First, Palestine would have to be "nonmilitarized"--a strong police force, to maintain law and order, but no heavy weapons at all: no tanks, missiles, etc., or any way of acquiring them.
Two, the Palestinian border with Jordan, through which missiles and heavy armaments might be smuggled, would have to be patrolled by international forces, probably from NATO, with a strong contingent of Americans.
Three, there would have to be a procedural guarantee that no foreign army would be able to enter Palestine, and its government would not be permitted to enter into any military agreement with a country that does not recognize Israel.
Fourth, Israel would have the right to defend itself beyond the borders of a Palestinian state—say, against land forces massing on the eastern side of the Jordan River.
Fifth, Israel would reserve the right to hot pursuit of terrorists across the new borders.
Sixth, Israel would be allowed access to airspace over Palestine; overflight would be essential for training and reconnaissance.
Seventh, the Israel Defense Forces would have rights to disproportionate use of telecommunications spectrum (though commercial rights would be equalized under international law).
Eighth, Palestine and Israel would have to cooperate in a greater Jerusalem municipality and in sharing information regarding terrorism on both sides of the border.
Could Palestine possibly agree to such far-reaching proposals? For the record, President Abbas already has agreed to them, in his 2008 negotiations with Ehud Olmert.
“We don’t need a Palestinian army,” Abbas told me emphatically. “We don’t want an air force or tanks or rockets.” He insisted that the whole matter had been worked out with Gen. James Jones, who eventually became Obama’s national security adviser. “The file on security was closed,” he told me. “We do not claim it was an agreement, but the file was finalized.”
Nobody outside of the negotiations can know yet what Allen proposed. But let it not be said, as Israel's "friends in Washington no doubt will say, that Palestinian bargaining to get to a reasonable deal with Netanyahu is proof of bad faith.