Labor's settlement policy in Israel's occupied territories…

Labor's settlement policy in Israel's occupied territories is based on the 1965 Allon plan.

Labor governments have sought to interfere as little as possible in the day-to-day lives of the Arab inhabitants.

Political and social arrangements are, as much as possible, kept under Jordanian or pro-Jordanian control, the currency remains the Jordanian dinar, the application of Jordanian law continues, and a revised Jordanian curriculum is used in the schools.

Another aspect of Labor's occupation policies is the integration of the territories into the Israeli economy.

By the mid-1970s, Arabs from Israel and the territories provide nearly one-quarter of Israel's factory labor and half the workers in construction and service industries.

Moreover, the territories have become an important market for Israeli domestic production; by 1975 about sixteen percent of all Israeli exports are sold in the territories.