The At the time the Israelis did not expect the refugees to be a major issue; they thought the Arab states would resettle the majority and some compromise on the remainder could be worked out in the context of an overall settlement. The Arabs were no more willing to compromise in 1949, however, than they had been in 1947. In fact, they unanimously rejected the UN resolution.
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UNRWA had little chance of success, however, because it sought to solve a political problem using an economic approach. By the mid 1950s, it was evident neither the refugees nor the Arab states were prepared to cooperate on the large-scale development projects originally foreseen by the Agency as a means of alleviating the Palestinians’ situation. The Arab governments and the refugees themselves were unwilling to contribute to any plan that could be interpreted as fostering resettlement. They preferred to cling to their interpretation of Resolution 194, which they believed would eventually result in repatriation.
While Jewish refugees from Arab countries received no international assistance, Palestinians received millions of dollars through UNRWA. Initially, the United States contributed $25 million and Israel nearly $3 million. The total Arab pledges amounted to approximately $600,000. For the first 20 years, the United States provided more than two-thirds of the funds, while the Arab states continued to contribute a tiny fraction. Israel donated more funds to UNRWA than most Arab states. The Saudis did not match Israel’s contribution until 1973; Kuwait and Libya, not until 1980. As recently as 1994, Israel gave more to UNRWA than all Arab countries except Saudi Arabia, Kuwait and Morocco. In 2003, the United States contributed more than $134 million of UNRWA’s $326 million budget (41%). All of the Arab countries combined contributed less than $11 million (3%) and $7.8 million of that was from Saudi Arabia, meaning the rest of the Arab world contributed less than $3 million (1%).
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Israel could not simply agree to allow all Palestinians to return, but consistently sought a solution to the refugee problem. Israel’s position was expressed by David BenGurion (August 1, 1948):
When the Arab states are ready to conclude a peace treaty with Israel this question will come up for constructive solution as part of the general settlement, and with due regard to our counterclaims in respect of the destruction of Jewish life and property, the long-term interest of the Jewish and Arab populations, the stability of the State of Israel and the durability of the basis of peace between it and its neighbors, the actual position and fate of the Jewish communities in the Arab countries, the responsibilities of the Arab governments for their war of aggression and their liability for reparation, will all be relevant in the question whether, to what extent, and under what conditions, the former Arab residents of the territory of Israel should be allowed to return.
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The implied danger of repatriation did not prevent Israel from allowing some refugees to return and offering to take back a substantial number as a condition for signing a peace treaty. In 1949, Israel offered to allow families that had been separated during the war to return; agreed to release refugee accounts frozen in Israeli banks (eventually released in 1953); offered to pay compensation for abandoned lands and, finally, agreed to repatriate 100,000 refugees.
The Arabs rejected all the Israeli compromises. They were unwilling to take any action that might be construed as recognition of Israel. They made repatriation a precondition for negotiations, something Israel rejected. The result was the confinement of the refugees in camps.
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After the Six-Day War, Israel allowed some West Bank Arabs to return. In 1967, more than 9,000 families were reunited and, by 1971, Israel had readmitted 40,000 refugees. By contrast, in July 1968, Jordan prohibited persons intending to remain in the East Bank from emigrating from the West
Bank and Gaza.
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The UN discussions on refugees had begun in the summer of 1948, before Israel had completed its military victory; consequently, the Arabs still believed they could win the war and allow the refugees to return triumphant. The Arab position was expressed by Emile Ghoury, the Secretary of the Arab Higher Committee:
It is inconceivable that the refugees should be sent back to their homes while they are occupied by the Jews, as the latter would hold them as hostages and maltreat them. The very proposal is an evasion of responsibility by those responsible. It will serve as a first step towards Arab recognition of the State of Israel and partition.
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One reason for maintaining this position was the conviction that the refugees could ultimately bring about Israel’s destruction, a sentiment expressed by Egyptian Foreign Minister Muhammad Salah al-Din:
It is well-known and understood that the Arabs, in demanding the return of the refugees to Palestine, mean their return as masters of the Homeland and not as slaves. With a greater clarity, they mean the liquidation of the State of Israel (Al-Misri, October 11, 1949).
After the 1948 war, Egypt controlled the Gaza Strip and its more than 200,000 inhabitants, but refused to allow the Palestinians into Egypt or permit them to move elsewhere.
Although demographic figures indicated ample room for settlement existed in Syria, Damascus refused to consider accepting any refugees, except those who might refuse repatriation. Syria also declined to resettle 85,000 refugees in 1952-54, though it had been offered international funds to pay for the project. Iraq was also expected to accept a large number of refugees, but proved unwilling. Lebanon insisted it had no room for the Palestinians. In 1950, the UN tried to resettle 150,000 refugees from Gaza in Libya, but was rebuffed by Egypt.