Zionist movements started to develop the economy in the land of Israel on the end of the 19th century. Many kibutzim were established on the first two decades of the 20th century. The economic bum of the Zionist enterprise attracted very large numbers of Arab immigrants from all over the middle east to the "British mandatory Palestine". Most of the Palestinians' forefathers were living in other parts of the middle east before 1920. Israelis are well aware of that.
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Initial report of stabbing attack in South Hebron Hills (Haaretz)
from the article: Netanyahu to AIPAC: Israel cannot return to 'indefensible' 1967 lines