Once a Palestinian state became a reality, Israel and the Arabs could declare peace and establish relations, ending the cycle of conflict that began with Israel's establishment in 1948. In breach of worldwide law, Israel began to establish colonies for its citizens in occupied East Jerusalem, the West Bank and Gaza, staking a permanent claim to these areas.
In 1967, Israel completed its conquest of Palestine, a goal of the Zionist movement which created Israel since the 1880s, and gained strategic territory in Egypt and Syria. Around half were being displaced for the second time in less than 20 years.
A year later, the state of Israel was established, but almost seven decades on, Palestinians are still struggling for independence.
Palestinians are prepared to accept Israeli major settlement blocs built in East Jerusalem and the West Bank but demand territorial compensation.
During the mid-1970s, Palestinians, progressive Israelis and the global community proposed the "two-state solution", the creation of a Palestinian state alongside Israel.
First, the context. Tensions grew in the months preceding the war, with Palestinian guerrilla groups based in Syria, Lebanon, and Jordan stepping up attacks on Israel, leading to heavy Israeli reprisals. Palestinians describe those developments as "Naksa" (Setback) and mark the Naksa Day every year on June 5.
Abbas' Palestinian Authority had no comment.
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Yousef Al-Mahmoud, the Palestinian government spokesperson said in a press release that the agreement was signed in a rare meeting between Palestinian Prime Minister Rami Hamdallah and the Israeli minister of finance Moshe Kahlon in Ramallah.
Michael Oren, an Israeli historian and current deputy minister in Israel's coalition government, urges patience.
Cohen also interviewed former Israeli Chief of Staff Zvi Tzur in 2001, who suggested that the Shimshon operation was a way for Israel to evaluate its options in the war at the time, given their technical capabilities.
"No one talked about a Palestinian state in 1967".
Palestinian polls show support for the two-state solution has also fallen to 47 per cent due to the lack of progress in negotiations and fear over concessions they would have to make to achieve a state.