UNSCR 242 requires "Withdrawal of Israel armed forces from territories occupied in the recent conflict" 4th Geneva Convention states "The Occupying Power shall not deport or transfer parts of its own civilian population into the territory it occupies". It is NOT up to Israel to decide whether or not Paestine can have their own nation. It is up to Palestine and the World to decide this.
Israeli forces demolish illegal houses, power infrastructure in Palestinian village Aqaba (Haaretz)
from the article: Erekat: Netanyahu's Congress speech 'full of lies,' hampers peace