Netanyahu: We've made mistake of ceding land before

"With the establishment of a Palestinian state, we wish to see the end of the conflict. The Palestinians will be able to celebrate their independence if on that same day they also strike the word 'nakba' from their lexicon," Foreign Affairs Minister Tzipi Livni said on Thursday afternoon in her speech at the president's conference in Jerusalem.

Livni addressed the events being held throughout the day by the Palestinian Authority in commemoration of 60 years since the 'nakba.'

"The need to sustain Israel as a Jewish and democratic nation brings us to the fact that we must let go of part of the country, this decision has already been put into words," said Livni.

It is imperative, she said, that Israel and the Palestinians agree on final borders, security arrangements and the existence of two nation-states side by side.

"There are several things that we cannot afford. We can't fail in our pursuit of peace and we cannot bring about a peace that is not viable, that will fail. That would only serve as another disappointment in this unending conflict."

Defense Minister Ehud Barak also delivered an address at the conference: "In the trials ahead of us, from Hamas to Iran, we must, as a people who seek life, display determination and self-discipline and reason. We need nerves of steel and near-cruel tolerance until the moment to act is right.

"What we do not need is arrogant rhetoric, nor words of incitement or a selective memory of the past."

Opposition Chairman Benjamin Netanyahu said the world must act "to neutralize the spread of extremist Islam in the region.

"We want a true peace, not a sham one. Pledging we will evacuate territory only gives hope and encouragement to radical Palestinians, making room for Hamas and Iran to enter the scene. We must not just give up more land, for this is a mistake we have already made in the past."