The growing Arab hostility was a constant threat to the security of Israel. In the years after independence, Israeli leaders dedicated themselves to creating a Jewish homeland. Aided by reparations paid by the postwar German government and private funds provided by Jews living abroad, notably in the United States, the government attempted to build a democratic and modern state that would be a magnet for Jews throughout the world and a symbol of Jewish achievement. Ensuring the survival of the tiny state surrounded by antagonistic Arab neighbors was a considerable challenge, made more difficult by divisions within the Israeli population. Some were immigrants from Europe, while others came from countries of the Middle East. Some were secular and even socialist in their views, while others were politically conservative and stressed religious orthodoxy. There were also Christians as well as many Muslim Palestinians who had not fled to other countries. To balance these diverse interests, Israel established a parliament, called the Knesset, on the European model, with proportional representation based on the number of votes each party received in the general election. The parties were so numerous that none ever received a majority of votes, and all governments had to be formed from a coalition of several parties. As a result, moderate secular leaders such as longtime Prime Minister David Ben Gurion had to cater to more marginal parties composed of conservative religious groups. During the late 1950s and 1960s, the dispute between Israel and other states in the Middle East escalated in intensity. Essentially alone except for the sympathy of the United States and several Western European countries, Israel adopted a policy of determined resistance to and immediate retaliation against alleged PLO and Arab provocations. By the spring of 1967, relations between Israel and its Arab neighbors had deteriorated as Nasser attempted to improve his standing in the Arab world by intensifying military activities and imposing a blockade against Israeli commerce through the Gulf of Aqaba. Concerned that it might be isolated, and lacking firm support from Western powers (who had originally guaranteed Israel the freedom to use the Gulf of Aqaba), in June 1967 Israel suddenly launched air strikes against Egypt and several of its Arab neighbors. Israeli armies then broke the blockade at the head of the Gulf of Aqaba and occupied the Sinai peninsula. Other Israeli forces attacked Jordanian territory on the West Bank of the Jordan River ( Jordan’s King Hussein had recently signed an alliance with Egypt and placed his army under Egyptian command), occupied the whole of Jerusalem, and seized Syrian military positions in the Golan Heights along the Israeli-Syrian border. Despite limited Soviet support for Egypt and Syria, in a brief six-day war, Israel had mocked Nasser’s pretensions of Arab unity and tripled the size of its territory, thus enhancing its precarious security (see Map 13.1). Yet Israel had also aroused more bitter hostility among the Arabs and included an additional million Palestinians inside its borders, most of them living on the West Bank. During the next few years, the focus of the Arab-Israeli dispute shifted as Arab states demanded the return of the occupied territories. Meanwhile, many Israelis argued that the new lands improved the security of the beleaguered state and should be retained. Concerned that the dispute might lead to a confrontation between the superpowers, the Nixon administration tried to achieve a peace settlement. The peace effort received a mild stimulus when Nasser died of a heart attack in September 1970 and was succeeded by his vice president, ex-general Anwar al-Sadat (1918–1981). Sadat soon showed himself to be more pragmatic than his predecessor, dropping the now irrelevant name United Arab Republic in favor of the Arab Republic of Egypt and replacing Nasser’s socialist policies with a new strategy based on free enterprise and encouragement of Western investment. He also agreed to sign a peace treaty with Israel on the condition that Israel retire to its pre-1967 frontiers. Concerned that other Arab countries would refuse to make peace and take advantage of its presumed weakness, Israel refused. Rebuffed in his offer of peace, smarting from criticism of his moderate stand from other Arab leaders, and increasingly concerned over Israeli plans to build permanent Jewish settlements in the occupied territories, Sadat attempted once again to renew Arab unity through a new confrontation with Israel. In 1973, on Yom Kippur (the Jewish Day of Atonement), an Israeli national holiday, Egyptian forces suddenly launched an air and artillery attack on Israeli positions in the Sinai just east of the Suez Canal. Syrian armies attacked Israeli positions in the Golan Heights. After early Arab successes, the Israelis managed to recoup some of their losses on both fronts. As a superpower confrontation between the United States and the Soviet Union loomed, a cease-fire was finally reached. In the next years, a fragile peace was maintained, marked by U.S. “shuttle diplomacy” (carried out by U.S. Secretary of State Henry Kissinger) and the rise to power in Israel of the militant Likud Party under Prime Minister Menachem Begin (1913–1992). The conflict now spread to Lebanon, where many Palestinians had found refuge and the PLO had set up its headquarters. Rising tension along the border was compounded by increasingly hostile disputes between Christians and Muslims over control of the capital, Beirut. After his election as U.S. president in 1976, Jimmy Carter began to press for a compromise peace based on Israel’s return of occupied Arab territories and Arab recognition of the state of Israel (an idea originally proposed by Kissinger). By now, Sadat was anxious to reduce his military expenses and announced his willingness to visit Jerusalem to seek peace. The meeting took place in November 1977, with no concrete results, but Sadat persisted. In September 1978, he and Begin met with Carter at Camp David in the United States. Israel agreed to withdraw from the Sinai, but not from other occupied territories unless it was recognized by other Arab countries. The promise of the Camp David agreement was not fulfilled. One reason was the assassination of Sadat by Islamic militants in October 1981. But there were deeper causes, including the continued unwillingness of many Arab governments to recognize Israel and the Israeli government’s encouragement of Jewish settlements in the occupied West Bank. During the early 1980s, the militancy of the Palestinians increased, leading to rising unrest, popularly labeled the intifada (uprising) among PLO supporters living inside Israel. To control the situation, a new Israeli government under Prime Minister Itzhak Shamir invaded southern Lebanon to destroy PLO commando bases near the Israeli border. The invasion provoked international condemnation and further destabilized the perilous balance between Muslims and Christians in Lebanon. As the 1990s began, U.S.-sponsored peace talks opened between Israel and a number of its neighbors. The first major breakthrough came in 1993, when Israel and the PLO reached an agreement calling for Palestinian autonomy in selected areas of Israel in return for PLO recognition of the legitimacy of the Israeli state. Progress in implementing the agreement, however, was slow. Terrorist attacks by Palestinian militants resulted in heavy casualties and shook the confidence of many Jewish citizens that their security needs could be protected under the agreement. At the same time, Jewish residents of the West Bank resisted the extension of Palestinian authority in the area. In November 1995, Prime Minister Yitzhak Rabin was assassinated by an Israeli opponent of the accords. National elections held a few months later led to the formation of a new government under Benjamin Netanyahu (b. 1949) which adopted a tougher stance in negotiations with the Palestinian Authority under Yasir Arafat. When Netanyahu was replaced by a new Labour government under Prime Minister Ehud Barak (b. 1942) the latter promised to revitalize the peace process. Negotiations continued with the PLO and also got under way with Syria over a peace settlement in Lebanon and the possible return of the Golan Heights. But in late 2000, peace talks broke down over the future of the city of Jerusalem, leading to massive riots by Palestinians, an Israeli crackdown, and the election of a new and more hard-line Israeli prime minister, the former Defense Minister Ariel Sharon (b. 1928). Sharon’s ascent to leadership was accompanied by a rash of suicide attacks by Palestinians against Israeli targets, an intensive Israeli military crackdown on suspected terrorist sites inside Palestinian territory, and a dramatic increase in bloodshed on both sides. Although Saudi Arabia set forth a plan calling for full Arab recognition of the state of Israel in return for the latter’s final withdrawal from occupied territories, prospects of reaching a peace agreement remain dim.