'Compromise Must Reflect Dramatic Changes'

Israel's Prime Minister Benjamin Netanyahu addresses a joint meeting of Congress as he speaks in front of US Vice President Joe Biden and Speaker of the House John Boehner (R) in the chamber of the US House of Representatives on Capitol Hill in Washington, May 24, 2011. [Photo/Agencies]

Netanyahu said any "compromise must reflect the dramatic demographic changes that have occurred," referring to Israel's construction of hundreds of settlements on land Palestinians want for a state.

Repeating a message he delivered consistently during his visit, Netanyahu said "Israel will not return to the indefensible boundaries of 1967," narrow lines from before Israel captured the West Bank in a war 44 years ago.

Obama drew Israeli anger when he said on Thursday the starting point for negotiations on a Palestinian state in the West Bank and Gaza Strip should be based largely on the pre-June 1967 frontiers with mutually agreed land swaps.

A frosty meeting with Netanyahu followed at the White House on Friday when the Israeli leader, with Obama sitting at his side, rejected those borders.

"We will be very generous on the size of a future Palestinian state," Netanyahu told Congress on Tuesday but offered no specifics.

The White House offered a low-key response to Netanyahu's speech. Ben Rhodes, a deputy national security adviser, said in London that the Israeli leader had "reaffirmed the strength of the US-Israeli relationship" and had "pointed to the importance of peace." Obama is visiting London.

Nabil Abu Rdainah, a spokesman for Abbas, said Netanyahu's vision for ending the conflict put "more obstacles" in front of the Middle East peace process.

"What came in Netanyahu's speech will not lead to peace," Rdainah said in the West Bank city of Ramallah, rejecting Netanyahu's call to hold onto swaths of West Bank land including East Jerusalem, where Palestinians want their capital.

Hani Masry, a Palestinian analyst said Netanyahu "wants the Palestinians to give up everything and get a state of leftovers."

On the other side, settler leaders and members from Netanyahu's own Likud party also voiced their objections, but with no diplomatic breakthrough in sight, his ruling coalition did not seem to be in jeopardy.

Netanyahu's address was greeted warmly by congressional leaders. Some Israelis pointed to that reception as a success while others thought he had not offered enough to break the diplomatic deadlock.

"What he's offering I don't think you would find even the most moderate Palestinians would buy into," David Newman, an Israeli political scientist, said. "He's offering a truncated West Bank. He wants to leave as many settlements as possible."