Israeli Prime Minister Benjamin Netanyahu's on Sunday call for the creation of a demilitarized Palestinian state has caused mixed reaction aplenty around the world -- from the welcome by the White House as an "important step forward" to the outright anger in the Palestinian arena.

At home Netanyahu's keynote speech at Bar Ilan University was greeted positively by many on the political left and right alike, but there were initial noises of protest within his own Likud party.

Even some of his closest allies publicly objected to his use of the term "Palestinian state" despite his attaching to it a series of conditions.

Yet it is the relatively warm reception that Netanyahu received from his hawkish coalition allies that will at once be both of comfort and of concern. Even the official body that represents the West Bank settler movement gave his remarks a cautious welcome.

Just two and a half months in office, Netanyahu is keen to please his government -- he can not afford too much fallout at this early stage in what should be a four-year tenure.

It was Netanyahu's comments on the settlement issue that were largely acceptable to the political right. True, Netanyahu said no to new settlements and more land expropriations, but on the other hand, he made it clear existing settlements were not up for removal and he indicated he favors their expansion to take into account what Israel deems "natural growth."

Another boon for the settler movement was Netanyahu's failure to address the subject of illegal outposts -- a series of tiny residential and non-residential constructions that have crept up around the West Bank without permission from the government.

However, it is precisely this type of talk and omissions that have left some in the Palestinian leadership apoplectic. Citing that Netanyahu called for immediate negotiations without preconditions but set a series of conditions of his own, they said this proves Netanyahu is not serious about peace.

However, the Israeli Prime Minister's Office refuted that claim.

"Israel places no preconditions whatsoever for talks with the Palestinians," Netanyahu's spokesman Mark Regev told a news conference on Monday.

"What the prime minister put on the table last night were not preconditions for talks, rather what we believe will be essential requirements for success in those talks," said Regev.

Answering a question from Xinhua, Regev said Israel is looking for "a workable, effective mechanism that will prevent arms (from)going into a future demilitarized Palestinian state."

It is possible that Israel would allow the Arab world to be involved in ensuring security in and around such a state, he added.

While Netanyahu spoke of the demilitarized state for the first time during his speech, the notion is not original, according to the pro-Israel British lobby organization BICOM.

"The principle of demilitarization is not a new condition that is being imposed, but has been an Israeli demand accepted under the Clinton proposals in 2000 and as part of the unofficial Geneva Accords," BICOM said in a statement.

Though many Israeli hawks were satisfied with the address, those on the far right are already calling for action. The self-styled Council of Rabbis of Judea and Samaria (the Israeli name for the West Bank) has called for a mass prayer rally at Jerusalem's Western Wall on Sunday.

The movement described Netanyahu's speech as "the intention to surrender tracts of the Land of Israel into the hands of murderers and give the murderers a state." It urged its followers to go out to the hilltops to build new settlements.

All in all, it was a policy speech that Netanyahu "survived," said Reuven Hazan, a professor of political science at the Hebrew University of Jerusalem.

"He received praise from Washington, he wasn't brought down by his government and he didn't satisfy the Palestinians," said Hazan." He could have left much more of a conflict with Washington on the one hand or he could have really moved in the direction where the Palestinians would be willing to go."

Netanyahu's foreign minister, the hawkish Avigdor Lieberman, traveled to Europe on Sunday for meetings with top officials before heading for North America. His mission is to sell Netanyahu's remarks to the world.

The main aim of the speech and the Israeli hype around it was to pressure the Palestinians into making the next move. Israel believes the Palestinians have placed preconditions on any negotiations and that the Jewish state wants to see them lifted.

For their part, the Palestinians see it very differently, arguing the speech has done nothing to advance the peace process. A spokesman for Palestinian President Mahmoud Abbas said Netanyahuwas "sabotaging" peace efforts.

However, Netanyahu's position and that of the Palestinian National Authority are merely for the sake of bargaining. Both sides have their red lines.

Behind closed doors Netanyahu and Abbas admit this public display is only the opening salvo in a very long and potentially tortuous process, analysts said.

(Xinhua News Agency June 16, 2009)