My thoughts on how to end this conflict is heavily influenced by the end of the Nicaraguan civil war in 1991, and the end of the Ireland 'troubles' during the 1990s. In both cases, wars ended because middle class familes who had once backed violence turned away from it, isolating the extremists, and shifting the focus of society towards the financial benefits of peace. Thus - this is my proposal: Prelude: The US advises Israel privately that funding will dry up in one year if no solution is found. The US publically commits to defending Israel militarily. 1) Israel anounces that it will recognise a Palestinian state, and invites Palestinian leaders to a major conference. Hamas are specifically invited, but are reminded that a condition of their participation in any peace plan is recognition of Israel. 2) The conference begins, with or without Hamas. Israel anounces a plan to withdraw from 90% of the West Bank, leaving a state with contigious borders. Israel anounces that it will accept 10,000 Palestinians per year for 10 years with Right of Return. Those from Akko and Jaffa are given priority. Returnees may apply for Israeli passports, but must swear to peaceful co-existance under threat of deportation. 3) All Palestinian groups recgonise Israel and commit to peaceful co-existance. Israel releases a large section of land south of the West Bank and in the lower Golan Heights to the Palestinian state in exchange for the 10% of the West Bank Israel keeps (e.g. Gilo). Sections of the Wall outside of these areas are dismantled. The Wall remains where it follows the now legal border. A road/rail link connects the West Bank with Gaza. 4) Western Jerusalem is in Israel, Eastern Jersualem is Palestinian, and the Old City is under permanant UN control, with access limited and controled. 5) The Palestinian state agrees for UN troops to monitor ports and airports to control the import of weapons. All militia are to disarm, and hand over weapons to legal authorities. The new Palestinian constitution outlaws any political group which does not recognise Israel. 6) Palestinian police are given training by the UN, to assist in finding arms caches, tunnels and rocket launching equipment. 7) The international community provide a massive amount of capital to provide education and healthcare for Palestinians, plus capital assistance for businesses. Palestine joins the UN as a full member.