JERUSALEM -Israel's prime minister demanded Sunday that any future Palestinian state be demilitarized and recognize Israel as the Jewish homeland, as he staked out his starting position for new Mideast peace talks. Benjamin Netanyahu said reaching a deal will be difficult but possible. The conditions he laid down, coupled with a swift Palestinian rejection, illustrated just how difficult the task will be for the U.S. to meet its goal of brokering peace within a year. Talks are set to begin in Washington next week. "We want to surprise all of the critics and skeptics. But to do that we need...