Answer:
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The US secretary of state, John Kerry, says negotiations on borders should be based in the pre-1967 "green line" – the armistice line drawn in 1949 at the end of the war that followed Israel's declaration of a state – with agreed land swaps to compensate for Jewish settlements in the West Bank that would be incorporated into Israeli territory. For Israel, this would mean giving up settlements deep inside the West Bank. The rightwing Jewish Home party, a key member of the coalition, has declared this a “red line”. The 1967 line is broadly acceptable to Palestinian negotiators, but the actual route of the border and land swap details are crucial.
Jerusalem
Both Israel and the future state of Palestine want Jerusalem as their capital. Israel, which annexed East Jerusalem after the 1967 war, rejects any division of the city. The international consensus is that Jerusalem would have to be the shared capital of both states. But recent speculation suggests that the framework agreement may refer to the Palestinian capital in “greater Jerusalem” - which could mean areas cut off from the city centre and holy sites by the separation wall. This would be unacceptable to the Palestinians.
Security
Israel wants to maintain a long-term military presence in the Jordan Valley, a corridor of land in the West Bank adjacent to the Jordan border, which is under its control. It says this is vital for its security. The Palestinians say they will not accept the continued presence of Israeli forces within their state, and they must control their own borders. The US has suggested that Israel maintains a military presence in the Jordan Valley for a limited period of time.
Refugees
The Palestinians insist that those people – and their descendants – who were forced to flee in 1948, when Israel declared its state amid a bloody war, must have the right to return to their former homeland. Around 5 million Palestinians are registered as refugees. Israel refuses to countenance the return of any refugees, saying an influx would endanger the Jewish character of the state. Previous negotiations have suggested allowing a symbolic number of refugees to return, plus compensation for others.
The Jewish state
Israel insists that the Palestinians must recognise it as a Jewish state ahead of negotiating the details of a deal. The Palestinians reject this, saying the nature of the state of Israel is not their business, and no other country has been required to recognise it as a Jewish state. Such a move would disregard Israel's Arab population, effectively relinquish the right of return for Palestinian refugees and erase the Palestinian historical narrative. Kerry may propose that the Palestinians recognise the Jewish state at the final stages of a deal.
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