There is no Palestinian state here.

[Be-Ahavah U-Be-Emunah – Masei 5771 – translated by R. Blumberg]

Question: Since there are people who are raising the idea of a Palestinian state in portions of Judea and Samaria, what about the possibility of Jewish settlements remaining in that same area?
Answer: That's an old idea. At one time it was a good. Now it’s bad. In the past, we established settlements under Turkish or British rule, and that brought a blessing. Now that is all behind us, and we live in the State of Israel - not in another country.
As is well-known, the mitzvah of the Land of Israel is divisible into three parts: 1. There is a mitzvah to live in Eretz Yisrael and not somewhere else. That is called the mitzvah of living in the Land. 2. There is a mitzvah to settle the Land and to rebuild it. That is called the mitzvah of settling the Land. 3. There is a mitzvah that the Land must be under our sovereignty. That is called the mitzvah of taking possession of the Land (Ramban’s Addenda
to Rambam’s Sefer Ha-Mitzvot #4).
Ramban explains that the most essential component is the third part. The first two occur when the Land is already under our sovereignty.
Ha-Gaon Rabbi Yehoshua of Kutna took a very strict view of this mitzvah. He said that if we are living under foreign rule, we are not fulfilling the Mitzvah of settling the Land. Our living in it has great value, but only as a preparation for fulfilling the mitzvah (Responsa Yeshu’ot Malko, Yoreh Deah #66). It is true that the great halachic authorities do not hold like him. Rather they say that even under foreign rule we fulfill the mitzvah of living in the Land. Still, they concede that we lack the mitzvah of taking possession of the Land, and the mitzvah of living in the Land itself is therefore not being fulfilled to completion.
Thank G-d, we are already a long way past these situations. We have risen to rebirth and we have an independent state. Now it has to be clear to us, to the Arabs and to the entire world that this is our Land. We have waited 2000 years, and now we are returning to it. We shall never leave it, forever and ever, as long as there is a heaven over the earth.
The Arabs who live in our midst have two options: 1. If they wish to live in their own country under their own sovereignty, they have 22 choices, whose area is 500 times greater than the State of Israel. 2. If they are happy living in our midst, we are ready to show them hospitality under our sovereignty and in our country. Obviously they are obligated to keep our laws, just as all the minorities in the world live according to the laws of various countries. Logically, most of them will choose to live in one of their own 22 countries, but as stated, it's up to them. In any event, there is certainly no moral or historic justification for them to have one more country at the expense of our tiny one.
In practical terms as well, it would be unthinkable to leave Jewish settlements in Arab territory. We know them. Many of them are murderers, and we have no guarantee that those among them who are not murderers will succeed in preserving our lives. They will keep us in a constant state of water shutdowns, power outages and terror, and very quickly, G-d forbid, not one Jewish home will remain in place. Especially if war breaks out, those settlements will be hostages, and an awful situation will be created.
But we don't need this analysis at all, because we have already said that in principle, morally, nationally, and historically: this Land is ours. We have to add that the very asking of the question attests to terrible weakness and horrible confusion. Before there was yet a Jewish state, when this question was raised, Rabbenu Ha-Rav Tzvi Yehuda Kook wrote that such a question is the result of a loss of self-confidence, due to the Holocaust, which made it harder for us to state confidently, “This is our Land” (LeNetivot Yisrael 1:92).
After all, there has been no nation in the world, throughout history, that was ready to give up part of its land. Nations are ready to engage in wars with great self-sacrifice for the sake of liberating the full expanse of their lands. Certainly they are ready to defend it when they already hold it. There is no parallel throughout history of a people fleeing from its land and handing it over to a foreign people!
This is our Land! Even the nations of the world recognized this with the decision of San Remo ninety years ago in 5680. The representatives of the great powers that had achieved victory in the First World War gathered together in Italy to divide up the Middle East following the collapse of the Ottoman Empire. This decision included within it the Balfour declaration from 5677 to establish for us a national home, a decision that was accepted then by the League of Nations, and signed on by 51 nations. The Arabs then received an enormous tract of land compared to what we received. Already then Balfour said to them: What are you complaining about? You received an enormous area, and in contrast, the Jews received a tiny niche?!
This was an international decision and there is no authority under international law to change it and exercise a new partition. According to the Balfour declaration, all the Jewish settlements are legal, and not only do the Jews have a right to settle in them, but the nations have a duty to help build them. See Howard Grief’s book, The Legal Foundation and Borders of Israel under International Law. How fortunate is the human race which in a moment of spiritual elevation admitted that this is our Land forever and ever.
Thus, the solution in relation to Judea and Samaria is very simple, and can be summed up by two words that Moshe, in his time, used with the spies: “Be strong!” (Bamidbar 13:20).
We must be strong! That will allow us already to find solutions to all of our problems, as we have until now.
We have been reborn. We have emerged from the nightmare of the Exile. Let us be strong and march forward.
Be strong and take courage!