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Avirah, so how does Rashi explain Shimon ben Shetach returning a precious stone to an Arab? A Jew should always try to do a kiddush HaShem and not do a chillul HaShem. BTW, the Rema says (CM 259:7) that if there is a dina d’malchuta to return an aveida one must do so (in general, we are not required to treat them better than they treat each other, and according to Roman law, an aveida belonged to the finder – finders keepers, losers weepers). See also Rambam according to Be’er HaGolah CM 266:2 and Mammon Yisrael – Halachos of Others People’s Money by Rav Pinchas Bodner, pg. 153 regarding gentiles who believe in Gd and have the rule of law. See also on this Sheeta Mekubetzet Baba Kama 113a in the name of the Meiri. Both Rav Hirsch and Rav Kook say that the Halacha is like him.