The recrudescent tension between Jordan and the PLO was symptomatic of their differing visions of an Arab-Israeli settlement. Jordan accepted UN Security Council resolutions 242 and 338 as the basis for any settlement, including the question of Palestinian national rights. Within this framework, Jordan demanded total Israeli withdrawal from all territories occupied in 1967; a solution to the refugee problem either by repatriation or compensation; the right of Palestinians to self-determination; and mutual guarantees for peace. The PLO consistently rejected both 242 and 338 on the ground that the Palestinian people are only mentioned in the resolutions as refugees and not as a people deserving a national homeland.

On the issue of self-determination, Hussein agreed with the PLO that the Palestinians had the right to establish "a national and political entity," but he refrained from giving his support to a fully independent Palestinian state, which he saw as a direct threat, particularly if headed by the PLO. Moreover, he believed that if he could neutralize the PLO, the West Bank and Gaza Strip populations would accept an arrangement based on his own federation plan.

Despite his desire to be the primary Arab negotiator over the territories, Hussein also realized that his role in any future negotiations required a clear mandate from the Arab states. He could not deviate too far from the Arab consensus concerning the occupied territories for fear of losing badly needed economic aid or instigating military attacks from Iraq and Syria. As a result, Hussein chose to participate in the proposed October 1, 1977, Geneva Conference on the Middle East as a "confrontation state" but not as the representative of the Palestinians.

Data as of December 1989