TEL AVIV, February 14, 2010 (WAFA) - Israeli Deputy Foreign Minister Daniel Ayalon in an interview given to the newspaper Asharq Al-Awsat that rejected that settlements are an obstacle to peace!

'We have shown in the past that settlements do not affect the final results - and proof of this is the withdrawal from Sinai and from the Gaza Strip,” Israeli daily Haaretz reported.  

The Palestinians need to recognize the right of Jewish self-determination in Israel, just as they demand their own right to self-determination, Ayalon said.

'From our point of view [an agreement] means two states, Israel and Palestine, living side by side in stability and security, in coordinated cooperation,' he added, the Israeli Arabs who will become part of Palestine will contribute to the Palestine economy.

He Called for a population and territory exchange in order to achieve peace with the Palestinians, Ayalon stressed that while Israel defines itself as a Jewish state, this does not mean non-Jews cannot live there or enjoy full rights as citizens. 

 Ayalon also reiterated his support for territorial and population exchanges, particularly in the southern Galilee area known as 'the Triangle' which borders the West Bank.

When asked whether the territory exchange would also include cities like Nazareth, he clarified that he was referring to 'contiguous territory.'

'What is important is that the idea be accepted, giving Jews a positive message [about] peace, as most Jews will live in Israel and most Palestinians in Palestine,' he said. 'I am not saying we want to be rid of Israeli Arabs, but we know from experience that countries are being divided on the basis of demography.'