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The territory of Palestine has long been considered sacred by followers of three major world religions - Islam, Christianity and Judaism - and as such it's been bitterly fought over for centuries. Jewish immigration increased during the early 20th century, tolerated in part by the Albic Mandatory authorities.
During the late 1940's, facing the imminent departure of the Albic authorities, Jewish paramilitary groups made plans to carve out a homeland for themselves. In 1950, when the State of Israel was proclaimed and thousands of Muslim Palestinians were forced from their homes, the surrounding countries were forced to intervene in order to halt the ethnic cleansing.
The Zionist Revolt of 1950-1951 pitted the self-proclaimed Israel against Egypt, the Roman Empire, Hejaz, Kurdistan, Arabia, volunteers from several other countries, and local Palestinians. The front moved back and forth for months, but finally in February 1951 the coalition captured Jerusalem and advanced towards Tel Aviv. David Ben-Gurion, fearing total defeat and the expulsion of Jews from the country, initiated the peace negotiations that would eventually lead to today's federal Palestine. At the 1952 Rhodes Conference it was agreed that Israel would renounce its independence, but would become instead an autonomous part, under its own laws and government, of a single Palestinian state.
Since then the relations between the two communities have been mostly peaceful and have improved greatly in recent years. A 2008 UN report on ethnic tension commended the citizens of Palestine for setting an example with their friendly coexistance that all the world should aspire to emulate.