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Jerusalem today
1977 - For the first time since Israel's start, Israeli voters turn to a party other than the leftist Labor Party to lead the government, bringing the right-wing Likud Party to power. Likud leader Menachem Begin inaugurates a program, under Ariel Sharon, to promote Jewish settlements in the West Bank, which Begin regards as part of "Greater Israel." Begin takes a different tack on the Sinai Peninsula. Egypt and Israel begin secret peace negotiations. Shocking the world, Egyptian President Anwar Sadat flies to Jerusalem to address the Israeli Knesset (Israel's parliament).
1978 - Egypt and Israel negotiate the first Arab-Israeli peace accord at Camp David in the United States, with U.S. President Jimmy Carter mediating. As part of the final agreement, signed the following year, Israel agrees to return the Sinai Peninsula to Egypt within three years. The United States agrees to provide both nations with billions of dollars in economic aid.
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