Palestinians were the nation in the sense of citizenship. (It's still not an ethnic term even under PLO definition, because it includes Jews from pre mandate times.) Palestinian Jews and Palestinian Arabs were "nations WITHIN citizenship", which is something different. But the term nation here applied to the citizenship law which was enacted in 1925 and included automatically all Jews and Arabs with Ottoman citizenship which habitually lived in the area of Palestine. The international status of Palestine was "state under mandate" (french: "etat sous mandat). It had international treaties which were concluded by the mandatory on its behalf. It had its own citizenship and the then international court ruled in the case of the Mavrommatis concessions that Palestine was a successor state of the Ottoman empire and (its mandatory goverment) had to respect concessions which were granted during Ottoman times. By the way the calmer times from Arab Palestinian view were before Zionist intended to take over Palestine or parts of it. Still, the Arab Higher Commitee and the delegation of Arab and Muslime UN member state in 1947 proposed a unitary democratic state which would ensure the equal rights of minorities.