“Palestinians and Arabs were not the only ones cast as Nazis. Israel was also accused — by Israelis as well as by Palestinians — of Nazi-style crimes. In the context of Israeli massacres of Palestinians in 1948, a number of Israeli ministers referred to the actions of Israeli soldiers as "Nazi actions," prompting Benny Marshak, the education officer of the Palmach, to ask them to stop using the term. Indeed, after the massacre at al-Dawayima, Agriculture Minister Aharon Zisling asserted in a cabinet meeting that he "couldn't sleep all night… Jews too have committed Nazi acts." Similar language was used after the Israeli army gunned down forty-seven Israeli Palestinian men, women, and children at Kafr Qasim in 1956. While most Israeli newspapers at the time played down the massacre, a rabbi rote that "we must demand of the entire nation a sense of shame and humiliation… that soon we will be like Nazias and the perpetrators of pogroms." The Palestinians were soon to level the same accusation against the Israelis. Such accusations increased during the intifada. One of the communiqués issued by the Unified National Leadership of the Uprising defined the intifada as consisting of "the children and young men of the stones and Molotov cocktails, the thousands of women who miscarried as a result of poison gas and tear gas grenades, and those women whose sons and husbands were thrown in the Nazi prisons." The Israelis were always outraged by such accusations, even when the similarities were stark. When the board of Yad Vashem, for example, was asked to condemn the act of an Israeli army officer who instructed his soldiers to inscribe numbers on the arms of Palestinians, board chairman Gideon Hausner "squelched the initiative, ruling that it had no relevance to the Holocaust."”

Massad, in Palestinian and Jewish History: Recognition or Submission? in the Autumn 2000 issue of the Journal of Palestine Studies.
On Comparisons of Israel to Nazi Germany