Hamas leader Khaled Mashaal rejected on Thursday night Israeli Prime Minister Binyamin Netanyahu's recent proposal for a demilitarized Palestinian Authority state. Mashaal called a demilitarized state "worthless and not a serious political entity".

Mashaal said the minimum his group would accept was establishment of an Arab state with its capital in Jerusalem and full sovereignty in the areas liberated by Israel in 1967, dismantling of Jewish communities in those areas, and permission for return of the families of Arabs who left when the modern Jewish state was founded in 1948.

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