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Thursday, April 12, 2001

*THREE IDF SOLDIERS WOUNDED BY GUNFIRE
*SECURITY TALKS RESUME
*U.S. BLOCKS AID TO LEBANON, DEMANDING SECURE BORDER
*JORDANIAN FM TO VISIT ISRAEL
*ECONOMIC BRIEFS

THREE IDF SOLDIERS WOUNDED BY GUNFIRE
  An Israel Defense Forces soldier was moderately wounded today by
Palestinian gunfire near Bethlehem and two other soldiers were lightly
wounded by Palestinian gunfire at the Girit outpost near Rafiah in the Gaza
Strip, Israel Radio, KOL YISRAEL, reported. All soldiers were evacuated to
nearby hospitals.
  Meanwhile, according to THE JERUSALEM POST, Israeli police arrested today
six Palestinians suspected of hurling Molotov cocktails at police forces
operating near the Lions Gate in Jerusalem's Old City last month.
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SECURITY TALKS RESUME
  Israeli and Palestinian security officials met Wednesday night at the
private residence of U.S. Ambassador Martin Indyk in Herzliya to discuss the
prospects of resuming security coordination between two parties, HA'ARETZ
reported.
  Representing Israel in the meeting were Head of the Israeli Security
Agency Avi Dichter, Israel Defense Forces OC Southern Command Maj.-Gen.
Doron Almog and IDF OC Central Command Maj.-Gen. Yitzhak Eitan. The
Palestinians were represented by the head of the Preventive Security Service
in the West Bank Jibril Rajoub, Intelligence chief Amin el-Hindi and
Military Chief Abdel Razek Majaydeh.
  Israel was seeking a Palestinian commitment to lower the level of violence
in exchange for loosening the restraints imposed on the Palestinians. Israel
protested the Palestinian firing of mortars into Jewish communities in
Israel and in the Gaza Strip, as well as the reoccurring Palestinian gunfire
attacks against Israeli targets in the West Bank.
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U.S. BLOCKS AID TO LEBANON, DEMANDING SECURE BORDER
  The United States is slated to block a $20 million aid package to Lebanon
until the Lebanese government deploys its troops in the southern region of
the country and secures Lebanon's border with Israel in accordance with
Resolution 425, THE JERUSALEM POST reported. Meanwhile, an Israel Defense
Forces soldier was lightly injured today after Lebanese hurled rocks at an
IDF outpost on the Israeli side of the border.
  U.S. State Department officials said on Wednesday that they would like to
see the money released, but that will not happen until Lebanon takes
concrete steps and changes the reality on the ground. "We want to see the
aid go," one official said, "but Lebanon has not made any strides to beef up
the deployment in the south in months."
  Lebanon has a $25 billion debt, which represents 147 percent of its gross
domestic product, one of the highest levels in the world. Debt-servicing
payments, which account for 44 percent of the $6.6 billion 2001 budget, are
hardly sustainable.
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JORDANIAN FM TO VISIT ISRAEL
  Jordanian Foreign Minster Abdullah al-Khatib is scheduled to visit Israel
next Monday and meet with his Israeli counterpart, Minister of Foreign
Affairs Shimon Peres, HA'ARETZ reported. The two are slated to discuss ways
to end the violence and resume peace talks between Israel and the
Palestinians. This will be the first visit to Israel by a Jordanian minister
since Prime Minster Ariel Sharon was elected in February.

Chief Sephardic Rabbi Eliahu Bakshi-Doron and Sheikh Talal Sidr, the
Palestinian Authority Minister for Youth and Sport met on Wednesday and
agreed to set up a joint council for Jewish and Muslim clergymen to advance
peace in the region, THE JERUSALEM POST reported. Sidr is the only Muslim
clergyman in the PA. Also in attendance were Deputy Minister of Foreign
Affairs Rabbi Michael Melchior and Rabbi Menachem Froman of Tekoa. Froman,
an advocate of Jeish-Muslim relations, arranged the meeting, which took
place in Jerusalem.
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ECONOMIC BRIEFS

* The Israeli venture capital fund Vertex completed a round of financing
that grossed $150 million as part of its Vertex 2 Fund, HA'ARETZ reported.
The fund concentrates on the Asian market and its investors include the
Japanese communications firm NTT (the largest telecom company in the world),
Seiko electronics and watch company and Nikko Capital bank. Other investors
include Singapore Technologies - which invested $40 million; the Government
Investment Corporation (GIC) of Singapore, the Info-Communications
Development Authority (IDA), also of Singapore, JAFCO, the largest Japanese
venture capital fund and Creative, the manufacturer of Sound Blaster. The
Israeli partners in the new Vertex fund include Israel Discount Bank and
Bank Hapoalim, along with 15 pension and provident funds. The Israeli
institutions invested $30 million in the new venture. With the completion of
this round of financing, Vertex now manages around $250 million directly,
and another $300 million with commitments to part investors.

* Israel Aircraft Industries (IAI) will manufacture major parts of
Boeing-777s for U.S. aerospace manufacturer Boeing, GLOBES reported. The
Boeing-777, a medium-sized passenger plane capable of flying up to 328
people for long distances, is currently Boeing's best selling aircraft.
Since Boeing began marketing them in the mid 1990s, the company has received
574 orders for the planes, which have also been bought by El Al. Boeing has
supplied 332 of the airplanes to date to its customers. IAI will manufacture
parts for at least 242 planes.
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