In September 1967, the Arab League Summit held in Khartoum (Sudan) issued its “No to peace, No to recognition and No to negotiations with Israel”. The Israelis understood that there was no one to negotiate with, and therefore studied other options. The government considered that the Sinai Peninsula (Egypt) and the Golan Heights (Syria) could be used as exchange within a bilateral peace agreement. Israel returned the entire Sinai to Egypt (1979) and the territory claimed by Jordan was reinstated (1994). To date, approximately 94% of the territories gained in the War of 1967 have been returned by Israel to its Arab neighbors during negotiations. This proves the disposition of Israel to make territorial concessions. The position of the governing Socialist Party was based on the plan of Minister Igal Alon. Because of security considerations, Israel was to prevent the penetration of terrorists from Jordan, by establishing bases and villages in the valley of Jordan, and the same was to occur in the first heights from the east, the central mountain range. The rest of the territory could be granted to an Arab authority. This is how the settlement of Kiryat Arba (near Hebron) was established and the 6,000 Israeli inhabitants living in the Valley of Jordan. Moshe Dayan, Defense Minister at the time, believed that there was no possibility of reaching total agreements as Alon proposed, so he suggested allowing the Palestinians to live as Jordanians, passing freely to that country. Because of this policy, the Arab-Palestinians passed to Jordan via the Allenby Bridge. Both plans were carried out. With the arrival to the government of the nationalist party Likud, a de facto policy was imposed in order to increase the Israeli control over the West Bank.
Alon Plan (Source: Wikipedia)