Defense Minister Avigdor Liberman said this morning that a regional agreement with the moderate Sunni states must be reached before an agreement with the Palestinian Authority. Speaking at the Herzliya Conference, he explained, "The principle that guides us should be an exchange of territories and populations, and the Palestinians cannot sign an arrangement with the State of Israel alone."

Liberman added, "Since the Six-Day War we have not have a military victory. There have been many statements and declarations, including mine, which were not backed up. Indeed, there there have been successful operations, which are being studied all over the world. But the absence of a decision and victory has delayed our connection with the moderate states, and that will change."

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