Report: Mubarak, Obama to discuss Palestinians giving up 'right of return'

Egyptian President Hosni Mubarak and US President Barack Obama were set to discuss a new proposal for the establishment of a Palestinian state, the London-based daily al-Quds al-Arabi reported Tuesday. According to the report, the initiative would see Palestinians give up on the 'right of return' in exchange for monetary compensation. The Palestinian state would also be demilitarized, and have Jerusalem has its shared capital. The Jerusalem Post could not confirm the report.