Given that the first descendents of the "Palestinian Arabs" were originally from the ARABian Peninsula, the option of the Palestinians moving to Saudi ARABia would make sense. Considering Jordan represents nearly 80% of the original Palestinian Mandate and Jordan's population today is mostly Palestinian, Jordan would be another sensible option for resettlement.
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Or, we could just move all the Jews to Iowa. It would much easier to do that. Jews are an adaptable people.