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Egypt has insisted it has a claim to the city of Eilat since it lost the city to the nascent state of Israel in the wake of the Egyptian army's defeat in Israel's 1948 War of Independence, but after the 1979 Camp David Accords the claim was officially dropped. Or so it seemed.
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"Eilat, or by its former name Umm Rashrash, belongs to the Palestinians," he said on behalf of the Egyptian Foreign Ministry.
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A-Nasser's response was presumably meant to calm tempers in the rowdy debate in the Egyptian parliament, after dozens of opposition representatives demanded holding negotiations to have Eilat returned to Egyptian sovereignty. They contend that the Egyptian negotiating team to Taba conceded Eilat to Israel 20 years ago "in the framework of the wish to build confidence and to display Egyptian good will in the spirit of the peace agreement."
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The opposition Egyptian MPs threatened on Thursday to relay their demand for an Israeli withdrawal from Eilat to the Arab League to handle. Despite Israel's 1979 peace treaty with Egypt, the Arab League's 1948 declaration of war to liquidate the state of Israel remains in force.
More Here:
http://www.israelnationalnews.com/News/News.aspx/147236===========================================
Not exactly the best source, but the discussion has been ongoing in the Egyptian Parliament per other sources. Eilat is within the pre 1967 borders.