Israeli officials say Prime Minister Benjamin Netanyahu has agreed to negotiate the borders of a future Palestinian state using the 1967 cease-fire line that delineates the West Bank as a starting point for talks. Sources in the prime minister's office revealed the dramatic policy shift to Israeli media outlets late Monday. They said that in order to restart direct peace negotiations with the Palestinians, Mr. Netanyahu would be willing to discuss a proposal containing a formula on borders "that would be difficult for Israel to accept." Officials said Mr. Netanyahu made clear that Israel will not return to the borders it had before the 1967 Six-Day War. They said demographic changes that have taken place since then - the expansion of Jewish settlements in the West Bank - must be taken into account. The officials also said that in exchange for the concession, Palestinians must recognize Israel as a Jewish state and retract a unilateral application for statehood likely to b...