The draft of an economic agreement between Israel and the Vatican contains no distinction between sovereign Israel and the territories occupied in 1967. The lack of a preamble containing such a distinction is at the center of heightened tension between Palestinian Christian denominations and the Palestine Liberation Organization and the Vatican.
Palestinians: Vatican set to indirectly recognize annexation of East Jerusalem
Negotiations between Israel and the Holy See on the fiscal status of Catholic institutions in Israel seems to make no distinction between the two sides of the Green Line.
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