Israeli official: No Palestinian state with 1967 borders

Mr. Kerry has been searching for a formula that would curtail most settlement construction, provide security guarantees to Israel and economic incentives to the Palestinians. So far, there have been no signs of progress.

Israel‘s chief negotiator with the Palestinians, Tzipi Livni, said Sunday that she is working with the U.S to restart talks, despite those within the government that oppose it.

“It is true that within the Likud there are radical elements and within the government there are those that oppose an agreement,” Ms. Livni told Israel Radio. “The prime minister is the one who will have to decide whether he surrenders to radical elements or will promote his policy that he declared,” she said.

Ms. Livni said Mr. Danon’s comments “look bad.”

The top Palestinian negotiator, Saeb Erekat, said Mr. Danon’s remarks reflect Israel‘s policy.

“I believe that a government that continues to tender settlements and rejects the two-state solution will not go for peace,” he said.

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