And what of the settlements issue?
Well, that's a question that deserves its own thread. But in short, I believe the settlements are legal.
From the Jerusalem Center for Public Affairs:
The settlements are not located in "occupied territory." The last binding international legal instrument which divided the territory in the region of Israel, the West Bank, and Gaza was the League of Nations Mandate, which explicitly recognized the right of Jewish settlement in all territory allocated to the Jewish national home in the context of the British Mandate. These rights under the British Mandate were preserved by the successor organization to the League of Nations, the United Nations, under Article 49 of the UN Charter.
The West Bank and Gaza are disputed, not occupied, with both Israel and the Palestinians exercising legitimate historical claims. There was no Palestinian sovereignty in the West Bank and Gaza Strip prior to 1967. Jews have a deep historic and emotional attachment to the land and, as their legal claims are at least equal to those of Palestinians, it is natural for Jews to build homes in communities in these areas, just as Palestinians build in theirs.
The territory of the West Bank and Gaza Strip was captured by Israel in a defensive war, which is a legal means to acquire territory under international law. In fact, Israel's seizing the land in 1967 was the only legal acquisition of the territory this century: the Jordanian occupation of the West Bank from 1947 to 1967, by contrast, had been the result of an offensive war in 1948 and was never recognized by the international community, including the Arab states, with the exception of Great Britain and Pakistan.
