The General’s Son

In the book “The General’s Son: Journey of an Israeli in Palestine,” by Miko Peled, the General refers to Major General Mattityahu “Matti” Peled (1923–1995), an Israeli military commander who became a prominent peace activist, academic, and politician. A key architect of the Israeli Defense Forces’ (IDF) victory in the 1967 Six-Day War, he later transitioned into a radical advocate for Israeli-Palestinian dialogue and a two-state solution.

Like his father, Miko was also an avid Zionist who believed in peaceful relations with his Arab neighbors in two sovereign states. When Milo’s niece Smadar was killed by a Palestinian suicide bomber in 1997, Miko’s reaction to his grief tells us all we need to know to understand the heart of this book. Rather than expressing hatred toward the Palestinian murderer of his beloved niece, he felt shame and anger toward his fellow Israelis for driving a Palestinian boy to take his own life in this way. The book relays Miko’s journey upto and beyond this tragedy and sets out a more balanced history than you might have heard.

Having settled in San Diego to teach karate, Miko began to participate in mixed Jewish/Arab groups (San Diego Jewish-Palestinian Dialogue Group) discussing their experiences in and hopes for Israel and the West Bank and Gaza Strip (WBGS) and became hopeful for two sovereign states living peacefully next to each other. When Israeli Prime Minister Ehud Barak and Palestinian leader Yasser Arafat meet with President Bill Clinton at Camp David in Maryland, Miko was sure peace was at hand. When the talks fail to achieve agreement and Clinton seems to blame Arafat, Miko is shocked.

“Arafat had been consistent for years. For the sake of peace he was willing to give up the dream of all Palestinians to return to their homes and their land in Palestine. He was willing to recognize Israel, the state that destroyed Palestine, took his people’s land, and turned them into a nation of refugees. He was ready to establish an independent Palestinian state in the West Bank and Gaza—which make up only 22 percent of the Palestinian homeland—with Arab East Jerusalem as its capital.

“He was ready to do all this, but he was not going to settle for anything less. He had always been clear about what he saw as the terms for peace.

“In the end, it turned out that… what the Israelis had demanded at Camp David was tantamount to total Palestinian surrender…. Barak demanded that Arafat sign an agreement to end the conflict forever and in return, he would be permitted to establish a Palestinian state on an area of land that could not be defined clearly because it was broken into pockets with no geographic continuity. Instead of Arab East Jerusalem, he would receive a small suburb of East Jerusalem as his capital. To that Yasser Arafat refused to agree.” (p. 126)

Miko’s love of Israel and increasing exposure to Palestinians (both in San Diego and in the West Bank, which he visited often to teach Karate and promote mutual understanding) exposed him to the shocking mistreatment of Palestinians in their own land. His compassionate heart and wisdom led him to strongly advocate the two-state solution to the struggles between the Arabs and Jews occupying the area.

During a visit to Ramallah to meet Abu Ali Shahin, Fatah commander and leader of the Palestine political prisoners for more the two decades, Miko exclaimed that: “Immediately after the war, while still in uniform, my father said that Israel must recognize the rights of the Palestinian people. He said that if we don’t do this, the Israeli army would become an occupation army and would resort to brutal means to enforce the IsraeliOslo occupation on the Palestinian people. He said this while still in uniform and he never stopped saying it and advocating for Palestinian rights till he died.” (p. 229)

In my own work with the IMF helping to establish the Palestine Monetary Authority called for by the Oslo Accord, I was disheartened to observe Israel’s abusive treatment of the Palestinians. The Oslo Accord itself did not provide for a fully independent and sovereign state for the Palestinians (themselves semitic children of Abraham). It provided what was hoped would be the first trust-building steps toward such a true state. However, Israel carved up the West Bank with highways only usable by Israelis. Palestinians driving to their new capital of Ramallah had to wait hours to enter via the Israeli-controlled check point. With my UN passport I could sail in via the Israeli entrance with no wait. Israel isolated the Palestinian population of the WBGS in every way imaginable.

Though declared illegal by the UN, Israeli Jews increasingly stole Palestinian land to establish Jewish settlements, carving up and often destroying Palestinian farms in the process. The number of Jews living in illegal settlements in the West Bank grew from about 80,000 in 1990 to almost 530,000 in 2025. But this pales compared to the shocking mistreatment reported by Miko.

At the end of Miko’s meeting with the 72-year-old Fatah leader, Abu, Ali Shahin, stated:

“We all belong to this land and need to live together. No one is safe in one Jewish state. Judaism is a religion, and I am speaking of a secular state of all its citizens. That is the only way to live here. Being Jewish or Muslim or Christian or atheist, that is a personal choice, not for me to dictate and not to be dictated to me. I don’t want a priest or a rabbi or a sheikh to govern my life. We belong in this land, and we need to live here as equals.”

Miko then writes: “This was not the first time I had heard someone talk of the ‘one secular democratic state,’ as the right solution. It was the part of the Fatah manifesto to create a secular democracy in all of Palestine. In the past, I could not stomach it, but the more I met impressive, intelligent people like Abu Ali, people who were driven by principle, the more I thought that there was no point, indeed no future, in dividing the people and the land. Not to mention the fact that the settlements and the facts on the ground had succeeded in erasing the West Bank as a viable area in which a Palestinian state could be established.”

In my book on my travels in the area, “Palestine: The Oslo Accords Before and After”, I still strongly supported a two-state solution. But when I asked George Abed, my IMF colleague then Governor of the Palestine Monetary Authority I was there to help create, if he would write the Foreword to my book, he declined, saying the book was unfair to the Palestinians. I have now come to accept that he was right.

This book was published in 2012. From that year (January 2012) until October 6, 2023 Palestinians killed about 300 Israelis, who killed about 3,900 Palestinians. From the October 7, 2023, attack on Israel until now (June 2, 2026), Palestinians killed about 1,400 Israelis (of whom 1,200 were killed during Hamas’s Oct. 7 attack), who then killed about 75,000 Palestinians. The status quo is clearly not working for Israelis or for Palestinians.

The United States, home to about as many Jews as there are in Israel, is a secular state with large populations of Jews, Protestants, Catholics, Muslims and other religious groups. Our constitution forbids the government from adopting any one of them. They have each flourished. I have reluctantly concluded that Israel must annex the West Bank of Gaza and give full and equal citizenship and rights to all Arabs and Jews living there. “A one state solution”“A one state solution – 2”.

The wars and ethnic cleansing now underway by the Netanyahu government is not only destroying Israel, but also dragging the United States down with it and I haven’t even mentioned Iran.

Palestine

Starting in July 1995, I led IMF technical assistance teams to Israel and the West Bank and Gaza to help implement the provisions in the Oslo Accords to establish a monetary authority (Central Bank). These visits were at the invitation of the Israeli government and began and ended with briefing meetings with officials at the Bank of Israel in Jerusalem. I later led the IMF’s Financial Stability Assessment of Israel. The last of my eleven visits was in December 2013.

Following Israel’s occupation of the West Bank and Gaza Stripe (WBGS) in 1967, it allowed Palestinian skilled workers to fill labor needs in Israel. In the mid 1980s 40% of the Palestine workforces was employed in Israel. But prior to my first visit Israel closed that door and began importing workers from North Africa to fill the resulting shortage.

Looking back, in light of Israels on going attacks on Gaza, West Bank, Lebanon, Syria and Iran, (what a Financial Times article headlined as “Israel’s Spiraling Offensive” https://www.ft.com/content/cbe18019-752f-4770-be40-fe4b2dc5abd7?d )  I am surprised at what we close our eyes to officially and unofficially.

We knew that Jewish settlements in the West Bank (and earlier in Gaza) on land stolen from Palestinians were in violation of the Fourth Geneva Convention, which prohibits the transfer of an occupying power’s civilian population into occupied territory. But in our Financial Stability Assessment of Israel, we ignored the financial implications for Israeli bank loans to setters on the grounds that the Israeli government would bail them out for any loses incurred. Looking back, I don’t really know where this judgement came from, but we understood that we were to ignore the Settlements.

During one of my missions we saw a new Jewish settlement being born before our eyes. A few dozen Jewish families had parked their trailers on Palestinian land. When Palestinians protested the theft of their land, the Settlers call on the Israeli Army for protection. Subsequently they would build permanent houses on this property.

On most of my missions to the WBGS we stayed in the famous American Colony Hotel in East Jerusalem (Laurence of Arabia had stayed there as had Peter O’Toole while later filming the movie). From there we had to drive each day to Ramallah, the headquarters of the Palestine Authority and future home of the Palestine Monetary Authority we were helping create.  Two features of our daily drive confronted us with how Israel was treating the Palestinians in the territories it occupied.

Israel was building separate Jewish only highways through the West Bank and to Gaza. Most Palestinians working in Ramallah commuted each day on their own roads.  There were separate entry check points for Palestinians and for Jews (and the international community such as us). We sailed through the Jewish entry, where our UN passports were quickly reviewed, while it took an hour or two for most Palestinians lined up at their check point to enter every day. I was amazed that Palestinian anger at such treatment was so subdued and seldom expressed.

Our several trips to Gaza and my meeting with Yasser Arafat and near abandonment in the desert are a fascinating story in their own right that you can read in my book:  “Palestine-Oslo Accords – My Travels to Jerusalem” Hearing the explosion of a terrorist attack on a Jerusalem bus while eating breakfast in the American Colony Hotel and subsequently fleeing to Jordan across the tiny Allenby Bridge over the Jordan River are also discussed in the same book.

Oslo: the Play

IMG_2150Yessar Arafat and Warren Coats in the PLO office in Gaza in February 1996.

Last night I saw the Round House Theater’s magnificent production of Oslo, the story of the secret meetings in Norway that led to the establishment of the Palestinian Authority.  It was a moving (heart wrenching) and balanced recounting of how these meetings achieved agreement between Israel and the Palestinian Liberation Organization on “land for peace” as it was called at the time after many years of failed official negotiations. I urge you to see it.

We heard the PLO negotiators lay out the Israeli theft of their homes and killings of their people and we heard the Israeli negotiators lay out the Palestinian attacks on Israelis and on the efforts of Jews to establish and secure an Israeli homeland.  For perspective, since the second intifada (between September 29, 2000 and January 31, 2018) at least 9,560 Palestinians have been killed by Israelis and 1,248 Israelis have been killed by Palestinians.  “The View from the West Bank”

The play focused on the unusual approach of these negotiations, which built on the development of trust and respect between the opposing negotiators and the agreement on achievable steps one step at a time. Between their long negotiating sessions in an isolated room near Oslo, they dinned, drank and bonded together. Unfortunately, the play fails to provide us with an overview of the resulting agreement, which applied the same step by step confidence building approach to the incremental establishment of a Palestinian government (the Palestinian Authority) and withdrawal of Israeli troops from the West Bank and Gaza. The PA was given governance authority for a limited number of functions in order—step by step—to build both institutional capacity and trust.

One of those functions was the establishment of the monetary authority (central bank). I led the IMF team that helped establish the Palestinian Monetary Authority and have many stories to tell of my many visits to Israel and the West Bank and Gaza in 1995-6 plus a number of visits in later years (most recently in December, 2011).

The PMA has developed into a well-run organization of which Palestinians (and those Israelis who see a successful Palestine government as important and necessary for their own security) can be proud.  It helped a great deal that the Bank of Israel and PMA developed good relations. Stanley Fischer was the governor of the BoI from 2005-13 and George Abed was governor of the PMA from 2005-7. They had both previously been colleagues at the IMF. “Jerusalem in August 2006”

It is with a broken heart that I watch Israel’s Prime Minister, Benjamin Netanyahu, with help from American President Donald Trump, increasingly abandon the two state solution of the Oslo Agreement for an apartheid single state regime in which “democratic” Jewish control is preserved by denying what would become the majority Palestinian residents their right to vote. “The Future of Israel and Palestine”