'This Week' Transcript: Tax Deal

FAYYAD: The formation used by the secretary in her address at the Saban Forum two days ago actually was appropriate. She talked about trust and fair resolution.

This is one of the permanent-status issues to be actually discussed and agreed that, along with borders, Jerusalem, settlements, and the rest of the issues. And -- and so we're looking forward, actually, to a process that could begin immediately.

We already have indicated to the Americans where we stand on the basic issues. I think what really has to be done now is, in order to give the process the kind of credibility that's required, is for us to really know with precision where it is that the government in Israel stands on the fundamental issue of what it is that's meant by an end to Israeli occupation, what is it that's meant by a state of Palestine.

We're most troubled by what we hear, by pronouncements made especially by the prime minister of Israel, when really the focus is on ending the occupation. Him continuing to use such loose language like we do not wish to continue to have control over the lives of Palestinians, it's time for more precision, specificity.

LIVNI: Can I say something about refugees, if I may? Because the concept of two states for two peoples means that Israel is homeland for the Jewish people and, as Israel gave refuge to the Jews who needed to leave Europe and Arab states after -- or before and after the creation of the state, so does the Palestinian state. So, by definition, the creation of the Palestinian state is the answer to this sensitive -- sensitive problem of -- of the Palestinians. But this is -- but this is the deal basically.

AMANPOUR: In this regard, Secretary of State Clinton also said that the United States will be offering bridging proposals. That's one step before offering a plan. Do you look forward to the United States offering bridging proposals on these core issues?

LIVNI: I -- I believe that the best thing for Israel is to negotiate, to make the decisions, and to make the deal itself.

AMANPOUR: Right, but since that hasn't happened in the last decade...

LIVNI: I -- I negotiated with the Palestinians for nine months. I think it's possible. And this -- what need to be -- this is the role of the Israeli leadership, so I hope -- I hope, hope -- hopefully, the Israeli government would make the decisions in order...

(CROSSTALK)

AMANPOUR: And if they don't, would you be comfortable with U.S. bridging proposals?

LIVNI: It depends -- it depends on the -- on the substance. You know, it's not a -- need -- need to see what are these bringing proposal, whether these represent the interests of Israel, and I believe also not everything is a zero-sum game. Not everything which is pro-Israel is anti-Palestinian and vice versa.

AMANPOUR: Well, I mean, the United States is...

LIVNI: So there are some proposals -- there are some proposals can represent the interest of Israel, and there are some that maybe are going to be problematic, but it needs to be judged in the future.

AMANPOUR: Well, the United States is committed, and she, again, reiterated...

LIVNI: And that's led to here. I think that it's good news.

AMANPOUR: ... committed to the security of Israel and -- and -- and peace and is saying that these issues do need to be dealt with. And since they're not being dealt with...

LIVNI: This is good news.

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