides saw it as a gamble to persuade Mr. Obama to announce a full peace plan aimed at ending the Israeli occupation of the West Bank and creating a Palestinian state.
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The United States envoy George J. Mitchell told Palestinian leaders on Friday that they had to resume talks with Israel if they wanted American help to achieve a peace treaty that would end Israeli occupation and create a Palestinian state, said the chief Palestinian negotiator, Saeb Erekat.
The dispute about East Jerusalem settlements has pitched that relationship to a new low and some of his colleagues, notably the defence minister, Ehud Barak, have spoken much more publicly than Netanyahu about the need to end the occupation and create a Palestinian state.
He understands that his direct, personal, and very visible intervention is critical if America is to have any hope of convincing 1.6 billion Muslims that we are at least trying to end the Israeli-Palestinian conflict and create a Palestinian state alongside Israel.
Israel'a complete withdrawal from Gaza, ending occupation there and effectively creating a Palestinian State, was followed by the Palestinian election of antisemitic Hamas as their leaders, whose charter seems to come from the Protocols of the Elders of Zion.
He won the Nobel Peace Prize for signing the 1993 Oslo Accords, formalizing relations with Israel and creating a nascent Palestinian state in the West Bank and Gaza.
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