They were subjects of the Ottoman Empire whether they felt like citizens or not.
In fact Jerusalem was governed directly by Constantinople and the territory was divided into three separate 'sanjaks' (districts). The districts did have representation in the Ottoman Parliament.
My research is pointing more and more into the utter vileness of British diplomacy...which basically bears full responsibility on what took place while the territory was under Mandate...and where tha ball dropped in 1948.
Many parties became part and parcel burdened under British 'diplomacy' not only in the ME and SE Pacific but Europe as well.
If one wants to point fingers and play the 'Blame Game' - that is squarely where the Pound drops, at Whitehall's doorstep.
We're at a juncture where Israel should stop it's encroachment on territories captured in 1967...but unfortunately will not due to its own perception of defensive military strategy and national security interests. That is the sad reality.
(I don't have a definitive answer. Neither does the rest of the world currently regardless of what Pseudolus thinks.)