On May 14, 1948, the State of Israel was proclaimed and five Arab nations were attacked in support of the Palestinian Arabs. The Israelis repelled the Arab armies and conquered considerable territory, initially allocated to the Arabs during the UN partition of Palestine in 1947. After two successive ceasefires brokered by the United States, the State of Israel concluded formal ceasefire agreements with Egypt, Lebanon, Jordan and Syria in February 1949. These agreements left Israel in permanent control of the area it had conquered during the conflict. The Oslo Accords were the first time that Israel and the Palestine Liberation Organization (PLO) officially recognized each other. Many thought then that this was a step in the right direction. But what followed the negotiations over the next 20 years shows that Israel merely used the agreements to justify the continued development of illegal settlements in the territories it occupied in 1967. Indeed, just days before the formal signing of Oslo I, the two sides signed a “letter of mutual recognition” in which the PLO agreed to recognize the State of Israel (prior to this agreement, they considered the country contrary to international law since its inception in 1948) and the Israelis recognized the PLO`s role as “representative of the Palestinian people.” The Oslo process is the “peace process” that began in 1993 with secret talks between Israel and the PLO. It has become a round of negotiations, suspension, mediation, resumption of negotiations and suspension.
A number of agreements were reached until the Oslo process ended after the failure of the Camp David summit in 2000 and the outbreak of the Second Intifada.   While Peres, at the request of US Secretary of State Madeleine Albright, had limited the construction of settlements, Netanyahu continued construction inside existing Israeli settlements, and presented plans for the construction of a new neighborhood, Har Homa, in East Jerusalem. However, it remained well below the level of the Shamir government of 1991-92 and gave up on building new settlements, although the Oslo Accords did not provide for such a ban.  Construction of housing units off Oslo: 1991-92: 13,960, Oslo: 1994-95: 3,840, 1996-1997: 3,570.  Oslo I also set the agenda for the succession agreement, known as Oslo II, which would involve debate over the future management of the city of Jerusalem (both sides claim it as their respective capitals) as well as issues relating to the borders, security, and rights of Israeli settlers in the West Bank. They also called for the establishment of a Palestinian state in the territory known as Gaza and on the west bank of the Jordan River. However, given that the Palestinians were not represented in the talks that took place during the withdrawal of US President Jimmy Carter, the resulting agreement was not formally recognised by the United Nations. The Oslo Declaration of Principle was not a peace treaty; Rather, the objective was to create interim governance rules and a framework to facilitate further negotiations for a final agreement to be reached by the end of 1999. In May 1999, the five-year transition period ended without a comprehensive peace agreement, but elements of the Oslo Accords were maintained. The interim Palestinian Authority has become permanent and has become a dominant factor in the PLO. The West Bank remained divided into areas A, B and C. Area C, which covers about 60 percent of the West Bank, is under Israel`s exclusive control, both military and civilian.