An Israeli online daily reported on Thursday that Israel is “expecting the Arab league to adopt an improved version of the Saudi peace plan. Arab leaders will meet in a summit by the end of this month in the Saudi capital, Riyadh.Israeli Foreign Minister, Tzipi Livni, said on Thursday that Israel objects to the section regarding the Right of Return of Palestinian refugees, which was added to the Saudi draft during the 2002 Arab league summit in Beirut.

During an interview with the Israeli TV channel 10, Livni said that “new Arab summits must know which parts of the plan are acceptable to Israel, and which parts are red lines”.

 She added that the Saudi king, Abdullah, presented a draft that was positive, since it calls for an Israeli withdrawal from the occupied territories since 1967 in exchange for peace and normalization between Israel and the Arab countries.

 But Israel rejects the Right of Return of the Palestinian refugees, especially since UN General Assembly resolution number 194 calls for the return of the refugees to the areas they were displaced from, which is now Israel.

“This contradicts the Israeli vision of a two-state solution”, Livni stated, “There should be a Jewish state, homeland of the Jews, living beside the Palestinian state”.

 Also, Israel’s Prime Minister, Ehud Olmert said several times that the Initiative has “some positive elements”, but also rejected the Right of Return.

Olmert will hold another meeting with the Palestinian President, Mahmoud Abbas, in two weeks, while Livni will set to Europe to present Israel’s view on the Initiative and to reiterate the Israeli demands on the new Palestinian government.

Israel insists that the Palestinian government, which is still not officially formed, should recognize the previously signed peace deals, renounce violence and recognize Israel.

Hamas movement, the major party in the coalition, said that it cannot recognize a country that is still occupying the Palestinian people and carrying out daily attacks against them. Hamas offered an extended truce with Israel, if Israel stops its violation and withdraws, but did not offer a recognition.