Mr. Alan Shatter:

The reason there has been no two-state solution is because it has proved impossible for the Israelis and the Palestinians to agree a two-state solution. There were two huge moments in this. One was under President Clinton and the other under George Bush. One was at the end of Clinton Administration and the other was towards the end of the Bush Administration when a two-state solution was practically negotiated. On the first occasion Yasser Arafat, who I met many times, walked away. On the second occasion, Mahmoud Abbas walked away. I agree that ultimately the only solution is that Palestinians and Israelis live side by side, be it a two-state solution or some other legal arrangement that they agree-----