In June 1967, just six months after the cancellation of Israel’s 18 year-long military government over its 600,000 Palestinian Arab citizens, Israel conquered the West Bank and Gaza and brought almost a million additional Palestinians under its control. Though these Palestinians were not made citizens like their brethren who had lived in Israel since 1948, their very presence and proximity impacted both the developing identity of the Palestinian citizens of Israel and the policy designed by the Israeli establishment to govern these citizens. “Arab affairs” officials, previously responsible for Israel's Arab citizens only, became officially or informally involved in Israel's administration over the Palestinian inhabitants of the occupied West Bank and Gaza Strip. Drawing on declassified documents from the Office of the Prime Minister's Advisor on Arab Affairs, the Interior Ministry, and the Israeli Police, I will argue that policymakers in Israel's third decade often perceived and governed Israel's Palestinian citizens as part of an enlarged Arab entity under Israel's control, rather than as a sector of Israel's citizenry. Administrative overlapping is reflected in practice as well as in discourse. Whereas before 1967 Israeli officials used the term “Arabs of Israel” only when talking about citizens, after 1967 they would use it to refer to both Palestinian citizens and non-citizens under control of the Jewish state. While behind closed doors Israeli officials sometimes referred to the residents of the West Bank and Gaza as 'Palestinians', they would never do so in public as the Israeli government vehemently denied the existence of any Palestinian national entity as the PLO successfully lobbied the world for recognition in the mid-1970s. Rhetoric aside, Israeli establishment figures feared that contact between Palestinians on opposite sides of the green line would expose Israel’s Arab citizens to Palestinian and Arab nationalist influences, and would give non-citizens unauthorized access to the state. Accordingly, Israeli police and security bodies monitored and restricted the Palestinians in Israel and in the Occupied Territories in the same operational framework, fearing Arab collaboration across the Green Line in opposition to Israeli control and occupation. Archival sources describing policies that pertained to Arab citizens of Israel exclusively, show how this conflicted subgroup of the Israeli state and Palestinian nation was monitored more closely, censored more harshly, and more vigorously encouraged to emigrate than were the Palestinians of the occupied territories in the immediate wake of the 1967 watershed.