Netanyahu Bar-Ilan University address, 14 June 2009 (English translation of Hebrew original)

I have already stressed the first principle - recognition. Palestinians must clearly and unambiguously recognize Israel as the state of the Jewish people. The second principle is: demilitarization. The territory under Palestinian control must be demilitarized with ironclad security provisions for Israel. Without these two conditions, there is a real danger that an armed Palestinian state would emerge that would become another terrorist base against the Jewish state. In order to achieve peace, we must ensure that Palestinians will not be able to import missiles into their territory, to field an army, to close their airspace to us, or to make pacts with the likes of Hizbullah and Iran. 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: Israel needs defensible borders, and Jerusalem must remain the united capital of Israel with continued religious freedom for all faiths. The territorial question will be discussed as part of the final peace agreement.