Israeli Prime minister Benjamin Netanyahu has said that the solution of West Asia issue lies in the concept of two states for two peoples comprising two national states, a Jewish national state and a Palestinian national state. According to a statement of Israeli foreign ministry, received by AIR in Dubai, Netanyahu told a cabinet meeting on Sunday that a peace agreement must be based on the recognition of Israel as the national state of the Jewish People. Netanyahu's statement comes ahead of the second round of West Asia peace talks which will be held at Sharm al-Sheikh in Egypt on Tuesday. Apart from top Israeli and Palestinian leaders, the talks will be attended by Egyptian President Hosni Mubarak, US Secretary of State Hillary Clinton and US West Asia Envoy George Mitchell.