Israel challenges Palestinians to recognise 'Jewish state'

JERUSALEM: Israeli Prime Minister Benjamin Netanyahu on Monday proposed a new settlement freeze in exchange for Palestinian recognition of Israel as the Jewish homeland, a move swiftly dismissed by the Palestinians.

In a speech at the opening of the winter session of parliament, Netanyahu spelled out his price for a renewal of a freeze on Israeli settlement building in the occupied West Bank, which is seen as key to salvaging peace talks which the Palestinians are threatening to abandon.

"If the Palestinian leadership will unequivocally say to its people that it recognises Israel as the national state of the Jewish people, I will be ready to convene my cabinet and ask for another moratorium on building," he said.

"I have already passed on the message through quiet channels and I am now saying it in public," he said in a live televised address.

But his offer was immediately rejected by Palestinian chief negotiator Saeb Erakat, who told media the issue was completely unrelated to the crisis in the US-brokered peace talks.

"This order has nothing to do with the peace process or with the obligations that Israel has not implemented," Erakat told media by phone from Amman, Jordan. "This is completely rejected."

Direct peace negotiations between Israel and the Palestinians began on September 2 but ground to a halt two weeks ago after the expiry of a partial 10-month moratorium on Jewish settlement building.