Here is an excerpt from an article, “Wars of words“, written by Danny Rubinstein, and published in the current on-line edition of Haaretz, 23 March 2007:
“The most rigorous language war in the history of the Arab-Israel conflict was waged by Israel’s governments, after the West Bank and Gaza Strip were occupied in 1967, against the name ‘Palestine‘. Then-prime minister Golda Meir declared that there was no such thing as a Palestinian people and even displayed her identity card from the British Mandate period, where she was designated a citizen of ‘Palestine, E.I.’, which stood for Eretz Israel. Menachem Begin would use the phrase ‘the organization that calls itself the Palestine Liberation Organization’, to avoid mentioning the name of the people living next to Israel. For the Hebrew translation of the 1978 Camp David agreement between Israel and Egypt, whose English version speaks of the ‘legitimate right of the Palestinians’, Begin demanded that the phrase ‘Israeli Arabs’ be used instead of ‘Palestinians’.”
http://www.haaretz.com/hasen/spages/841027.html