The Palestine Liberation Organization (PLO) is a political and paramilitary organization which was created in 1964. It is recognized as the "sole legitimate representative of the Palestinian people" by the United Nations and over 100 states with which it holds diplomatic relations, and has enjoyed observer status at the United Nations since 1974. The PLO was considered by the United States and Israel to be a terrorist organization until the Madrid Conference in 1991. In 1993, PLO recognized Israel's right to exist in peace, accepted UN Security Council resolutions 242 and 338, and rejected "violence and terrorism"; in response, Israel officially recognized the PLO as the representative of the Palestinian people.
The Arab League in Cairo Summit 1964 initiated the creation of an organization representing the Palestinian people.
The Palestinian National Council convened in Jerusalem on 28 May 1964. Concluding this meeting the PLO was founded on 2 June 1964. Its Statement of Proclamation of the Organization declared "... the right of the Palestinian Arab people to its sacred homeland Palestine and affirming the inevitability of the battle to liberate the usurped part from it, and its determination to bring out its effective revolutionary entity and the mobilization of the capabilities and potentialities and its material, military and spiritual forces".
Due to the influence of the Egyptian President Nasser, the PLO supported 'Pan-Arabism', as advocated by him â€“ this was the ideology that the Arabs should live in one state. The first executive committee was formed on 9 August, with Ahmad Shuqeiri as its leader.
In spite of the 1949 Armistice Agreements, the Arab states remained unreconciled to Israel's creation as they had been to the proposed partition of Palestine in 1948. Therefore, the Palestinian National Charter of 1964 stated: "The claims of historic and spiritual ties between Jews and Palestine are not in agreement with the facts of history or with the true basis of sound statehood... The Jews are not one people with an independent personality because they are citizens to their states." (Article 18).
Although Egypt and Jordan favored the creation of a Palestinian state on land they considered to be occupied by Israel, they would not grant sovereignty to the Palestinian people in lands under Jordanian and Egyptian military occupation, amounting to 53% of the territory allocated to Arabs under the UN Partition Plan. Hence, Article 24: "This Organization does not exercise any territorial sovereignty over the West Bank, the Gaza Strip or in the Himmah Area."