Firstly Peter, your Islamic Republic of Palestine does not exist. The PA is secular, so any future state of Palestine will be secular, like Syria or Lebanon are similarly secular. The definition of a Palestinian refugee as a person living in Palestine between these dates who was forced to flee during the war does not seem unfair when you consider that any, say, Jordanian with Palestinian refugee status is unlikely to wish to return to his home. However, he may wish for compensation for his lands seized or his home that was demolished/lived in. The special status of the Palestinians as a refugee group including descendants is indeed enshrined by the appropriation of the Palestinian refugee problem in Lebanon, Syria, Jordan by UNRWA. In addition: While paragraph 1 of Article 1D is in effect an exclusion clause, this does not mean that certain groups of Palestinian refugees can never benefit from the protection of the 1951 Convention. Paragraph 2 of Article 1D contains an inclusion clause ensuring the ipso facto entitlement to the protection of the 1951 Convention of those refugees who, without having their position definitively settled in accordance with the relevant UN General Assembly resolutions, have ceased to receive protection or assistance from UNRWA for any reason Cipora, your original point, [sic]"The idea that the status oof refugee can be handed down through generations over decades has no basis in international law." is wrong, as you have admitted by declaring [sic]"as i had posted, the palestinians are the only people to have a special status as refugees." So if the convention of 1951 (and 1967 protocols) excludes the Palestine refugees due to an outstanding legal definition covering Palestine refugees and their descendants, then that original point is invalid, making the applicable law you quote also invalid by token of 1D, which explains that if UNRWA ceases assistance, then the convention will cover the Palestine Refugees. The reason for the special definition for Palestine refugees is the unprecedented manner in which they were forced from their homes, in addition to enforcing their entitlement to compensation.
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French Foreign Minister Fabius says he will leave office (Reuters)