ZINC-8/31/99-Lockerbie shocker! ========================================= Z . I . N . C . THE ZIONIST ORGANIZATION OF AMERICA'S ISRAEL NEWS CONNECTION ========================================= Tuesday, August 31, 1999 8:00 AM EDT (1200 UTC) Editor: Michael C. Hoffman O&F: 301-681-0858 Email: michaelh@clark.net Subscriptions: zincisrael@usa.net ========================================= To go direct to ZINC's website, Click here: http://www.geocities.com/Athens/Academy/3132 OR use our easy-to-remember but redirected address and Click here: http://over.to/zinc ========================================= NOTE: ZINC is long today due to the first two articles which feature a shocking Lockerbie story, and a fascinating Naif Hawatmeh interview. TODAY'S NEWS: 1. Lockerbie shocker! 2. Hawatmeh's insights 3. PA corruption 4. Terrorist killings? 5. Agreements close? 6. Jordan out, PA in? 7. Budget vote 8. Morocco happy 9. Turbine travels 10. Jordan ousts Hamas 11. PA intelligence services 12. Raviv trial postponed 13. Terror tunnels 14. Maccabiah tragedy agreements? 15. Burger business 1. Lockerbie shocker! YEDIOT AHARONOT 8/20/99: "In the darkness of the night of 20 December 1988, a black Mercedes entered the Frankfurt Airport compound and stopped next to one of the automatic doors. A baggage handler of Turkish origin removed a hard suitcase from the trunk, carried it through the passenger lounges, and disappeared together with the case in the area where airport workers had their personal lockers. The worker knew that the suitcase he had removed from the Mercedes was full of drugs, but he didn't look in the least agitated. He knew that no one would stop him and that no one would ask unnecessary questions about the suitcase that he had taken into the area restricted to airport personnel. The Turkish baggage handler's extreme self-confidence was founded on 24 months of experience, during which this routine had been followed weekly without interruption. The suitcase with the drugs would arrive by car at the parking lot. The employee would take the bag into the workers area, and from there it would continue into the hold of an American aircraft which would carry it across the ocean. The Turk and the other members of the smuggling ring knew that everything they did was under the watchful eye of undercover agents of the CIA and the BKA [Office of Criminal Investigation] -- the West German security service. Both intelligence services permitted the "secure drug channel" to operate undisturbed because with the help of the head of the ring, Mundhir al-Qasr, they obtained a lot of intelligence about what was happening within the terrorist organizations in Lebanon. At the same time, al-Qasr promised to act for the release of the American hostages that were being held in various secret locations in Lebanon at the time. The BKA and CIA have denied outright the existence of the "secure drug channel" described above, which operated under their supervision, as it were. Recently, this highly expected denial has taken on far greater significance than anticipated. A few weeks ago, 'Abd-al-Basit 'Ali al-Megrahi and al-Amin Khalifah Fhimah -- the two Libyan intelligence officers suspected of blowing up the plane -- were extradited to the Netherlands to stand trial in the international court in The Hague. Against this background, the suspicion that it was the drugs route that permitted the explosive charge to be placed on the Pan Am plane, which took the lives of 270 civilians, might serve the case for the defense. The person providing substance to this worrying theory is former Israeli Yuval Aviv, author of "Gideon's Sword", who describes himself as a former Mosad agent. Aviv, who today runs a large and successful private international intelligence and investigations office, prepared for Pan Am--before the airline went bankrupt--a 27-page intelligence report detailing the "secure drug channel." The indictment submitted to the Hague court against the two Libyan officers is the result of an intensive American investigation. This investigation was conducted by the CIA, and for this reason the finger wasn't pointed in the direction that Aviv mentions. It accused the Libyans. The investigation found that the Libyan officers put the suitcase containing a sophisticated 'Semtex' bomb onto the plane. The suitcase exploded in the skies above Scotland after it had flown unaccompanied from Malta to Frankfurt, passed through security checks, was transferred to a Pan Am Boeing 727 flying from Frankfurt to Heathrow, was again transferred to a Pan Am jumbo jet, and only exploded after the plane had taken off on its way to New York's Kennedy Airport. It was not difficult for American investigators to find reasons for a Libyan bomb to be planted on an American plane. A number of incidents prior to the explosion could have served as a cause for the tragic attack. The first incident took place two years before the Lockerbie disaster. The Americans launched a lethal attack on a chemical weapons production plant in Libya. The second incident took place seven months before the disaster. All the passengers aboard an Iranian 'Airbus' were killed as a result of an unfortunate American mistake. The civilian plane was shot down by troops aboard the American warship "Vincennes" that was sailing in the Persian Gulf. In the wake of the incident, all intelligence services in Europe and North America went on high alert in anticipation of a revenge attack. But this is not the direction to which Aviv is pointing. In a special report that he prepared for Pan Am, Aviv claims that the suitcase bomb was placed aboard the plane on the "secure drug channel" that the CIA intentionally ignored. According to him, the route's code name was "Korea." According to this version, American intelligence elements decided to maintain a drug route under their supervision. There were two reasons for this decision. The first: There were those in the CIA who maintained that when in Rome, do as the Romans; that is to say, the best way to obtain information in Lebanon was by making contact with and getting close to the centers of power in the drug trade, and from there to vital intelligence sources. Another reason was the massive flood of drugs coming out of the Lebanese Al-Biqa' and flowing into the United States along hundreds of routes. The little that the CIA could do was to try and keep tabs on a chosen drug route and in this way catch the major drug dealers in the United States. The lucky person chosen by the CIA was a colorful character on the Middle East scene: Mundhir al-Qasr. Al-Qasr born in 1947 in Syria, is married to the sister of 'Ali 'Issa Duba, who was head of Syrian intelligence at the time. At the same time, he had an affair with Raja, daughter of Rif'at al-Asad, and with Georgina Rizzaq, a former Miss Lebanon, who was married to 'Ali Hasan Salamah, the terrorist liquidated by the Mosad in the seventies. Through his family and social ties, al-Qasr would travel freely in Lebanon. This route made him so wealthy that he ceased his terrorist activity and did everything to protect the goose that lay the golden eggs that had landed in his lap. So much so, according to Aviv, that he did everything to prevent a terrorist act being carried out via Frankfurt Airport. Aviv claims that for this reason, al-Qasr and his associates were the ones who issued the warning about the impending terrorist action at the airport two days before the Lockerbie explosion. But it was al-Qasr, the person who wanted to protect his source of income, who unwittingly enabled the suitcase bomb to be put on the plane. How did this happen? According to Aviv, al-Qasr had a courier by the name of Khalid Ja'far, the leader of a drug ring in Lebanon's Al-Biqa', who would regularly fly the Frankfurt-New York route with suitcases full of drugs. According to Aviv, Ja'far fell into a trap laid for him by Ahmad Jibril. Aviv claims that Jibril had an account to settle with the Americans over their intensive actions against the terrorist organizations in Lebanon, and he came to the conclusion that the drug route was his opportunity to plant a bomb on an American plane. Among other things, the report Aviv gave Pan Am says that on 13 December 1988, Ja'far was invited to a secret apartment in Bonn where he met Jibril. There was another man in the apartment with Jibril. According to the report, this man was called the "professor" -- a Libyan citizen who specialized in assembling sophisticated bombs. The report claims that Jibril proposed that Ja'far smuggle an additional consignment for him, all the income from which would "serve the sacred cause." Ja'far agreed without knowing that he had thus sealed his own fate and that of 269 other people. According to Aviv, Ja'far was given a suitcase similar to the drug suitcase that was regularly carried through the Pan Am cargo terminal. This suitcase also held a "Toshiba" radio-cassette containing 568 grams of "Semtex" explosives. Four similar explosive charges (including "Toshiba" radio-cassettes) were seized a few months earlier in a secret terrorist apartment in Germany. In order to prove this version of events, Aviv even points to the existence of a recording of a conversation between an employee at Frankfurt Airport who was involved in the drug route, and a security service official who was his supervisor: "On the day of the disaster, the employee noticed that the suitcase that arrived was slightly different in shape and color. He contacted the man from the security service, consulted with him about the suitcase, and was instructed 'to let the suitcase pass.' At the time, all Pan Am employees' conversations were recorded because of a wave of unauthorized private calls. As a result, that fateful conversation was recorded and will be played before the judges' bench." Aviv's involvement with the Lockerbie affair got him into hot water. Irrespective of whether this fact points to the truth of his conclusions or not, one cannot ignore the fact that in 1995, a short time after the contents of the report he submitted to Pan Am were leaked to the press, Aviv was arrested by FBI agents under suspicion of defrauding senior 'General Electric' officials and of receiving money for work he was supposed to have carried out. During the trial, it transpired that the alleged episode took place five years earlier. 'General Electric' hired Aviv's services to conduct security checks on the Caribbean islands prior to a vacation by the company management. The vacation went ahead as planned and passed without incident. 'General Electric' neither complained about Aviv nor did it seek any investigation against him. According to Aviv, he discovered that at least two of the FBI agents who conducted the investigation against him over the 'General Electric' affair were involved in the Pan Am investigation. His lawyer told the court: "In 20 years of practice, I have never seen such dedication by official investigative bodies looking into a civil matter that took place five years ago." At the end of 1996, Aviv was acquitted of all charges. A federal jury in the Manhattan court decided that Aviv had been set up "in the wake of his position in the Pan Am report." The judge said for the record: "The conduct of the FBI investigation, and the fact that it did not arise from any external complaint leads to the impression that the investigation arose for other reasons, and the only plausible reason is the investigation (by Aviv) into the Lockerbie affair." Aviv himself told the 7 Yamim supplement that while the trial against him was in progress, FBI agents came to many of his clients and tried to discourage them from continuing to use his services. "They made a big effort to hang me out to dry," he says. "All my contracts with government elements, including contracts with the FBI itself, were put on ice. The FBI tried to deny these in the court. Their problem was that I had documents attesting to the fact that they used my services from 1982 to 1989. The judge asked them sarcastically how they could claim that I was a fraud after they had worked with me for years." The British journalist John Ashton is working on a full-length feature on the Lockerbie episode for a BBC subsidiary. He pointed to Yuval Aviv as one of a chain of people who had investigated the affair and been harmed by it. Ashton: " In June 1996, I published a report in the newspaper Mail on Sunday about the attempts to harm various people because of their position on the Lockerbie affair. Apart from Aviv, I pointed to a long list of publishers, film directors, and movie-theater owners who received threats, had their businesses broken into, and in one case set on fire, after they had expressed a willingness to screen a film or publish a book that supports this theory. If everything they say is invented, it is hard to understand why someone is trying to discourage people from expressing their view on the matter." John Ashton says that the most detailed evidence about drug activity along this route was supplied by the journalist Lester Coleman. After writing the book "Trail of the Octopus", which deals with the blowing up of the plane above a Scottish town, his life became hell. In the mid-eighties, Coleman, 43, was an adviser to the Cyprus arm of the US Government's Drugs Enforcement Administration. In the course of his work in Cyprus, Coleman gained information that CIA personnel were involved in giving the green light to drug smuggling from Lebanon. Coleman was fired from the DEA, according to him, after he got into a conflict with his supervisors who ignored his warnings about the lack of professionalism of various agents who were active in Lebanon, and about the fact that Lebanese agents turned into double agents and betrayed their American dispatchers. Administration officials claimed that Coleman's statements were unfounded and that he was fired for inappropriate conduct. In an interview with the British journalist Ashton, Coleman said that despite his suspicions, he didn't dare think of a link between the American drug route in Cyprus and the Lockerbie disaster. According to him, certain things happened that aroused his suspicion: There were rumors among the volunteers searching for wreckage from the Pan Am plane about the discovery of large quantities of heroin. At the same time, Coleman learned that among the plane's victims was an American of Lebanese origin named Khalid Ja'far. Coleman claims that he knew Ja'far from his activities in the CIA station in Cyprus, and that he was a key figure in the drug route. Aviv's stories about the Lockerbie affair, as well as other evidence that supports his version, do not really impress the Israeli intelligence community. The main dispute centered around Aviv's security past. He describes himself as a former Mosad agent and refuses to elaborate. ("I wish to have the opportunity to continue coming to Israel without getting into trouble; therefore, I do not engage in discussions about my past"), but many former members of Israel's security apparatus describe him as a charlatan and claim that he has no idea about intelligence matters and flight security. According to them, Aviv never served in the Mosad and was simply an El Al selector who was fired after a few months' work. They claim that most of what he writes in the report was previously published in the world press. Two well-known Israeli intelligence officials with an impeccable reputation told 7 Yamim that they have serious reservations about Yuval Aviv and described him as a "professional Walter Mitty." Another person, who is still working for the Mosad, says that as far as he knows, Aviv did in fact carry out many operations for the Mosad, and he should be recognized for them. A clue to Aviv's possible connections with the security services can be found, of all places, in the FBI documents that were deposited with the federal court in Manhattan during the trial against him. Two facts can clearly be ascertained from the uncensored parts of these documents: one is that for a long time the American security services suspected that Aviv was a Mosad agent in the United States. The second is that for a number of years Aviv was a paid adviser to two American investigative and intelligence agencies. Whatever Aviv's security history, everyone is agreed that both the Mosad and El Al's security department believed that it was only a matter of time before a bomb would be placed on a plane departing from Frankfurt Airport. It transpires from a comprehensive research paper written by three of Israel's most senior former security services personnel (Yitzhaq Yafet, a former senior member of the General Security Service [GSS] and head of El Al's security department; Avino'am Avivi, who held a senior position in the GSS; and Colonel (Reserve) Yosi Langozky) that Pan Am's security set-up looked like an open invitation to terrorism. Yuval Aviv agrees with them: "It was clear to any amateur that this company's security arrangements existed only on paper." But the main point is that too many people learned about the "secure drug route" at the airport. During the two weeks prior to the bomb being placed on the American plane, at least two warnings were given by the Mosad. British Member of Parliament [MP] Tam Dalyell claims that one of the warnings that was received at the beginning of December 1988 was most detailed. In the wake of this warning, an official document of one intelligence organization said: "A terrorist act by Palestinians who are not members of the PLO can be expected against American targets in Europe, including Pan Am and US military installations." A senior Israeli intelligence official says: "I don't know if the 'Korea' operation is a product of Aviv's hallucinations, but the involvement of espionage organizations in the international drug trade is not his private invention nor a unique CIA innovation. Over the years there have been several suggestions that American espionage elements have closed their eyes, facilitating the drug trade at various times along the Turkey-Lebanon-Cyprus-United States route." 2. Hawatmeh's insights Cairo's AL MUSAWWAR 8/27/99: "This week, Cairo was the scene of an important Palestinian event; namely the first meeting between Palestinian President Yasir 'Arafat and the Secretary General of the Democratic Front for the Liberation of Palestine (DFLP) Nayif Hawatmah in six years. Two weeks earlier, President 'Arafat met the representative of the Popular Front for the Liberation of Palestine (PFLP), Abu 'Ali Mustafa, in Cairo as well. It is worth mentioning that the DFLP and the PFLP are the two biggest factions in the Damascus-based Palestinian opposition. Moreover, just as this edition of al-Musawwar was being printed, we learned that an expanded meeting of all Palestinian factions, including Hamas would be held in Ramallah on Thursday. We interviewed Hawatmah to discuss his meeting with 'Arafat, the common grounds for achieving a Palestinian reconciliation and the means of closing Palestinian ranks. We also asked him about the reasons behind the delay of his meeting with 'Arafat and his vision about the coming election. [al-Musawwar] What made you change your mind and accept the resumption of the inter-Palestinian dialogue, in your capacity as Secretary General of the DFLP? [Hawatmah] The DFLP has always adopted a policy aiming at uniting Palestinians and achieving independence throughout its armed struggle. When the Palestinian movement reached a crossroads and was fragmented, the DFLP called for bridging the gaps and overcoming the differences to rebuild Palestinian unity. [al-Musawwar] How could that be when you are the most adamant Palestinian opposition faction? [Hawatmah] We organized the reunion in 1983 when the major fragmentation of the Fatah movement started and Palestinian factions fought against each other. At that time, we initiated a dialogue with Fatah to rebuild national unity on the basis of common organizational and political grounds. We also signed the famous Yemen coalition agreement and suffered for five long years from pressure by Palestinian opposition powers and the conflicting Arab axes. We finally managed to rebuild our coalition unity in April 1987 during the Palestinian national unity conference in Algiers. [al-Musawwar] Do you still take part in Palestinian opposition conferences? [Hawatmah] The Palestinian opposition organized three conferences in December 1998, and the conferences held in Gaza and the West Bank managed to unite us around the common objective of fighting against occupation and Jewish settlers. We also agreed on the need for a comprehensive national dialogue to rebuild Palestinian unity. [al-Musawwar] But the recent events that took place in Damascus contradict this approach. [Hawatmah] The third conference, which was held in Damascus for Palestinian factions living in exile, was divided. The DFLP insisted on adopting this approach towards unity. On the other hand, nine other Palestinian organizations called for turning the conference into a new Palestinian National Council for a new PLO, and electing a new executive committee and a new president. However, this would have meant the existence of two PLOs and the waging of refugee camp wars, especially on Lebanese territories. We vehemently rejected this attitude and aborted this attempted coup. As a result, the political, malicious and bloody pressure turned against us and our camps in North Lebanon were the target of hostile attacks. [al-Musawwar] Can you specify the opposition factions that conducted hostile attacks against you? [Hawatmah] They were the "Fatah al-Intifada", General Command, Sa'iqah (thunderbolt), and the Palestine Liberation Group. They also received support from their political allies; namely our brothers in Hamas and the PFLP who formed an alliance on the political basis of rejecting any dialogue with Yasir 'Arafat. They said at the Damascus conference that 'Arafat had lost his legitimacy and invited us to take part in the bilateral and comprehensive dialogues since February 1997 to overcome the unjust provisions of the Oslo Accords. In May 1998, they invited us to initiate preparations for the provisions of the end of the Oslo Accords, which culminated in the adoption of the "May 1999 Ceiling". This time, we are abandoning the step-by-step policy to adopt a new one based on the decisions of international legitimacy. [al-Musawwar] We heard about this dialogue a long time ago. What were the reasons behind its deferment? [Hawatmah] The dialogue between the DFLP, Fatah and the Palestinian Authority, under the leadership of 'Arafat, was scheduled to take place during the first week of March 1999. However, it was deferred when we found ourselves faced with a war after aborting the coup attempt in Damascus. This war forced us to resume our efforts to prevent the eruption of a camp war and defend our camps. Therefore, the dialogue with brother 'Arafat was postponed from the original date of 8 February 1999 in Amman. We set more than four other dates for a meeting in July, but they were all deferred as well. [al-Musawwar] Were those last four dates deferred as a result of the campaign launched against you by the opposition factions, or were there other reasons? [Hawatmah] The latest postponements were due to the fact that the delegations representing Fatah/Palestinian Authority and the DFLP could not reach common grounds during their talks in Ramallah. Once the common grounds were reached and we agreed to defer some issues to be discussed during the Cairo meeting, we set the date for this week's talks, which we hope will lead to resolving the standing issues. [al-Musawwar] Fatah/Palestinian Authority and the DFLP have already held several rounds of preparatory talks. What are the most important issues and disputes that still need further discussions? [Hawatmah] we have reached a political framework for the new comprehensive negotiations because we have entered a new phase since 1995. The deadline for implementing the Oslo Accords has expired and the Palestinian cause is going around in political and legal circles. As a result, we should shift into the new negotiation phase on the basis of international legitimacy; that is to say the UN Security Council resolutions 242 and 338 as well as the land-for-peace principle. This way we can achieve harmony with the PLO's joint national program, which we have all been working in line with since 1974. We also agreed to revive the PLO institutions, which have not functioned since 1993. They will be rebuilt on the basis of our concord until elections can be held for the formation of a new Palestinian National Council, because the current session has legally expired. We agreed on the importance of organizing a comprehensive national dialogue in a bid to find common grounds for a collective agreement [al-Musawwar] What about the issues you disagreed on? [Hawatmah] There are some issues that have not been resolved yet, foremost among which is the formation of the joint coalition command, which will be entrusted with managing the whole negotiation process. No single Palestinian faction should monopolize the determination of the fate of the Palestinian people and rights for the next twenty years. [al-Musawwar] What is your vision about this joint coalition command? [Hawatmah] It should comprise representatives of all the PLO branches and other Palestinian factions willing to accept the resolutions of international legitimacy and work for the achievement of a political settlement based on relevant international resolutions. [al-Musawwar] How did the brothers in Fatah and the Palestinian Authority respond to the proposal of forming this coalition command? [Hawatmah] They agreed in principle, but we have not reached a specific understanding about it yet. I hope we can reach a concrete formula for this coalition command. We can see an outstanding example for it in the Jewish State. Israel is a regional superpower and Baraq won the majority of votes and formed a coalition government from both the hawks and the doves that enjoys a majority in the knesset. Although the Baraq government includes representatives of all political trends in Israel; from the rightwing to the center to the leftwing, he formed a command authority responsible for managing the negotiations on the Palestinian, Syrian and Lebanese tracks. He also formed a mini-cabinet comprising the leaders of the parties participating in the coalition to supervise and rectify the work of the command authority within the negotiation process. We are a small scattered people. Half the Palestinians live in the homeland under occupation, while the other half has been living in exile for fifty years. We need a coalition command authority to run the negotiations more than Israel. We also need a mini-cabinet comprising the leaders of the various factions and other efficient personalities to run and approve the negotiation process on the basis of the resolutions of international legitimacy and supervise the work of the executive command authority that manages the negotiations. [al-Musawwar] What about your request to activate the PLO institutions? [Hawatmah] We have already agreed to reactivate the PLO institutions, but we have not reached an agreement on the mechanisms of implementing this principle yet... [al-Musawwar] How do you envisage the requirements of this phase? [Hawatmah] There is an available opportunity at the present time to conduct democratic elections in the occupied Palestinian territories and the refugee camps. The leaders who conducted elections for a legislative Palestinian council on the basis of the Oslo Accords, should also agree with us on the necessity of conducting elections for the formation of a new Palestinian National Council in the occupied territories and in exile. This new Council would provide the legislative platform for the PLO, which in turn would elect the ad-hoc and executive committees. We also hope that this issue could be resolved during the Cairo meeting. [al-Musawwar] What about the other issues that you still disagree on? [Hawatmah] We do not want to hold a dialogue for the sake of talks or for the sake of the media. We want a positive and fruitful dialogue to restore the cohesion to Palestinian ranks and regain Arab and international support for the Palestinian cause. This can only be achieved by reaching an agreement on a program that includes at least the minimum core issues. [al-Musawwar] You are calling for the election of a new Palestinian National Council, but the Palestinian Minister for Parliamentary Affairs, Nabil 'Amr, has told al-Musawwar that it would be difficult to achieve this goal, although he did not rule it out, because it is not a council of factions. How do you comment on that? [Hawatmah] No agreement has been reached yet on a mechanism for electing a new Palestinian National Council during the talks held by DFLP and Fatah in Ramallah. We hope the Cairo meetings will resolve this problem. [al-Musawwar] How do you envisage the possibility of holding elections for the Palestinian National Council? [Hawatmah] The election could be organized in all the occupied territories, the West Bank, Jerusalem and Gaza Strip. We can also conduct an election at the refugee camps in Lebanon and Syria and collect the votes in some Arab and European countries. It may be difficult to hold an election in Jordan, for instance, because Amman deals with the Palestinians who have lived there since 1948 as Jordanian citizens. Therefore, we declare that the mechanism of rebuilding the PLO institutions must be democratic and comprise all members of the coalition in order to save time. If possible, this process could be conducted on the basis of proportional representation, which is the system adopted in the Jewish State... [al-Musawwar] How do you envisage the Syrian role in the coming stage after Damascus' latest position on the peace-rejecting factions? [Hawatmah] I believe that once the Syrian-Israeli negotiations are resumed from the point reached during the talks with the Rabin government, as both sides have announced already, and the current differences about exactly what point has been reached are resolved, the political climate in the Middle East will open new horizons for bridging the gaps between Syria and the Palestinian Authority and among Arab countries in general. Furthermore, the Palestinian factions affected by the Syrian policies will take another step towards joining a national dialogue. For instance, it is well known that the Sa'iqah Organization is the ideological and organizational extension of the Syrian Ba'ath Party, and the Arab Liberation Front is the ideological and organizational extension of the Iraqi Ba'ath Party. It is also known that the brothers in the General Command, the PFLP, and Fatah al-Intifada, which has played a purely security rather than political role since 1983, are affected by the Syrian policy. [al-Musawwar]What about the differences with the PFLP on separating Fatah from the Palestinian Authority? [Hawatmah] To claim that Fatah can be separated from the Authority is just playing with words. It is a useless maneuver because many of the leaders of Fatah are also high-ranking officials in the Authority. This would be an arbitrary separation that can only be explained as a sort of a sudden political coup." 3. PA corruption Ramallah's AL AYYAM 8/25/99: "During the brief lifetime of the Palestinian Authority [PA] and the establishment of its administrative structures and institutions, three consecutive reports were published on administrative and financial reform and the need to combat corruption. The reports were published by the Palestinian Audit Bureau, the Palestinian Legislative Council, and Rockar Sigman [as transliterated]. The publication of each report was accompanied with news, rumors, statements, seminars, workshops and case analysis indicating, all in all, that all Palestinian circles were concerned over this issue. Every time one of these reports was published, the activities that followed focused on the need to reach tangible results that would enable the Palestinians to remedy these defects and to build a modern government bureaucracy. However, these cautious hopes were constantly frustrated. In the face of such failure, efforts would be focused on yet another report to be published and another remedy to be administered. What is new about this matter is that recently an administrative reform committee has been formed. The committee is trying to bridge the gaps, remedy the defects, and upgrade the Palestinian institutions.However, a key question imposes itself in this context. The question is: Does the existing state of administrative and financial affairs need a new diagnosis, or does it simply need an assessment and explanation of the reasons that have led to this state of affairs? Or, is it that, after the publication of the three reports, conditions are ripe for reform and all that is needed would be to form a committee to correct what has gone wrong? Perhaps the aforementioned questions imply a denunciation of the administrative and financial corruption and the helplessness in dealing with these chronic and multi-faceted defects. In fact, these defects jeopardize many bright achievements that the Palestinians have accomplished. The dimensions of this tragedy and its multi-faceted manifestations have become an urgent issue which should be dealt with..." 4. Terrorist killings? AP 8/31/99: "Israeli police say the killings of a young religious Israeli couple whose bodies were found in a popular nature reserve on the West Bank border may have been political. Yehiel Shai Fuenfter, 26, and Sharon Steinmetz, 21, were killed Sunday and their bodies were found a day later in Megiddo forest in northern Israel, a few miles from their abandoned car, said northern district police commander Alik Ron. The killings, before Secretary of State Madeleine Albright's visit to the region, could complicate talks on an Israeli-Palestinian peace deal. Negotiators said earlier Monday that there had been some progress. Israeli Prime Minister Ehud Barak has warned in the past that a resumption of attacks on Israelis could bring the peace process to a halt. One of Barak's closest aides said today it was too early to draw conclusions. ``I suggest that we all wait for the outcome of the investigation, and then we will decide whether it should be linked to any other issues, in particular the peace talks,'' Cabinet minister Haim Ramon told Israeli army radio Police said there were harrowing signs of violence on the bodies of the victims, but gave no other details. Ron said he believed the motive for the killings was political, but he was ``not convinced that it was a classical terrorist attack.'' Ron told army radio that the young man was easily recognizable as a Jew because he was wearing a skullcap. That and the proximity of the murder site to the West Bank suggested the motive was Palestinian nationalism. The couple was not carrying anything of value, he said. However, Ron said he believed the killings were random and that the killers were not sent by one of the Palestinian militant groups. No one had claimed responsibility for the killings. Islamic militant groups such as Hamas and Islamic Jihad have threatened renewed attacks on Israelis in the wake of efforts to revive the peace process..." 5. Agreements close? AP 8/31/99: "Palestinian and Israeli officials appear optimistic they will reach an agreement on reviving a U.S.-brokered peace plan by the time Secretary of State Madeleine Albright arrives this week. `I imagine within two or three days we will reach a conclusion,'' Prime Minister Ehud Barak said Monday.

The positive atmosphere, however, was threatened late Monday by the discovery of the bodies of a slain Israeli couple near the West Bank border. Police suspected the killings were politically motivated... Palestinians agreed they were close to a resolution. ``I have to say that these people intend to implement the agreements,'' senior negotiator Saeb Erekat said after another four-hour session with his Israeli counterpart, Gilead Sher. Albright is due in the region on Thursday and expects an accord by the time she arrives, her spokesman said in Washington. Egypt also hopes to host a signing ceremony launching the implementation of the Wye agreement. Arafat traveled to Alexandria, Egypt, today to meet with President Hosni Mubarak -- the fifth visit between the two leaders this summer...Israel and the Palestinians appeared closer than ever on the two issues that have deadlocked the sides until now: a timetable for a long-delayed Israeli withdrawal from the West Bank, and the release of Palestinians jailed for anti-Israel acts. Differences over a timetable for a withdrawal from the West Bank were down to less than a month: Israelis are sticking to a Jan. 20 deadline, and the Palestinians want the pullback to be completed by Dec. 31." 6. Jordan out, PA in? HA'ARETZ 8/31/99: "Jordan is ready to relinquish its religious authority over Muslim holy sites in Jerusalem to the Palestinian Authority, Jordanian Prime Minister Abdul-Raouf al-Rawabdeh has said. "If our Palestinian brothers want to take over this responsibility, Jordan is willing to cede this responsibility to them," Rawabdeh said in an interview broadcast Sunday night by the Saudi-owned radio station Middle East Broadcasting Center. "We are part of our Arab and Muslim nation. Our interest in Jerusalem is because we are part of this nation, and we are not an alternative to our Palestinian brothers," he said. Rawabdeh said Jordanian religious authorities were currently running the sites in cooperation with the Palestinians. The Palestinian Authority said the announcement was an important diplomatic achievement. Jordan has said in the past that it would hand over the authority over the sites to Palestinians once final status talks between the Palestinians and Israel were completed. Rawabdeh made no reference to the final status talks... A spokesman for the Jerusalem municipality said in response that "the administration of the holy sites in Jerusalem is in the authority of religious institutions, not the Palestinian Authority. In the framework of the negotiations, Israel must make sure to protect its full sovereignty over the areas of Jerusalem, including the Temple Mount." 7. Budget6 vote HA'ARETZ 8/31/99: "The national budget plan will apparently win a majority of the ministers' votes in next Sunday's weekly cabinet session, which will be devoted to budget cuts in all government ministries. Prime Minister Ehud Barak can already count on a majority of 12 to 10 with one abstention. Barak has cleared his schedule to meet with the leaders of the coalition parties to discuss the budget. Barak neglected to meet with faction leaders before the previous vote on the budget and critics say this was a major error on his part. Barak said yesterday that the economic recovery program will take three years to complete, because of the serious situation he inherited from the previous government. Following a meeting of the Knesset Foreign Affairs and Defense Committee, Barak said that he had been asked to make every effort not to cut the defense budget but, "The government does not grow money on trees," he said. "The people of Israel need the government to first advance growth so that it can deal with all the areas of priority." Barak said that he intends to make good on all the commitments he made to the public. "That way we will bring education to the top of our national priorities, create 300,000 new jobs and change our priorities. This will take three years to accomplish."... 8. Morocco happy HA'ARTEZ 8/31/99: "Morocco has renewed political contacts with Israel, which were frozen during the Netanyahu regime. Israeli Foreign Minister David Levy met yesterday with Moroccan representative Ajit Belhasan, who brought him a message from King Muhammad VI..." 9. Turbine travels HA'ARETZ 8/31/99: "A compromise proposal to move the massive turbine on weekdays, by preparing parking sites along the route, has been deemed possible. According to this solution, the turbine would be moved over three nights, resting during the day in special parking areas prepared along the route. The Public Works Department will announce this morning at the second meeting of the directors' general committee convened to discuss the turbine, that from an engineering aspect, parking areas for the turbine can be prepared in one week. The police is expected to announce that from the point of view of traffic, this solution is possible, albeit less than ideal..." 10. Jordan ousts Hamas THE JERUSALEM POST 8/31/99: "The Jordanian authorities yesterday stormed the Amman offices of Hamas and arrested several members in a sweeping crackdown aimed at restraining the fundamentalist Moslem group. Security officials said several people were rounded up in the mid-afternoon sweep, but there were no ranking members of the group whose political leadership is now believed to be based in Jordan. Hamas's political strategist Khalid Mashaal, spokesman Ibrahim Ghosheh and political bureau member Mohammed Nazzal were believed to be in Syria, according to the security officials...A senior government official said the raids and arrests will continue and that offices that serve as a front for Hamas in Jordan will be closed.

A Jordanian official said the offices were closed because Hamas had no license. He declined to say if the action was taken under pressure from the United States and Israel, which have often urged Jordan to move against the group. Hassan Youssef, a leader of Hamas in Ramallah, said there was "no justification" for the Jordanian decision. Hamas, he said, "does not interfere in the internal affairs of Jordan. The closures will not serve the interests of the Arab nation." "This will have some impact on leaders and political activists in Jordan, but the base of Hamas lies inside the homeland," Youssef said...The crackdown comes amid close Jordanian security cooperation with the Palestine Authority and Israel as both sides are close to implementing peace accords signed between them. Hamas this week spurned PA offers to join it in unity talks today in Ramallah. The PA said that it invited Hamas and Islamic Jihad, but Zahar said no formal invitation was ever issued to Hamas, only to specific members and no one from Hamas planned to attend the gathering. "The atmosphere is not one of dialogue," Zahar told AP, noting the recent sweep of arrests by the PA of Hamas activists. A Jordanian source said by telephone from Amman last night that the steps against Hamas mark "the end of their presence in Jordan for the time being."... 11. PA intelligence services YEDIOT AHARONOT 8/27/99 via IMRA: "Today there is already a difference of opinion regarding the merit of advancing Palestinian intelligence capabilities. In the GSS (Shabak) it is said that the American training helps in the struggle against terror. In Military Intelligence they think otherwise. The Palestinians, Military Intelligence maintains, also use the intelligence and knowledge against Israel. According to a senior member of the Israeli defense establishment, the American-Palestinian connection hurts Israel - and in a big way. 'Every course advances them, raises their level, helps them to become more professional. The CIA invests in them, gives them good courses. They get fantastic equipment, not just from the USA, also from European countries. The problem is that they also use the equipment against us, instead of using it to trap terrorists. So, for example, in the area of surveillance, they have a surveillance unit that monitors Israeli targets. And if you have advanced equipment, there is no problem monitoring military communications networks, intelligence networks or cellular telephones.' There is also criticism against the Americans and their view of the situation. 'The Americans see the Palestinians as partners who have to be strengthen to turn into an island of stability,' said the senior source in the defense establishment. 'According to the American thesis, the better Palestinian intelligence is, the more terrorists they capture and the stabler the peace. This is a naive assumption that ignores the conflict between us and the Palestinians. The Americans relate to this as if it were a conflict between the Israeli-Palestinian side against Hamas. They don't see that Arafat and Hamas are on the same side against Israel.' 12. Raviv trial postponed ARUTZ7 8/30/99: "The trial of GSS agent-provocateur Avishai Raviv has been postponed once again. Originally set for July 6, proceedings were originally delayed until Sept. 1, and today it was learned that the case will only be heard next month, on Oct. 3. Barry Chamish, a journalist who has written extensively on the Rabin assassination, expressed disappointment that the trial was postponed a second time. Attributing the change in date to the fact that "so many people planned to sit in the courtroom as witnesses," Chamish said that this will not prevent him and others from attending the trial "whenever it will be held." 13. Terror tunnels ISRAEL LINE 8/27/99: "Another tunnel running between the Palestinian and Egyptian sections of the Gazan border town of Rafiah was discovered recently, HA'ARETZ reported. Inside the three foot wide and 21.3 foot deep tunnel, ropes and other devices were found, used by terror organizations to bring arms and explosives into the autonomous areas." 14. Maccabiah tragedy agreements? HA'ARETZ 8/31/99: "More than two years after the tragic bridge collapse at the Maccabiah Games, the Israeli government announced that it would compensate members of the Australian delegation injured in the incident. The announcement was sent yesterday to the Haifa District Court, which is deliberating a series of claims against the insurance companies, contractors and other sources. The claims were brought by the families of those killed and injured in the fiasco. In July of 1997, 4 participants in the Maccabiah Games were killed when a specially constructed foot bridge leading to the stadium collapsed. The treasury is to determine soon the exact amount of compensation, and informed sources have mentioned the amount as tens of millions of shekels. The decision was taken last week at a discussion in the office of Finance Minister Avraham Shochat which was attended by representatives from the foreign and justice ministries. The Foreign Ministry suggested taking the unusual step of offering state compensation in order to repair relations with the Australian Jewish community, which had complained of the disappearance of those involved in the affair and of evasion of responsibility by Israeli officials. Ministry sources yesterday expressed the hope that the decision would put an end to the procrastinating in the bargaining over compensation, and would lead to an arrangement with the insurance companies and other non-judicial actors in the affair...." 15. Burger business New York City's THE NEW YORK POST 8/29/99--Editorial: "Here's the hottest trend in corporate America: food companies with their own Middle East policy. First, those '60s relics at Ben & Jerry's Ice Cream forced their Israeli licensee to stop using mineral water from one of Israel's leading bottled-water firms - because the water comes from the Golan Heights, which Israel captured from Syria in the 1967 Six-Day War. Now the folks at Burger King have ordered their Israeli franchisee to remove the company's name from its 3-month-old restaurant in Maale Adumim, a suburb of Jerusalem also captured by Israel in 1967, this time from Jordanian occupation. In both instances, the corporate capitulation followed naked threats of a worldwide boycott initiated by Arab-American groups. In the case of Burger King, that threat was about to be endorsed by the Arab League, which for decades administered the illegal Arab boycott of Israel and of companies that did business with the Jewish state. Burger King officials insisted that they have "no interest in taking sides in the Arab-Israeli peace process." But by declaring that Israel has no rightful claim to Maale Adumim, Burger King has done precisely that. It also sends a disturbing signal to anyone with an agenda that blatant economic threats will succeed. Burger King may still have 46 restaurants in Israel, but it also has 84 fast-food places in five Arab countries. And its British-based parent company, Diageo, no doubt feared that the Arab boycott would spread to such other subsidiaries as Pillsbury, Haagen Dazs, Smirnoff vodka and Johnnie Walker and J&B whiskeys. Indeed, the Burger King folks made no bones about why they knuckled under so quickly: "Burger King has made this decision purely on a commercial basis." In other words, the pressure groups and their friends have the numbers, so their political demands are accommodated. In an effort to blunt criticism of its action, Burger King says its Israeli franchisee "falsely" claimed that the restaurant was located inside Israel. The franchise owner denies that charge and is fighting the company's actions in court. Burger King may pretend that this is a breach-of-contract issue, but there's no denying that Israel's foes are hailing this as a significant political triumph. "Corporations should not do business and investment on land that is occupied by force and whose original owners have been displaced into refugee camps," proclaimed one of the boycott organizers. By its shameful surrender, Burger King has emboldened those who would revive the use of economic boycotts to try and make Israel knuckle under. Score another one for the Israel-bashers."