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Netanyahu rejects Obama plan for 1967 borders in speech to Congress

WASHINGTON – Israel Prime Minister Benjamin Netanyahu today said that he is “willing to make painful compromises” – including giving up some Jewish settlements to form a new Palestinian state, as he outlined his vision of a peace deal in a speech to a joint session of Congress.

“In any real peace agreement … some settlements will end up beyond Israel’s border,” he promised. “Israel will be generous on the size of the Palestinian state, but will be firm on where we put the border.”

He vowed that Israel will never “return to the indefensible boundries of 1967,” sparking a standing ovation in the House chamber, though Netanyahu’s had line on this point contradicted President Obama.

Obama infuriated Netanyahu last week by calling for a return to the pre-1967 line, before the Jewish state took control of East Jerusalem.

Obama “clarified” his position Sunday be emphasizing that he the final border would include land-swaps along the old line, and Netanyahu yesterday said he and Obama were of one mind on the issue.

Netanyahu said that Israel would demand that East Jerusalem and other key strategic outposts remain within the final border of Israel.

“Peace must be achieved in security,” Netanyahu demanded.

He also stood firm against some prominent Palestinian demands, including opposing the right of Palestinian refugees to return to Israeli land.

“The Palestinian refugee problem will be resolved outside the borders of Israel,” Netanyahu said.

smiller@nypost.com