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Source: http://www.state.gov/secretary/rm/2009a/10/131145.htm
Clinton and Netanyahu Both Say Stopping Settlements Was Never a Precondition for Negotiations
[State Dep - Prime Minister Netanyahu and Secretary of State Clinton told the press Saturday: Netanyahu: "I said we would not build new settlements, not expropriate land for addition for the existing settlements, and that we were prepared to adopt a policy of restraint on the existing settlements, but also one that would still enable normal life for the residents who are living there." "This is a new thing....There's not been a demand coming from the Palestinians that said we will not negotiate with you unless you freeze all activity....It's a change of policy, the Palestinian policy. And it doesn't do much for peace." Clinton: "What the prime minister is saying is historically accurate. There has never been a precondition. It's always been an issue within the negotiations."