President Shimon Peres came out against the government report calling for the legalization of West Bank outposts which was released this week, saying at a ceremony honoring Theodor Herzl that the settlement enterprise serves a demographic threat to Israel as a Jewish state.

"Israeli settlement in territories densely populated by an Arab population could bring about a threatening demographic change; that is, it could endanger the Jewish majority in Israel" Peres said at the ceremony held at Jerusalem's Mount Herzl.

"It is doubtful that a Jewish State without a Jewish majority can remain Jewish," the president added.

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