ABSTRACT
This chapter deals with the laws applicable to the settlements and their inhabitants; the second part with the Israeli laws applied to both Jews and Arabs. It discusses the adaptations of Israeli laws by military orders which are applied only to the Arab population. In the context of the highly governmentally protected Israeli economy, the latter policy creates new economic boundaries that encompass Israel and the settlements, and exclude from the national umbrella the indigenous economies of the territories. The acts of the military government are treated as responses to new situations created by the Israeli government. The Israeli currency, the shekel, is legal tender in the territories as well. The Israeli law that prevents under certain conditions a person from opening bank accounts and drawing cheques after ten cheques of his have been dishonoured, was adopted by the military authorities shortly after it was introduced in Israel.
