Clearly you do not comprehend the distinction between ownership and sovereignty. The Ottomans held sovereignty over the land, but the arabs in the villages held ownership of he land, going back hundreds of years. The Israeli expropriation laws, such as the "law of absentee property" do not change the ownership, even if it strips the rightful owers of using the land. How often do you see Jewish-owned land expropriated for Palestinian use?
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from the article: U.S.: Israel plan to build in East Jerusalem harms peace process