Long-Standing Issues Before Participants at Mideast Peace Conference

Among the most contentious issues between Israelis and Palestinians:

BORDERS OF A PALESTINIAN STATE

* Palestinians want complete Israeli withdrawal from the West Bank.

* Israel wants 1949 cease-fire line changed to include main West Bank settlements.

* Possible solution: Modification of the cease-fire line and compensation by giving Palestinians some Israeli territory.

JERUSALEM

* Palestinians want east Jerusalem, including the Old City, as capital of their state.

* Israel has annexed east Jerusalem and offers control of some Arab neighborhoods.

* Possible solution: Sharing control of the city.

PALESTINIAN REFUGEES

* Palestinians demand the right of return for refugees and descendants of 1948-49 war.

* Israel believes refugees must be resettled in the new Palestinian state or where they now reside.

* Possible solution: Compensation for most, while allowing a token number to live in Israel.

WEST BANK JEWISH SETTLEMENTS

* Palestinians demand all Jewish West Bank settlements to be dismantled.

* Israel wants to keep main settlement blocs under its sovereignty.

* Possible solution: Israel gets its main West Bank settlements, Palestinians get part of Israeli land.