Even if the Palestinians are not a People, they nevertheless are and always have been people—that is, individual human beings with natural rights, namely, the rights to life, liberty, property, and the pursuit of happiness. Like everyone else.
But individuals can come to be regarded as a People as a result of a long, continuous way of life in a particular area. This is true of the Palestinians. They are both a People and people. See this.
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Rather than create a virtual state for Palestine that may only validate Israel again, states should REVOKE their recognition of Israel