There are obvious political reasons for Netanyahu's refusal to demonstrate a more moderate stance: It would cost him his potential coalition with the right-wing National Union and Habayit Hayehudi, and force him into a rotation arrangement with Livni. But his opposition to a Palestinian state is also a matter of principle, one he has held for many years.
The question is what Clinton will make of Netanyahu's opening gambit. Netanyahu's aides believe that as a seasoned politician, Clinton will find a way to work with him, not against him, but it will be interesting to see whether she will also try to effect a compromise between Netanyahu and Livni in a bid toward creating a more moderate Israeli government. More
