CPI small increase
THE JERUSALEM POST 8/16/99: "The consumer price index rose last month by 0.3
percent, which was at the high end of analysts' expectations, the Central Bureau of
Statistics reported yesterday. The rise means that inflation has now dropped 0.1% so far
this year, the lowest figure for the first seven months of any year since 1951, when the
CBS started calculating inflation by the current method. The index has risen 6.3% for the
12 months ended in July. The inflation number is unlikely to prompt the Bank of Israel to
reduce interest rates at the end of the month, when it announces September's interest
rate, because the central bank is concerned about a weakening of the shekel and government
fiscal policy, analysts said..."
Labor debts
HA'ARETZ 8/16/99: "The Labor Party still owes millions of shekels to professionals
and suppliers who worked for the election of Prime Minister Ehud Barak. Some of the
creditors are considering suing the party and the prime minister for the outstanding sums.
One example is the polling firm of Teleseker, owned by Dori Shadmon, which conducted the
daily polls for Barak during the long campaign. Three months after the elections, the
party still owes the company NIS 300,000. Shadmon told Ha'aretz yesterday that for the
moment, he does not plan to do anything except wait, although he is disturbed by the
situation. He says he has met with officials in the party and discussed the matter with
them..."
UN boycotts Israel
HA'ARETZ 8/16/99: "Israel stands to lose about $30 million a year if United
Nations troops in southern Lebanon continue boycotting Israeli goods, complying with a
prohibition order issued last month by the Lebanese government. The Foreign Ministry,
Industry and Trade Ministry and Israeli Chamber of Commerce have made inquiries to UN
officials in New York to determine whether the Lebanese ban on a dues-paying member state
is legal. A meeting is scheduled for this week between Israeli government representatives
and UNIFIL officers to discuss the issue.
The Sakal group, which has contracts to supply UNIFIL units, is also expected to be
represented at this meeting. Manager Meir Sakal complained that "a political embargo
has been imposed by the government of Lebanon on purchases in Israel."
He rejected the Lebanese government's portrayal of the policy as a measure to prevent
the smuggling of Israeli goods to northern Lebanon. "In practice, the government of
Lebanon has shifted all of the UN's purchases from Israel to Beirut," he noted.
Communicating with his military and civilian staff, the UNIFIL commander in Nakura wrote
that "by official request of the government of Lebanon," no purchases should be
made in or via Israel."
Palestinian refugees in Jordon?
Amman's JORDAN TIMES 8/10/99: "Prime Minister Abdur Ra'uf S. Rawabdeh on Monday
dismissed reports that Jordan had any plans to settle Palestinian refugees in the Kingdom
and stressed that it was premature to form any concept over any future unity between
Jordan and a Palestinian state.
Speaking at his first press conference with local and foreign reporters yesterday,
Rawabdeh said Jordan had vested interests in final status talks between Israel and the
Palestinians, but stressed that the Kingdom would not be a "signatory" to any
agreements resulting from the much-delayed negotiations. "We never deal with floating
ideas, we rather deal with reality. We are not talking about settling Palestinian refugees
but about their unwavering rights," Rawabdeh told reporters.
"Our duty in the final status talks is to protect Jordan's rights and those of
Jordanians," said Rawabdeh. "Some Jordanians have outstanding rights in
Palestine." "We have rights there, but we will not be signatories to any
agreement," he noted. He pointed out that pertinent United Nations resolutions
underline "the right of refugees to return or to compensation."
"The settlement of refugees in the diaspora has not been a point of discussion on
the negotiating table," added Rawabdeh. Israeli Prime Minister Ehud Barak during his
talks with U.S. President Bill Clinton in Washington last month proposed that refugees be
settled in the host country and compensated through an international effort.
Jordan is home to roughly 1.3 million refugees living in 13 camps across the country,
nearly one-third of all refugees in host countries. While Amman was exerting efforts to
secure the right of Palestinians to return to their homeland, the prime minister said, its
goal "does not contradict with the status of those [Palestinians] who hold Jordanian
nationality." ...
Rawabdeh also defended government plans to upgrade the living standards of Palestinian
refugees within the framework of the Social Productivity Programme. "I don't think
our brothers and families in the camps should live in miserable conditions," he said.
"Our duty is to make life easier for them until they attain their rights and secure a
better life on their soil."
"Our priority now is to stand by our Palestinian brethren until they secure their
rights and build an independent state with Jerusalem as its capital," he said.
"Our relation with the future state is open," said Rawabdeh. "It will only
be reached following a genuine dialogue and a plebiscite" in Jordan and the future
state, to "choose the best form of unity," added Rawabdeh. He added that
"this issue is not open to discussion for the time being."
Secret talks: Israel and Syria
HA'ARETZ 89/16/99: "The United States believes the proposals raised by the late
Prime Minister Yitzhak Rabin in his negotiations with Syria should not be ignored,
Secretary of State Madeleine Albright told Justice Minister Yossi Beilin in a meeting in
Washington last Friday. Sources say that Albright commented that Rabin's proposals were
still valid and must be addressed in the effort to renew the Israeli-Syrian dialogue.
Beilin reported to Prime Minister Ehud Barak on his meeting with Albright. As a
condition for renewing talks, Syria is demanding that Israel respect Rabin's
"commitment" to a full withdrawal from the Golan Heights to the borders of June
4, 1967. In the past, the Syrians have asked the United States to base the renewal of
talks on their interpretation of the negotiations during Rabin's term. The United States
has refused the Syrian request.
American sources had previously told Ha'aretz that Albright's predecessor, Warren
Christopher, passed a message in July 1994 from Rabin to Syrian President Hafez Assad
promising withdrawal to the June 4 lines "if Israeli demands for security
arrangements and normalization are met." The same sources emphasized that Rabin's
offer was not a "commitment" but rather a "basis for negotiations."
In her meeting with Beilin, Albright used a less vague term, but not the word
"commitment." Israeli officials are interpreting Albright's remarks as a signal
that the United States is likely to support the Syrian position regarding the starting
point for new talks with Israel. Beilin holds that Rabin's proposal was not an agreement
and is not binding on the current government. He believes there is no point in discussing
a withdrawal to the June 4 line, which is not a legitimate border. If that is the Syrian
demand, then Assad does not really want peace with Israel, Beilin said.
The Americans are negotiating separately with Israel and Syria in order to reach a
formula for renewing talks and to guarantee the success of Albright's Middle East visit in
early September. Albright hopes to announce a date for the start of Syrian-Israeli talks
after she meets with Barak and Assad.
Jordan is also attempting to act as a broker between Israel and Syria and to find a
formula that would allow for new talks. Television's Channel Two reported last night that
Barak's political adviser, Zvi Stauber, held secret talks in Switzerland about ten days
ago with "international elements" about renewing talks with Syria." AL
MANAR in Jerusalem 8/9/99: "Reliable sources report that Israeli and Syrian officials
have been holding intensive uninterrupted meetings in a European capital over the past two
weeks shrouded in complete secrecy. The sources add that military officials from both
sides participated in these meetings and that the letters exchanged through Washington and
through mediators between Damascus and Tel Aviv are a cover-up for these meetings. The
sources said that the two sides are studying a draft agreement that could be finalized in
less than two months from now and that President Hafiz al-Asad and Israeli Prime minister
Ehud Baraq are preparing to meet with the participation of US President Bill Clinton.
The sources stress that Damascus has offered Tel Aviv what it says are "trump
cards" it has and which it could use if this facilitates the attainment of peace. The
sources say that Syria is ready to demilitarize the Syrian Golan and accept US supervision
of the "use" of weapons, particularly missile weapons, and the inclusion of
Israeli military elements within the US monitoring teams.
The sources say that Damascus is willing to conclude water and border agreements, cut
Hizballah down to size and strip its elements of their weapons, and is ready to bargain on
the trump card represented by the Islamic Jihad and the Islamic Resistance Movement,
Hamas, and end the relations it has initiated with Baghdad."
Qatar's visit to Israel abandoned
London's AL QUDS AL ARABI 8/10/99: "Al-Quds al-'Arabi has learned that during the
Amir of Qatar Shaykh Hamad Bin-Khalifah Al Thani's visit to Gaza, talks were held away
from the limelight aimed at making special arrangements that would have allowed Shaykh
Hamad to visit Jerusalem and perform prayers at al-Aqsa Mosque. However, as a condition,
Israel insisted on the amir of Qatar meeting with Israeli Prime Minister Ehud Baraq in
Jerusalem.
According to the sources, it seems that despite this attempts were made to come up with
a less embarrassing formula for the amir, for whom it was not possible to agree to a
meeting with Baraq, particularly in view of the current crisis of confidence between his
[Baraq's] government and the Palestinian National Authority.
The sources added that one of the formulas that was suggested was a meeting with
Israeli Foreign Ministry David Levi or another Israeli figure, provided that the meeting
was made to look as a chance meeting with no prior arrangement.
However, Shaykh Hamad was finally forced to abandon plans for the visit. Meanwhile,
Palestinian sources said that the amir of Qatar, who met during his visit to Gaza with
Hamas [Islamic Resistance Movement] leader Ahmad Yasin, paved the way for a mediation that
Qatar is undertaking between the PNA and Hamas to strengthen Palestinian unity during the
final status talks."
Pirate Radio and A7
YEDIOT AHARONOT 8/10/99: "A surprise in the contacts to legalize pirate radio
stations: Minister Yitzhaq Levi of the National Religious Party [NRP], who in the past
spearheaded the efforts to legalize 'Arutz 7, suggested yesterday that he might withdraw
his support for the station. Justice Minister Yosi Beilin summoned a meeting of the
ministerial committee set up to deal with pirate broadcasts in Israel.
Referring to 'Arutz 7, Minister Levi said: "We are not their patrons."
Yedi'ot Aharonot has learned that NRP members feel that 'Arutz 7 supports the National
Union, the right-wing party set up after the NRP split up. NRP sources noted yesterday
that there is no doubt that the withdrawal of support was caused by this fact, along with
the ongoing legal proceedings against 'Arutz 7 and the lack of public support for its
broadcasts.
Moreover, it transpired in yesterday's meeting that the national frequency earmarked
for a right-wing station might not necessarily go to 'Arutz 7. This frequency will be
subject to a tender, and any right-wing radio will be able to bid for it.
It was decided in yesterday's meeting that within 15 days the ministerial committee
will formulate a draft bill whereby franchises will be granted for three
sectorial-national radio stations: a right-wing, an ultra-Orthodox, and a secular one. The
government will decide on the stations based on population needs, diversity of programs,
and economic considerations. These radios will be allowed to air news and news-related
programs, but these will not have to be balanced.
Among other things, the purpose of the current legislation is to annul the law that
legalized pirate stations in contravention of Attorney General Elyaqim Rubinstein's
position that such a law is unconstitutional. Rubinstein wants "to spare" the
High Court of Justice the need to revoke a law enacted by the Knesset. Appropriate
legislation endorsed by the attorney general would obviate a court ruling.
The request by SHAS [Torah Observing Sephardim] ministers to stop enforcing the law
against currently active pirate stations was turned down. Minister Eli Yishay cited an
halakic ruling by Rabbi 'Ovadya Yosef to the effect that SHAS pirate stations affecting
safety should be closed down at once. "Take measures only against stations affecting
safety," Yishay pleaded with Rubinstein. However, the latter rejected his plea,
noting that enforcement against pirate stations will continue in the name of the principle
of equality before the law."
"Peace of the brave" phrase
London's AL SHARQ AL AWSAT 8/8/99: "The largest of the PLO factions, Fatah, has
pointed out that the phrase "peace of the brave," which is being used by
Palestinian President Yasir 'Arafat differs from the same phrase being used by Israeli
Prime Minister Ehud Baraq. In its fortnightly newsletter issued by its Intellectual
Mobilization Department, Fatah has said, "The peace of the brave according to
President 'Arafat is a peace from which both sides will benefit, not just one side, and
which will have mutual benefits that will open up new horizons for a prosperous future for
both sides based on coexistence, openness, and equality.
As for Baraq's peace, it is based on self-preservation and the elimination of the enemy
in order to impose the will of the victor upon that of the vanquished." Fatah added,
"Such a peace will not be permanent because it is based on subservience."
The newsletter praised the courage of Rabin, who realized a crucial fact, namely, that
the future of the Zionist entity will be assured not by the elimination of the Palestinian
people but through coexistence with them. It added, "The search for a permanent
solution, which will not last if it is not just, needs courage of a new kind that is based
on the principle of acknowledging that the future of the Zionist entity will not be
assured through force because the balance of power is in an advanced, dynamic state, that
is, the future involves the horizons of a strategic Arab power while present Israeli power
represents the peak of its limited, future, strategic outlook."
Fatah pointed out that Baraq "is not so different from his predecessor Binyamin
Netanyahu in his attitude toward the peace process." It said, "Despite Baraq's
attempts to give assurances that he is Yitzhaq Rabin's pupil and that he is following in
his footsteps, he has fallen between two stools since he is neither Rabin nor Netanyahu.
Baraq comes between the two of them, saying everything is fine, being deceitful about his
willingness to comply with the precise scheduling of the peace process while at the same
time moving toward the presentation of certain faits accomplis that Netanyahu with all his
conceit was unable to achieve."...
[ZINC EDITOR'S NOTE: Note the use of the term "Zionist entity" vs
"Israel".]
Israeli spies released
AP 8/12/99: "Two Israelis jailed in a spy case were set free today after serving
only five months of a three-year term.
Deputy Attorney General Nicos Charalambous said their release was approved by President
Glafcos Clerides following a recommendation for clemency by the attorney general. A
government statement said Clerides' decision was "based on the national interest of
Cyprus. The continuing detention of the two men would no longer serve the national
interest.''
Cyprus has been under strong Israeli pressure to release the two men. Israel has
admitted the two were agents of its Mossad intelligence agency. The Cypriot government
statement said "this gesture toward the friendly and neighboring state of Israel''
was linked to the coming to power of Israeli Prime Minister Ehud Barak last month. In
Israel, Barak's office thanked Clerides for the pardons of the men -- Udi Hargov, 37, and
Igal Damary, 49.
"The act of the president ... was received with great appreciation by the public
in Israel and will contribute to promoting the good neighborly relations which exist
between Israel and Cyprus,'' a statement said. The two men departed from Larnaca airport
this morning, several hours before a decoy Israeli jet took off at midday, airport
security sources said on condition of anonymity. The two men had pleaded guilty to a
charge of approaching a prohibited military area near Ziyi in southern Cyprus and were
sentenced to three years..."
Budget
THE JERUSALEM POST 8/12/99: "After passing amid a surprisingly sizable opposition
from within the cabinet, Prime Minister Ehud Barak's 2000 budget proposal received mixed
reviews in economic circles as well. While one leading economist said that this is the
only budget outline that could have been acceptable under the circumstances, another said
that Barak's plans for an economic turnaround were doomed by the make-up of his own
coalition.
Minister of Industry and Trade Ran Cohen - one of the budget's opponents - took the
Treasury to task for not preparing a few budget proposals from which the cabinet could
choose. But according to former Treasury director-general and current financial consultant
Yoram Gabbai, the government really had no other options."This was a budget with no
alternatives," Gabbai said yesterday, emphasizing that there was practically no room
for maneuvering within the budget framework.
Adhering to the original 1.75 percent budget-deficit target would have necessitated an
unrealistic NIS 12 billion budget cut, while increasing the deficit target to 3% - like
Cohen proposed - would have incurred the wrath of international investors. He added that
coalition constraints will force the bulk of the economic turnaround on a revival in the
real estate market, the huge anticipated 2000 tourism influx, and progress in the peace
process.
Ezra Sadan, a former Tehiya member and Treasury director-general who now runs an
economic advice company, said that Prime Minister Ehud Barak's promises of an economic
revival cannot be reconciled with his current coalition - specifically Shas's presence.
"Ehud Barak sacrificed his economic message for overall political concerns,"
said Sadan, a move he says will not pay dividends. "Without tackling the political
angle, the pure economic benefits of a peace agreement will be marginal," Sadan said,
citing the relatively small economies of Egypt, Jordan and the Palestinian Authority. He
added that Shas's presence in the coalition obviates any possibility at making more
significant cuts in areas that aren't conducive to growth.
Bank of Israel Governor Jacob Frenkel said he was satisfied with the structure of the
budget outline, even though he would have preferred a slightly lower inflation target.
"The outline is in place," he said at a press conference late Tuesday night.
"Now it needs to be implemented." He added yesterday that the government's
decision to set an inflation target within the parameters of the budget outline was key.
Finance Minister Avraham Shohat toyed recently with the idea of not setting an inflation
target altogether..."
Iraqi threat
HA'ARETZ 8/12/99: "Over the past few weeks, Israel has thrust the Iraqi threat
high up on its list of diplomatic and security priorities. In all their diplomatic
meetings, Prime Minister Ehud Barak and Foreign Minister David Levy voice concern over the
Iraqi arms build up, nine months after the departure of UN inspectors overseeing Iraq's
non-conventional weapons program.
Iraqi President Saddam Hussein recently intensified his verbal attacks on Israel. In
his July 17 Independence Day speech, Hussein called for Israel's destruction and the
removal of Zionism from "Arab Palestine." He attacked those Arab leaders who are
seeking peace with Israel and expressed admiration for "the man calling himself the
new prime minister of the Zionist entity."
Barak calls Saddam Hussein's Iraq a serious threat because of the Iraqi leader's drive
to obtain chemical, biological and nuclear weapons. The Iraqi threat was also discussed
extensively a July visit to Washington, D.C. by the IDF's Military Intelligence,
Major-General Amos Malka. Gen. Henry Shelton, chairman of the U.S. Joint Chiefs of Staff,
is scheduled to visit Israel next week and the issue of the Iraqi threat will no doubt be
raised in his meetings with Barak and the heads of Israel's defense establishment.
Intelligence sources estimated in the past that Iraq could regain at least a certain
degree of its biological and chemical capability within nine months after the lifting of
the international inspection - the period of time now coming to an end. Israeli
intelligence sources also believe that the Iraqis are continuing to make headway on
gathering know-how, equipment, experts and material for their nuclear program...."
Drought damage
HA'ARETZ 8/12/99: "All but 2 percent of the country's wheat crop has been
destroyed by this year's drought, with only 3,000 tons remaining this year compared to
150,000 tons in an average year, according to figures collated by the Agriculture Center.
Israel will have to import more wheat from the United States to make up for the shortfall.
In addition to the water shortage, Israeli wheat and cotton growers are complaining that
the drop in prices on the commodities markets in New York, London and the Far East
threaten the economic feasibility of growing these crops in Israel..."
Disclaimer: The views expressed in the content and articles of this
website, do not necessarily express the opinions of the Zionist Organization of America,
nor the editor and creator of this website.