Obama will be happy to achieve some movement in the West Bank concessions that Israel will concede to maintain the relationship it has with America. Not all will be accepted by Israel - especially those that will impact on Israel’s security or hinder or impede its growth.
While this will create the impression of movement - which Israel can probably afford to some degree - it will not lead to a final settlement of the division of sovereignty of the West Bank between Jews and Arabs.
However any such concessions will help to ease the current restrictions prevailing on travel and lessen the inconvenience in the daily lives of the West Bank Arab population in moving from one part of the West Bank to another. It will enable the Palestinian Authority to assume full responsibility over an increased majority of the West Bank Arab population.
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A new separate Arab State between Jordan and Israel will remain a pipe dream destined to failure. Any progress made in the proximity talks will not help advance the realisation of that goal. The parties will still remain poles apart on the terms that each can agree on to bring the two-state solution to fruition.
In the meantime - Israel will get on with its own nation building and consolidation as a scientific, intellectual and technological powerhouse for others to aspire to and emulate.
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