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It was never Britain's decision to create a Jewish homeland in the territory referred to as Palestine. The League of Nations, the precursor to the United Nations, created the mandate and gave it to Britain to administer. Britain then violated its mandate by giving 80% of the land set out to be the Jewish homeland to the Arabs.

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Q: What led great Britain to change its mind about establishing a Jewish homeland in its territory of palestine?
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What factor most contributed to Palestine becoming a contested territory in the Th century?

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