"Yasser Arafat rejected Ehud Barak's proposals at Camp David and the White House in 2000 because they did not offer the Palestinians a viable state. Palestine would have been denied water, control of its holy places, and would have been divided into cantons surrounded by Israelis. Israel would have also retained control of Jerusalem and denied refugees the right to return."
Israeli Prime Minister Ehud Barak offered to withdraw from 97 percent of the West Bank and 100 percent of the Gaza Strip. In addition, he agreed to dismantle 63 isolated settlements. In exchange for the 5 percent annexation of the West Bank, Israel would increase the size of the Gaza territory by roughly a third.
Barak also made previously unthinkable concessions on Jerusalem, agreeing that Arab neighborhoods of East Jerusalem would become the capital of the new state. The Palestinians would maintain control over their holy places and have "religious sovereignty" over the Temple Mount.
According to U.S. peace negotiator Dennis Ross, Israel offered to create a Palestinian state that was contiguous, and not a series of cantons. Even in the case of the Gaza Strip, which must be physically separate from the West Bank unless Israel were to be cut into non-contiguous pieces, a solution was devised whereby an overland highway would connect the two parts of the Palestinian state without any Israeli checkpoints or interference.
The proposal also addressed the refugee issue, guaranteeing them the right of return to the Palestinian state and reparations from a $30 billion international fund that would be collected to compensate them.
Israel also agreed to give the Palestinians access to water desalinated in its territory.
Arafat was asked to agree to Israeli sovereignty over the parts of the Western Wall religiously significant to Jews (i.e., not the entire Temple Mount), and three early warning stations in the Jordan valley, which Israel would withdraw from after six years. Most important, however, Arafat was expected to agree that the conflict was over at the end of the negotiations. This was the true deal breaker. Arafat was not willing to end the conflict. "For him to end the conflict is to end himself," said Ross.30c
The prevailing view of the Camp David/White House negotiations - that Israel offered generous concessions, and that Yasser Arafat rejected them to pursue the intifada that began in September 2000 - prevailed for more than a year. To counter the perception that Arafat was the obstacle to peace, the Palestinians and their supporters then began to suggest a variety of excuses for why Arafat failed to say "yes" to a proposal that would have established a Palestinian state. The truth is that if the Palestinians were dissatisfied with any part of the Israeli proposal, all they had to do was offer a counterproposal. They never did.