Olmert sets new condition for talks

Erekat says Palestinians will not accept Israel as a Jewish state

Ehud Olmert, Israel's prime minister, has set forth a new condition for talks on Palestinian statehood, insisting any negotiation must be predicated on the recognition of Israel as the "state of Jewish people".

Olmert's condition threatens to undermine a US-hosted Middle East conference later this month.

The upcoming meeting in Annapolis, Maryland, is considered pivotal by both the Palestinians and the Israelis as a launching point for talks on Palestinian statehood, including "core issues" such as borders, the future of Jerusalem and the millions of Palestinian refugees.

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