Nabil Shaath: The recognition of a [Palestinian] state is basically a bilateral action, which receives the blessing of the UN. This act, however, will make many things possible in the future. Eventually, we will be able to sign bilateral agreements with states, and this will enable us to exert pressure on Israel. At the end of the day, we want to exert pressure on Israel, in order to force it to recognize us and to leave our country. This is our long-term goal.
[The French initiative] reshaped the issue of the "Jewish state" into a formula that is also unacceptable to us – two states for two peoples. They can describe Israel itself as a state for two peoples, but we will be a state for one people. The story of "two states for two peoples" means that there will be a Jewish people over there and a Palestinian people here. We will never accept this – not as part of the French initiative and not as part of the American initiative. We will not sacrifice the 1.5 million Palestinians with Israeli citizenship who live within the 1948 borders, and we will never agree to a clause preventing the Palestinian refugees from returning to their country. We will not accept this, whether the initiative is French, American, or Czechoslovakian.
Barry Rubin notes:
Supposedly, [Shaath] is the archetypal Palestinian moderate. There was a time when the Western media ridiculed the Israeli declaration that he was a secret Fatah member. When Israel agreed to negotiate with non-PLO Palestinians, the PLO put his name forward although it knew, of course, that he was no such thing. Peace processors ridiculed Israel’s refusal to accept him....It is reasonable to call Shaath as moderate as anyone in the PA’s leadership, more moderate than the Fatah leadership.Also, note that Sha'ath is saying - by his own definition of what "a state for its people" means - that Jews will never be allowed to live in "Palestine!"
...In other words, Shaath, one of the most important and relatively moderate Palestinian Authority leaders, is against a two-state solution. First, there will be a Palestinian state “for one people,” that is an Arab, Muslim state. But there can be no recognition of Israel as a Jewish state because that implies a permanent peace. Shaath and the Palestinian leadership almost unanimously seek a second stage in which the “Palestinians with Israeli citizenship” plus the “returning…to their country” of Palestinian refugees will turn Israel into an Arab Muslim Palestinian part of Palestine.
This is merely a restatement of the “two-stage” solution of the PLO adopted forty years ago.
He is saying that Israel is racist because he misunderstands what a "state of the Jewish people" means - but he has no problem saying, explicitly, that "Palestine" will be a state of one people, which by his own definition means zero non-Palestinian Arabs living there.
Which sounds suspiciously like he is advocating ethnic cleansing and apartheid.