Finkelstein: Come 1981, as pressure builds on Israel to reach a diplomatic settlement in the Israel-Palestine conflict, they decide to invade Lebanon in order to crush the P.L.O., because the P.L.O. was on record supporting a two-state settlement. As Dr. Ben-Ami's colleague, Avner Yaniv, put it in a very excellent book, Dilemmas of Security, he said, “The main problem for Israel was,” and now I’m quoting him, "the P.L.O.'s peace offensive. They wanted a two-state settlement. Israel did not.” And so Israel decides to crush the P.L.O. in Lebanon. It successfully did so. The P.L.O. goes into exile.
Come 1987, Palestinians in the Occupied Territories despair of any possibility of international intervention, and they enter into a revolt -- the Palestinian Intifada -- basically nonviolent civilian revolt by the Palestinians. And the revolt proves to be remarkably successful for maybe the first couple of years. Come 1990, Iraq invades Kuwait. The P.L.O. supports, ambiguously, but I think we fairly can say, and I agree with Dr. Ben-Ami on this, they lend support to Iraq. The war ends, Iraq defeated, and all the Gulf states cut off all of their money to the P.L.O. The P.L.O. Is going down the tubes.
Along comes Israel with a clever idea. Mr. Rabin says, ‘Let's throw Arafat a life preserver, but on condition.’ And Dr. Ben-Ami puts it excellently, that “the P.L.O. will be Israel's subcontractor and collaborator in the Occupied Territories,” and I’m quoting Dr. Ben-Ami, "in order to suppress the genuinely democratic tendencies of the Palestinians." (more)