Troll,

Ras is partially correct. The law does discriminate against non-Jews, but does not actually prevent citizenship. Jews are granted citizenship automatically, non-Jews have to go through a naturalization process, and some of those can be quite hairy!

However, as I understand it, in the occupied territories, like Gaza and the West Bank, non-Jews cannot obtain citizenship, yet are required to live under Israel's laws. Since they are citizens of a country that no longer exists, they are essentially permanently disenfranchised.

Some portions of the occupied territories -- East Jerusalem, for example, allow a permanent resident status, and I've seen hints that it is possible (it seems possible through marriage; there may be other ways) for non-Jews to obtain citizenship, but there IS a religious decree banning all Palestinians living in Jerusalem from obtaining citizenship.

Israel has a HUGE problem with racism against Arabs -- it seems analgous to the old Jim Crow laws in the US South. In general, racism against Arabs is usually illegal, yet tolerated and rarely enforced. Some of this stems from the almost impossible position of being a "Jewish state" while trying to live up to ideals of a non-racist society. I dunno -- I don't think it can be done, particularly since Jewish religious custom draws clear lines between Jews and Gentiles. But I am certain that it won't get any better until the Palestinian issue is solved.