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In July 1967, weeks after it occupied the West Bank and Gaza, #Israel considered - in a top secret memo (*with utmost thanks to @Akevot for exposing) - two primary options for the recently occupied territory. Annexation or the establishment of a #Palestinian state. 
Israeli officials write with a sense of urgency, cautioning that Israel will be perceived by the international community as "maintaining colonial rule in these occupied territory," while considering the options for an example of occupied Palestinian territory.
Annexation of the West Bank and Gaza to Israel, "with limited autonomy for the people of the West Bank (e.g., establishing a canton l)," is seento allow for effective control and isolation of Gaza. They are equally aware of the prohibition on annexation and alien domination.
The other option, a Palestinian state established in the West Bank, with a capital "in proximity to Jerusalem", demilitarized and under onerous Israeli security control, is seen to "resolve the question of Palestine and the Arab-Israeli conflict."
Two options are contemplated in respect to Gaza: the transfer of Palestinians to the West Bank and annexation to Israel or controlled passage between "two parts of a single political unit."
56 years later, Israel chose the annexation of the West Bank (with nominal Palestinian autonomy) and the severance and besiegement of Gaza over all other options.
Nevertheless, we learn that from the onset #Israel knew that the territory of the West Bank and Gaza was occupied (where Israel had no sovereign rights), that annexation was in breach of international law, and that #Palestinians were entitled to self determination therein.
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