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Returning to the pre-1967 borders brings with it once again that strategic deficit for Israel to defend itself in the Golan Heights. There would have to be total, 100% agreement that if ANY incursion take place through the Golan Heights, that Israel is free to open up it's entire arsenal to defend itself. That puts the burden back on Syria to prevent attacks on Israel (just like it's on Yassir Arafat to prevent attacks from Palestinians - NOT!). This will never happen. Too many Arab fundamentalists will disagree with Syrian leadership on this, and will cause an international incident just to provoke Israel into a battle.
So, Israel looks bad when they say 'no' to the return of the Golan Heights, yet they know it would be suicide if they do return the GH. Damned if you do, damned if you don't.
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