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Netanyahu caught between Obama, Israeli settlers

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"Statehood is not a matter of principle with him. It's an issue of security," he says. "So if it's not a matter of principle, he can be manipulated and pressured. He has legitimate concern about a Palestinian state endangering Israel's security, and if the Americans want to advance the solution of the Palestinian state they will address those problems."

The problem, Mr. Baskin noted, is that compromise on the Palestinian issue risks unraveling Netanyahu's coalition.

Settlers: 'Don't cave in again'

A far-right party representing Jewish settlers in the West Bank sent a preemptive warning that if Netanyahu compromises on a Palestinian accord at the White House, they'll pull out of his coalition. Referring to Netanyahu's concession during his first term as prime minister – he also relinquished Israeli control over most of the West Bank town of Hebron – Jewish Home party and parliament member Uri Orbach said, "when one is burned by hot water, they are wary of cold water.

"We hope that he will stand up for himself," Orbach added in an interview with Israel Radio. "We aren't in the government to support a Palestinian state."

Parliament speaker Reuven Rivlin, a member of Netanyahu's own party, said a two-state solution is a "problem."

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