RAMALLAH (West Bank) (Agencies) - Hundreds of Palestinians staged a march in Bethlehem to commemorate Al-Naqba Day (The Catastrophe Day) on Thursday. Palestinians inaugurated a symbolic "camp of return" to mark refugees' ties to lands lost when the Jewish state was created 60 years ago. The Palestinians have never lost hope of returning. "Since the Jews chased us from Najd during the Naqba of 1948 we haven't had any peace and quiet. Under occupation life is bitter," laments Abu al-Jidyan, who has been a refugee since he was nine years old. Palestinian Prime Minister Salam Fayyad was among dignitaries who attended the inauguration of the tented camp featuring displays of photographs and documents dating back to the 1948 creation of Israel which turned hundreds of thousands of people into refugees. About 760,000 Palestinians were expelled or fled their homes when Israel was created. In the occupied West Bank town of Bethlehem, several hundred Palestinians chanting "the right of return is sacred" staged a march around a truck carrying a 10-tonne metal key symbolising the homes people lost in 1948. Today, the fate of the estimated 4.5 million refugees and their descendants is one of the thorniest issues of the Israeli-Palestinian conflict. Israel opposes any suggestion that the refugees be allowed to return. Israel's celebration of 60 years of independence is clearly more bitter than sweet for Arabs, who mark the war as "Al-Naqba Day".  Arab Israelis marched for the right of return for refugees who fled their homes during the war. Chanting "no alternative to the right of return," thousands of people walked up a grassy hill towards a pine grove that covers the ruins of the Arab village of Safuriyah. As they made their way up a dirt path alongside a highway, they waved Palestinian flags and banners of Arab Israeli parties, chanting: "With our blood, with our soul, we sacrifice for Palestine." On the other side of the road, a few dozen people celebrated Israel's independence, waving Israeli flags. "The crusaders were here for 150 years and then they left. The same thing will happen with Israel," said Suleiman Abd al-Majid, 73, who fled Safuriyah at the age of 14 and now lives in nearby Nazareth. Leaning on a cane and breathing heavily as he made his way up the hill, Abd al-Majid insisted that his 12 children and 40 grandchildren have the right to return to what was once his home. Demonstrators of all ages took part in Thursday's protest, staged as Israel celebrated its birthday with military displays, beach parties and fireworks. "Even after a million years we will still be steadfast and we will still demand the right of the refugees to return to Palestine," said Aziz Basiuni, a 21-year-old university student. He held aloft a huge flag with a picture of revolutionary Ernesto "Che" Guevara, whom he called a "symbol of victory". "Wherever there is injustice in the world, you find him there," he said of the iconic Argentine who fought in the Cuban revolution alongside Fidel Castro. In the occupied West Bank, Palestinians also marked six decades since what they call the Al-Naqba Day. Meanwhile, a 33-year-old Palestinian woman, Wafa al-Dagma, was killed by an Israeli tank shell during a military incursion in the southern Gaza Strip late Wednesday, a Palestinian medical official said. Jabaliya Palestinian refugee camp is the biggest in the Middle East and home to more than 106,000 people. Gaza's refugees, who make up two-thirds of the 1.5-strong million population, rely largely on aid from UNRWA to survive. Resident Abdelqader Ahmad, 72, used to live in Barbara, another former Arab village in southern Israel.