Borders
The PLO has accepted that Israel?s 1967 Pre-Occupation borders (the ?Green Line?) shall serve as the international border between the states of Palestine and Israel. In other words, Palestinians have recognized Israel on 78% of historic Palestine while accepting to create a state on the remaining 22%.
The PLO?s position is consistent with international law which forbids Israel from acquiring territory by force.
Settlements
Israeli colonies in the Occupied Palestinian Territories are not only illegal but also threaten the viability of a two-state solution. As part of a viable two-state solution, all Israeli colonies must be evacuated, including those located in Occupied East Jerusalem. One way to achieve a peaceful evacuation of the colonies would be for the government of Israel to remove all economic and other incentives luring Israelis into Occupied Territory while simultaneously providing similar incentives for current settlers to move back to Israel.
Jerusalem
Israel has no legal right to any part of East Jerusalem since East Jerusalem was part of the Palestinian territories occupied in 1967. East Jerusalem is part of the territory over which the indigenous Palestinian population shall exercise sovereignty upon Israeli withdrawal.
In conformity with international law and as stated in the Declaration of Principles on Interim Self-Government Arrangements, all of Jerusalem (and not merely East Jerusalem) is the subject of permanent status negotiations.
Jerusalem should be an open city. Within Jerusalem, irrespective of the resolution of the question of sovereignty, there should be no physical partition that would prevent the free circulation of persons within it.
Palestine and Israel shall be committed to guaranteeing freedom of worship at and access to religious sites within Jerusalem. Both states will take all possible measures to protect such sites and preserve their dignity.