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I think it is important to remember that Arafat is the founder of the original "hardline" terrorist group, the PLO. He pulls the strings of terror. He needs to go.
I don't know of any Israeli group that is against peace- they all want peace. A small minority thinks that the Palestinians should be transferred to Jordan, and many think a Palestinian state would be mortally dangerous to Israel/lead to war, as do I. There are Israelis that aren't willing to compromise, but that isn't the same as not wanting peace. The Israelis don't want to destroy anyone, they just want to be left alone.
I don't know about Abbas- on the one hand, he is a PLO vet, and has been tied to the Munich massacre. If he actually is serious about ending terrorism, and would actually want a state, but not to destroy Israel, he should be supported. His intentions are hard to gauge however, as to strive for real peace would be to go against the PLO covenant. I think Israel should be permitted to completely wipe out the terrorist infrastructure, kill Arafat, and deport anyone linked to terror. Any Palestinians who would abandon terror, and accept the permanent existence of Israel should be helped to build a real infrastructure and economy, so they won't be dependent on Israel, and given autonomy. I think statehood is begging for WW3, and woud also only be appeasing terrorism at this point, thus creating more of it.
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Truth is peace. We are all souls in bodies.
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