Israeli Foreign Minister Tzipi Livni has urged the world to convince the Palestinians the answer to their refugee problem lies in a Palestinian state and not inside Israel’s borders.

In a speech to the United Nations General Assembly, Ms Livni said Israel believed in a vision of two states - Israel and Palestine - living side by side in peace and security.

But such a solution required that each state should be the solution for its own refugees - Israel as a homeland for Jewish refugees from around the world and the future state of Palestine the answer for Palestinian refugees.

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