
Terrorist
exits
ARUTZ7 2/8/99: "Hamas terrorists "imprisoned" in Palestinian Authority
jails are actually allowed to leave their cells each day - as long as they return at
night.
Middle East News Line reports that the PA has allowed this arrangement for dozens of
Hamas members. This corresponds with other items reported by other news agencies in the
past.
The ZOA has compiled the following list of examples:
Two Hamas terror suspects jailed by the PA have been given
permission to leave their cells for studies in Bir Zeit University each day. (Jerusalem
Post, April 22, 1998)
The Jerusalem Report investigated and found that, contrary
to what the PA had shown representatives of the American CIA, two Arab brothers who had
murdered Israelis were not in prison, but were rather living normal lives outside prison
walls. (March 5, 1998)
Peace Watch reported in May 1996 that Abdal Majid Dudin,
who was involved in a Jerusalem bus bombing that killed four people, was not serving his
12-year Palestinian Authority-ordered sentence, but was instead hired as a guard in the
PA's jail in Jericho.
The Associated Press reported on at least two occasions of
lax security, or even total freedom for several hours a day, for PA-imprisoned Hamas
terrorists, and that their "imprisonment" was meant primarily to protect them
from Israeli agents.
ZOA President Morton Klein said, "This makes a mockery of Arafat's commitment to
combat terror. The Clinton Administration, which explicitly promised Israel that it would
protest Arafat's releases of terrorists, should speak out."

Off center
THE JERUSALEM POST 2/9/99: "The centrist party led by Yitzhak Mordechai hit an
obstacle yesterday when its representatives tried to sign up at the Parties Register.
Registrar Ze'ev Boneh noted that there was objection to its plan to be called the Center
Party, and the tight deadline before the election could present further difficulties.
The objection came from Shinui leader Avraham Poraz who noted that since 1981, his
party's full official title has been "Shinui, the Center Party" and this is how
it has appeared in all campaign material after it split off from Meretz last year.
"They should have checked the matter with us, since Shinui is the center party and
has historic right to this name. Shinui was and is the true center party," Poraz
said.
He rejected reports that one of the reasons he raised the objection was to pressure the
larger party into absorbing him on its list. He said he had discussed the possibility of
joining, but had backed down after Mordechai supported the amendment to the Religious
Services Law and visited Rabbi Ovadia Yosef..
.Boneh said he could not immediately say what his decision would be.
Although there is no deadline for registering a new party, those which wish to compete
in the upcoming elections need to allow a two-week period for registering, a month in
which objections can be filed, and must present their lists at least 47 days before the
elections, taking into account that if objections or a High Court petition are filed the
process could take longer.
Meanwhile, the centeri party - still with a small "c" - began its campaign
yesterday to sign up the necessary 50,000 supporters to back Mordechai as a candidate for
prime minister.
A candidate for premier requires the signatures of either 50,000 eligible voters or 10
MKs. The party is aiming for a far higher number of signatures, according to campaign
staff...
The party activists will also distribute campaign material including blue-and-green
stickers with the slogan: "A new way - Yitzhak Mordechai."

Venture up
THE JERUSALEM POST 2/9/99: "Investments of Israeli venture capital funds in
hi-tech and biotechnology companies soared 65 percent in 1998 to $332.2 million, according
to a survey published yesterday by the VentureOne Israel research group.
The survey shows that local venture capital funds raised last year some $864m. of which
78 percent were raised from US investors. Of this sum, 77% were raised by the 8 largest
funds in the industry.
These funds, which established the second generation of funds, have each holdings of
more than $60m. The large funds continue to play a major role in the VC industry, with the
10 largest funds responsible for 51% of all investments..."

New CPI
HA'ARETZ 2/9/99: "The Central Bureau of Statistics is making two major changes in
the way the 1999 Consumer Price Index is calculated, as compared to previous years. The
new system will be used for the first time to calculate the January CPI, which will be
published in six days.
The first change is in the weight accorded to each of the index's various components.
This is necessary, the bureau said, because Israelis' consumption habits have changed.
The revisions are based on a 1997 survey of how Israelis spend their money, while the
old index was based on a survey performed in 1992-93. The most notable change was the
decline in health care costs, which dropped from 7.19 percent of the old index to 3.98
percent of the new, while the greatest increase was in transportation and communication,
from 15.90 percent to 19.74 percent.
Other changes were in shoes and clothing (5.95 percent to 4.46 percent), food (15.23
percent to 14.40 percent), education, culture and entertainment (12.01 percent to 13.11
percent) and housing (20.77 percent to 21.42 percent).
The other significant change is in the way the housing component of the index will be
calculated. Under the new system, apartment prices will be updated on the basis of changes
in the rent on equivalent apartments.
This is the system used in most of the developed world, including the U.S. Under the
old system, the calculation was based on actual sale prices.
However, this data often lagged by several months, causing significant inaccuracies in
the CPI. It was also heavily influenced by the shekel-dollar exchange rate, which added
further distortions."

Iran change
Voice of America 2/9/99: "...Two Iranian newspapers, including one owned by the
government, report Iran's president Mohammed Khatami has accepted the resignation of the
nation's intelligence chief, Qorbanali Dori-Najafabadi.
The resignation of Mr. Dori-Najafabadi comes only four weeks after the intelligence
ministry admitted that a few of what it called its rogue agents were involved in a string
of murders that began in November.
The newspapers also quoted informed sources as saying Iran's chief military prosecutor,
Ali Yunesi, is expected to be the new intelligence minister.
Mr. Yunesi heads a presidential committee investigating the murders of the four
dissidents and intellectuals. Moderates close to President Khatami have been calling for a
purge of the intelligence ministry and the removal of, Mr. Dori-Najafabadi.
The ministry is dominated by conservative hardliners who oppose the reformist policy
supported by President Khatami.
The replacement of the intelligence minister is likely to be viewed as a victory for
Iranian moderates who have been locked in a power struggle with conservative hardliners
since President Khatami won a landslide victory more than a year ago."

South Korea & Israel
Seoul's YONHAP 2/8/99: "South Korea and Israel signed agreements Sunday on
investment guarantees and double taxation avoidance, vowing to push ahead with technology
transfers in the semiconductor and telecommunications sectors.
Visiting South Korean Prime Minister Kim Jong-Pil and his Israeli counterpart Benjamin
Netanyahu held talks and discussed strengthening bilateral economic relations, South
Korean officials said.
Kim asked israel to expand technology exchanges and investment in South Korea, and
Netanyahu responded positively, officials said. Kim explained South Korea's policies on
the Korean peninsula and sought Israel's support.
The South Korean prime minister formally invited Israeli president Ezer Weizman to
visit Seoul and proposed visits by high-level government officials."

Center & Bill
YEDIOT AHARONOT 2/3/99: "The leaders of the Center Party are holding contacts with
US President Bill Clinton's two key political advisers, with the aim of hiring their
services in the upcoming election campaign.
The two advisers are Doug Shawn and Mark Penn. Yedi'ot Aharonot has learned about a
meeting that was recently held between Jewish businessman Ze'ev First, who maintains close
contacts with Shawn and Penn's office, and Amnon Lipkin-Shahaq, in order to discuss the
possibility of the two men becoming the Center Party's main political advisers and
pollsters.
Shawn and Penn replaced political adviser Stanley Greenberg as President Clinton's main
pollster three years ago. Greenberg currently serves as an adviser to Labor Party Chairman
Ehud Baraq in the approaching elections.
Shawn has extensive knowledge of Israeli politics:
He advised Shim'on Peres in the previous elections. He was recommended to Peres by
Clinton's people, who believed he could help Peres win.
Political sources in Washington yesterday claimed that the deal with Shawn and Penn is
about to be closed.
Nevertheless, other sources reported that the Center Party is also considering other
American advisers. Any decision to use their services will cost the Center Party at least
$1 million.
Mordekhay and Shahaq hope to raise this money in a coast-to-coast tour of the United
States that they are starting this morning. The two men will also visit some of
Netanyahu's and Baraq's biggest American supporters.
Among other things, they will meet in Florida with multimillionaire Dani Avraham [S.
Daniel Abraham], who is one of Baraq's greatest contributors. Avraham has already
contributed to Baraq's election campaign; however, it has been learned that he also tends
to support Mordekhay, whom he greatly respects.
Mordekhay and Shahaq will have a meeting in Los Angeles that is no less important.
Their goal there is to receive the backing of Hayim Saban, one of the wealthiest Israelis
in the United States. Saban is wavering between supporting Baraq or backing the Center
Party and he has already declared that he will do everything in his power to replace the
government in Israel.
Mordekhay may also meet with billionaire Ron Lauder, one of Netanyahu's biggest
supporters, who is expected to be elected chairman of the Conference of Presidents of
Major American Jewish Organizations today.
[ED. NOTE: He was elected.] American Jewish leaders expressed doubt as to whether
Lauder would contribute funds to the Center Party, explaining that "he doesn't want
to be identified with either side right now."