
Moscow blow up? Hizballah plan to attack Israeli Embassy
in Russia
MA'ARIV 6/29/99: "Hizballah planned to carry out a terrorist attack at the Israeli
Embassy in Russia in 1998, a charge sheet submitted to the military court reveals. One of
the individuals implicated in the plan was Isma'il Faysal Karim Abu-Salim, who left
Lebanon to study in Russia and joined a Hizballah cell while there.
The organization asked him to collect information on the security arrangements at the
Israeli Embassy in Moscow, and he carried out the task. When the Hizballah activist later
arrived in Israel, he was detained and charged with aggravated espionage. A defense
official said that the embassy attack plan was scrapped following Abu-Salim's arrest.
It has been learned meanwhile that Israeli security branches have recently uncovered
dozens of students from the territories who left for studies in Russia and Turkey, where
they joined Islamic organizations, including Hamas [Islamic Resistance Movement], the
Islamic Jihad, and Hizballah, received paramilitary training, and sent messages back to
the territories. Information on these individuals is part of a report compiled by
Brigadier General Uri Shoham, military advocate general."

Thou doth not protest
YEDIOT AHARONOT 6/29/99: "Palestinian Authority [PA] Chairman Yasir 'Arafat has
instructed his security forces to exercise restraint and prevent any violence or protest
activities until Baraq's government is formed. A senior Palestinian official revealed
yesterday: "We have received instructions to avoid any actions that Israel may
perceive as provocation.
The Palestinian leadership would like to start the relationship with Baraq without any
obstacles or tensions." In addition, the PA pursues its efforts to prevent any
terrorist acts by Hamas [Islamic Resistance Movement]. At a gathering in Gaza last week,
Hamas leader Shaykh Ahmad Yasin called for continued struggle against Israel. "Anyone
who thinks Palestine can be liberated without force is a dreamer," Yasin said, again
denouncing "those who believe the deceitful promises of the United States and of Ehud
Baraq."

Aid cut?
HA'ARETZ 6/2/99: "The United States intends to cut economic aid to Israel in the
next fiscal year, on the ground that the administration incurred large expenses in the war
in the Balkans. The Americans are promising that the cut will be smaller in the years
ahead. Israeli representatives have objected to the proposed aid cuts, arguing that
although this year's cut was in fact initiated by Israel, it will be difficult to absorb a
deeper aid slash next year.
At the initiative of outgoing Prime Minister Benjamin Netanyahu, a program was worked
out in which U.S. aid to Israel, which had traditionally been $3 billion a year - $1.8
billion in military aid and $1.2 billion in economic aid - will gradually be phased out
within 10 years, at the rate of $120 million a year. This year Israel received $1.08
billion in economic aid and $1.86 billion in military aid.
Under the Netanyahu plan, Israel should get $960 million in economic aid and $1.92
billion in military aid next year, but the administration is seeking to cut the economic
assistance package further. While cutting the overall package, as part of the terms of the
Wye accord last year, the United States undertook to provide Israel with major economic
assistance to facilitate its West Bank redeployment.
The aid issue is one of the topics that will be on the agenda of Prime Minister-elect
Ehud Barak when he meets with President Bill Clinton in Washington later this month after
the new government is installed..."

Shechem problems
ARUTZ7 7/1/99: "The 12 Israeli soldiers guarding Yeshivat Od Yosef Chai at
Joseph's Tomb in Shechem there are essentially surrounded and cut off from the other
Israeli forces in the area. For the past two days, the Palestinian para-military police
have not allowed the delivery of food and supplies, and the soldiers have been forced to
resort to the limited number of emergency rations on hand.
Early this afternoon, the Palestinians renewed the water supply to the compound. The
Palestinians claim that they initiated the siege because the soldiers brought in a
medicine cabinet without prior approval. In response, the IDF has not allowed Palestinian
VIPs to enter or leave the city. The joint patrols are also not being carried out.
The IDF, according to Samaria Regional Council Head Bentzi Lieberman, is determined not
to allow the PA to create new facts on the ground. The students of the yeshiva are holding
their studies at the gravesite of Elazar the son of Aaron, outside Shechem. On the other
hand, Palestinian workers arrived for work as usual this morning in the various Jewish
communities of Gush Katif. This, despite instructions by the Palestinian Authority that
its subjects not work for Israelis in the area."

Coalition politics (summary)
A summary of articles: ARUTZ7 7/1/99: "The Centrist party, after waffling back and
forth since yesterday, finally approved the latest offer by Ehud Barak regarding the jobs
offered its top Knesset Members. Yitzchak Mordechai will be Minister of Transportation and
a member of the security mini-cabinet, Amnon Lipkin-Shachak will be Deputy Minister of
Tourism, and Dan Meridor will be the Chairman of the Knesset Foreign Affairs and Defense
Committee.
Ron Milo and Uri Savir will be regular MKs, while Dalia Rabin-Pilosof (#6) will serve
as a Deputy Knesset Speaker. Shachak will be promoted to Minister of Tourism upon the
enlargement of the government, scheduled for a few weeks from now.
The Prime Minister-elect also held final coalition talks with Yisrael B'Aliyah, and
agreed that Yuli Edelstein will be promoted from Deputy Immigration Minister to full
Minister upon the expansion of the government. Meretz, which will receive another Minister
at that time, still demands a guarantee that it will be free to vote as it wishes on
"matters of conscience."
David Levy of Gesher appears to be assured of the Foreign Ministry - a position he held
for a year and a half under Binyamin Netanyahu. Levy said this morning that Barak denied
that he plans to reduce the authorities of the Foreign Minister, and that he promised Levy
a "full partnership" in the framing of national policy.
Barak himself is expected to assume the Defense Ministry portfolio, apparently leaving
those of Justice, Finance, Public Security, Communications, and Environment for his Labor
party colleagues. One Israel sources said today that Barak will present his government to
the Knesset next Wednesday - the last day possible under the law.
The NRP chose Yigal Bibi to serve as Deputy Minister of Religious Affairs under the
Shas Minister. The Shas party will officially choose its four government representatives -
in the Ministries of Infrastructures, Labor, Health, and Religious Affairs - early next
week." THE JERUSALEM POST 7/2/99: "With the Center Party becoming the latest -
and most probably the last - of the parties to sign a coalition agreement with Prime
Minister-elect Ehud Barak, the long nights of coalition bargaining came to a close
yesterday, and Barak seemed poised to present his 75-member coalition - made up of One
Israel, Meretz, Shas, the National Religious Party, United Torah Judaism, Yisrael
Ba'aliya, and the Center Party - by Tuesday or Wednesday of next week.
Am Ehad, once thought to be a shoo-in partner, is expected to remain in the opposition,
despite a last-minute meeting scheduled for today between party leader Amir Peretz and
Barak. Shinui, led by Yosef (Tommy) Lapid, is also out of the coalition. However, in a
meeting between Lapid and Barak yesterday, the sides reportedly talked about future
cooperation.
A suggestion was floated, whereby a number of ministers would be appointed to serve as
liaisons to opposition parties which share some government views, such as Am Ehad, Shinui,
and the Arab parties. Center Party leader Yitzhak Mordechai, who up until Wednesday
evening was threatening to leave his party in the opposition, signed the coalition
agreement yesterday and is expected to be given the post of transportation minister...
Mordechai joined the growing number of politicians whose positions around the
government table are now secure. Altogether, 10 ministerial positions out of 18 have
already been settled, with the rest waiting to be filled from amongst the ranks of One
Israel.
Pending the approval of the Shas Council of Torah Sages, Interior Minister Eli Suissa
will take on the National Infrastructure Ministry, Eli Yishai will remain minister of
labor and social affairs, Shlomo Benizri will become health minister, and Shas will also
get the Religious Affairs Ministry.
Meretz leader Yossi Sarid will become education minister, while Ran Cohen will be
minister of industry and trade. Yisrael Ba'aliya's Natan Sharansky will be interior
minister, the NRP's Yitzhak Levy will be given the Ministry of Housing and Construction,
and Barak plans to keep the Defense portfolio for himself.
If, as Barak has promised, ministerial positions will be expanded within a few weeks
from 18 to 24, Meretz, Yisrael Ba'aliya, and the Center Party can all expect to get
another portfolio. This would bring the number of ministers in Meretz up to three, and
Yisrael Ba'aliya and Center to two.
From within these parties, those in line for the ministerial posts are Meretz's Haim
Oron, who is expected to ask for the Environment Ministry or a ministership in the Prime
Minister's Office, Yisrael Ba'aliya's Yuli Edelstein, who plans to ask for the Absorption
Ministry, and the Center Party's Amnon Lipkin-Shahak, who intends to ask for the Tourism
Ministry.
Shas will most likely be given another ministership, one without portfolio, as well as
another deputy ministership. The NRP, with five MKs, will have to remain content with its
one minister. Two more One Israel MKs from Labor will also get ministerial posts in this
scenario.
Before closing shop yesterday, Barak, noticeably in a good mood, put some of the final
touches on the various coalition agreements he has forged these past weeks. Meeting with
Meretz leaders Sarid and Cohen in the afternoon, he discussed Meretz's demand for the
right to vote independently on all matters of conscience and religion.
One Israel has, in principle, agreed to this condition, which was also made by the
Center Party, but wants to insert a clause in any such agreement which would limit the
voting freedom by giving Barak the option of insisting on full coalition compliance when
he deems it necessary.
A slight hiccup in the relationship between Sharansky and Barak, meanwhile, was also
ironed out when the Yisrael Ba'aliya leader, worried that some of the other parties,
especially the NRP, had been brought into the coalition under better conditions, was
assured that all parties had been treated equally, and that the number of ministers,
deputy ministers, and committee heads were evenly distributed."
HA'ARETZ 7/1/99: "Prime Minister-elect Ehud Barak signed the general terms of a
coalition agreement with Shas last night. Shas sources said the agreement gives their
party control of the Israel Lands Administration along with the Ministry of National
Infrastructures.
According to the agreement, Barak will have to confer with the infrastructures minister
if he wants to remove the ILA from the ministry's jurisdiction, a prospect which promises
to be lengthy and complicated. Shas sources said they were given verbal assurance that
Barak would leave the ILA in their care.
Moreover, the Shas officials said they believed Barak would be too busy with the peace
process to bother with their control of the ILA. Control of the ILA will allow Shas to
grant religious institutions and Haredi schools discount prices on plots of land...If and
when Barak chooses to expand the cabinet to up to 24 ministers, Shas will get to name a
minister without portfolio or two more deputy ministers, one in the Education Ministry and
one in the Ministry of Housing and Construction.
The coalition agreement mentions nothing about a widening of the government. The
agreement also includes a section on pirate radio stations, according to which "the
government will work to find a solution to allow radio and television stations for the
Haredi population to operate legally, with municipal supervision."
Unlike One Israel's agreement with United Torah Judaism, which does not mention the
controversial conversion issue, the Shas agreement has a section which reads, "A
ministerial committee on conversion will present the government with recommendations on a
resolution of the issue, whether by legal means or otherwise, which will take into
consideration the Ne'eman Committee recommendations and the status quo."
The phrase "whether by legal means or otherwise" seems to indicate the
possibility of a technical solution to the conversion problem - possibly striking mention
of religion from ID cards. Both the Shas agreement and the UTJ agreement include sections
which provide for the maintenance of the status quo on religious issues. Shas sought to
include a clause stipulating that in the event of a violation of the status quo, the
coalition would be required make a correction.
But that clause was stricken from the final version, as One Israel negotiators feared
it would be used as a pretext for legislation aimed at subverting rulings handed down by
the High Court of Justice. Shas officials said they were especially pleased with a clause
which reads, "The government will act to honor the Sabbath and holidays of Israel,
which have preserved our existence as a people."
The officials said that in addition to the symbolic value of the declaration, it will
also lend legitimacy to the continued operation of the Druze-staffed Sabbath labor law
enforcement patrol..." HA'ARETZ 7/2/99: "MK David Levy (Gesher-One Israel)
declared yesterday that he will be foreign minister in the government of Prime
Minister-elect Ehud Barak. Levy phoned an Israel Radio talk show yesterday, which was
discussing cabinet appointments in the Barak government, and in an assertive tone of voice
said he had been promised the portfolio some time ago by Barak.
He said he would be "a full, full foreign minister," meaning, presumably, a
full-time minister. Rumors in recent days had it that Levy was not a shoo-in for the
portfolio. But Levy told the radio program that Barak had phone him Wednesday night to
reaffirm his commitment to name him foreign minister.
If Levy was indeed promised the post months ago, when One Israel was formed, this would
contradict what Barak has stated publicly on numerous occasions - that he did not promise
anyone anything. In the unity agreement between Gesher and One Israel, Barak undertook to
appoint Levy to a "senior" portfolio.
Levy's blunt statement provoked criticism in the Labor Party and embarrassment in
Barak's bureau. Sources in One Israel reiterated that Barak has not promised the Foreign
Ministry to anyone, but no denial was forthcoming from Barak's inner circle. The
likelihood, then, is that Levy will become Israel's foreign minister for the third time
this decade.
Barak is expected to present his 18-member government in the Knesset next Wednesday.
But before the Knesset recesses at the end of this month, the government will number 24
ministers. According to sources in One Israel, on the same day that Barak asks the Knesset
to change the law so that he can increase the number of ministers and solve some of his
coalition problems - which under the electoral reform introduced in 1996, cannot have more
than 18 ministers - he will also put to the vote the so-called "Norwegian law,"
under which ministers will resign from the Knesset and thus enable other members of their
parties to enter the legislature.
The sources maintain that only if the two votes are held consecutively will it be
possible to obtain the necessary majority of 61 MKs to pass the controversial
"Norwegian law." In its Israeli version, that law will not oblige ministers to
resign their Knesset membership, but will leave the decision in their hands. If for any
reason ministers who resign from the Knesset are at a later stage forced to leave the
government, they will be able to reclaim their Knesset seat at the expense of the last
person who entered the parliament on their party list.
Barak reiterated yesterday that he intends to go ahead with the "personal
appointment" of a minister who is not an MK, which he talked about a few weeks ago.
One possibility is Maj. Gen. (Res.) Yossi Peled, who left the Likud and supported Barak
during the election campaign. As the appointment will come at the expense of the Labor
Party faction in One Israel, which already has slim cabinet pickings, the announcement has
kindled more outrage among party stalwarts."

Arad's fate?
HA'ARETZ 7/1/99: "Ron Arad, the missing Israel Air Force navigator captured in
1983 when his plane was shot down over Lebanon, is dead, says former IAF commander Avihu
Bin-Nun, explaining that "it's not logical that his captors have never tried to
ransom him."
In an interview to be published tomorrow in the weekly newspaper Arim, Bin-Nun says
that he believes Arad died in captivity and that Iran is responsible. "Regretfully, I
must say that I am pessimistic about finding Ron Arad alive. It could be that even his
body will never be returned because he was apparently tortured, which would be evident if
the body is returned.
There is a possibility the Iranians are involved up to their necks and don't want to
return the body to Israel lest they be accused of allowing the torture...The IDF spokesman
issued a sharp rebuke to Bin-Nun for his comments.
"The version Maj. Gen. (ret.) Bun Nun proposes, quoted in the interview, has no
basis in intelligence information or any other information. Israel regards Iran as
directly responsible for the fate of Ron Arad and expects Iran to allow his healthy return
to Israel."
There is no information in the hands of the intelligence community in Israel "or
in the hands of any intelligence community in the world that corroborates what Bin-Nun
said," said the spokesman..."

ITRY Yeshiva fraud?
HA'ARETZ 7/1/99: "The investigation regarding the disappearance of millions of
dollars from the Itri yeshiva institutions was stepped up yesterday when police ordered
the case transferred to the national fraud division.
Two weeks ago the Jerusalem District Fraud Division began investigating the accusations
published by Ha'aretz, regarding the theft of large sums of money from the yeshiva. Since
then investigators have arrested Rabbi Haim Weiss, the director of the yeshiva, after he
refused to cooperate with police.
Investigators also received the results of a separate investigation conducted by the
Public Registrar by order of the State Comptroller. Yesterday, the head of the Police
Investigation Division, Superintendent Yossi Sitbon, met with the Jerusalem based
investigators, and after considering the results of the initial investigation decided
there was enough evidence to upgrade the investigation of the disappearence of funds
received by the yeshiva both from the government and from private contributors.
Another reason for the change of venues is the complexity of the investigation, which
will have to look into funds both in the U.S. and Switzerland as well as in Israel. Thus
far the police investigation has unveiled a large discrepancy between the funds listed by
the Itri institutions and between what it seems they actually received..."

Argov controversy
HA'ARETZ 7/1/99: "The British government has issued a fourth version of their
knowledge of the whereabouts of Marwan Al-Bana, one of three Palestinians caught after the
shooting attack on then Israeli Ambassador Shlomo Argov in June 1982. According to Sarah
Buchannan, a spokesman for the British Embassy in Israel, Al-Bana is hospitalized in a
mental hospital under heavy security.
This was the first formal reaction by the British government to an investigative report
by Ha'aretz from three weeks ago about the circumstances leading up to and following the
shooting attack on Argov - which became the trigger that started the Lebanon war. Argov
was seriously wounded by the shooting and has been incapacitated ever since. The Ha'aretz
report said a British agent was inside the Abu Nidal cell that hit Argov and that he had
told his handlers about the planned hit but they did not respond effectively.
The three men arrested for the assassination attempt also said after their arrest that
they believed a traitor among them had turned them in. In the last two years, the British
authorities have released several confused reactions to requests to interview the three
men arrested after the assassination: Hussein Sa'id, Marwan Al-Bana and Nawef Rusan. Of
Al-Bana, a relative of Abu Nidal, London has said they never heard of him, that he was in
jail and could not be interviewed, and finally that he was released from jail in December
1992 for medical reasons.
He was sentenced to 30 years in prison and spent ten in jail. Now, the British Embassy
in Tel Aviv has issued a fourth statement, this time placing Abu-Bana in a high-security
mental asylum."

Peres as Knesset speaker
HA'ARETZ 7/1/99: "With the Likud lining up behind MK Shimon Peres as Knesset
speaker, the House appears almost unanimous in its support for voting the former prime
minister into the job.
Already acting speaker of the house because he is the oldest serving MK, Peres is seen
to be enjoying the job, on which he has already made his mark by forcing debates to focus
on current events, and trying to avoid lengthy debates.
Likud MK Reuven Rivlin, the opposition's faction leader, said he and his party would
back Peres as speaker because while the Nobel Peace Prize winner's personality would raise
the level of debate, Peres would not be able to function independently, nor would he be
allowed to makes the kind of statements about the peace process that Rivlin said neither
he nor his colleagues want to hear.
Until now, Peres has been tipped to become Minister for Regional Development, a new
ministry that is supposed to focus on developing cooperative relations with the Arab
world. MK Yossi Sarid of Meretz said that if Peres wants the job, Meretz would back him,
as did MK Avraham Poraz of Shinui.
One of the few voices to speak out against the idea of Peres as speaker was his
longtime associate Uri Savir, who is director general of the Peres Center for Peace, and
was elected to Knesset on the Center Party ticket. Savir said that making Peres speaker
would harm the peace process, "to which Peres is devoting his life."...

It's a gas! Syria arming with VX and calling for peace
HA'ARETZ 7/2/99--Article by Ze'ev Schiff: "Syrian President Hafez Assad has
recently been showering Prime Minister-elect Ehud Barak with compliments, but at the same
time, we learn from Western sources that Syria, has begun to arm artillery shells with the
lethal chemical weapon VX nerve gas. Syria talks about peace, but prepares itself for war,
including the use of unconventional weapons.
The other - and surprising - piece of news comes from Sudan. Following the bombings of
the American embassies in Kenya and Tanzania, the United States bombed a chemical factory
in Sudan where, according to the Americans, chemical weapons were being manufactured.
This week in the Hague, Sudan announced to the fourth session of the International
Organization for the Prevention of Chemical Weapons that it is signing the new
international treaty forbidding the production, stockpiling and use of chemical weapons.
Sudan is thus going against the decision of the Arab League that stipulates that as long
as Israel has not joined the Nuclear Non-Proliferation Treaty (NPT), the Arab countries
will not join the treaty outlawing chemical weapons.
A few months ago, another radical nation, Iran, ratified the Chemical Weapons
Convention and, in the presence of inspectors from the chemical treaty organization,
destroyed the chemical weapons that it had declared were in its possession. Arab nations
that have not signed the treaty include Egypt, Iraq, Syria, Libya and Somalia.
Yemen, like Israel, has signed the treaty, but not ratified it. Israel finds itself in
not very illustrious company, in a group in which North Korea also stands out. On the
other side are 124 nations that have already ratified the chemical treaty, making it a
universal one. The fourth meeting of the chemical treaty organization that was held this
week pointed out the fact that Israel's "chemical clock" is ticking.
The international community is approaching a crossroads on the issue of chemical
weapons. We'll arrive at the first intersection in another nine months, in April 2000,
when the first sanctions will be imposed on nations that have not ratified the chemical
treaty..
.The Ministry of Industry and Trade prepared a special study of the potential harm that
could be caused by the sanctions and came to the conclusion that the damage incurred by
Israel in he first stage of sanctions could amount to 60-70 million dollars. When this
information was brought to the Netanyahu government, it concluded that this was a
tolerable level of damage that needn't force a change in the fundamental decision that for
the time being Israel will not join the chemical treaty..."