That is exactly what is going on in the Arab-Israeli conflict. Israeli is being pressured by outside governments (US, Russia, EU) to give the Palestinians control of the land of Israeli.
This is a very short-sighted solution for an age old conflict.
This week we read about Tony Blair’s next job and his priority of ‘making a Palestinian state’. The whole situation is actually quite confusing to a person just trying to understand the situation. Norma Parrish Archbold in her book, “The Mountains of Israel” makes some very interesting points. If you don’t understand the history, you wouldn’t know that Palestine was actually created by the British. Jordan is a result of much of that.
Ms. Archbold makes it very clear that she believes that there is already a Palestinian state. If the terrorists want their own place to operate, then they should move to Jordan. She makes it also clear that Israel should never give any land because the land is an intrinsic part of Israel.