On that day and in the same minute the UN mandated the State of Palestine AND the State of Israel. Both states had recognized borders. Israel accepted. Palestine did not. 6 months later on May 15 1948 Palestinians along with 5 other Arab armies attacked Israel for the 1st time. Israel repelled the attack. No land was gained or lost. The armistice line became known as the Green Line. By your request to go back to 1967 borders you mean prior to the 6 Day War which means the Green line 1947 borders. Well if it was not acceptable for the Palestinians in 1947 what makes it acceptable now ? Land swaps and Jerusalem need to be negotiated. The old green Line borders will not be acceptable now. Live with that.
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Livni: Shaked's annexation bill would lead to bi-national state with Palestinian majority in Knesset
from the article: Palestinians: UN recognition would foster peace with Israel