Transcript: Netanyahu's speech on a Palestinian state

Therefore, a fundamental prerequisite for ending the conflict is a public, binding and unequivocal Palestinian recognition of Israel as the nation state of the Jewish people. To vest this declaration with practical meaning, there must also be a clear understanding that the Palestinian refugee problem will be resolved outside Israel’s borders. For it is clear that any demand for resettling Palestinian refugees within Israel undermines Israel’s continued existence as the state of the Jewish people.

The Palestinian refugee problem must be solved, and it can be solved, as we ourselves proved in a similar situation. Tiny Israel successfully absorbed tens of thousands of Jewish refugees who left their homes and belongings in Arab countries. Therefore, justice and logic demand that the Palestinian refugee problem be solved outside Israel’s borders. On this point, there is a broad national consensus. I believe that with goodwill and international investment, this humanitarian problem can be permanently resolved.