The Palestinian territories consist of two (or perhaps three) distinct areas — the West Bank, the Gaza Strip and East Jerusalem. Israel regards East Jerusalem not to be a part of the West Bank, but regards it is as part of a unified Jerusalem, which is Israel’s capital. The eastern limit of the West Bank is the border with Jordan. The Israel-Jordan peace treaty defined that border as the international border, and Jordan renounced all claims to territory west of it. The border segment between Jordan and the West Bank was left undefined pending a definitive agreement on the status of the territory .
The southern limit of the Gaza Strip is the border with Egypt. Egypt renounced all claims to land north of the international border, including the Gaza Strip, in the Israel-Egypt peace treaty. The Palestinians were not parties to either agreement.
In any event, the natural geographic boundaries for the West Bank and the Gaza Strip are the Jordan River and the Mediterranean Sea, respectively.
It is now generally accepted, at least as a basis for negotiation between the sides, that the boundaries between the West Bank and the Gaza Strip and the State of Israel are what has historically been referred to as the Green Line. The Green Line represents the armistice lines under the 1949 Armistice Agreements, which brought an end to the 1948 Arab-Israeli War, and which were expressly declared in the Agreements to be armistice lines and not international borders.
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