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The term "Palestine" was coined by the British to refer to an area of land administered by the empire following World War I. Thus, both Arabs and Jews living within this area were referred to as Palestinians. The British followed up on their promise (made during World War I) to the Hashemite leadership in Arabia to give them a country by splitting the Mandate of Palestine in 1922 into the Mandate of Palestine and the Mandate of Transjordan. Some people claim that this subdivision, which represented a 25-75% split in territory created the Arab State necessary by the Balfour Declaration. (Transjordan became the modern Hashemite Kingdom of Jordan.)

Popular opinion today and at the time proves that this was not the case. British authorities governed the Mandate of Palestine based more on the desires of the Arab majority than the increasing Jewish minority. Land purchases became harder for Jews to make, Jewish immigrants were detained at Cyprus or barred entry, and the British still articulated that the territory of this second-smaller Mandate of Palestine would result in a Jewish and an Arab State. The British ceded the problem to the United Nations in 1947 which resulted in the UN Partition Plan. This plan (contrary to those who see Jordan as the Palestinian State) allocated half of the settled territory (the Jewish State had more land, but much of it was unsettled desert) to an Arab State.

After the UN Vote, both the Arabs and the Jews had a right to declare a state pursuant to the agreement. The Jews followed through on this, declaring a State in 1948 and stopped calling themselves Palestinians, favoring the term Israelis. The Arabs remained hostile to this concession and refused to give it legitimacy by also declaring a State and continued calling themselves Palestinians. This is the rub. Since Palestine did not officially declare its statehood alongside of Israel, some claim that it is not a country. For many years (from 1948-1993) there was no recognition of a Palestinian government by any country that recognized Israel. However, the Oslo Accords and Camp David Summit created the Palestinian Authority which serves as the current Palestinian government. The PA does not have UN membership for political reasons (similar to Taiwan) as opposed to issues based on sovereignty.

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