8. Israel & Iran

YEDIOT AHARONOT 1/15/99: "Iran still constitutes a serious strategic threat to Israel. Dani Leshem, a security and strategic affairs expert, emphasizes that notwithstanding the reports about his moderation, Iranian President Khatami is the man who has welcomed the long-range missile project and under whose patronage progress has been made in the Iranian nuclear program, to which the Russians are partners.

Few people know, however, that despite this threat, Israel and Iran are unofficially maintaining extensive trade relations -- although all those involved prefer to deny it.

According to Janes Intelligence Review, Israel exported to Iran goods amounting to $185 million in 1997 alone. Janes claims that this sum was doubled in 1998, especially in the wake of Iranian orders for agricultural equipment and water purification installations.

"Most of our contacts with Iran are maintained under European cover," says A., owner of one of the biggest transporting companies in Israel.

"Every year we transfer to Iran Israeli goods amounting to tens of millions of dollars. I am talking about approximately 10 percent of all the goods we export, and this percentage is growing. Over the last four years trade with Iran has been flourishing.

The Iranians want everything: food, medicine, agricultural know-how, security-related products, cotton. What can I say, Israel and Iran had wonderful trade relations before the revolution, and many people wanted to resume these ties after a cooling-off period of several years..."

9. Israel & Syria

MA'ARIV 1/20/99: "Foreign Minister Ari'el Sharon yesterday announced in the Knesset plenum that "regardless of the elections, the Government of Israel is ready to immediately launch negotiations with Syria with no preconditions."

Minister Sharon said that the negotiations with Syria -- which can be launched at once -- should be separated from an arrangement in Lebanon. He added that "any connection between the two could result in a situation where our soldiers are hostages of the Syrians, who will intensify the fighting of Hizballah and other organizations in south Lebanon."

Sharon noted that he no longer supports a phased withdrawal. He was responding to a motion for the agenda by Knesset Member Hayim Ramon (Labor), who called for a unilateral withdrawal and an IDF [Israel Defense Forces] redeployment along the northern border."

10. Whither Mordechai?

THE JERUSALEM POST 1/22/99: "Defense Minister Yitzhak Mordechai has apparently decided to leave the Likud, according to party sources both close to him and to Prime Minister Binyamin Netanyahu.

According to center party sources, Mordechai has informed them that he would announce his decision to join them today. If Mordechai does quit the Likud, he will resign as defense minister immediately. Mordechai and Netanyahu were expected to meet late last night, but the meeting was postponed until this morning.

Mordechai's spokesman insisted that no decision will be reached until after the meeting. Mordechai had been expected to remain in the Likud and put his name on the party ballot for Knesset candidates today. The deadline is 1 p.m.

However, late Wednesday night he met with the center party's three leaders - Amnon Lipkin-Shahak, Dan Meridor, and Ronni Milo. A second meeting followed early yesterday afternoon and, according to reports from the center party, Mordechai was offered the party leadership.

One source, however, maintains that Mordechai would have to vie with the other centrist hopefuls, but that he was guaranteed the Defense portfolio in any future coalition the party would join.

He reported to them in the early evening, according to centrist sources, that he accepted their offer and will today announce that he is joining their party. The sources added that several "minor points" remain unresolved, but they expect these loose ends to be tied up this morning.

One of the sources, admitted, however, that "it is impossible to say that Mordechai has absolutely closed the door on remaining in the Likud. This is not yet totally airtight, but 90 percent of the deal is done."

Netanyahu reportedly would not make Mordechai such a promise. He said he would hold the Defense portfolio for him if he won the premiership and if the Likud and its allies had a majority comfortable enough to form a government, without either Labor or the centrists.

However, if a national unity government were unavoidable, either under Likud or Labor leadership, or if a broad coalition involving the Likud and the centrists were negotiated, then he couldn't guarantee now who would end up with Defense portfolio.

This was what basically caused the ultimate failure of the Netanyahu-Mordechai talks. Mordechai was heard saying in private conversation that he does not believe anything Netanyahu says.

If Mordechai goes with the centrists, then his chances of winning back his portfolio are multiplied, no matter which candidate wins the premiership. Netanyahu appears reconciled to losing Mordechai..."

11. Pollard rebuff

THE JERUSALEM POST 1/22/99: "The US Justice Department has turned down a request from the lawyer representing Jonathan Pollard to see the file on the convicted spy, The Jerusalem Post has learned.

Writing on behalf of Attorney-General Janet Reno, legal counsel Craig Iscoe told Jerusalem lawyer Larry Dub that the Justice Department does not give out copies of recommendations it makes to the US president. The reference was to Reno's recent appraisal of the Pollard case presented to President Bill Clinton for review.

Dub said yesterday he had requested that Pollard and his attorneys be allowed to see the complete file on the case in order to formulate a defense and present a submission. "The Justice Department has both actively and passively been responsible for the miscarriage of justice" in the Pollard case, Dub charged yesterday.

"Actively, by consistently denying Pollard and his attorneys access to the documents that would exonerate him of the many false allegations that have been levied against him via the media.

Passively, by tolerating the deliberate libeling of his client through the media, and failing to investigate those American officials who deliberately leaked sensitive material to the media in violation of the law."

In a letter to Reno, Dub writes: "As you know, Section 1.5 of the Rules Governing Petitions for Executive Clemency, published by the Justice Department, clearly vests authority in you to allow Mr. Pollard and his attorneys to see the evidence and material in the file in order to serve the ends of justice, and enable us to formulate a proper defense and submission to your agency.

"Accordingly, in the interests of due process, I am hereby requesting that my client and his attorneys be allowed a full review of the complete record in possession of the Justice Department.

Only after a full review of the complete file - including sentencing documents and secret charges - can my client formulate a defense and enter a submission."

12. Statehood?

Voice of America 1/21/99: "A new opinion poll among Palestinians in the West Bank and Gaza indicates wide support for putting off a declaration of Palestinian statehood -- until after Israel's first round of elections may 17th. Palestinian leader Yasser Arafat has threatened a unilateral statehood move on may fourth.

The poll by the "Palestinian center for opinion surveys" indicates -- not surprisingly -- almost universal backing in principle for Palestinian statehood. But at the same time, most respondents believe an early unilateral statehood declaration would have negative consequences.

They would support postponement until after the Israeli elections. The survey of some 400 Palestinian adults was conducted late last week and its findings published Thursday in the Palestinian newspaper "Al-quds." Dr. Nabeel Kokali, director of the center in Beit Sahour in the West Bank, told V-O-A the poll indicates both flexibility on the statehood issue and concern that a declaration outside of the negotiating process with Israel might not get international recognition...

Mr. Netanyahu has warned that a unilateral statehood declaration by the Palestinians would scuttle the peace process.

And some of his advisers have talked about answering such action with the outright annexation of the parts of the West Bank under Israeli control.

Palestinian leader Arafat has said the Palestinians have the right to declare statehood may fourth -- the deadline for completing peace talks under the 1993 Oslo peace agreement.

But he has stopped short of announcing his intention to do so, and is under considerable international pressure for a delay."

13. A picture is worth 1000 words

ARUTZ7 1/20/99: "Today's Ma'ariv newspaper displays a picture MK Abdel Malek Dahamshe (Arab Democratic Party) embracing Labor party leader Ehud Barak yesterday while the latter was visiting Dahamshe's home.

The caption explained that Dahamshe did not want Barak to be photographed with a picture of Hamas terrorist leader Sheikh Ahmed Yassin - which hangs in Dahamshe's living room - in the background.

Arutz-7 correspondent Ariel Kahane asked Dahamshe about the picture of Yassin today:

"The man is a terrorist, you know..."

Dahamshe responded:

"You are a terrorist, and so is anyone who calls people like him a terrorist. Ahmed Yassin is not a terrorist. He is a man who works to defend the rights of his people. He never killed anybody, and never supported murder. The real terrorists are the settlers, who, on a daily basis, continue to murder Palestinians. He simply wants peace."

[Ed. note: Yassin was sentenced to life imprisonment by Israel in 1989 for founding the Hamas terrorist organization and ordering attacks by Hamas terrorists against Israeli targets.]

Kahane: "Do people exploding in the streets constitute peace, in your opinion?"

Dahamshe: "The people exploding in the streets are the ones who don't want peace, and are preventing it, and you are their representative."

14. Lets have a new party!

ARUTZ7 1/20/99: "At least four new political parties have registered or were announced over the past two days.

These include:

* Meimad (Dimension), a religious-Zionist politically-left movement;

* Yitzug Shaveh (Equal Representation), for equal rights for women;

* Am Echad (One Nation), a worker's party founded by Histadrut Labor Union chief Amir Peretz. Polls commissioned by Peretz, who formally resigned from the Labor party today, show that the party will earn three Knesset seats.

* Chok HaTeva (The Law of Nature), which includes in its platform the goals of turning enemies into friends, the full development of mental and creative capabilities, the prevention of disease, and the improvement of social behavior.

Former IDF Generals Matan Vilna'i and Oren Shachor formally joined the Labor party today. Vilna'i, who recently resigned from the IDF, said that he is aware that he will be plagued throughout his career by the fact that he discussed his political future with other parties, "but I had much to learn."

Shachor was forced to resign from the army two years ago after he met with then-opposition leader Shimon Peres contrary to army regulations.