
Iranian Jews and Barak / Bill agenda
HA'ARETZ 7/16/99: "Internal conflicts within the Jewish community of Iran,
climaxing in informants going to the authorities, were behind the April arrests of 13 Jews
on suspicion of espionage, senior government officials have learned. The effort to secure
the release of the detainees is on Prime Minister Ehud Barak's agenda in his meetings with
President Bill Clinton in Washington this week.
After the initial public protests over the arrests were used by the Iranian authorities
as alleged confirmation of the detainees' Israeli-American contacts, Israel has decided to
focus its rescue efforts on secret contacts via European states that have open channels to
Iran.
Based on information transmitted to Israel by Iranian Jews living in the United States,
primarily in Los Angeles, the 13 detainees were originally arrested on suspicions of
smuggling and forgery, following a period of heightened tension between the Jewish
communities of Tehran and Shiraz, caused by economic rivalry.
The two communities consist largely of businessmen, who identify themselves as Iranians
and avoid any contact with Israel, remaining in Iran of their own free will. Until
recently, most of them enjoyed favorable treatment from the authorities and relative
freedom to travel to the West on business.
Investigations conducted by the authorities in both Israel and the U.S. have found
nothing to indicate any ties between the detained Jews and groups outside Iran.
Speculation now is that the decision to "upgrade" the charges against them from
financial to espionage offenses was one of the first indications of the internal struggle
within Iran between the conservative and moderate groups."

Bill's lavish outlay for Ehud
Voice of America 7/18/99: "Israeli prime minister Ehud Barak Monday holds a
concluding round of White House talks that officials on both sides say have put US/Israeli
relations back on a more cordial basis. US officials had made no secret of their happiness
over Mr. Barak's election victory last may that ended three years of tense relations with
former prime minister Benjamin Netanyahu.
And the administration gave the Barak visit lavish treatment, including an unusual
overnight stay by the president and prime minister and their wives at the Camp David
Retreat, and an open air dinner with hundreds of guests at the White House Sunday night.
In a dinner toast, Mr. Clinton hailed Mr. Barak's commitment to complete the middle
east peace process and pledged u-s diplomatic and financial support as he advances
agreements made by his precessors on the same White House grounds over two decades:
[Clinton:] 'Now the challenge is to make the promise of those days a reality, everyday
from now on. To implement the Wye accords, to reach a permanent status agreement between
Israel and the Palestinian people, to build a comprehensive peace for the region including
Syria and Lebanon. Mr. Prime minister, you have made it very clear that Israel will keep
its commitments. I want to make it equally clear that America will do its part.'
Mr. Barak, for his part, pledged to advance regional peace-making with conviction and
determination and said mr. Clinton's pledges of support will help israelis through the
obstacles and crises along the way:
[Barak:] 'In that spirit, we now follow the road of Menachem Begin and of my beloved
commander and mentor Yitzhak Rabin, who was assassinated while fighting for peace. And we
will follow in their footsteps all the way to a peace of the brave in the middle east. Mr.
President, you are our partner, our fellow pilgrim on this journey. We know that we can
count on you and on the American people as we cross a great historic divide and extend a
hand of friendship to our arab neighbors.'
Mr. Barak told US television interviewers Sunday he is aiming to conclude peace
agreements with both the Palestinians and Syria within 15 months -- a time frame that
would complete the middle east peace process before Mr. Clinton leaves office. He also
said he believes an agreement with Syria over the Golan heights would not require a US
troop presence and could be monitored by a few dozen foreign observers or inspectors.
Monday's final round of talks will be capped by the signing of several agreements
including a commitment of additional US funds to Israel's "Arrow" anti-missile
program. Mr. Clinton also signalled in his dinner remarks that the administration intends
to release one-point-two billion dollars in aid for Israeli troop redeployments that was
frozen last year when former prime minister Netanyahu suspended the Wye River
accord."

Israel orders Lockheed-Martin F-16
fighter jets
ARUTZ7 7/18/99: "Ehud Barak, in his capacity as Defense Minister, has also met
with U.S. Defense Secretary Cohen in Washington. Israel has finally made a formal decision
on which jet fighter it will purchase to revamp its Air Force. The winner is
Lockheed-Martin's F-16 jet, of which Israel will buy 50, with an option to buy a similar
amount later.
The deal is worth $2.5 billion, making it the largest-ever defense contract signed by
Israel. Boeing's F-15, which also competed for the Israeli contract, was almost twice as
expensive as the F-16.
HaModia military correspondent A. Pe'er reports that various factors were taken into
account, including the perception of Israel's long-term threats, distance capabilities,
manufacturing-rights granted to Israel for plane-parts, hovering capabilities, maintenance
costs, bomb capacity, and more.
Former Defense Minister Moshe Arens said that he had come to the same decision before
leaving office, but at the request of Barak, agreed to leave the final approval for him.
The plane will not be fitted with Israel's advanced ELTA radar, as Israel had requested,
but rather with the lesser-quality American-made radar - thus that Arab countries' F-16's
will have the same radar systems as Israel.

Barak calls for peace all at once:
"Acharai!"
HA'ARETZ 7/19/99: "Prime Minister Ehud Barak told President Bill Clinton yesterday
that he intends to pursue a total and comprehensive peace on all fronts at once, solving
the problems between Israel and the Palestinians, Israel and Syria, and even such tough
individual questions as the status of Jerusalem and Palestinian refugees.
Barak explained to Clinton that, in his view, Israel cannot afford to take things one
step at a time, because any solution with loose ends will come back to haunt Israel,
exerting pressures that could halt the process in midstream. Barak described the present
time to Jewish leaders in New York as a moment of truth, where we must act to bring about
a peaceful future rather than wait for manna from the heavens.
Barak's plan calls for breakthroughs on every front within 15 months: he is hoping for
peace between Israel and Syria and a final agreement with the Palestinians by October of
2000. His message was hopeful, but realistic; even if we do not achieve peace, he said, no
one will be able to say the Israeli government did not do its utmost to bring it about.
In talks both at the White House and in New York, Barak struck a balance between
self-reliance and requests for outside help in peace negotiations. He emphasized Israel's
responsibility and its strength, but called for the U.S., the European Union, and the G-7
league of Industrialized Nations to support Israel in its negotiations with the
Palestinians and provide what he dubbed an economic safety net.
Barak also called on the U.S. to help fund a total modernization of the Israeli army,
calling the "New IDF" an "army of peace." He stressed the point that
the Middle East is a tough neighborhood and that particularly in peace negotiations,
whoever shows signs of weakness will pay for it.
Barak also looked to the American Jewish community for support. In a meeting with the
Israel Policy Forum, Barak spoke positively of the relationship between Israel and the
Diaspora Jews, recognizing their independent identity and nature, but noting that their
fate and Israel's are still intertwined. Israel, he said, would never dictate to the
Diaspora how or what it should be, but asked only that it represent a united front in
support of Israel's peace efforts.
Barak, ever the military man, compared the Diaspora Jews to a combat soldier who, if he
understands and agrees with his goal, will give his all to achieve it. When one Jewish
leader called out to Barak that the Jewish community in the Diaspora supports him and
wants him to lead them, Barak answered in the age-old Hebrew phrase: "Acharai!"
(Follow me!)
As Barak's visit to the U.S. draws to a close, his stance on the issues with the U.S.,
Syria, and the Palestinians is becoming clear. On the Palestinian front, he calls for
Palestinian autonomy over a continuous region of Arab-populated areas, with a bridge
connecting the Gaza Strip and the West Bank Palestinian areas. He does not object to the
eventuality of some sort of Palestinian state, but Jerusalem will remain the eternal
united capital of Israel, and the Palestinians will have no claim to it.
Palestinian refugees, he added, would not be brought back to Israel, but Barak called
on the U.S. to help them in the countries they are in. Most of the settlements will remain
in place. Barak also demonstrated a willingness to withdraw from the Golan in exchange for
peace with Syria, so long as a peacekeeping force were put in place and arrangements
agreed on so that Syria could not possibly launch a surprise attack on Israel.
He also requires the Syrians to exert their influence to reign in the Hezbollah as
Israel pulls out of Lebanon, and to desist from terrorist support in Damascus. He hopes
for normalization, an open border and economic cooperation between the two states. Barak
also wants the U.S. to move its embassy to Jerusalem, to help fund its army modernization
plan and to take a part in peacekeeping between Israel and its neighbors."

Arabs, Druze get key posts
HA'ARETZ 7/19/99: "For the first time in the history of the Knesset, four Arab and
Druze members are set to serve on the Knesset Security and Foreign Affairs committee.
After the United Arab List (UAL) decided last week to nominate MK Hashem Mahmeed as its
representative, One Israel will apparently nominate MKs Nawaf Massalha and Salah Tarif as
two of its five representatives to the prestigious committee.
"There is a reasonable chance that both Massalha and Tarif will be members of the
Security and Foreign Affairs committee," said coalition chair, MK Ophir Pines-Paz
(One Israel) yesterday.
The One Israel Knesset faction will convene today to choose its representatives for the
Knesset committees. Last week 16 senior officers of Druze extraction called upon the prime
minister to appoint MK Tarif to the committee. MK Tarif is a Lieutenant-Colonel (Res.). He
was elected chair of the Knesset House Committee after prevailing over Prime Minister Ehud
Barak's candidate, MK Avi Yehezkel.
The Likud faction also decided yesterday to have a Druze MK represent it on the
Security and Foreign Affairs Committee. Faction chair Ruby Rivlin said yesterday that that
MK Ayoub Kara would serve on the committee for six months in place of MK Danny Naveh, on a
rotation basis..."

Hezbollah vows to continue fight
against IDF and SLA
THE JERUSALEM POST 7/19/99: "Hizbullah leader Sheikh Hassan Nasrallah vowed
yesterday that the organization will continue fighting against IDF and South Lebanese Army
forces regardless of any resumption of peace talks between Israel and Syria.
Nasrallah's statements, at a Beirut memorial rally for Hizbullah guerrillas killed in
action, came after a renewal of fighting in south Lebanon following a period of relative
quiet since the heavy cross-border attacks on June 24/25.
According to IDF Spokesman Brig.-Gen. Oded Ben-Ami, "on Saturday there were two
attacks by the IAF against mortars that were firing at SLA outposts in the northeastern
section of the security zone." "Hizbullah has not laid down its arms. It is
still trying to plant explosives and is still firing artillery and we don't intend to rest
until we hit all those who are trying to hit the IDF or the SLA," Ben-Ami said in
Haifa yesterday.
Ben-Ami said the IDF is helping to strengthen the security zone and the SLA, following
statements by the political hierarchy of the intention to reach an agreement that would
enable the IDF to withdraw from Lebanon within a year. "We cannot, under any
circumstances, create a situation in which the SLA feels that we are not behind it or that
populations of the security zone feel abandoned. We have no such intentions," he
said. "Furthermore, we will ensure that any agreement that relates to Lebanon will
include an honorable arrangement for SLA soldiers and their families. This is our
position," he said.
In Beirut yesterday, some 25 mothers and wives of former SLA soldiers staged a sit-in
to protest jail sentences handed down by a Lebanese court to two ex-militiamen who
surrendered to Lebanese authorities, witnesses said.
The two were the first to be tried by a Beirut military court from among the 203 SLA
soldiers who opted to surrender to Lebanon after the withdrawal from Jezzine last
month..."

Jordanian changes Military head
AP 7/18/99: "Jordan's new king removed a general closely associated with the late
King Hussein from his post as armed forces chief Sunday, naming him a royal adviser
instead, the official Petra news agency said.
King Abdullah II appointed Gen. Mohammed Malkawi, the deputy chief of staff for
administration, to replace Abdul Hafez Murei Kaabneh as chief of staff, the agency said.
Government officials said Abdullah met Kaabneh to inform him of his decision.
The field marshal was reappointed military counselor to the king, the agency said. The
agency gave no reason for the dismissal of Kaabneh, who has served as chief of the armed
forces since 1992. Malkawi was a member of the team that negotiated the 1994 peace treaty
with Israel. He was chief of the army until Abdullah promoted him to deputy chief of the
armed forces this year.
He has conducted joint exercises with British and U.S. forces in the Jordanian desert.
Kaabneh, a close confidant of Hussein's, was known for his role in the late king's
decision to depose his brother, Hassan, as crown prince two weeks before his death in
February. Hussein wrote an angry letter to Hassan on Jan. 24, removing him as heir and
accusing him of power grabbing while the late king was being treated in the United States
for cancer. The letter hinted that Hassan had attempted to dismiss Kaabneh."

Yasser refused by Estonia and Latvia
Talinn's BNS [in Vilnius, Lithuania] 7/15/99: "Palestinian leader Yasser Arafat,
who visited Lithuania on Wednesday, wished to also come to Estonia and Latvia, but was
politely turned down by the governments of those countries, a Lithuanian newspaper said.
Latvia and Estonia refused to receive the Palestinian leader due to what they
officially said were difficulties related to the change of government in Latvia and a bad
time for such a visit in Estonia, according to the report. The Respublika daily said
Latvia and Estonia had rejected Arafat's visit offer following requests from the Israeli
embassy.
Arafat met in the Lithuanian capital Wednesday with President Valdas Adamkus, who spoke
highly of Arafat's efforts in the Middle East peace process, according to a spokesman.
Adamkus also spoke during the meeting about the situation in Lithuania, relations with
neighboring countries and Lithuania's efforts to join the European Union and NATO.
The Lithuanian leader said in remarks on Thursday that only "extremely
narrow-minded" people can regard Wednesday's visit by Arafat to the Baltic state as
an unfavorable sign to Israel. The Palestinian leader flew on from the Lithuanian capital
to Finland."

Consumer Price Index
GLOBES 7/15/99: "The June Consumer Price Index [CPI] is 0.3%, in accordance with
forecasts. Inflation in the first half of 1999 was negative: -0.4%. This is the lowest CPI
since the establishment of the State. In the last 12 months, the CPI rose 5.9%. Core
inflation (minus housing, fruits and vegetables) reached 0.3% in the first half of 1999
and 6.4% in the last 12 months. Core inflation in June amounted to 0.1%.
The index currently stands at 104.8 points. In view of the low CPI, economic sources in
Jerusalem estimate that the Governor of the Bank of Israel, Ya'aqov Frenkel, will announce
this month an interest rate cut of 0.3-0.5%, after interest rates were unchanged in the
last three months. Economists warn, however, against a wrong move concerning interest
rates against the backdrop of the "mini monetary crisis" in Argentina.
Commenting on the CPI, Frenkel said, "Any interest rate adjustment, when such an
adjustment is made, will have to be moderate, because the money markets must not be
rattled." According to Frenkel, the latest CPI continues the trend of progress in
reducing inflation rates in Israel."

Yisrael b'Aliyah tensions
HA'ARETZ 7/18/99: "The internal struggles inside the Yisrael b'Aliyah party are
liable to go all the way to the courts. Its external feuds are looking likely to go the
same way too. Party leaders Natan Sharansky, now Interior Minister, and Yuli Edelstein are
considering petitioning the High Court of Justice over what they consider to be One Israel
party's breach of the coalition agreement.
Meanwhile, MK Roman Bronfman, who recently withdrew from Yisrael b'Aliyah, yesterday
announced that he intends to file slander charges against former colleagues Sharansky,
Edelstein and MK Marina Solodkin. According to Bronfman, who left the party the day after
the new government was sworn in, the party members' accusations against him are a base
exercise in libel and slander.
The accusations came after Sharansky last week accused sources within his party of
pre-planning the exodus of MKs Bronfman and Alexander Tzinker in order to snatch the post
of Immigration and Absorption Minister away from the party and to appoint Bronfman to it
under the auspices of One Israel.
"That was base exercise number two," Sharansky said, "whose purpose was
to weaken the party's power and independent representation in the government and Knesset.
Those that groomed Bronfman and encouraged him to resign wanted Yisrael b'Aliyah under the
control of One Israel."
Sharansky refused to name names, but party sources pointed at Haim Ramon, Avraham Burg
and Ephraim Sneh, who was acting director of One Israel's campaign among immigrants during
the recent elections. All three denied involvement or prior knowledge of the resignation.
For his part, Bronfman called the accusations a fabrication intended to sully his good
name.
He explained that his resignation was based solely on ideological differences which
prevented him from remaining within the party "which is renouncing the needs of the
public which it claims to represent, and is brazenly flouting its promises to the
voter."
Bronfman also called on his former political colleagues to "do some serious soul
searching and to try to understand why members are leaving the party in droves."
Bronfman is expected today to pass a letter to the head of the Knesset Ethics Committee,
Shinui party MK Dalia Rabin Pelossof, demanding that his former colleagues be called to
order over their malicious attempts to tarnish his name."