To return a lost article to a goy when it will result in kiddush Hashem? It depends. It depends. If you can return it let’s say in a public manner and it will be well known to everybody that a Jew returned something then it’s something you can consider. I’m not going to tell you now what to do but you can consider it.
But whatever it is, always keep in mind the very great error of שהשווה כבודן של ישראל לאומות העולם להבדיל – of equating the honor that belongs to a Jew, with the honor a gentile deserves (Sanhedrin 76a). That principle you have to keep in mind always. In practice it depends on various factors, but you have to keep that in mind anyhow.
Returning the article, that’s a very minor point here. The point is that you’re making a distinction. Hashavas aveidah is a demonstration you recognize כבודן של ישראל. How great is the glory of this nation! If a Jew loses something, the hashavas aveidah is a demonstration that you recognize the nobility of this great people. And in order to make a distinction you’re told not to return the lost article of a non Jew. Not because we are opposed to non Jews. We don’t want to harm anybody. We don’t want to do any disfavors to anybody. But this demonstration of hashavas aveidah is a separate thing.
Now you can say דינא דמלכותא דינא if you want – the police require you to return lost articles. You can say that if you want. When it comes to halachos I’m not going to pasken the halachos. But you should never forget the principle of why there’s a mitzvah to return an aveidah to a Jew. And don’t think you’re doing any mitzvah at all if you’re returning an aveidah to a goy. It’s not a mitzvah.
(November 1988)
Q:
Should a woman do the mitzvah of hashavas aveidah by picking up a garbage lid that’s lying in the street in order to put it back where it belongs or is it a breach of tznius?
A:
I don’t see a difference. It’s hashavas aveidah.
(November 1988)