The Egyptians seized property at will, while refugees were prohibited from owning land. Thousands of young refugees were forcibly conscripted into the Egyptian army. Many were sent to fight Gamal Abdel Nasser's war in Yemen; others were sent into Israel to murder, sabotage and disrupt communications.
Three-quarters of the able-bodied were unemployed. Medical and social services were almost nonexistent The Egyptians did nothing to help farmers, create housing or develop industry. The majority of Arabs in the Strip outside the town of Gaza were left to rot, without sewage, running water, electricity or roads.
INDOCTRINATION TO HATRED of Israel started at the very tenderest years. I saw pictures which children had drawn, with the encouragement of their teachers, depicting themselves killing Israeli children. The textbooks dripped venom. One text for the third grade, entitled Arabic Islamic History read: "The Jews are always the same, in every time, every place. They live only in darkness. They secretly plan to do evil; they fight only from hidden places because they are cowards. We must purify holy Palestine from their filth in order to bring peace back to the Arab homeland."
So harsh was the Egyptian rule in Gaza that Radio Mecca broadcast this protest on March 10, 1962:
"We would like to ask Cairo: What is this iron curtain that Abdel Nasser and his cohorts have lowered around Gaza and the refugees there? These are the very methods which the dictator Hitler used in the countries he occupied. Imagine, Arabs, how Nasser (who claims to be the pioneer of Arab nationalism) treats the Arab people of Gaza, who starve while the Egyptian governor and his officers bask in the wealth of the Strip..."
THE ONLY AREA in which the Egyptian army was active, aside from suppressing human rights, was in smuggling. There was a lively trade between its warehouses in Gaza - stuffed with television sets, French perfumes, Italian silks and US whiskey - and Cairo, with the cooperation of top officials in Egypt. Long convoys would arrive in Cairo biweekly loaded with contraband. When the Israeli forces captured Gaza in 1956 they found these warehouses. (Predictably the military governor and his cohorts had skipped with all the savings that Gazans had deposited in local banks.)
Egypt's policy for the Strip was succinctly spelled out by the deputy governor, Muhammad Flafaga, in an interview appearing in the Danish newspaper Aktuelt on February 9, 1967:
Question: Why not send the refugees to other Arab countries? Syria would no doubt be able to absorb a vast number of them. Are you afraid that national bonds with Palestine will be loosened, that the hatred against Israel will vanish if they become ordinary citizens?
Answer: As a matter of fact, you are right. Syria could take all of them, and the problem would be solved. But we do not want that. They are to return to Palestine. UNRWA reported in 1956: "One of the obstacles to the achievement of the General Assembly's goal of making the refugees self-supporting continues to be the opposition of the governments in the area."
Ralph Galloway, an UNRWA official who quit in frustration, observed bitterly: "The Arab states don't want to solve the refugee problem. They want to keep it as an open sore, as a weapon against Israel. Arab leaders don't give a damn whether the refugees live or die." ===================================
The Palestinian refugee problem that exists to this day should have been resolved long ago.
ISRAEL actually tried resolving it within the W.Bank and Gaza decades ago:
http://www.camera.org/index.asp?x_context=7&x_issue=52&x_article=960
The Arab and UN reaction to Israel's solution of the refugee problem perfectly clarifies this entire conflict and shows why no action taken by Israel (putting the PA in control and easing the occupation in the mid 90's, no new settlements since 1993, Israel agreeing to Clinton Parameters 2000-01, Gaza pullout 2005, last offer by Olmert rejected by Abbas) has made a difference.
Along with his demands of Israel, maybe President Obama should start putting pressure on the Arab world to finally take corrective measures NOW to finally resolve the refugee problem. No one knows how much longer the Peace Process will take. If regional Arab leadership is truly interested in ending this conflict, helping Palestinians, and living at peace with Israel, they should do what should have been done decades ago and the rest of the world should be 100% behind it. It's time Palestinian refugees stopped being used as political and military pawns.