Of course many of us "middle of the road Middle East folk" would say: "Umm, OK Bibi... but why do you not see the obvious here? Why don't you be the PM who lets the Palestinians have East Jerusalem--and thus the West Bank and Gaza--and live as a hero among Israeli greats? By giving Palestinians a viable state you make Israel that much safer."
Well clearly, for whatever reason, Bibi doesn't see it like that.
Then again, neither does Israeli President Shimon Peres. In a Haaretz interview, President Peres said:
"Previous governments built in Jewish neighborhoods, but not in Arab ones... even Menachem Begin and Yitzhak Shamir did not build in the heart of Arab neighborhoods in East Jerusalem. That's why the entire world agreed to [building in Jewish areas], and it wasn't a stumbling block in negotiations."The president also told Netanyahu and several ministers that every other Israeli government (until now of course) has agreed not to build in what is considered to be "predominantly Arab areas of the city. "
And yes, he was talking about East Jerusalem.