we assumed responsibility for the Palestinian citizens of East Jerusalem. Even when we inevitably end up handing over E. J'lem to the Palestinians we will need to continue to provide at least some benefits for the Pal residents with Israeli citizenship on the other side of the border. Sovreign states (Israel and Palestine) have the right to agree between them where their borders will run but the people living in areas being exchanged need to have the freedom to either move to stay in the state they identify with, retain their citizenship and should, at the minimum, continue to receive the same social benefits they recevied during an interim period prior to it being phased out. As to freedom of movement, Israel will clearly need to control the border passages and restrict entry to Israel for so long as terrorism remains a threat.
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from the article: Would East Jerusalem Arabs rather be citizens of Israel or Palestine?