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Palestinians Voice Dismay About Netanyahu Terms

RAMALLAH, West Bank (Reuters) - Palestinians voiced dismay on Monday over terms Benjamin Netanyahu set for a peace deal but the Israeli leader won guarded approval in Washington and Brussels for at least accepting Palestinian statehood.

In a speech on Sunday, Netanyahu responded to weeks of U.S. pressure by endorsing for the first time establishment of a Palestinian state, on condition Israel received international guarantees in advance the new nation would be demilitarized.

But Palestinians were disappointed by the prime minister's demand they recognize Israel as a Jewish state and his failure to halt Jewish settlement expansion in the occupied West Bank.

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