Anne Barker reported this story on Monday, October 11, 2010 12:38:00

ELEANOR HALL: Overnight, Israel's cabinet backed a controversial law that will force non-Jewish citizens to pledge an oath of loyalty to the country as a Jewish state.



The measure would apply only to those who are not Jewish - such as Palestinians who want citizenship in order to marry Arab Israelis or join family who are already Israeli citizens.



But opponents of the bill say it is racist and would diminish the rights of Arab Israelis.



Middle East correspondent Anne Barker reports.



ANNE BARKER: It's a move that has outraged Arab Israelis who make up more than 20 per cent of Israel's population.



The very notion that they or future Arab citizens should have to pledge an oath of loyalty to a Jewish state - as opposed to just Israel - is something they say is racist and would only undermine their democratic rights.



But 22 of the 30 Ministers who make up the Israeli Cabinet voted in support and for Science Minister Daniel Hershkowitz it's a fair request.



DANIEL HERSHKOWITZ: I think that since we definitely define the state of Israel as a Jewish state and a democratic state, it is just natural that everyone who wants to become a citizen should sign a statement.



ANNE BARKER: Many of those who backed the plan are from the far right parties that helped Benjamin Netanyahu's own Likud Party secure government.



In fact the loyalty oath was a central election policy of hardline Foreign Minister Avigdor Lieberman, who leads the ultra-nationalist party Yisrael Beiteinu - or Israel Our Home - the key coalition partner.



And now, even the Prime Minister Benjamin Netanyahu has spoken in favour.



(Benjamin Netanyahu speaking)



"There is no other democracy in the Middle East," he says. "There is no other Jewish state in the world. The combination of these two exulted values, a Jewish state and a democratic state, expresses the core of our existence and the essence of the state of Israel and whoever wants to join us must acknowledge this."



In reality the oath would mostly apply only to a small number of Palestinians who marry Israeli Arabs, or who want citizenship on the basis of say, family reunion.



But it's the principle that so angers Arab Israelis and their supporters.



Five Cabinet Ministers from the left-leaning Labour Party - and even three members of Benjamin Netanyahu's own party - voted against the proposal.



The Welfare Minister Isaac Herzog voiced the opposition of many.



ISAAC HERZOG: We feel it's unnecessary, doesn't serve the interests of the state of Israel. It has a certain ideological logic behind it but has adverse effect on Israel's image and its spirit of true democracy.



ANNE BARKER: Opponents of the bill say they suspect it's really part of a deal to secure right wing support for a new freeze on construction in Jewish settlements in the West Bank.



Israel is under intense international pressure to reinstate the freeze which expired last month to salvage the latest peace talks but can't do so without the support of the same right wing ministers.



Palestinian leaders have given Israel and the US one more month to agree to a new freeze - or the talks will collapse.



The Palestinian Prime Minister is Salam Fayyad.



SALAAM FAYYAD: Of course we face many obstacles as we move forward in our effort in and completing the first and getting ready for statehood. This is not new.



ANNE BARKER: Recognition of Israel as a Jewish state is one of Israel's key demands in any peace agreement. Palestinian leaders already recognise the Israeli state but not as a Jewish nation because to do so would deny their own demand for the right of Palestinian refugees to return to their original homes, in what's now Israel.



This is Anne Barker in Jerusalem for The World Today.





*EDITOR'S NOTE: The law referred to in this story applies only to people who are not Jewish but want to take up Israeli citizenship. The transcript has been amended to reflect this.