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"Unfortunately, an agreement will not happen in my generation," Ya'alon said.
Ya'alon also questioned U.S. Secretary of State John Kerry's impartiality.
"I am not sure Kerry is a fair mediator," Ya'alon said. "We'll see at the end of the process."
Ya'alon said that a peace deal could not be reached without Palestinian recognition of Israel as a Jewish state.
"Abbas has resorted to the Oslo trick, no recognition and no promises," Ya'alon said. "Abbas is a partner who takes, not a partner who gives. He is not a partner for a permanent peace agreement that includes recognition of Israel as the national state of the Jewish people. He just takes back prisoners. A country isn't founded by U.N. declaration, but on the ground. Judea and Samaria and Gaza are dependent on us. If we aren't in Judea and Samaria, Hamas will take over instead of Abbas."
Even though he caused a storm earlier this year with his criticism of Kerry, Ya'alon did not hesitate to again question the secretary of state.
"What transpired with regard to Kerry's mediation is between us and him. He knows we did not commit ourselves to releasing Israeli Arabs [from prison], and so the issue is open on the table. Abbas received assurances regarding the prisoners, not the government of Israel," he said.
Ya'alon did not rule out the possibility of releasing Israeli Arab prisoners in exchange for Jonathan Pollard.
Meanwhile, Homefront Defense Minister Gilad Erdan (Likud) on Saturday also lashed out at Kerry, after Kerry called Israel's demand for Palestinian recognition of a Jewish state "a mistake."
"It is unfortunate that just ahead of Abbas' meeting with Obama, Kerry has erred again," Erdan said. "The secretary of state needs to be asking Abbas why he refuses to recognize a Jewish state. Clearly the reason is that the Palestinians want to make further demands in the future, even if an agreement is signed, and they are not interested in ending the conflict."
In contrast to Ya'alon and Erdan, Finance Minister Yair Lapid told Channel 10 on Friday that the recognition demand was not essential.
Opposition Leader Isaac Herzog (Labor) supports Prime Minister Benjamin Netanyahu's position that Abbas must recognize Israel as a Jewish state as a condition for a peace agreement.
"In a final agreement, the Arabs will have to recognize us as a Jewish state, but that doesn't have to be a crucial condition for entering into negotiations," Herzog said. "Jerusalem must stay united but it could be a capital for two nations, and clearly there will be a need to evacuate settlements."
Abbas is scheduled to meet with Obama in Washington on Monday. A large delegation of Palestinian officials will be traveling with Abbas, including the PA's chief negotiator, Saeb Erekat, and the PA presidential office's chief of staff, Nabil Abu Rodeyna.
Obama told Netanyahu earlier this month that he would seek "difficult decisions" from Abbas and would push Abbas behind closed doors as hard as he did Netanyahu to help narrow the gaps for a framework deal, a senior U.S. official said.
Obama will also tell Abbas that "we should not let this current window for peace close" and will make the case for the benefits of peace to the Palestinian people, the official said.
Although the terms of the framework proposal have not been published, Palestinians say early indications suggest they will be offered less than what former U.S. President Bill Clinton laid out in 2000 in the Clinton Parameters.
Obama aides have made clear that Obama wants the framework proposal to be seen as even-handed.
Speaking with Fatah and PLO officials in a closed-door meeting, Abbas reiterated his positions and said he would not buckle to pressure.
"We will not recognize the Jewish state, and all of east Jerusalem will be the future capital of a Palestinian state, we will not ignore the refugee issue and we will stand behind all of our people's rights," he proclaimed.
The PA president laid the groundwork for the possibility that the Palestinians will reject the U.S. framework proposal, which is meant to enable a one-year extension of the current peace talks.
"We will probably be liable to sanctions and economic pressure because of our determination to safeguard our rights," Abbas said.
Responding to comments by Science and Technology Minister Yaakov Peri (Yesh Atid) in an Israel Hayom interview that Israel might cancel the fourth wave of the prisoner release, Abbas said: "If Israel does not stand up to its obligations, that will be considered breaching the agreement, and we will be free to act as we please. Israel is supposed to release Palestinian Israelis in the fourth round."
Palestinian Authority President Mahmoud Abbas is not a partner for a permanent peace agreement, Defense Minister Moshe Ya'alon (Likud) said in a Channel 2 interview on Saturday, just days before Abbas is set to meet with U.S. President Barack Obama at the White House.Original piece is http://www.israelhayom.com/site/newsletter_article.php?id=16171