[SJackson]

No one has suggested only Jews lived in Palestine, a geographical term which has existed for millenia. In the late 19th early 20th century Palestine was used to the future Jewish Homeland. The governing League of Nations document is The Palestine Mandate, which states, among other things,

Whereas recognition has thereby been given to the historical connection of the Jewish people with Palestine and to the grounds for reconstituting their national home in that country

An appropriate Jewish agency shall be recognised as a public body for the purpose of advising and co­operating with the Administration of Palestine in such economic, social and other matters as may affect the establishment of the Jewish national home and the interests of the Jewish population in Palestine, and, subject always to the control of the Administration to assist and take part in the development of the country.

The Zionist organization, so long as its organization and constitution are in the opinion of the Mandatory appropriate, shall be recognised as such agency. It shall take steps in consultation with His Britannic Majesty's Government to secure the co­operation of all Jews who are willing to assist in the establishment of the Jewish national home.

The Administration of Palestine, while ensuring that the rights and position of other sections of the population are not prejudiced, shall facilitate Jewish immigration under suitable conditions and shall encourage, in co­operation with the Jewish agency referred to in Article 4, close settlement by Jews on the land, including State lands and waste lands not required for public purposes.

The Administration of Palestine shall be responsible for enacting a nationality law. There shall be included in this law provisions framed so as to facilitate the acquisition of Palestinian citizenship by Jews who take up their permanent residence in Palestine.

As to a particular type of Arab, a "palestinian", I'll take the PLOs definition, since they coined it.

"The Palestinian people does not exist. The creation of a Palestinian state is only a means for continuing our struggle against the state of Israel for our Arab unity. In reality today there is no difference between Jordanians, Palestinians, Syrians and Lebanese. Only for political and tactical reasons do we speak today about the existence of a Palestinian people, since Arab national interests demand that we posit the existence of a distinct 'Palestinian people' to oppose Zionism."
PLO executive committee member Zahir Muhsein on March 31, 1977

[abu afak]

There were some indogenes.. many of them transients, tenant farmers, bedouins; Though Palestine in the 19th Century, by ALL Accounts was Desolate, fully able, indeed in need of a Population.

MANY Links on this available if you are interested