ARGUMENTS FOR THE PALESTINIAN STATE INSIST THAT THE GOAL OF ISRAEL IS PEACE AND THE RECONCILIATION OF THE ARAB WORLD WITH ISRAEL'S LEGITIMATE AND PERMANENT EXISTENCE; THAT THE PALESTINE ISSUE WILL NOT DISAPPEAR; AND THAT THE DESIRE OF PALESTINIANS FOR A NATIONAL UNITY MUST BE DEALT WITH. FURTHER ARGUMENTS ARE THAT THE ONLY WAY TO LIQUIDATE A TERRORIST FORMATION, SUCH AS THAT OF THE PALESTINIANS, IS THROUGH THE ADOPTION OF A POLITICAL SOLUTION WHICH SATISFIES THE BASIC DEMANDS OF THE TERRORISTS AND, THEREFORE, OF THE CIVILIAN POPULATION WHICH SUPPORTS THEM. SUCH A SOLUTION MUST SATISFY THE PALESTINIAN YEARNING FOR A NATIONAL IDENTITY AND FOR THE ESTABLISHMENT OF A NATIONAL HOME WHICH WILL CARRY THE NAME OF PALESTINE AND FLY THE PALESTINIAN FLAG. THE MOST REASONABLE WAY TO MEET THESE WISHES IS TO ESTABLISH A FREE AND SOVEREIGN, NATIONAL PALESTINIAN STATE ON THE WEST BANK AND IN THE GAZA STRIP IN AN ARRANGEMENT WITH THE STATE OF ISRAEL. IN ADDITION, A PALESTINIAN LEADERSHIP SHOULD INCLUDE MODERATE ELEMENTS OF THE PALESTINE LIBERATION ORGANIZATION (PLO) AND EL FATAH. TERROR WOULD BE DIMINISHED BY THE GROWING GOVERNING APPARATUS OF THE NEW PALESTINIAN STATE WHICH THEN, IN TURN, WOULD WORK WITH THE STATE OF ISRAEL SUPPRESSING DISSENTING TERRORIST SPLINTER GROUPS. FOOTNOTES ARE PROVIDED. (AOP)