The Palestine National Council's calling in 1974 for the establishment
of <<the people's national, independent, and fighting authority on ev
ery part of Palestinian land to be liberated>>, can be regarded as the
first indication on part of the PNC of a possible Palestinian state a
longside the Israeli. This article discusses the changes in Palestinia
n strategy and objectives from 1974 till today,based mainly on an anal
ysis of relevant PNC resolutions and other PLO documents, and taking i
nto account the differences in power between the two parties, and the
Israeli strategy of creating irreversible <<facts on the ground>> in t
he occupied territories. It is shown how the various trends within the
Palestinian movement gradually adapted to a two-state solution as the
only realistic approach to the liberation struggle. The article concl
udes that as the danger looms of autonomi as <<a permanent solution>>,
even the trends (among them the Islamic) that earlier advocated the l
iberation of the whole of (British mandate) Palestine, would emphasize
the objective of a Palestinian state consisting of the West Bank and
Gaza.