Today’s Security Council resolutions refer to occupied territories and East Jerusalem separately. The old expression found in resolutions 242 and 338, referred to “Arab territories, including Jerusalem”. The older method recognizes an entity that is distinct from the neighbouring member-States – i.e. Israel, Jordan, and Egypt – and thus defines formal boundaries of that entity. Since that entity includes Jerusalem – as an Arab territory – it contravenes Resolution 181. Resolution 181 specifically defines Jerusalem as multi-ethnic entity distinct from Arab and Jewish states in Palestine.
As far as this special area of Jerusalem is concerned, its boundaries are legally known: it must be the area of Jerusalem defined in the Resolution 181, less the area of Jerusalem in Israel as recognised by UN as part of Israel. The remaining territory is separate by default, and that is the geographic space which is available for legally defining the State of Palestine.
Resolution 181 is therefore important. It is the basis of Israeli incorporation as a state, and admission of Israel to UN membership gave primacy of this resolution to all future dealings-with and legal expectations-of the state of Israel. Since it was recognized by the Security Council during that process, any contradictory UN Security Council resolutions are contestable. And by it, Israel is legally bound to accept the creation of two states.
Until the legal representatives of the Palestinian people also acknowledged Resolution 181 however, the nature of both non-Israeli Jerusalem and the other territories occupied by Palestinians remained undefined. Entering those undefined areas for the necessary security of the 1947-borders of Israel proper, for example, would be undesirable but not illegal.
Up until the 1980s the Palestinian leadership also rejected a two-state solution required by international law. Encroachment by the State of Israel on undefined territory also did not prejudice a internationally-permitted format of Palestinian state. Settlement activities during this uncertain period then – in the Jerusalem area as well as elsewhere – that did not include confiscation of ownership, or prejudice the rights of individuals, may have been legally defencible, or at least reside in a grey area.
In 1988 however, internationally-recognized legal representatives of Palestine declared Palestinian independence with reference to Resolution 181. Palestine’s statehood was acknowledged by many UN Member States if not explicitly by the Security Council. Thus the application of Resolution181 became normative for international relations with the State of Palestine, albeit outside the UN System. The implications of this are profound: the expectations of Security Council, Israel, and the Palestinian people/State became mutual, making the two state solution the legally-defined framework for the three parties.
From that point on, the foundation of new settlements in areas outside of 1947-Israel became incompatible with the practical implementation of Resolution 181. Since it is contrary to Resolution 181 is legally as well as morally unsound.
Five years later, Oslo 1 codified in formal terms the proper relationship between Jewish and Arab stakeholders in Palestine, as anticipated 40 years earlier in Resolution 181. Oslo 1 clarified that Jerusalem, settlements, and borders are to be negotiated.
The subsequent peace agreement with Jordan in 1994, lodged with the UN, cemented this position. The western boundaries of mandatory Palestine were recognized by the parties as being under Israeli “military government control”. Since Israel, as a UN Member State, existed contemporaneously under civilian government control, this territory has been legally accepted to be conceptually distinct from Israel. A future, negotiated settlement on Jerusalem was also referenced in the treaty. [The 1979 peace-agreement with Egypt recognized the Western border of mandatory Palestine under international treaty, in a format moderated by the United Nations].
There is thus an important body of international law cemented around two states, despite formal recognition by the UN of Palestine. There can be no legal dispute on the goal, only the mechanism to attain it. At the moment it is the Oslo peace process that remains the legally binding mechanism between the two parties; a process described within the Oslo 2 agreement as “irreversible”.
Even if the Oslo 2 agreement is unilaterally annulled, any components that have been become normative through the tacit agreement of the other party – as evidenced through implementation – sets a precedent for the end-state of Resolution 181. This includes permanent Israeli abandonment of the Gaza strip. It also includes the classification of Areas A, B and C, in the West Bank, which is normative in both Israel and the Palestinian territories. Only settlements in “Area C” can reasonably expect to remain under full Israeli jurisdiction within the final borders of the “Arab” state of Palestine.
This brings us back to the ‘normative’ status of Jerusalem. Jerusalem – as defined under Resolution 181 – is neither Arab nor Jewish. Prior to 1967 the non-Israeli parts of the city were controlled by Jordanians. Israeli Jews were not permitted at Western Wall, Jewish heritage was demolished, and Jewish residents expelled. UN resolutions have called for Israel to keep Jerusalem’s character “unchanged”, yet final settlement of Jerusalem cannot reasonably imply that the pre-1967 situation should be the yardstick for measuring change.
Further, as the final end-condition of Jerusalem is not a State, as stipulated by the UN Resolution 181, it must be a territory, and thus self-governing. It is unlikely in the extreme that the Israelis will accept to rescind control of the city. Even if Israel remains a self-appointed trustee, it can remain in compliance of the spirit of Resolution 181 so long as the physical and religious statuses of the Holy City remain intact, and Muslims and Christians can continue to pray at the holy sites. Expulsion of Palestinian Arabs from this Jerusalem entity is, however, firmly in contravention of Resolution 181.
On this line of reasoning there is nothing that limits Palestinians from also declaring Jerusalem the “complete and united” capital of Palestine too; as long as they are willing to negotiate on the practical implementation of this fact. By ring-fencing Jerusalem for negotiated settlement in the Oslo accords, the Israelis have signaled they are at least willing to bring the issue to the negotiating table.