Lasting peace is feasible between Israel and Palestine under the rubric of the two-state solution to permit the United States to change its mind on the application by the Palestinian Authority for full membership to the United Nations:
1. Israeli settlers should be free to remain in the West Bank but as the Jewish minority.
2. Israeli settlements in the West Bank must no longer belong to Israel. They must be transferred to Palestine.
3. As legal Palestinian citizens subject to Palestinian immigration laws notwithstanding any Biblical claims to any portions of the West Bank, Jewish settlers in the West Bank must abide by the Palestinian laws of a democratic state and accept Islam as the state religion, reciprocating the Arab minority’s acceptance of Zionism in democratic Israel. They can remain dual Israeli-Palestinian citizens just as Palestinians in Israel can remain dual Palestinian-Israeli citizens.
3. Hamas must end all ad hoc attacks on Israel from the critical Mediterranean port city of Gaza, its stronghold which provides a trade route by sea to Palestine, in exchange for Israel removing all check points between West Bank and Gaza to permit free passage of Palestinians through Israeli territory on Palestinian passports. United States must then drop Hamas from its list of terrorist groups.
4. Palestine must constitute a conventional defense under international norms as a full member of the United Nations family of nations.
5. Jerusalem must be declared a separate city-state, a new nation, with its own governance similar to the Vatican but with all the three faiths co-existing in the City.