Of course, all settlements in the West Bank and East Jerusalem are illegal according to the Geneva Convention. But since the Knesset did not pass an enabling legislation which would make Geneva the Law of the Land, Israeli courts cannot enforce it. There are two other types of settlements, which Israel officially calls "illegal settlements": 1. The settlers did not receive official approval from the Occupying Authority (IDF) to settle there. This is the case of Havat Yair. 2. The land on which the settlement is built is PRIVATE Arab land. Type #1 of illegality can be corrected by simply giving the settlers retroactive permission to settle at the site. But type #2 cannot be corrected (unless the Arab owners agree to sell their land) and the settlement MUST be removed.
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from the article: What if Israeli forces treated West Bank settlers like Arabs?