based Al-Bilad said the recognition of Israel as a jewfish state is a fundamental matter for the Israelis. The daily noted that Israeli premier Netanyahu told the US envoy George Mitchell that Israel expects from the Palestinians to recognize Israel as a Jewish state with Jerusalem as its capital prior to speaking about two states formula. "But how is it possible for Israel to occupy the land and expel its people and then call for conditional negotiations on the basis that the Palestinian land is a Jewish state," said the paper, adding that such a stand is illogical and embodies arrogance and absolute racialism.