Borders Israel's position on borders was that they should be based on the
1949 Armistice Line (the Green Line), with minor modifications, and "flatly refused to return to the line of the 1947 partition plan." Israel made clear to the Conciliation Commission, that she also wanted a slice of Southeastern Lebanon, necessary to her development scheme, but not yet demanded in favor of a quick peace. Residents and refugees of annexed Gaza (an area several times the size of the present Gaza Strip) who were hostile towards Israel should be deported. According to Israel, no Arab state had a right to any territory in Palestine. Israel had "of course" more demands as to territory, based upon its development scheme. Israel would not give up the occupied Negev, because she could develop it and the Arabs were not able to. Moreover, it was impossible to give it up because of "psychological reasons" and because it "would obviously be a concession to the British, not to the Arabs". Jaffa, Lydda and Ramle were simply to be kept. The latter had been filled up with immigrants and there was no place for Arabs. The border between Israel and the "central area" (that is the
West Bank) would be the 1949 Armistice Line, subject to certain modifications in the interests of both parties, thus with Israeli annexation of large areas along the present West Bank, including West Jerusalem. Israel declared that it had no ambitions as regards the central area of Palestine.) would become part of Israel, in addition to the territory already allocated in the Partition Plan. The Arabs on the other hand, insisted that any deal had to be resolved on the basis of the Partition Plan, with territorial adjustments necessary pursuant to the Lausanne Protocol. Israel also wanted the entire western shore of the Dead Sea. Israel rejected this and instead preferred a division of Jerusalem into a Jewish and an Arab zone, and international control and protection only for Holy Places and sites. During the conference, the Israeli government began moving its offices into West Jerusalem which angered the Arab states, who submitted a formal complaint to the commission with respect to the "administration and services which have been installed in this city in contempt of the resolution of 11th December 1948."
Refugees At least half of the estimated 700,000 refugees First, the Arab states demanded the return of those refugees. In May and June 1949, the Israeli delegation expressed Israel's standpoint that Arab refugees should be settled in other states and Israel would not allow their return to Israel apart from a limited number. On 31 August, this view was repeated before the Conciliation Commission. Israel had, however, failed to stipulate under what conditions refugees could return and Egypt was afraid they would be dropped in the desert area of the Negev. The Gaza proposal became an important issue in the negotiations.
The "100,000 refugees offer" While the negotiations were in an impasse, Israel was asked to "break the ice" by making a goodwill gesture. Israel then announced that it would pay compensation to refugees for their abandoned properties. The United States, however, persuaded Israel to accept at least a certain number of refugees. Sometimes this plan is referred to as "the 100,000 offer". In return for repatriation of this limited number of refugees, Israel asked the annexation of all territories it had conquered until the
1949 Armistice Agreements, The total number of Arabs, including the non-refugees, were "for economic and security reasons" not to exceed 250,000,
Other issues Besides the delegations representing Israel and the Arab states, there were three delegations representing the refugees. Included were members of the
General Refugee Congress that had been formed in
Ramallah in March 1949. Other notable representatives were members of the Jaffa and District Inhabitants Committee. While the main issue discussed at Lausanne was the fate of the refugees, also some of the issues relating to refugee property were discussed. The Israelis "explained the activities of the
Custodian of Absentee Property". The discussion covered whether property issues could be addressed separately from the overall Arab–Israeli conflict, Israeli counter claims for war damages, the fate of the refugee orange groves, and the fate of refugee bank accounts blocked in Israel. Israel insisted on discussing the refugee and the property issue only as a part of the resolution of the entire conflict, while the Arabs insisted on dealing with the refugee issues separately, on their repatriation. == Israel's admission as a UN member ==