TEL AVIV, October 12 (WAFA) - Israeli Prime Minister Benjamin Netanyahu proposed to halt settlement construction if the Palestinian Authority was to recognize of Israel as a Jewish state.

ThePLO utterly rejected Netanyahu's offer to suspend settlement construction in exchange for a guaranteed recognition of Israel as a Jewish state. The PA demands an entire freeze construction, and will not resume talks until such a guarantee is made.

At the opening of the third session of the 18^th Knesset Netanyahu declared” If the Palestinian leadership will say unequivocally to its people that it recognizes Israel as the homeland of the Jewish people, I will be ready to convene my government and request a further suspension.'

However, the Presidency Spokesperson, Nabil Abu Rdaineh said a return to  peace talks requires a freeze on settlement building by Israel and emphasized that: 'The issue of the Jewishness of the state has nothing to do with the matter.'

According to Haaretz, The U.S., which mediated the proximity peace negotiations and played a key role in the short-lived direct talks that followed, dodged a direct response to the offer, saying its position on settlements has not changed.

It’s Noteworthy, that Israeli Kadima Chairwoman Tzipi Livni criticized Netanyahu for his 'lack of leadership' during her speech before the Knesset.

'You refuse to pay a political price for the peace process… If your main interest is the coalition, you will not be able to make the right decisions,' said Livni.

She accused him for eroding Israel's international status. 'You have turned Israel into a weak, fearful state which is losing its friends in the world, which defies the leader of the free world, the source of its strength.” and added  'Perhaps you have led Israel to this position out of weakness, due to your inability to make a decision and take a stand.”