ISRAEL was never supposed to be just another nation. Its creation in 1948 signified the triumph of the Jewish people over centuries of oppression and the perseverance of Jewish morals amidst persistent bigotry. Israel was to be a democracy in the chaotic Middle East, a haven for and common bond between Jews across the world, a "light unto the nations."

Today these ideals are very much in jeopardy.

Almost every day on the West Bank and Gaza Strip, Israeli soldiers arrest and jail hundreds of Palestinian teenagers without charges or trial, beat dozens of protestors and shoot the most threatening.

In recent weeks another threat to the idealistic vision of Israel has reemerged--the movement to redefine who is a Jew for the purposes of Israeli citizenship. In seeking to disqualify converts to Reform and Conservative Judaism, far right religious groups are asserting the superiority of Orthodox Judaism and the unworthiness of non-Orthodox beliefs.

Rabbi Chaim Seidler-Feller, the director of the Hillel Society at the University of California at Los Angeles, described the proposed law change as "contrary to the humanistic, open and tolerant Israel that we love." Natan Sharansky, famous Soviet ex-dissident, said, "Principles were being auctioned off with dizzying dispatch. It was not a pretty sight."

AMERICAN Jews have always faced the dilemma of whether or not to criticize Israel. Is Israel "just another nation," or does it still embody the dream of a fair, just and open society? American Jews must balance the fact that they are not in the same situation as Israeli citizens--they don't serve in the army or pay taxes--with the fact that they care passionately about the state created for their people. In the last few months many American Jews have chosen to criticize Israel but only selectively. And that's the problem.

On the issue of "who is a Jew," organizations representing more than 90 percent of American Reform, Conservative and Orthodox Jews have publicly condemned the attempt to redefine criteria for Israeli citizenship.

Reform leaders, in a letter to the Israeli government, called it an "attempt to read three-quarters of the Jewish people out of the Jewish fold." Even the Rabbinical Council of America, representing 90 percent of American Orthodox rabbis, said the measure had to be defeated in order to "preserve the unity and support of the American Jewish community with and for Israel."

Clearly, the vast majority of American Jews have decided to apply the higher standard when it comes to defining "who is a Jew." And they are willing to criticize Israel to do it.

YET many of the same American Jews do not speak out when it comes to another issue central to Israel today: the occupied territories. They fear being branded Arab sympathizers or P L O apologists. They fear they are being disloyal to Israel.

These fears are based on misguided loyalty. Does it make sense to insist on an Israel open to all Jews and not to demand that that same nation act within the bounds of Jewish morals? Is it fair to urge peace between Jews and ignore strife between Jews and Palestinians? There is no mid-way between original principles and no principles; loyalty to a higher conception of Israel requires criticism when the country strays from it.

Another argument can be made against criticism. Perhaps by criticizing, American Jews are giving non-Jews an opportunity to push for a reduction in aid to Israel. In this case, simple criticism would lead to much harsher results than intended. American Jews would have to stay quiet in order to keep the situation from getting worse.

Not only is this argument wrong, but its reverse is true. American non-Jews are not blind. They see what Israel is doing in the occupied territories, and they are rapidly reevaluating support for Israel. Unless American Jews are willing to guide American policy by contributing to critical discussion, decisions will be made without Jewish input.

Deciding not to speak out can only make the situation worse for Israel. Americans will not be convinced to continue support for Israel by Jews who are uncritical; they will only be swayed by those who recognize Israel's faults, as well as its promise. Jews have an obligation to insist on Israel's adherence to higher principles--out of idealism and realism. It is morally right for Israel and politically appropriate for the United States.