On the agenda of Tuesday's meeting between Presidents Hosni Mubarak of Egypt and Barack Obama of the United States is an initiative which calls for families of Arabs who left Israel in 1948 to waive what they call the right of return in exchange for compensation, according to the London-based Arabic-language Al-Quds Al-Arabi newspaper. The newspaper cited no sources for the information or for the compensation.

According to the report, the initiative includes amending the 1967 borders and the establishment of a demilitarized Palestinian Authority state. Jerusalem would be the joint capital of both states under the plan, which was drawn up by former American President Jimmy Carter, former Secretary of State James Baker III and former National Security Advisor Brent Scowcroft.

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