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"That puts us in a very dangerous situation Indeed. If you don't have
                            a two- state solution you have a one-state solution, one state with
                            two classes of citizens if that state is to have a Jewish character
                            or a democratic secular state In Palestine, which means the death
                            of Israel within 10 years."
                            Finger-pointing is rampant, with each side accusing the other of
                            lacking the political resolve to make two states work. Israelis see
                            the Oct. 21 bus bombing, example of the Palestinian failure to keep
                            up their end of the land-for-peace bargain.
                            While  Palestinian  leader  Yasser  Arafat  condemned  the  attack,
                            claimed  by  Islamic  Jihad, Israel's  leadership  declared  Mr.  Arafat
                            responsible "by direct commission or omission" for the blast.
                            "Are they ready to put a stop to terror?" asks Ephraim Inbar, a
                            political science professor at Barnan University outside Tel Aviv.
                            "For the time being the answer would be negative, and so they
                            have failed the basic criteria of a  state, establishing a monopoly
                            over  the  use  of  power.  You  can't  have  a  state  with
                            militias running around," he says.
                            Critics who charge that Prime Minister Ariel Sharon lacks the will
                            to make concessions are wrong, says Mr. Inbar. "I don't think he's in
                            love with the idea of a two-state solution, but he has said that he's in
                            favor of  a  very  incremental approach, an Interim  agreement, that
                            he's willing to make painful concessions.
                                                  Strife over settlements
                            Some of those concessions are laid out in the US road map. In the
                            first of three stages to take place through 2006, Palestinians must
                            end  violence  and  enact  political reform  while Israel, among other
                            things, dismantles settlement outposts - small structures built without
                            any of the necessary Israeli building permits, usually to extend the
                            area controlled by a settlement - and freezes settlement construction.
                            Settlements - communities built in the occupied territories and illegal
                            under international law - are a thorny issue for Mr. Sharon. He has



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