After reading this
BBC article, I can't understand why it is so important to Olmert's government (and those before) not to agree to go back to Israel's pre-1967 borders. Do they really need to hold on to everything? For what? And what was with Olmert's comment about "the countries who count in the Arab world...."? Doesn't EVERY COUNTRY count in some way? Seriously, I would love and need to hear people's answers to this questions, so if you've got one, bring it here.
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They want to keep the Golan Heights because if they give them up they would become vulnerable to potential Syrian attacks. Needless to say, the area has a very high strategic importance from a military point of view.
They don't want to give up Jerusalem and the illegal settlements because they understand perfectly that time is on their side. That's exactly how the somewhat arbitrary borders of most modern states came to exist.
They don't want to allow the refugees to return because of simple arithmetic: If they come back they would become a majority.
Last but not least, they don't want to go back to their old borders because they know that the mighty US(and God :) )is on their side.
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