Secretary of State Hillary Clinton's strong statement against destroying Palestinian homes in East Jerusalem is the beginning of what hopefully is a more balanced foreign policy towards Israel. But it is only a beginning. Among many difficult problems to be solved are the unauthorized Jewish settlements in the West Bank. Senate Foreign Relations Committee chair John Kerry (D-MA) made this key point in his address at the Brookings Institute on Wednesday when he said, "we are serious about Israel freezing settlement activity in the West Bank." Despite the recent resort to violence by both sides, the outlines of a final solution are becoming clearer Senator Kerry said. Inevitably conflict resolution will require sacrifice on the part of some Israelis in the the interest of a permanent peace, but it need not be without some compensation for the improvements left behind. Certainly the settlements should not be destroyed as Israel did in Sinai when captured territory was returned to Egypt. Also, settlers should be given a formal choice of where to live if their communities are affected by a peace agreement. They will undoubtedly prefer not to live in a Muslim state as a minority. The two regions of the new Palestine will need a secure land and air corridor if it is to achieve any economic independence as a state, but that can be accomplished through a long term joint security arrangement which does not require Israel to relinquish sovereignty over land within its recognized international boarders. Expecting Israel to allow the return of Palestinians displaced 60 years ago to its territory is unreasonable. International aid to Palestine for absorption of the diaspora, or individual family compensation for those having a demonstrable claim may be a way forward to the final solution. Untying the Gordian knot of this conflict will take time and will need to be done in careful stages. But both sides seem genuinely tired of conflict and have accepted the fact that they want a permanent divorce. The United States will be only be too happy to divide the household goods for them.[graphic: BBC]