Tel Aviv - The Palestinian refugee problem must be solved outside of Israel, Prime Minister Benjamin Netanyahu said Sunday night. "The refugee problem must be solved and can be solved," he said during a key speech near Tel Aviv outlining his peace policies. But he said problem will find its solution outside the borders of Israel.
Palestinians demand the refugees and their descendents be given the right to return to the homes they abandoned in what is now Israeli territory during the 1948-49 Middle East War.
Israel however says to do so would create a demographic imbalance within generations which would mean the end of Israel as a Jewish state.
