Reporting from Jerusalem and New York -- Israeli Prime Minister Benjamin Netanyahu said today that he would accept creation of a Palestinian state if Israel received international guarantees that the new nation would be demilitarized and accept other limits on its sovereignty.
The position outlined by Netanyahu, in a policy speech 10 weeks after taking office, was a retreat under pressure from the Obama administration. Until today, he had refused to use the word "state" to define the homeland Palestinians would get as part of a Middle East peace agreement that the administration seeks.



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