Prime Minister Benjamin Netanyahu said Tuesday that Israel "will be generous" in giving back land to establish a Palestinian state, but will not return to the 1967 borders and will not agree to a divided Jerusalem.

Netanyahu, in an address before a joint meeting of Congress, outlined his terms for peace following a dispute with President Obama over the boundaries of a future Palestinian state. Obama last week called for a two-state solution based on Israel's borders before the 1967 Six Day War. Netanyahu, along with pro-Israel members of Congress, said those lines would endanger the security of Israel -- a claim the prime minister repeated Tuesday...