Jerusalem is and will remain the capital of Israel. The parties have agreed that
Jerusalem is a matter for final status negotiations. It should remain an
undivided city accessible to people of all faiths.

The United States and its Quartet partners should
continue to isolate Hamas until it renounces terrorism, recognizes Israel’s
right to exist, and abides by past agreements. Sustained American leadership for
peace and security will require patient efforts and the personal commitment of
the President of the United States. The creation of a Palestinian state through
final status negotiations, together with an international compensation
mechanism, should resolve the issue of Palestinian refugees by allowing
them to settle there, rather than in Israel. All understand that it
is unrealistic to expect the outcome of final status negotiations to be a
full and complete return to the armistice lines of 1949.