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The new state of Palestine would be “nonmilitarized,” but would have a strong security force; sovereignty over its airspace, with special arrangements to meet Israeli training and operational needs; and an international force for border security and deterrence.

On Jerusalem, I recommended that the Arab neighborhoods be in Palestine and the Jewish neighborhoods in Israel, and that the Palestinians should have sovereignty over the Temple Mount/Haram and the Israelis sovereignty over the Western Wall and the “holy space” of which it is a part, with no excavation around the wall or under the Mount, at least without mutual consent. On refugees, I said that the new state of Palestine should be the homeland for refugees displaced in the 1948 war and afterward, without ruling out the possibility that Israel would accept some of the refugees according to its own laws and sovereign decisions, giving priority to the refugee populations in Lebanon. I recommended an international effort to compensate refugees and assist them in finding houses in the new state of Palestine, in the land-swap areas to be transferred to Palestine, in their current host countries, in other willing nations, or in Israel. Both parties should agree that this solution would satisfy UN Security Council Resolution 194.

Finally, the agreement had to clearly mark the end of the conflict and put an end to all violence. I suggested a new UN Security Council resolution saying that this agreement, along with the final release of Palestinian prisoners, would fulfill the requirements of resolutions, 242 and 338. I said these parameters were nonnegotiable and were the best I could do, and I wanted the parties to negotiate a final status agreement within them. After I left, Dennis Ross and other members of our team stayed behind to clarify any misunderstanding, but they refused to hear complaints. I knew the plan was tough for both parties, but it was time—past time—to put up or shut up. The Palestinians would give up the absolute right of return; they had always known they would have to, but they never wanted to admit it. The Israelis would give up East Jerusalem and parts of the Old City, but their religious and cultural sites would be preserved; it had been evident for some time that for peace to come, they would have to do that. The Israelis would also give up a little more of the West Bank and probably a larger land swap than Barak’s last best offer, but they would keep enough to hold at least 80 percent of the settlers. And they would get a formal end to the conflict. It was a hard deal, but if they wanted peace, I thought it was fair to both sides.

Arafat immediately began to equivocate, asking for “clarifications.” But the parameters were clear; either he would negotiate within them or not. As always, he was playing for more time. I called Mubarak and read him the points. He said they were historic and he could encourage Arafat to accept them. On the twenty-seventh, Barak’s cabinet endorsed the parameters with reservations, but all their reservations were within the parameters, and therefore subject to negotiations anyway. It was historic: an Israeli government had said that to get peace, there would be a Palestinian state in roughly 97 percent of the West Bank, counting the swap, and all of Gaza, where Israel also had settlements. The ball was in Arafat’s court.

I was calling other Arab leaders daily to urge them to pressure Arafat to say yes. They were all impressed with Israel’s acceptance and told me they believed Arafat should take the deal. I have no way of knowing what they told him, though the Saudi ambassador, Prince Bandar, later told me he and Crown Prince Abdullah had the distinct impression Arafat was going to accept the parameters. On the twenty-ninth, Dennis Ross met with Abu Ala, whom we all respected, to make sure Arafat understood the consequences of rejection. I would be gone. Ross would be gone. Barak would lose the upcoming election to Sharon. Bush wouldn’t want to jump in after I had invested so much and failed. I still didn’t believe Arafat would make such a colossal mistake. The previous day I had announced that I would not travel to North Korea to close the agreement banning its production of long-range missiles, saying I was confident the next administration would consummate the deal based on the good work that had been done. I hated to give up on ending the North Korean missile program. We had stopped their plutonium and missile testing programs, and had refused to deal with them on other issues without involving South Korea, setting the stage for Kim Dae Jung’s “sunshine policy.” Kim’s brave outreach offered more hope for reconciliation than at any time since the end of the Korean War, and he had just been awarded the Nobel Peace Prize for it. Madeleine Albright had made a trip to North Korea and was convinced that if I went, we could make the missile agreement. Although I wanted to take the next step, I simply couldn’t risk being halfway around the world when we were so close to peace in the Middle East, especially after Arafat had assured me that he was eager for an agreement and had implored me not to go.

Besides the Middle East and the budget, a surprising number of other things had happened in the last thirty days. I marked the seventh anniversary of the Brady bill with the announcement that it had now prevented 611,000 felons, fugitives, and stalkers from buying handguns; observed World AIDS Day at Howard University with representatives from twenty-four African countries, saying that we had cut the death rate by more than 70 percent in the United States and now had to do much more in Africa and other places where the disease was raging; unveiled the design of my presidential library, a long, narrow glass-and-steel “bridge to the twenty-first century” jutting out above the Arkansas River; announced an effort to increase immunizations among inner-city children, whose vaccination rates remained far below the national average; signed my last veto, of a bankruptcy reform bill that was much harsher to lowerincome debtors than to wealthy ones; issued strong regulations to protect the privacy of medical records; hailed India’s decision to maintain its cease-fire in Kashmir and Pakistan’s upcoming withdrawal of troops along the Line of Control; and announced new regulations to reduce unhealthy diesel fuel emissions from trucks and buses. Together with the year-old emissions standards on cars and SUVs, the new rules ensured that by the end of the decade, new vehicles would be up to 95 percent cleaner than those now on the road, preventing many thousands of cases of respiratory illness and premature death. Three days before Christmas, I granted executive clemency or commutations of sentences to sixty-two people. I hadn’t given many pardons in my first term and was anxious to deal with the backlog. President Carter had granted 566 clemencies in four years. President Ford had granted 409 in two and a half years. President Reagan’s total was 406 in his eight years. President Bush had granted only 77, and they included the controversial pardons of the Iran-Contra figures, and the release of Orlando Bosch, an anti-Castro Cuban the FBI believed to be guilty of multiple murders.

My philosophy on pardons and commutations of sentences, developed while I was attorney general and governor of Arkansas, was conservative when it came to shortening sentences and liberal in granting pardons for nonviolent offenses once people had served their sentences and spent a reasonable amount of time afterward as law-abiding citizens, if for no other reason than to give them their voting rights back. There was a pardon office in the Justice Department that reviewed applications and made recommendations. I had been receiving them for eight years and had learned two things: the people over at Justice took too long to review the applications, and they recommended denial in almost all the cases. I understood how it had happened. In Washington everything was political and almost every pardon was potentially controversial. If you were a civil servant, the only surefire way to stay out of trouble was to say no. The Justice Department’s pardon office knew that they couldn’t get heat for delaying cases or for recommending denials; a constitutional function vested in the President was slowly being transferred into the bowels of the Justice Department.