PA daily refers to Israeli Arabs as residents from the 1948 territories
Official PA daily, Al-Hayat Al-Jadida - July 21, 2012

     "More than 130,000 residents, from Jerusalem, from the [19]48 territories (i.e., Israel), and from the West Bank, participated in prayers on the first Friday of the month of Ramadan, in the Al-Aqsa Mosque plaza."