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Linda Gradstein: CBS News correspondent in Jerusalem discusses knock-on effects from Palestinian recognition

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The government has decided against recognising a Palestinian state.

Foreign minister Winston Peters argues that the move would be counter-productive, but he retains the "when, not if" stance. 

CBS News correspondent in Jerusalem Linda Gradstein told Mike Hosking that Israelis are worried about a 'diplomatic front turning against Israel.' 

She said that the public want the war to end as the international community's opinion of Israel grows increasingly negative.

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