Palestine, considered a holy land by Jews, Muslims, and Christians, and homeland of the

modern state of Israel, was known as Canaan to the ancient Hebrews. Palestine's name
derives from the Philistines, a people who occupied the southern coastal part of the
country in the 12th century B.C.

A Hebrew kingdom established in 1000 B.C. was later split into the kingdoms of Judah
and Israel; they were subsequently invaded by Assyrians, Babylonians, Egyptians,
Persians, Romans, and Alexander the Great of Macedonia. By A.D. 135, few Jews were
left in Palestine; most lived in the scattered and tenacious communities of the Diaspora.
Palestine became a center of Christian pilgrimage after the emperor Constantine
converted to that faith. The Arabs took Palestine from the Byzantine empire in 634–40.
Interrupted only by Christian Crusaders, Muslims ruled Palestine until the 20th century.
During World War I, British forces defeated the Turks in Palestine and governed the area
under a League of Nations mandate from 1923.

As part of the 19th-century Zionist movement, Jews had begun settling in Palestine as
early as 1820. This effort to establish a Jewish homeland received British approval in the
Balfour Declaration of 1917. During the 1930s, Jews persecuted by the Hitler regime
poured into Palestine. The postwar acknowledgment of the Holocaust—Hitler's genocide
of 6 million Jews—increased international interest in and sympathy for the cause of
Zionism. However, Arabs in Palestine and surrounding countries bitterly opposed prewar
and postwar proposals to partition Palestine into Arab and Jewish sectors. The British
mandate to govern Palestine ended after the war, and in 1947 the UN voted to partition
Palestine. When the British officially withdrew on May 14, 1948, the Jewish National
Council proclaimed the State of Israel.

U.S. recognition came within hours. The next day, Arab forces from Egypt, Jordan, Syria,
Lebanon, and Iraq invaded the new nation. By the cease-fire on Jan. 7, 1949, Israel had
increased its original territory by 50%, taking western Galilee, a broad corridor through
central Palestine to Jerusalem, and part of modern Jerusalem. Chaim Weizmann and
David Ben-Gurion became Israel's first president and prime minister. The new
government was admitted to the UN on May 11, 1949.

The next clash with Arab neighbors came when Egypt nationalized the Suez Canal in
1956 and barred Israeli shipping. Coordinating with an Anglo-French force, Israeli troops
seized the Gaza Strip and drove through the Sinai to the east bank of the Suez Canal, but
withdrew under U.S. and UN pressure. In the Six-Day War of 1967, Israel made
simultaneous air attacks against Syrian, Jordanian, and Egyptian air bases, totally
defeating the Arabs. Expanding its territory by 200%, Israel at the cease-fire held the
Golan Heights, the West Bank of the Jordan River, Jerusalem's Old City, and all of the
Sinai and the east bank of the Suez Canal.

In the face of Israeli reluctance even to discuss the return of occupied territories, the
fourth Arab-Israeli War erupted on Oct. 6, 1973, with a surprise Egyptian and Syrian
assault on the Jewish high holy day of Yom Kippur. Initial Arab gains were reversed
when a cease-fire took effect two weeks later, but Israel suffered heavy losses.
A dramatic breakthrough in the tortuous history of Mideast peace efforts occurred on
Nov. 9, 1977, when Egypt's president Anwar Sadat declared his willingness to talk peace.
Prime Minister Menachem Begin on Nov. 15 extended an invitation to the Egyptian
leader to address the Knesset in Jerusalem. Sadat's arrival in Israel four days later raised
worldwide hopes, but a peace agreement between Egypt and Israel was long in coming.
On March 14, 1979, the Knesset approved a final peace treaty, and 12 days later Begin
and Sadat signed the document, together with President Jimmy Carter, in a White House
ceremony. Israel began its withdrawal from the Sinai, which it had annexed from Egypt,
on May 25, and the two countries opened their border on May 29.

Although Israel withdrew its last settlers from the Sinai in April 1982, the fragile Mideast
peace was shattered on June 9 by a massive Israeli assault on southern Lebanon, where
the Palestinian Liberation Organization was entrenched. The PLO had long plagued
Israelis with terrorist actions. Israel destroyed PLO strongholds in Tyre and Sidon and
reached the suburbs of Beirut on June 10. A U.S.-mediated accord between Lebanon and
Israel, signed on May 17, 1983, provided for Israeli withdrawal from Lebanon. Israel
eventually withdrew its troops from the Beirut area but kept them in southern Lebanon,
where occasional skirmishes would continue. Lebanon, under pressure from Syria,
canceled the accord in March 1984.

A continual source of tension has been the relationship between the Jews and the
Palestinians living within Israeli territories. Most Arabs fled the region when the state of
Israel was declared, but those who remain now make up almost one-fifth of the
population of Israel. They are about two-thirds Muslim, as well as Christian and Druze.
Palestinians living on the West Bank and the Gaza Strip fomented the riots begun in
1987, known as the Intifadeh. Violence heightened as Israeli police cracked down and
Palestinians retaliated. Continuing Jewish settlement of lands designated for Palestinians
has added to the unrest.

In 1989 the leader of the PLO, Yasir Arafat, reversed decades of PLO polemic by
acknowledging Israel's right to exist. He stated his willingness to enter negotiations to
create a Palestinian political entity that would coexist with the Israeli state.

In 1991 Israel was struck by Iraqi missiles during the Persian Gulf War. The Israelis did
not retaliate in order to preserve the international coalition against Iraq. In 1992 Yitzhak
Rabin became prime minister. He halted the disputed Israeli settlement of the occupied
territories. Highly secretive talks in Norway resulted in an agreement between the PLO
and the Israeli government (the Oslo Agreement, 1993). The accord stipulated a five-year
plan in which Palestinians of the West Bank and the Gaza Strip would gradually become
self-governing. In 1994 Israel signed a peace treaty with Jordan. Israel has no formal
peace agreement with Syria or Lebanon.

On Nov. 4, 1995, Prime Minister Rabin was slain by a Jewish extremist, jeopardizing the
tenuous progress toward peace. Shimon Peres succeeded him until May 1996 elections
for the Knesset gave Israel a new hard-line prime minister, Benjamin Netanyahu, by a
razor-thin margin. Netanyahu reversed or stymied much of the Oslo Agreement,
contending that it offered too many concessions too fast and jeopardized Israelis' safety.
Elections for seats on the Palestinian Council and for its president took place in Jan.
1996. Yasir Arafat obtained an easy victory as president.

Israeli-Palestinian peace negotiations in 1997 were repeatedly undermined by both sides.

Although the Hebron Accord was signed in Jan., calling for the withdrawal of Israeli
troops from the city, the construction of new Jewish settlements on the West Bank in
March profoundly upset progress toward peace. Some Jews cited the influx of
immigration from Russia (since the collapse of the Soviet Union, more than 700,000
Russian Jews have arrived in Israel) as necessitating the additional settlements. Others
believe that Netanyahu wished to curb Palestinian expectations raised by the Oslo
Agreement.

Terrorism erupted again in 1997 when radical Hamas suicide bombers claimed the lives
of more than 20 Israeli civilians. Netanyahu, accusing Palestinian Authority president
Arafat of lax security, retaliated with draconian sanctions against Palestinians working in
Israel, including the withholding of millions of dollars in tax revenue, a blatant violation
of the Oslo Agreement. Netanyahu persisted in authorizing right-wing Israelis to build
new settlements in mostly Arab East Jerusalem. Arafat, meanwhile, seemed unwilling or
unable to curb the violence of extremist Arabs.

An Oct. 1998 summit at Wye Mills, Md., generated the first real progress in the stymied
Middle East peace talks in 19 months, with Israeli prime minister Benjamin Netanyahu
and Palestinian president Yasir Arafat settling several important interim issues called for
by the 1993 Oslo Peace Accord. The Palestinians agreed to remove language from their
founding charter that called for the dismantling of the Jewish state; Israelis agreed to cede
an additional 13% of the West Bank.

Although Israel completed the first of three withdrawals from the West Bank on Nov. 20,
released 250 Palestinian prisoners, and authorized the opening of the Gaza airport, the
peace accord began unraveling almost immediately. Disagreement over the Israeli release
of Palestinian prisoners led to violence in the West Bank and Gaza, for which each side
blamed the other. To buttress the flagging accord, President Clinton visited the Gaza
Strip on Dec. 15, becoming the first American president to set foot on Palestinian-
occupied land. The visit coincided with the vote of the Palestine National Council to
formally eliminate language from the organization's charter that calls for the destruction
of Israel.

Netanyahu found himself attacked from both sides of the political spectrum—the left
accused him of intentionally thwarting the peace process and the right accused him of
betrayal, having elected him in the belief that he would never give up Israeli territory. In
mid-Dec. Parliament voted to dissolve Netanyahu's government and hold elections in the
spring, putting the peace negotiations on hold.
By the end of April 1999, Israel had made 41 air raids on Hezbollah guerrillas in
Lebanon. The guerrillas were fighting against Israeli troops and their allies, the South
Lebanon Army militia, who have occupied a security zone set up in 1985 to guard Israel's
borders. Public pressure in Israel to withdraw the troops grew, and the issue dominated
the Israeli election campaign in spring 1999. Ehud Barak of the Labour Party won the
election with 55.9% of the vote, against 43.9% for incumbent Benjamin Netanyahu of
Likud. Yasir Arafat originally planned to declare Palestinian statehood on May 4, but
postponed that decision until an undefined time after the election.

Barak created a broad coalition government and on his inauguration (July 6, 1999)
announced that “nothing is more important in my view than . . . putting an end to the 100-
year conflict in the Middle East.” By this he meant not only pursuing peace with the
Palestinians but establishing relations with Syria and ending the low-grade war in
Southern Lebanon with the Iranian-armed Hezbollah guerrillas. Syria has more than
30,000 troops in Lebanon, and Iran uses Syria as its conduit for delivering weapons to
Hezbollah.

In Sept. 1999, Israel moved ahead with the 1998 Wye Accord, ceding an additional 7% of
territory to the Palestinians.

In Dec. 1999, Israeli-Syrian talks resumed after a nearly four-year hiatus. By Jan. 2000,
however, talks had broken down when Syria demanded a detailed discussion of the return
of all of the Golan Heights.

In Feb., new Hezbollah attacks on Israeli troops in southern Lebanon led to Israel's
retaliatory bombing as well as Barak's decision to pull out of Lebanon. Israeli troops
pulled out of Lebanon on May 24, 2000, after 22 years of occupation.

Peace talks in July 2000 at Camp David between Ehud Barak and Yasir Arafat ended
unsuccessfully, despite President Clinton's strongest efforts—the status of Jerusalem was
the primary sticking point. Clinton blamed Arafat's intransigence, but Palestinian
supporters praised his strong stand. Barak, on the other hand, returned to a volatile
political situation, with conservatives angered by his concessions and threatening to
abandon his fragile parliamentary coalition.

In Sept., Likud leader Ariel Sharon visited the compound called Temple Mount by Jews
and Haram al Sharif by Muslims, a fiercely contested site that is sacred to both Jews and
Muslims. The visit set off the worst violence in years, killing around 400 people, mostly
Palestinians. The violence (dubbed the Al Aksa intifada after the mosque that is part of
the complex) and the stalled peace process fueled growing concerns about Israeli
security, paving the way for Sharon's stunning landslide victory over Barak in Feb. 2001.
With the Barak-brokered peace negotiations in shambles and Palestinian-Israeli relations
deteriorating, Sharon's uncompromising stance on Israeli security became a powerful
draw. Violence on both sides continued at an alarming rate throughout 2001, intensifying
in the fall and escalating further in 2002. Palestinians carried out some of the most
horrific suicide bombings and terrorist attacks in years, killing Israeli civilians in cafes,
bus stops, and supermarkets. In retaliation Israeli unleashed bombing raids on Palestinian
territory and sent troops and tanks to occupy West Bank and Gaza cities.

An olive branch was extended by an unlikely source in March 2002. Crown Prince
Abdullah of Saudi Arabia offered a Middle East peace plan at the annual Arab summit:
all Arab governments would offer “normal relations and the security of Israel in
exchange for a full Israeli withdrawal from all occupied Arab lands, recognition of an
independent Palestinian state with noble Jerusalem as its capital and the return of the
Palestinian refugees.” An extraordinary offer because it promised the backing of the
entire Arab world, the Saudi plan nevertheless seemed unrealistic in the concessions it
expected from Israel. And without a cease-fire, much less an agreement to negotiate
between the Israelis and Palestinians, the plan languished.

In late March, Israeli troops stepped up their occupation of Palestinian-controlled

territories in the West Bank in response to the escalating number of suicide bombers.
Israeli troops also surrounded Yasir Arafat at the Palestinian Authority headquarters in
Ramallah, and Prime Minister Sharon called for his expulsion from the territories. Arafat,
unable or unwilling to prevent a wave of suicide bombings in 2002, managed to hold onto
power despite his growing political irrelevance. Neither Sharon nor Arafat seemed
willing to entertain a political solution, each believing that violence and force will
eventually wear down the other side. Throughout the summer, Palestinian suicide
bombings (Hamas and the Al-Aksa Martyr Brigade claimed responsibility for the
majority of them) and Israeli reprisals continued. By Sept. 2002, the second anniversary
of the intifada, more than 1,500 Palestinians and 550 Israelis had been killed.