Possible final status arrangements for the Palestinian refugee issue are explored, with emphasis on their consequences for the Palestinians in Lebanon. It is suggested that the right of return will be limited largely to the West Bank and Gaza, where it will be shaped by local economic conditions. Available compensation funds may be inadequate. Greater research and policy planning are needed in these areas. Moreover, because Lebanon will continue to host a significant Palestinian population for many years to come, both Palestinian-Lebanese dialogue and improvement in the social, economic, and legal status of the Palestinians are imperative.

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