Councillor McDaid said the proposal was intended to show solidarity with people in Bethlehem and victims of violence in Palestine and Israel.
She said it was important to show that people have not forgotten the horrors of the past few months.
Said Cllr McDaid: “As the end of the year approaches we felt it was important to recognise the suffering that has destroyed so many lives in the Middle East over the past few months.
“Derry is a city where people are no stranger to oppression and I believe that the coming together of these two historic places would be incredibly symbolic and send a powerful message of solidarity with the Palestinian people.
“It would also show that we will not forget the brutality which has been perpetrated against civilians in the region and remind us that many innocent people around the world could use our support at this time of year.
“In the future this relationship could open the door to cultural and faith exchanges, possibly through the arts, music, and language, and create opportunities for our museums, academics, and researchers, while laying the foundations for economic advancement to the benefit of people in both Derry and Bethlehem.
“I look forward to bringing this motion to council and repeat our call for a permanent ceasefire and the release of all hostages to end the violence that has caused so much damage and cost thousands of lives.”
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