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The last round of peace talks between Israel and the Palestinians broke down in September 2010 over the issue of construction in Israeli settlements in the West Bank and east Jerusalem, areas captured by Israel in the 1967 Mideast war and claimed by the Palestinians for their state.
The Palestinians demand a halt to settlement construction and say they will not resume formal negotiations while Israel continues to build in the two areas. They also say Israel must commit to withdrawing to its 1967 prewar lines as the basis of a future border. Israel says direct talks should resume without preconditions.
Israel's foreign minister said Monday that some Israeli Arabs should be stripped of their citizenship and placed under Palestinian sovereignty as part of any final peace deal.
About one-fifth of Israel's 7.8 million population is Arab. Israeli Arabs are citizens, in contrast with their Palestinian brethren in the West Bank and Gaza Strip. But they often suffer discrimination in Israel and frequently identify with the Palestinian cause.