In late May 2004, Lieberman unveiled the Lieberman Plan, proposing that the populations and territories of Israeli Jews and Arabs, including some Arab citizens of Israel, would be "separated". According to the plan, also known as the "Populated-Area Exchange Plan", Arab towns in Israel adjacent to Palestinian Authority areas would be transferred to Palestinian Authority, and only those Arab Israelis who migrated from the area to within Israel's new borders and pledged loyalty to Israel would be allowed to remain Israeli citizens. On 30 May 2004, Prime Minister Ariel Sharon condemned Lieberman's statements, stating "We regard Israeli Arabs as part of the State of Israel." On 4 June 2004, as the disputes over the up-coming disengagement plan grew more intense, Sharon dismissed Lieberman from the cabinet.