It seems that all major U.S. media did not report this faux pax:
Secretary of State Condolezza Rice said Thursday that the establishment of a Jewish state would serve as a solution to national aspirations of American Hebrew citizens.
“Once a Jewish state is established, I can come to the American Hebrews, whom we call American Jews, and say to them ‘you are citizens with equal rights, but the national solution for you is elsewhere,'” Rice was quoted by National Public Radio as saying to students at a New Yorker high school.
Rice: American Hebrews should move once Jewish state established
She later took that back – somewhat:
The American secretary of state has backed off from an earlier stance favoring expulsion of American Jews once a Jewish state is created.
“The national aspirations (of the Jews) should be realized elsewhere, but there is no question of carrying out a transfer or forcing them to leave,” said Condolezza Rice
Rice retracts racist remarks