Palestinian officials have rejected an offer by the Israeli government to halt settlement construction if they recognise Israel as a "Jewish state".
http://www.bbc.co.uk/news/world-middle-east-11519969
More than 40 years ago, in 1967, after the Six Day War, Israel offered to withdraw from all the newly occupied territories if the Arab states recognized Israel's right to exist. The offer was rejected.
That was followed by the Allon Plan, an Israeli proposal to partition the West Bank between Israel and Jordan in exchange for the Arab states' recognition of Israel. The offer was rejected.
http://en.wikipedia.org/wiki/Allon_Plan
As the years go by, and as facts on the ground change, Israel has offered less and less in exchange for Arab recognition of its right to exist. Each offer has been rejected.
Right now, they're all doing it again.
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