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When a group of ultranationalist Jews moved into an all-Arab neighborhood of East Jerusalem last week, enraging Palestinians, Israelis were divided in typical dove-versus-hawk fashion over whether the settlers should be allowed to stay.

But what they weren't divided about was their aversion to the idea that a Jew who is not an Israeli citizen could wield such influence on their side of the equation in the Middle East peace process. Jewish-American millionaire Irving Moskowitz, a patron of Israeli far right-wing causes - such as buying up Arab properties in parts of Jerusalem that Palestinians see as their future capital - was responsible for bankrolling the move of …