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British Prime Minister David Cameron walks with his Israeli counterpart Benjamin Netanyahu before delivering joint statements in Jerusalem Reuters

David Cameron has delivered a speech to the Israeli parliament in which he has supported a two-state solution in US brokered peace talks between Israel and the Palestinian Authority.

Israeli Prime Minister Benjamin Netanyahu welcomed Cameron in a speech beforehand but was heckled by opposition politicians in embarrassing circumstances, with many walking out of the Knesset as he spoke.

Cameron, starting his speech, said: "I am here as a good friend and strong supporter of Israel.

"Under my prime ministership, I think we have seen the British-Israeli relationship go from strength to strength and I am committed to strengthening that relationship still further."

The British Prime Minister stopped short of calling Israel the "Jewish State", rather the "nation state of the Jewish people" as outlined in the 1917 Balfour Declaration.

He spoke Hebrew to the Israeli parliament on one occasion and spoke of the "extraordinary journey of the Jewish people".

Referring to the Boycotts, Divestment and Sanctions (BDS) movement, Cameron said: "Britain opposes boycotts, whether it is trade unions for the exclusion of Israelis or universities trying to stifle education."

He spoke of the benefits that a peace deal between Israel and the Palestinian Authority could bring.

"Imagine what this land would be like if a two-state solution was actually achieved. Think of all the aspects of life that would change.

"Israel's relationships with the world. Its security, its long-term prosperity and the quality of life for all its people.

"Imagine a peace deal that would leave Israel more secure. A proper, lasting peace that allows a strong, moderate Palestinian government."

Benjamin Netanyahu spoke of what was required if peace talks with the Palestinians were to succeed.

"The Palestinian leadership must recognise the Jewish state and its security demands," the Israeli premier said.

"Palestinians must recognise Israel's right to exist," he added.

These statements caused Opposition Hadash party members such as Afu Agbaria to heckle the Israeli leader while other opposition members simply walked out as Netanyahu began his speech.

Moving on to other issues of Israeli security, Netanyahu said: "Iran remains the largest exporter of terror in the world."

"They also pull the strings of terror, providing weapons to radical Islamist groups."

Cameron is to hold talks with Netanyahu before meeting Palestinian Authority President Mahmoud Abbas tomorrow on a visit to Bethlehem.