Residents appealed to Prime Minister Ariel Sharon and the cabinet, and also approached Attorney General Menachem Mazuz, arguing that the state is morally and legally obligated to pay compensation because it had not managed to keep the peace and protect property, as is expected.

"We welcome the decision and hope that implementation will be soon, in light of the fact that many Christian families have not returned to Maghar after having lost their property," said Elias Sleiman, a member of the Maghar Christian Committee, which was established after the events.

"I hope the compensation will help heal the rift," Sleiman said, adding he hoped it would not encourage people to damage property, knowing the government will compensate the victims.