Wednesday, April 4, 2001

* ISRAELIS INJURED IN PALESTINIAN ATTACKS; BABY WOUNDED IN MORTAR ATTACK
FIGHTS FOR LIFE
* PERES MEETS WITH SENIOR PALESTINIANS, SECURITY TALKS SLATED FOR TODAY
* SUSPECTED TERRORIST A MEMBER OF PALESTINIAN NAVAL FORCE
* COAST OF ASHKELON CONTAINS QUALITY NATURAL GAS
**FM Peres meets with Nabil Sha'ath and Saeb Erakat

**ISRAEL POLICE AND ISA SOLVE SERIES OF FOUR ATTACKS

ECONOMIC BRIEFS

ISRAELIS INJURED IN PALESTINIAN ATTACKS; BABY WOUNDED IN MORTAR ATTACK
FIGHTS FOR LIFE
  Eight Israelis were lightly injured on Tuesday night when a bomb blew up
in the trunk of a parked car outside an apartment building in Hod Hasharon,
near the Palestinian city of Kalkilya, THE JERUSALEM POST reported. Police
investigators say the bomb included nails intended to increase lethality.
   Two Israelis were lightly wounded on Tuesday night near Menora in the
West Bank after Palestinians shot at their vehicle. Also, Palestinian gunmen
shot at Israel Defense Forces soldiers in several separate incidents
throughout the West Bank and the Gaza Strip.
  According to MA'ARIV, Ariel Yered, the 10-month-old baby who was severely
injured on Tuesday after a Palestinian mortar landed in his back yard,
underwent neuro-surgery at Be'er Sheva's Soroka Hospital on Tuesday. Yered
sustained multiple shrapnel wounds to his head and spine. He remains on a
life-support system in serious condition. His mother, Leah Yered, sustained
moderate wounds to her chest and hand.
  In response to the Palestinian mortar attack, Israel Air Force helicopter
gunships bombed a Palestinian Force 17 base near Gaza City on Tuesday night
and other Palestinian targets near Rafah, Khan Yunis and Deir el-Balah in
the southern Gaza Strip. Minister of Defense Binyamin Ben-Eliezer said he
had ordered the IDF to attack targets in the Gaza Strip used to plan and
perpetrate the murderous attack. "Israel will act aggressively against all
those who plan, send and perpetrate terrorist attacks. The targets were
carefully chosen to prevent the injury of civilians who are not involved in
terrorist activities," Ben-Eliezer said. He added that Israel's aim is to
return to the negotiating table and restore dialogue between the two sides.
  Meanwhile, Palestinians fired four mortar shells overnight into Netzarim,
in the Gaza Strip. No injuries were reported and IDF forces returned fire
towards the source, a Force 17 installation. Senior IDF officials stated
that Palestinians have set up mortar factories in the Gaza Strip.
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PERES MEETS WITH SENIOR PALESTINIANS, SECURITY TALKS SLATED FOR TODAY
  Minister of Foreign Affairs Shimon Peres met in Greece today with senior
Palestinian Authority Officials Nabil Sha'ath, Yasser abed Rabo and Saeb
Erekat, YEDIOT AHARONOT ON-LINE reported. Israeli and Palestinian security
officials are also slated to meet later today to discuss restoring calm and
stopping the violence.
  Peres said today that his meeting with the Palestinian officials, as well
as the agreement to hold a security coordination meeting, is one step
towards resumption of negotiations. During the meeting, Peres reiterated his
plan for restoring calm, including the cessation of terror and violence,
easing restrictions on the Palestinian population and returning to the
negotiation table. Peres stressed that no peace negotiations took place
during the meeting, but rather talks aimed at stopping the violence. "We
exchanged views, but not negotiations," Peres said. "I heard at length their
descriptions of the distress in the territories, they heard at length about
the enormous damage caused by violence. We both agreed that incitement must
be decreased because the emotional distance today is even greater than the
territorial distance." The meeting, which lasted three hours, was held under
the auspices of a seminar on peace organized by The Economist magazine.
  Also, Prime Minister Ariel Sharon's son, Omri Sharon, met with PA Chairman
Yasser Arafat in Ramallah on Sunday. The Prime Minister's Office said today
that during the meeting Sharon reiterated Israel's position that it will not
negotiate under the threat of Palestinian violence. Sharon was accompanied
by businessman and adviser Yossi Ginossar.
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SUSPECTED TERRORIST A MEMBER OF PALESTINIAN NAVAL FORCE
  Rahman Fuda, a Palestinian terrorist who was arrested last week after
failing in an attempt to detonate a bomb in the Netanya market, is a member
of the official Palestinian naval force, MA'ARIV reported. Security
officials said on Tuesday that Fuda's affiliation with the official
Palestinian force "is additional proof of the direct involvement of the
Palestinian Authority in terror and violence." They added that "the naval
force is a faction of the PLO, and its direct commander is Yasser Arafat."
  During his investigation, Fuda said that he belonged to a terrorist cell
which includes other members of the official naval force, including senior
officers. The Israeli Security Agency is investigating the possibility that
the cell was involved in planning and perpetrating several other recent
bombing attempts in Israel.
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COAST OF ASHKELON CONTAINS QUALITY NATURAL GAS
  The "Mary 3" drilling site off the coast of Ashkelon contains a higher
quality and larger quantity of natural gas than previously thought, the Yam
Thetis Group responsible for drilling in the site said today, THE JERUSALEM
REPORT reported.
  An initial analysis of the data showed high probability of low levels of
gas. The group noted that the degree of saturation appears higher than in
the previous drilling sites, and that the findings confirm the previous
estimates as to the recoverable gas in the site.
  The group concluded the drilling at a final depth of 2,553 meters
(approximately 8,376 feet) below sea level, and said it would continue to
examine the data retrieved from the site in the coming months.
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FM Peres meets with Nabil Sha'ath and Saeb Erakat

Deputy Prime Minister and Foreign Minister Shimon Peres met today
(April 4) with Nabil Sha'ath and Saeb Erakat. Following the
meeting, Foreign Minister Peres said that the resumption of
security coordination will be the first sign of an easing of the
situation and be the basis for moving forward towards
negotiations. He characterized the meeting this morning as "an
exchange of ideas, not negotiations".

Foreign Minister Peres stressed that according to the Israeli
government guidelines, the violence and incitement must cease,
signed agreements must be fulfilled by both sides, and no new
settlements will be established.

Peres emphasized the Palestinian commitment contained in the
letter from Yasser Arafat to the late Prime Minister Rabin of
September 1993.

He further stressed that Israel is only reacting to violence, not
initiating it.
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ISRAEL POLICE AND ISA SOLVE SERIES OF FOUR ATTACKS

On March 1, 2001, a bomb exploded in a taxi near the Mei Ami
junction. An Israeli citizen, Claude Knap, was killed and 12
people were wounded. The terrorist responsible - who was severely
wounded in the blast - was identified as Zeid Kiliani, a resident
of Siris village near Jenin. Kiliani was arrested and remains
hospitalized at Rambam Hospital in Haifa.

Kiliani confessed to ISA and Israel Police investigators that he
had detonated the bomb in his possession when the taxi stopped at
a checkpoint. Kiliani similarly confessed to having stabbed and
wounded Col. Ya'akov Ben-Dayan in Tel Aviv's Carmel market on
February 21, 2001.

Kiliani also confessed to placing a bomb at an Allenby St.
restaurant in Tel Aviv on February 28, 2001. The bomb was
discovered and detonated by an Israel Police sapper. On the same
day, Kiliani also planted a bomb near a group of young people on
the Tel Aviv beachfront, near the Dolphinarium. His efforts to
detonate the bomb were unsuccessful.

Kiliani perpetrated these attacks on behalf of Hamas.

Shortly after Kiliani's arrest, the Israel Police and the ISA
arrested his Jewish girlfriend - Holon resident Angelica Yosepov.
Yosepov has admitted that she knew about the above-mentioned
stabbing, and that Kiliani had two bombs in his possession.

Yosepov was with Kiliani when he placed the bomb at the Allenby
St. restaurant and went with him to the Dolphinarium beach,
knowing that he had another bomb. She was also with him as he
planted the bomb and later tried to detonate it by means of a
cellular phone. Yosepov also knew that Kiliani had a bomb with
him as he boarded the above-mentioned taxi.
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