Transcript: White House Senior Advisor David Plouffe

But at the same time, look, in Israel, there are Palestinians who are Christians and Muslims. And when we say Jewish state, it means not only are they legitimately discriminated against, but that the Palestinian refugees have no right to return.

AMANPOUR: Let...

ASHRAWI: Now, if Israel wants to call itself a Jewish state, then it has to go the proper procedures to change its name.

AMANPOUR: But as you know very well...

ASHRAWI: But we recognized it already. How come we're the only people who are asked to re-recognize Israel?

AMANPOUR: But you know very well -- and I know we're not going to negotiate this now -- but the whole issue of -- of return is a big issue, and they won't all be allowed to go into Israel.

ASHRAWI: But that's -- you see, that's the problem. Israel has placed so many preconditions. It wants to annex Jerusalem. It wants to remove the refugees from the agenda. It wants to keep its troops in the Jordan Valley. It wants to (inaudible) it wants everything and it wants to annex all the settlement clusters and then says, "Let's talk."

No. There are unacceptable preconditions. Either you negotiate in good faith and act accordingly, in order to achieve the two-state solution, or this option will no longer be available, particularly given the Arab Spring, where this is a new phase, this is a new region, and it's a new ballgame, and they should understand the significance. AMANPOUR: And we'll keep watching it. Complicated issue, as ever. Hanan Ashrawi, thank you very much, indeed, for joining us.

ASHRAWI: Thank you. My pleasure.

AMANPOUR: And up next, the British prime minister, David Cameron, on economic turmoil, the Middle East peace, and Rupert Murdoch. My exclusive interview, coming up.

(COMMERCIAL BREAK)

AMANPOUR: The Obama administration has made it as plain as day. America opposes efforts to admit Palestinian to the United States as a state. But some U.S. allies aren't so sure, chief among them, the United Kingdom.

I sat down with the British prime minister, David Cameron, for an exclusive wide-ranging interview.

(BEGIN VIDEOTAPE)

AMANPOUR: What is Britain's position on this? Should they be admitted?

CAMERON: Well, our view is very simple. We want to see a Palestinian state alongside a secure state of Israel. And we want to see that on the ground, not just in U.N. resolutions. So our approach here at the U.N. will be to use the leverage that we have to try and maximize the chances of talks getting going again, leading to the creation of that state.

AMANPOUR: Do you think that they should be recognized?

CAMERON: I think, of course they should have a state. They should be then recognized as a state. That is what needs to happen. But I think we have to -- we have to be very clear, the only way, in fact, this can come about is for the Israelis and Palestinians to sit down and to agree the state and its borders and its security and the security and safety of Israel. That's the only way it can come about.

AMANPOUR: Let's talk about Libya. Britain and France led the liberation of Libya. You were there with...

CAMERON: Well, let me correct you. The Libyan people led the liberation of Libya. We were there to help.

AMANPOUR: Could it have happened without NATO?

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