Since the 1980s the Palestine Liberation Organization has aimed for a sovereign state in the West Bank and Gaza with East Jerusalem as its capital. Drawing on past Palestinian negotiating experience and the situation on the ground, this Policy Brief identifies some of the areas relating to sovereignty (e.g. armaments, alliances, crossings, borders, Israeli military posts in the West Bank) that Israel and the PLO would have to negotiate in the event that serious talks aimed at reaching a peace treaty are held. It develops a scenario that (1) compares a “moderate” Israeli position to a Palestinian stance guided by the objective of achieving a sovereign Palestinian state and (2) discusses whether the positions of the two sides are bridgeable. The aim of the exercise is to warn against pitfalls and to recommend positions and approaches, even with the knowledge that serious negotiations may not begin soon. The analysis reveals how unlikely it is that a truly sovereign Palestinian state can come about as a result of negotiations in the present circumstances