What Is She Saying???

Condoleeza Rice in an interview by ABC's Peter Jennings had this to say about the so-called Palestinian Arab right of return.

JENNINGS: The question is specifically about a Palestinian right to return to what is now Israel or would be Israel within its 1967 borders. Will the president support that in any way?

RICE: Well as we've said, these are matters for negotiation. And all of these issues, these difficult issues will have to be dealt with.

Is she just being tactful, or is this an adoption of an amazingly skewed view of the situation?