World powers should isolate Israeli Prime Minister Benjamin Netanyahu after he unveiled tough terms for a Middle East peace accord, an aide to Palestinian President Mahmoud Abbas said on Monday. In a major policy speech on Sunday, Netanyahu responded to weeks of pressure from Washington by finally giving his endorsement - with conditions - to the establishment of a demilitarized Palestinian state. Palestinians were dismayed by his demand they first recognize Israel as a Jewish state and his failure to heed a call they and US President Barack Obama have voiced to halt Jewish settlement construction in the occupied West Bank. “The international community should confront this policy, through which Netanyahu wants to kill off any chance for peace,” Abbas adviser Yasser Abed Rabbo told Reuters. “They must isolate and confront this policy which Netanyahu is adopting and exert pressure on him so that he adheres to international legitimacy and the road map,” he said, referring to a US-sponsored 2003 peace plan. Netanyahu pledged to keep all of Jerusalem as Israel's capital - defying Palestinians' claim on the city - and hedged on whether Israel would ever remove West Bank settlements. Palestinian negotiator Saeb Erekat said mediators should challenge Netanyahu on whether he was prepared to tackle territorial issues such as borders, Jerusalem and settlements. “Netanyahu is talking about negotiations about cantons - the canton of the state of Palestine, with a flag and an anthem, a state without borders, without sovereignty, without a capital,” Erekat said. Meanwhile, Egypt said that Israeli premier's vision for achieving peace with the Palestinians was flawed and fell short of Arab and international demands for an independent Palestinian state. Egyptian President Hosni Mubarak also said in remarks that a call to recognize Israel as a Jewish state “increases the complexity of the matter and aborts the chance for peace.” “I affirmed to ... Prime Minister Netanyahu the necessity to return to final status talks where they left off, without delay,” said Mubarak, who met Netanyahu when he visited Egypt in May. “The call to amend the Arab peace initiative by dropping the right of return (of Palestinian refugees) would not lead to engagement from Egypt or elsewhere,” he added in remarks that did not mention Netanyahu's speech on Sunday. Palestinian leaders have refused to recognize Israel as a Jewish state because they believe it weakens the position of the 20 percent of Israel's citizens who are Arabs. Palestinian officials have voiced their opposition to many aspects of Netanyahu's proposal.
