To: Thomas M. who wrote (15413 ) 6/17/2002 9:52:23 PM From: goldsnow Read Replies (3) | Respond to of 23908 Palestinians also were trying to muster U.S. good will with a proposed outline for a state living in peace with Israel. The proposal, obtained Monday by The Associated Press, appears to soften the Palestinian demand that all 1949 war refugees and their descendants have the right to return to Israel, and for the first time proposes Israeli sovereignty over part of Jerusalem's Old City.story.news.yahoo.com It sticks to the long-standing demand for a Palestinian state with its capital in east Jerusalem, but hints at softening the Palestinians' stance on key issues that undid an ambitious peace effort a year and a half ago. It calls for "a fair and agreed upon solution" to the refugee problem, based on U.N. General Assembly Resolution 194. The resolution gives the refugees the right to choose whether to return to their former homes or receive compensation, a concept Israel rejects, saying an influx of millions of Palestinians would overwhelm its 5 million Jews. Up to now the Palestinians have insisted that all the refugees and their descendants, about 4 million people, must have the right to return to Israel. It also addressed the divisive issue of Jerusalem by offering Israel sovereignty over the Jewish Quarter of the Old City and part of the Western Wall, the holiest site in Judaism. That would leave the contentious hilltop above the wall, holy to both sides, in Palestinian hands. The proposal also said a Palestinian state would agree to limit its possession of weapons — a key Israeli demand — and that Palestine and Israel would agree not to participate in any military alliance against each other.