Critics say that introducing the adat would create confusion by allowing some laws and punishments to vary widely from one village to the next.
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The Palestinian Authority said it arrested Sa'adat, whom the Israelis have blamed in the planning of the assassination of an Israeli Cabinet member in November.
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Also at issue is the proposed inclusion of traditional adat, or unwritten laws at the village level, in a sprawling archipelagic nation of 240 million people where local mores can vary widely.