Israeli Prime Minister Benjamin Netanyahu warned he would retaliate if the Palestinian Authority declared a Palestinian state next year. While refusing to spell out what steps he would take, the premier told the Foreign Press Association that Israel could not “accept the formation of a new Iraq or Iran next to our doorstep.” His statement came after Palestinian Authority Chairman Yasser Arafat reiterated over the weekend that he would declare Palestinian statehood in May 1999, the deadline for the two sides to reach a final-status agreement.
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