The concept of "Palestinians" is one that did not exist until about 1948, when the Arab inhabitants, of what until then was Palestine, wished to differentiate themselves from the Jews. Until then, the Jews were the Palestinians. There was the Palestinian Brigade of Jewish volunteers in the British World War II Army (at a time when the Palestinian Arabs were in Berlin hatching plans with Adolf Hitler for world conquest and how to kill all the Jews); there was the Palestinian Symphony Orchestra (all Jews, of course); there was The Palestine Post; and so much more.
The Arabs who now call themselves "Palestinians" do so in order to persuade a misinformed world that they are a distinct nationality and that "Palestine" is their ancestral homeland. But they are no distinct nationality at all. They are the same - in language, custom, and tribal and family ties - as the Arabs of Syria, Jordan, and beyond. There is no more difference between the "Palestinians" and the other Arabs of those countries than there is between, say, the citizens of Minnesota and those of Wisconsin.
What's more, many of the "Palestinians", or their immediate ancestors, came to the area attracted by the prosperity created by the Jews, in what previously had been pretty much of a wasteland.
- New York Times, June 12, 2000 (via CFICEJ's ISRAEL REPORT May/June 2000)
Until 1950, the name of the Jerusalem Post was THE PALESTINE POST; the journal of the Zionist Organization of America was NEW PALESTINE; Bank Leumi was the ANGLO-PALESTINE BANK; the Israel Electric Company was the PALESTINE ELECTRIC COMPANY; there was the PALESTINE FOUNDATION FUND and the PALESTINE PHILHARMONIC. All these were Jewish organizations. In America, Zionist youngsters sang "PALESTINE, MY PALESTINE", "PALESTINE SCOUT SONG" and "PALESTINE SPRING SONG" In general, the terms Palestine and Palestinian referred to the region of Palestine as it was. Thus "Palestinian Jew" and "Palestinian Arab" are straightforward expressions. "Palestine Post" and "Palestine Philharmonic" refer to these bodies as they existed in a place then known as Palestine. The adoption of a Palestinian identity by the Arabs of Palestine is a recent phenomenon. Until the establishment of the State of Israel, and for another decade or so, the term Palestinian applied almost exclusively to the Jews.
http://www.peacefaq.com/palestinians.html