The solution to the problem of the refugees originating from the Israeli/Arab conflict is easy enough in concept. It can be accomplished, in part, by including them in the other conventions and legal instruments which were created and still exist for refugees today.
A solution:
1. must be a durable solution and release all peoples from their refugee status.
2. must not be imposed upon individual refugees -- they must have options and choice.
3. must not threaten the existence of either the Jewish State nor the potential Arab State.
4. must be equally applied to both Arab and Jewish refugees (and their descendants).
5. should focus on practical and not philosophical ideals.
I suggest:
- All "refugees" who have been adequately re-settled should no longer be considered refugees, and as such have no special status.
- All refugees of the original conflict who have not been resettled be given the option to a) be settled in the territory of their birth b) be settled in the territory of their current residence c) to be settled in the territory from which they were expelled d) to be settled in another host country (with host country's approval).
- All descendants of refugees who have not been resettled be given the option to a) be settled in the territory of their birth b) be settled in the territory of their current residence c) be settled in the appropriate Jewish or Arab State in the territory of the conflict d) to be settled in another host country as above.
- All refugees of the original conflict (or their immediate families) should receive compensation for losses.
- All governments must be required to provide fair and equal citizenship to all refugees re-settled in this manner.
This is pretty much what is done in all other cases, and should have been done, long ago, in this one.