FACTBOX: Israel's five conditions for peace with Palestinians

JERUSALEM (Reuters) - Israeli Prime Minister Benjamin Netanyahu reaffirmed his government's five foundations for peacemaking with the Palestinians in a speech to parliament on Wednesday.

Following are Israel's demands, first voiced by Netanyahu last month, and the Palestinian position on each issue.

1. Palestinians must recognize Israel as a Jewish state.

Palestinians say such recognition could be perceived as abjuring a "right of return" for Palestinian refugees to land now in Israel. They say they are also mindful of the rights of Arab citizens of Israel.

2. Palestinian refugees must be resettled outside Israel.

Palestinians have long demanded that refugees who fled or were forced to leave in the war of Israel's creation in 1948 should be allowed to return, along with millions of their descendants. Yet Palestinian negotiators have signaled they would accept "a just and agreed-upon" solution for refugees as laid out in a U.N. resolution that mentions compensation for those who settle elsewhere.

3. The final peace agreement will end the conflict, and Palestinians can make no further demands on issues such as borders and refugees.

The Palestinians seek a final, lasting agreement that would meet all their national aspirations.

4. The Palestinian state must be demilitarized so as not to threaten Israel.

The Palestinians do not object to this demand, but say it should be discussed in negotiations with Israel.

5. Foreign backing, in the form of explicit international guarantees, for these security arrangements.

Again, the Palestinians say the issue can be sorted out in peace talks, as it was agreed upon in previous internationally backed agreements like the 2003 "road map."

(Jerusalem Newsroom, Edited by Richard Balmforth)

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