The Camp David summit saw Israel give this proposal:
Essentials of the Camp David II Proposals by Israel
1. Palestinian Statehood and Conditions
A Palestinian state would be established in most of the West Bank and all of the Gaza strip, with these conditions:
-The state would not have an army with heavy weapons,
-The state would not make alliances with other countries without Israeli approval and would not allow introduction of foreign forces west of the River Jordan.
-Israel would be allowed deploy troops in the Jordan Valley if Israel were to be threatened by invasion from the east.
-Israeli aircraft could overfly Palestinian airspace.
Israeli would install early warning stations in the mountains overlooking the Jordan valley and other areas.
-Palestinians would control border crossings with Jordan and Egypt along with Israeli security observation.
-The Israelis would retain management over water sources in the West Bank while approving a limited quota to the Palestinians.
-Israel would lease areas in the Jordan Valley or maintain temporary sovereignty over them for up to 25 years.
2. Refugees
The Palestine refugee problem would be solved in the following way:
-Israel would not accept any legal or civilian responsibility for their displacement.
-Israel would allow the return of around 100,000 refugees under “humanitarian” grounds in the form of family reunions and considers such a step as compliance with UN Resolution 194.
-According to one source, the Palestinian State would be limited in the number of refugees it could absorb to half a million refugees according to a fixed timetable. This is not confirmed by other sources and is problematic, since a much larger number of refugees, well over a million, already live in camps in Gaza and the West Bank.
-An international fund would compensate refugees. Israel, the U.S. and Europe are to contribute. According to one source, this fund would also provide compensation to Jews who were forced to leave their possessions in Arab countries when they fled to Israel.
3. Jerusalem
Palestine would obtain sovereignty over suburbs in the north and the south of Jerusalem that would be annexed to the West Bank, including Abu Dees, Alezariye and eastern Sawahre.
Within East Jerusalem, in (Beit Hanina-Shuafat), there would be a civilian administration affiliated with the Palestinian Authority with the possibility of linking it to West Jerusalem through a municipality covering both sectors. The Palestinians would run a branch municipality within the framework of the Israeli higher municipal council while depriving them from planning and construction jurisdictions.
Palestinian, Arab, Islamic and Christian administration of holy shrines in the old city of Jerusalem. The Palestinians would be allowed to hoist the Palestinian flag over the Islamic and Christian shrines along with a safe passage linking northern Jerusalem, which would be annexed to the West Bank, to those areas so that Palestinians and Muslims would not pass through lands under Israeli sovereignty.
4. Land Area of Palestine
The initial area of the Palestinian state would comprise about 73% of the land area of the West Bank and all of Gaza. The West Bank would be divided by the road from Jerusalem to the Dead Sea and a corridor on either side of it. This would form two relatively large Palestinian areas and one small enclave surrounding Jericho. The three areas would be joined by a free passage without checkpoints, but the safe passage could be closed by Israel in case of emergency. According to Palestinian sources, there would be another division beween the area north of the Ariel and Shilo settlements along the trans-Shomron highway built by Israel.
In later stages (10-25 years) Israel would cede additional areas, particularly in the mountains overlooking the Jordan valley, to bring the total area to slightly under 90% of the area of the West Bank (94% excluding greater Jerusalem).
The major settlement blocks adjacent to Jerusalem and in the Jerusalem corridor would be annexed to Israel: Efrat, Gush Etzion, Ma'ale Edumim. The town of Ariel and the corridor along the trans-Samaria highway would be annexed to Israel. The Jewish settlement town of Qiriat Arba would remain under Israeli administration in the heart of Palestinian territory, with a single road through Palestinian territory reaching it from the south. Isolated Jewish settlements including the settlement in Hebron, would come under Palestinian jurisdiction and would probably be abandoned.