BILD:  In your speech at Bar-Ilan University you spoke of the possibility of a Palestinian state for the first time. How serious was your proposal? Why did your suggestion meet with such negative reaction in the Arab world?
 
PM Netanyahu: I really don’t know. I think they should have embraced my proposal. What’s wrong with the idea that the Arab world  recognize Israel as the nation-state of the Jewish people with full and equal citizenship for its minority populations? What’s wrong with the idea that the Palestinian state next to Israel not be a militarized one that could threaten Israel? Whoever really wants peace has no reason to reject my proposals.
 
BILD: Even Egypt’s President Mubarak, who still adheres to the legendary Camp David peace agreement, commented on your proposal with the words: “Nobody will support this appeal. Neither in Egypt, nor anywhere else....”
 
PM Netanyahu: I have great respect for Egyptian President Mubarak. He is certainly one of the important leaders who has kept the peace. And this peace between Israel and Egypt has weathered a lot of storms. This peace has lasted for more than thirty years and has withstood the test of time. President Mubarak has done everything to keep and expand the peace. However, there may be a misunderstanding about the things I said. I do not place preconditions on entering peace negotiations with the Palestinians. And that applies to Syria, Saudi-Arabia or any other Arab world countries. I clearly stated the twin foundations of achieving a final peace settlement that overwhelmingly unite the people of Israel. They all seek peace, they want an end to this conflict, they are prepared to go a long way but they are not prepared to sacrifice the right of the Jewish people for a state of their own in their ancestral homeland. And they absolutely and correctly insist that this peace must maintain our security. If you give up security, you will have neither security nor peace.
 
BILD: Your brother Jonathan tragically died in 1976 during the legendary rescue of Israeli hostages in Entebbe. Does such dreadful personal experience make negotiations with the Palestinians more difficult?
 
PM Netanyahu: On the contrary, I think nearly every family in Israel knows someone who died or has experienced the agonies of war and the pain of terrorism. The people of Israel pray for peace because we know and have suffered the consequences of war. So, on the contrary, if you have suffered a personal tragedy, it just reinforces the desire for achieving peace. But it’s a desire for a peace that can be defended.
 
BILD: Can Hamas or Hizbollah ever be a partner in peace for you?
 
PM Netanyahu: The quartet has put forward very simple conditions for Hamas: they have to recognize the right of the State of Israel to exist. They have to cease terror. They have to accept previous agreements.  They have to be prepared to negotiate peace with Israel. But the constitution of Hamas calls for the exact opposite, for destroying the State of Israel and for the murder of Jews.  So if they changed their character, they wouldn’t be the Hamas any more. Regrettably, I can tell you that I see no indication Hamas is moving in that direction. In fact, they are moving in the opposite direction. They are stockpiling weapons courtesy of Iran and continue to plan their terror campaign against Israel.
 
BILD: Do you trust the Palestinian President?
 
PM Netanyahu: I trust the principles I lay down, and if leaders agree to them then I’ll obviously work to advance peace.
 
BILD: Of all the Islamic states, Turkey, a reliable ally to Israel for centuries, is now one of the biggest critics of your country. How isolated does Israel feel in the world?
 
PM Netanyahu: The Muslim world has to make a choice between the path of radical Islam and the path of moderation and modernity, and most of the governments in the non-Arab Muslim world have opted for this and also for friendly ties with Israel. But the pressure is unrelenting because the forces of radical Islam are arming themselves. They are threatening the moderates and all leaders and all governments have to take a stand here.
 
BILD: The German government described your offer to the Palestinians as a “step in the right direction”. What do you expect from Germany?
 
PM Netanyahu: Germany has been a great friend for Israel and I have the highest regard for Chancellor Merkel. There is no question about the friendship of the German government and also the basic goodwill that animates German - Israeli relations. We know the tragedies of our history but Germany has been one of Israel’s steadfast friends, fair and decent. I also appreciate Chancellor Merkel’s clear stance against
anti-Semitism, against the statements and policies that have emanated from Iran. And I appreciate the support of the German government in the quest for a genuine and endurable peace. Chancellor Angela Merkel is truly a reliable friend of Israel.
 
BILD: Is the special relationship between Germany and Israel compatible with active trading between Germany and Iran?
 
PM Netanyahu: I’ve spoken about that with Chancellor Merkel and with other European leaders and I know that there are efforts to reduce trade with Iran, and some have succeeded, but this should be a constant effort.
 
BILD: Israel was heavily criticized during the Gaza offensive. Do you think this war fueled a new kind of anti-Semitism in the world?
 
PM Netanyahu: The initial response of most of the world was sympathy for Israel. The initial response of many in the Arab world was a thinly disguised hope that Israel would do away with Hamas because Hamas is threatening many of the moderate Arab countries as well. It’s basically a violent terrorist proxy of Iran. But as the fighting dragged on, the media coverage never shows the whole movie, just the last few frames of Israeli soldiers going into Gaza. It doesn’t show the thousands of rockets that preceded this action. But I always ask critics of Israel what they would do. What would the German people expect if you had seven rockets on Berlin, Bonn or on Bremen, let alone seven thousand like Israel has absorbed from Gaza? These terrorist rocket attacks were totally unprovoked and with the explicit purpose of murdering our children and directly targeting the innocent. When the people concentrate and think about that, they would change their perspective towards Israel.
 
BILD: When can we welcome you in Berlin?
 
PM Netanyahu: I hope very soon.  I spoke to Chancellor Merkel, who kindly invited me, and I intend to take her up on her kind invitation. There is a deep friendship between our countries and I appreciate the fact that the German government responded positively to my call for peace and I hope they can help us garner the support of the Arab countries to begin to invest in Israel, to invest in my program of an economic peace that moves parallel to the political peace.
 
I think that if we can create economic zones, tourist attractions and commercial projects that would create thousands of jobs for Palestinians and give their youth a future, as well as creating common bonds between Israel and our Palestinian neighbors, this would help weaken the radicals and strengthen the moderates, and this is good for peace. And Germany could help push this economic peace forward.