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Page last updated at 21:19 GMT, Sunday, 14 June 2009 22:19 UK

Israel sets Palestinian state terms

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Israeli Prime Minister Benjamin Netanyahu has announced he will back a Palestinian state - but only if it is completely demilitarised.

In a landmark speech, weeks after the US president urged him to agree a two-state plan, he said the Palestinians must also accept Israel as a Jewish state.

Paul Wood reports.

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