I shall go further: Hamas and Fatah together represent only the part of the Palestinian people that lives in the West Bank, the Gaza Strip, and East Jerusalem. But millions of Palestinian refugees (no one knows for sure how many) live outside of the territory of Palestine and Israel.

If we strive indeed for a complete end to the historic conflict, we must reach out for a solution that includes them, too. Therefore I strongly question the wisdom of Tzipi Livni and her colleagues, who demand that the Saudis drop from their peace plan any mention of the refugee problem. Simply put: that is stupid.

Common sense would advise the exact opposite: to demand that the Saudi peace initiative, which has become an official pan-Arab peace plan, include the matter of the refugees, so that the final agreement will also constitute a solution of the refugee problem.

That will not be easy, for sure. The refugee problem has psychological roots that touch the very heart of the Palestinian-Zionist conflict, and it concerns the fate of millions of living human beings. But when the Arab peace plan says that there must be an "agreed upon" solution-meaning agreed upon with Israel-it transfers it from the realm of irreconcilable ideologies to the real world, the world of negotiations and compromise. I have discussed this many times with Arab personalities, and I am convinced that an agreement is possible.

The new Palestinian government is based on the "Mecca

Agreement."95 It seems that it would not have been possible without the energetic intervention of King Abdullah of Saudi Arabia.

The international background has to be considered. The President of the United States is now busy with desperate efforts to bring his Iraqi adventure to a conclusion that will not go down in history as a total disaster. For this purpose he is trying to bring together a Sunni Front that would block Iran and help to put an end to the Sunni violence in Iraq.

That is, of course, a simplistic idea. It disregards the enormous complexity of the realities of our region. Bush has presided over the setting up in Iraq of a government dominated by the Shi'ites. He has tried to isolate Sunni Syria. And Hamas is, of course, a pious Sunni organization.

But the American ship of state is beginning to turn around. Being a giant ship, it can do this only very slowly. Under American pressure, the Saudi king has agreed (perhaps unwillingly) to take upon himself the leadership of the Arab world, after Egypt has failed in this task. The king has persuaded Bush that he has to speak with Syria. Now he is trying to persuade him to accept Hamas.

In this picture, Israel is a hindrance. A few days ago Ehud Olmert flew to America and told the conference of the Jewish lobby, AIPAC,

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