New Mid-East Peace Plan?

From Haaretz Daily comes a report of a Saudi brokered peace proposal: bq. According to a new peace initiative being prepared by Arab states, Israel will negotiate a peace agreement with all the Arab states, and not just with the Palestinians, and Arab states would absorb Palestinian refugees. bq. The Kuwaiti newspaper Al Siyasa reported Saturday that the initiative, led by Saudi Arabia, would include "declarations of peace agreements between all Arab states," which will bring an end to the conflict between Israel and the Arabs. The states would declare a normalization in their ties with Israel, including the appointment of ambassadors. bq. The Arab states will demand that Israel withdraw to its borders prior to the June 1967 war, in other words, to leave the Palestinian territories and withdraw from the Golan Heights. And more: bq. According to the plan, some two million Palestinian refugees would be allowed to return to the new Palestinian state that would be established. More than two million others would be absorbed by other Arab states, and will be compensated for the suffering they had endured. bq. The Arab countries would open their gates to the refugees on the condition that their number won't exceed 10 percent of the existing population. bq. Under the deal, Iraq will also accept Palestinian refugees. Israel will not be required to absorb any Palestinian refugees. bq. The new Arab initiative, led by Saudi Crown Prince Abdullah, was presented last week at the U.S. State Department. It would be brought for approval at a summit of Arab League leaders to be held in Tunisia in March. Israel retreating to the 1967 borders will be a sticking point for them. A history refresher - Israel was hit with a surprise attack by combined forces from Egypt, Jordan and Syria. They defeated them in six days, pushing their boarders out, unifying the city of Jerusalem. Israel worked with the U.N. on a peace plan.