The plan called for Israeli withdrawal from all occupied territories, including Arab East Jerusalem, the dismantling of all Israeli settlements in occupied territories, a right of return for all Palestinian refugees, and the establishment of an independent Palestinian state in the West Bank and Gaza. The right of return aside, the plan was in line with previous United Nations resolutions. It was also to anticipate various peace plans put forward since, including the Bush administration's 2002 "road map for peace."
The Saudi plan was largely dismissed by Israel and the Reagan administration--a dismissal that reflected poorly on both in Saudi Arabia's estimation as it further diminished what limited trust existed, from the Arab side, that Israel and the United States would be willing partners in a peace initiative not exclusively driven by either.
The full text of the Saudi peace initiative follows.
Eight Point Peace Plan
by Crown Prince Fahd ibn Abd al-Aziz of Saudi Arabia
August 7, 1981
1. Israel to withdraw from all Arab territory occupied in 1967, including Arab Jerusalem.
2. Israeli settlements built on Arab land after 1967 to be dismantled, including those in Arab Jerusalem.
3. A guarantee of freedom of worship for all religions in the Holy Places.
4. An affirmation of the right of the Palestinian Arab people to return to their homes and compensation for those who do not wish to return.
5. The West Bank and the Gaza Strip to have a transitional period under the auspices of the United Nations for a period not exceeding several months.
6. An independent Palestinian State should be set up with Jerusalem as its capital.
7. All States in the region should be able to live in peace in the region.
8. The United Nations or Member States of the United Nations to guarantee the carrying out of these provisions.
