The "Palestinian" Authority has libeled the Jewish people and said that Israel tried to burn down Al-Aqsa Mosque in 1969, in what is eerily reminiscent of many of the blood libels spread by Muslim leaders against the Jews, specifically the ones that the Mufti of Jerusalem spread in the Muslim world before he co-conspired with Hitler to exterminate the Jews during the Holocaust.
4th April, 1920 was the day Haj Amin al-Husseini sprang into prominence as a figure to be reckoned with. On that day, Jerusalem became a city of carnage when Arab Moslem mobs descended on the Jewish quarters, massacring, burning, pillaging. The riots lasted four days. The victims were Jews, and they had no defence organization then.
Haj Amin al Husseini (the Mufti) was charged with incitement to violence. The spark was said to have been touched off by his inflammatory articles in the newspaper, Suriyahal Janubiyah.
[...] At the military trials that followed the two principals found to be responsible for the outbreak were Haj Amin al Husseini (the mufti) and Aref al Aref.
Both fled the country and were tried in absentia. They received ten years imprisonment, which suggests the grave view taken by the authorities of these men. But when Sir Herbert Samuel (a Jew) was appointed British High Commissioner for Palestine, he gave the mufti special amnesty and allowed him to return to Palestine. Jewish history is riddled with these self-loathing, appeasing traitors.
Back to the point.
According to Maurice Pearlman in the book, The Mufti of Jerusalem, the onslaughts were particularly savage (page 15):
In August 1929 simultaneous attacks by Muslims on Jews in Jerusalem, Hebron, Safed, Jaffa, Haifa, Hulda, and Beer Tuvia. Those were the centers with the highest casualties though other Jewish towns and villages were also attacked.
August 1929: “Arab crowds enter the Jewish quarter of Jerusalem and initiate a wave of violence…. That al-Husayni explicitly encouraged or incited the violence is not documented…”
In the weeks preceding the attack faked pictures had been disseminated among the Arabs showing the Mosque Omar in ruins. The caption beneath declared that it had been destroyed by Jewish infidels who were now seeking to build on its site the Jewish Temple. 
Husayni was the one who incited the crowds of worshipers to violence. In 1929, the most influential newspaper in Egypt, La Bourse Egyptienn, declared ; “ the murder of the Palestine Jews is an echo of the Mufti’s inflammatory exhortations in the mosque.” (Van Paassen, Days of Our Years, p.367) The Mufti accused the Jews of endangering mosques, including Al-Aqsa. He issued the call: “Kill the Jews!” and “ We will drink the blood of the Jews” (Dershowitz, The Case for Israel, p.41) and disseminated pictures of the Jewish victims, falsely claiming that they were Arabs murdered by the Jews. Faked photographs were circulated “showing the Jewish flag, with the Star of David at its centre, flying from the top of the Dome of the Rock- something which had never happened.” (Gilbert, Jerusalem in the Twentieth Century p. 120) The Supreme Muslim Council, which Husayni headed, issued a proclamation : “O Arab! Remember that the Jew is your strongest enemy and the enemy of your ancestor since olden times…for it is he …who poisoned Mohammed… It is he who now endeavors to slaughter you as he did yesterday.” (ibid. p126) “The Hebron massacre was the culmination of a series of religiously inspired massacres deliberately incited by the grand mufti…In August 1929 leaflets prepared by the mufti instructed Muslims to attack the Jews. One such leaflet said that the Jews had “violated the honor of Islam” and “raped the women and murdered widows and babies” It was a blood libel demanding a holy war against the Jews.” .” (Dershowitz, op. cit. p. 42-43)
“In the White Paper…the Secretary of State declared that “no one has been more active than the Mufti of Jerusalem” (Gilbert. p.125)
This is their insanity and bloodlust.
The 'Ibrahimi Mosque' -- otherwise known as "Ma'arat HaMachpela," the Tomb of the Patriarchs and Matriarchs, is the second holiest site to Jews in the world. The site was off-limits to Jews and Christians for 700 years -- from 1267-1967. This despite its sanctity to Jews, and despite the fact that the building above the caves was built by Herod some 2,000 years ago, six hundred years prior to Muhammad's birth. Since Israel's return to Hebron in 1967 the site has been accessible to all people of all faiths. However, Moslems refuse to accept freedom of worship, claim that it's a mosque and declare that should they ever again control the site, it will be off-limits to anyone not Moslem. (The site, nor the city of Hebron is mentioned anywhere in the Koran.)
Fast forward to... today:
Text on top: "Israeli aggression against the holy places"
Text in middle: "And on Aug. 21, 1969, the Jew Dennis Michael set fire to the Al-Aqsa Mosque, with the support of the Jewish government, which cut off the water supply from the neighborhoods close to the Al-Aqsa Mosque with a view to delaying the operations to extinguish [the fire]."
Text on bottom: "Aggression against the holy places - the occupation: a long history of defiling and desecrating that which is sacred."
PA Libel:As Palestinians continue almost daily rioting in Jerusalem and other cities, claiming Israel is damaging places holy to Islam, the Palestinian Authority has chosen to rekindle another libel whose goal seems to be to increase the unrest and rioting.
Israel tried to burn down
Al-Aqsa Mosque in 1969
by Itamar Marcus and Barbara Crook
This renewed libel is based on a rewriting of history by the Palestinian Authority, accusing Israel of assisting in the arson attack in the Al-Aqsa Mosque in 1969.
The facts of the case were as follows: A non-Jewish Australian started a fire in the Al-Aqsa Mosque on Aug. 21, 1969. The fire was extinguished and the damage was repaired.
More than ten years ago the Palestinian Authority initiated the lie that Israel was involved in the arson or that it Jew who started the fire with the Israeli governme
The following is one example of an earlier version of the PA libel from the year 2000:
"Preparations for this crime [of burning the mosque] were expressed in the statements of senior officials and rabbis who said that Al-Aqsa does not belong to the Muslims and that it may be destroyed... They tried to instigate people against those in charge of Al-Aqsa and threaten them... Rohan the Australian who burned Al-Aqsa had no idea what Al-Aqsa was. He was recruited by number of people who trained him to do this dangerous and sinful task. The long-term goal was, as it was stated back then, a plot whose main goal was to attack the Muslim holy sites."[PA TV Aug. 21, 2000]