Highlights from Netanyahu speech

(Reuters) - Following are highlights from Israeli Prime Minister Benjamin Netanyahu's keynote speech on Sunday about peace prospects with the Palestinians.

Translation from official Hebrew transcript is by Reuters:

PEACE TALKS

"I appeal to you, our Palestinian neighbors, led by the Palestinian Authority: Let's begin negotiating immediately, without preconditions. Israel is committed to international agreements and expects of all other sides to fulfill their undertakings. We want to live with you in peace and good neighborliness.

PALESTINIAN STATEHOOD, WITH CONDITIONS

We ask today of our friends in the international community, and chiefly of the United States, what is crucial for the security of the state of Israel: an explicit undertaking that under a permanent peace accord, the territory in Palestinian hands will be demilitarized -- that is, without an army and without control of airspace, with effective monitoring that will prevent weapons being brought into their territory ... And it goes without saying that the Palestinians would not be able to enter military pacts.

A fundamental condition for ending the conflict is a public, binding, and honest Palestinian recognition of the state of Israel as the nation state of the Jewish people.

If we receive this undertaking, for demilitarization and the security arrangements required by Israel, and if the Palestinians recognize Israel as the nation state of the Jewish people, we will be prepared as part of a future peace accord to reach a solution of a demilitarized Palestinian state alongside the Jewish state.

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