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That Einstein's statement was made before reality has drastically changed those rendering his statement obsolete. And, consequently, quoting it as well.
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As early as 20 December 1940, Yosef Weitz wrote in his diary:
"it must be clear that there is no room in the country for both peoples. ... If the Arabs leave it, the country will become wide and spacious for us. ... The only solution is a Land of Israel ... without Arabs. There is no room here for compromises. ... There is no way but to transfer the Arabs fom here to the neighboring countries, and to transfer all of them, save perhaps for [the Arabs of] Bethlehem, Nazareth and old Jerusalem. Not one village must be left, not one [bedouin] tribe. The transfer must be directed to Iraq, Syria and even Transjordan. For this goal funds will be found. ... And only after this transfer will the country be able to absorb the millions of our brothers and the Jewish problem will cease to exist. There is no other solution." (
Birth, p. 27)
Reality was made way before the war, Einstein was just too politically naive to recognize it.