Israel signed a diplomatic agreement with the Vatican in which each agreed to do certain thing. The Vatican has delivered on its side and Israel hasn't--so the case is simple. Some of the correspondents here want to add additional conditions -- like return of the Temple's treasures (come off it!!). Well that's not how diplomatic agreements work. Need it be pointed out that Jewish institutions enjoy tax exemptions in predominantly Christian countries? Or that the rights of Jewish communities in these countries to their property is recognized in law?
At least 1,000 Israeli Arabs protest death of Palestinian infant in deadly West Bank arson (Haaretz)
from the article: Rabbi calls Israel's treatment of Vatican 'outrageous'