Obviously don't let other countries stop you from compensating Palatinians, which they deserve. The other arabs if they don't want to compensate jews should have no bearing on you compensating Palatinian
The reason I mention it is that most people don't know that there was an exchange of populations, similar to what happened in Pakistan and india. The only way these jews will ever be compensated is if it's part of a deal to compensate arabs of palestine who lost their homes.
But let me ask you a question: Do you think ethnic Germans who lost land in Poland should be compensated? Probably not, after all the Germans started the war, they should suffer the consequences. Well then why should the Arabs, who started the war to destroy Israel in 1948 in violation of the UN decision to partition the country, be compensated for the war they started? It wasn't Israel who invaded the Arab areas. It was Egypt, Syria, Jordan, Iraq and the local Arabs who invaded Israel the day it was founded and also prevented the establishment of a Palestinian Arab state.
But having said all that, I would rather pay compensation that they don't deserve than have endless wars. But who on the other side wants to really sove the refugee problem. If they honestly did I think they would find more than enough money in the Arab world to solve the problem years ago. It's only been festering for 60 years because the Arabs need a problem to blame their failures on. If Israel were to disappear tomorrow, there would still never be a Palestinian state. There would be no need for one. The area would just become part of Jordan, Egypt or Syria. And the "palestinians" would be worse off than ever.