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Had the 1947 partition plan of Palestine been accepted, there would have been an international zone centered around Jerusalem and Bethlehem until a referendum to be held at a later date.

A UN body would be in charge of it but what was the specific plan for the governance of this region? What citizenship would the people hold? Would it be a democracy? How would it behave economically?

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It's all spelled out in the original document. On a cursory reading, apparently there was no plan for separate citizenship of the City of Jerusalem.

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my cursory reading differs "11. Citizenship. All the residents shall become ipso facto citizens of the City of Jerusalem unless they opt for citizenship of the State of which they have been citizens or, if Arabs or Jews, have filed notice of intention to become citizens of the Arab or Jewish State respectively, according to part I, section B, paragraph 9, of this plan." – pugsville May 29 '14 at 6:17
@pugsville I stand corrected. As I said, I was only doing a cursory reading. – Felix Goldberg May 29 '14 at 6:18

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