TL: I just want to say something. ...Our idea is to refer to two states for two peoples. Or two nation states, Palestine and Israel living side by side in peace and security with each state constituting the homeland for its people and the fulfillment of their national aspirations and self determination...TL is Tzipi Livni, AH is Akram Haniyeh.
AH: This refers to the Israeli people?
TL: [Visibly angered.] I think that we can use another session – about what it means to be a Jew and that it is more than just a religion. But if you want to take us back to 1947 -- it won’t help. Each state constituting the homeland for its people and the fulfillment of their national aspirations and self determination in their own territory. Israel the state of the Jewish people -- and I would like to emphasize the meaning of “its people” is the Jewish people -- with Jerusalem the united and undivided capital of Israel and of the Jewish people for 3007 years... [The Palestinian team protests.] You asked for it. [AA: We said East Jerusalem!] …and Palestine for the Palestinian people. We did not want to say that there is a “Palestinian people” but we’ve accepted your right to self determination.
Elder comments that the Guardian never mentioned this document in their coverage, but they definitely saw it because they cherry picked one sentence from it. Which is all true, but I think it's only fair to add another observation: this is Livni demanding Palestinian recognition of a Jewish State, a year and a half before Netanyahu, newly installed as prime minister, raised the exact same demand and was universally condemned for daring to destroy the peace process with his outlandish position.
The full document (as leaked) is here.