Flame of the West
Well, Egypt and Jordan did, to an extent. But a full recognition of Israel's right to exist as a Jewish state must include a repudiation of any Palestinian right of return. This is simple logic, since any significant repatriation would doom Israel's Jewish character in the long run. We'll know the Arabs are serious about peace when they make room for the Palestinians in their own countries and let them out of the refugee prison camps.

Russ
If the other Arab states wanted to to give the Palestinians a state they could have any time prior to the 1967 War. Prior to that war, Egypt controlled the Gaza Strip and Jordan controlled the West Bank. I wonder why no one ever asks this question?

Furthermore, Israel rightly took those areas in the 1967 war, since Israel was being *attacked* from there. Isreal is under no obligation to return them in the absence of a settled peace.