In the end, Avnery comes to much the same conclusion:
In the course of time, I dropped the word “federation”. I had come to the conclusion that it frightened both sides too much. Israelis feared that it meant diminishing the sovereignty of Israel, while Palestinians suspected that it was another Zionist ruse to keep up the occupation by other means. But it seems clear that in a small land like historical Palestine, two states cannot live side by side for any length of time without a close relationship between them.
It must be remembered that the original UN partition plan included a kind of federation, without using the word explicitly. According to the plan, the Arab and the Jewish states were to remain united in an economic union. . . .
A federation between Israel and Palestine … will have to find its own character, according to its unique circumstances.
But the main point is timing.
Since [Avraham] Burg likened his proposal [for a federation] to a building, it follows that it must be built floor after floor, from the bottom up. That’s how I see it too.
The first floor is the two-state solution. This must be implemented first of all. Any idea about what may come after is meaningless without it.
This means the foundation of the State of Palestine along the 1967 borders, with East Jerusalem as its capital, as a free, independent and sovereign nation-state of the Palestinian people.
As long as this basic idea is not implemented, and the solution of all the connected problems (“core issues”) agreed upon, nothing else has much meaning. . . .
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