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FATPad:
One of the sticking points on the offer that was made is that of a contiguos border. They would still have been isolated in pockets, much like reservations (they are currently divided into 13 separate pockets) with Israel controling the area between the pockets. All though the offer would have reduced the number of these pockets, I don't know by how many. If I recall correctly the original partition allowed for this separtion to some extent, which was a piss poor idea in the first place. In addition some of the expanded settlements would have remained in place. Israel claims that they offered 97% of what the Palestinians wanted, but the Palestinians deny that claim, but go on to say that 97% of what is rightfully their land is not acceptable. In addition it is said that Israel would have maintained control over 80% of the water supply.
If I recall correctly another sticking point was the right of return. The right of return was not acceptable to Israel. In other words those that fled the land to avoid the conflicts, would not be allowed to return.
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