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Israel Line 6/19/00

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Jun 19, 2000, 3:00:00 AM6/19/00
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ATTENTION ISRAEL LINE RECIPIENTS

Monday, June 19, 2000

*U.N. SECURITY COUNCIL ENDORSES ISRAELI PULLBACK
*BARAK: ISRAEL EXHAUSTING ALL POSSIBILITIES FOR PEACE
*IRANIAN WEAPONS PLANS COULD BENEFIT FROM OIL PRICE HIKES
*ALGERIAN PRESIDENT: TIES WITH ISRAEL AFTER PEACE IN MIDDLE EAST
*CABINET TO MEET THIS WEEK
*ECONOMIC BRIEFS

U.N. SECURITY COUNCIL ENDORSES ISRAELI PULLBACK

The United Nations Security Council formally endorsed on Sunday
Secretary-General Kofi Annan's certification of Israel's withdrawal from
southern Lebanon, paving the way for the expansion of the United Nations
Interim Force In Lebanon (UNIFIL), HA'ARETZ reported.
Debates leading to the endorsement were interrupted several times by
Russia, in coordination with Lebanon and Syria, which claimed that there was
still an Israeli presence on Lebanese soil. The United States pressured
Lebanon to accept the Security Council's endorsement, and Annan threatened
to cancel his planned visit to Beirut on Monday if objections were not
removed. Annan's final statement called on both sides to respect the new border.
Israel issued a statement on Friday in response to Annan's certification
that Israel's withdrawal was in full compliance with U.N. Resolution 425.
The statement noted that Israel expects the United Nations to enforce full
implementation of Resolution 425, which stipulates that the Lebanese army
deploy along the international border.
According to YEDIOT AHARONOT, Annan will be arriving in Israel on
Wednesday for an official visit and will meet with Prime Minister Ehud Barak
and Minister of Foreign Affairs David Levy.

BARAK: ISRAEL EXHAUSTING ALL POSSIBILITIES FOR PEACE

Prime Minister Ehud Barak said today that Israel will exhaust all
possibilities in its drive for peace and that he hopes the Palestinians will
conclude a peace agreement with Israel, HA'ARETZ reported. "We are reaching
the end of the diplomatic corridor that began with the Oslo accords. Israel
is committed to an agreement, and is willing to take difficult decisions to
reach it, one that will safeguard its vital interests. But we cannot force
decisions on the other side," Barak said.
Israel Defense Forces Chief of Staff Lt.-Gen. Shaul Mofaz suggested over
the weekend that while Israel wants peace, its security planning must have
contingencies for all possibilities. He said that to be fully prepared for
the possibility of renewed conflict, Israel would be ready to defend its
citizens with "tanks and helicopters" if necessary. Mofaz's statements were
based on an assessment that Palestinian Authority Chairman Yasser Arafat
might create a confrontation because of his demand for a large-scale third
redeployment.

IRANIAN WEAPONS PLANS COULD BENEFIT FROM OIL PRICE HIKES

Senior Israeli analysts cautioned that the sharp rise in international oil
prices over the last few months will facilitate Iranian attempts to
intensify its nuclear weapons and long-range ballistic missiles programs,
HA'ARETZ reported.
Analysts say that Iran has a guaranteed budget for its nuclear weapons
program and that the budget remains the same even when the national economy
hits low points. Analysts project that the increase in revenues from oil
exports will expedite Iran's efforts to arm itself with non-conventional
weapons.
In addition, it is believed that these increased revenues will enable Iran
to provide extensive support to radical Islamic groups outside its borders.

ALGERIAN PRESIDENT: TIES WITH ISRAEL AFTER PEACE IN MIDDLE EAST

In a meeting with Jewish leaders in France on Friday, Algerian President
Abdel Aziz Butfalika said that when conditions become ripe, he supports the
establishment of full diplomatic relations between Algeria and Israel,
HA'ARETZ reported. Butfalika concluded a four-day official visit to France
on Sunday.
According to the President of the Organization of French Jewry (CRIF),
Henri Hajdenberg, Bouteflika added that his country might even consider
"preferential relations" with Israel after it concludes peace accords with
all of its neighbors. He also expressed his full support for the peace
process, and promised that Algeria would not encourage extremism during
negotiations.

CABINET TO MEET THIS WEEK

The Prime Minister's Office issued a statement saying that the Cabinet
will meet this week, regardless of the state of negotiations with Shas, THE
JERUSALEM POST reported.
According to HA'ARETZ, sources close to Prime Minister Ehud Barak said
that he may delay tomorrow's meeting if he feels that an additional meeting
with Shas will conclude negotiations. If he feels that Shas is stalling for
time, however, he will call the meeting, accept the Shas ministers'
resignations and form a narrow government by next Monday.
Sentiments were positive among most Government officials as there was
agreement between Shas and the Education Ministry representatives on most
issues under dispute by the end of Sunday's meeting. One matter which is
still under contention is Shas' demand for its pirate radio stations to be
legalized. After Attorney-General Elyakim Rubinstein described the
legalization as having "various legal problems," Shas said that it would be
willing to soften its position on the radio stations if an agreement was
reached on its educational system.

ECONOMIC BRIEFS

* A plan for developing a joint Website to promote tourism to Egypt and
Israel will be presented to teams from both countries at a meeting in Sharm
el-Sheikh, HA'ARETZ reported. The plan, part of an initiative by tourism
companies in Egypt and Israel, is being facilitated by the Peres Center for
Peace.

* BIRD Foundation, the Israel-U.S. Binational Industrial Research and
Development Foundation, approved the support of 11 joint Israeli-U.S.
projects, totaling $8 million, GLOBES reported. The projects include a
cooperative venture between Omri of Israel and Bayer Corporation of the
United States that will jointly develop an improved drug for hemophilia.

Today's Israel Line was prepared by Aylon Slater and Jeremy Bob at the
Consulate General of Israel in New York.

Israel Line is daily summary of major news items taken directly from the
Israeli media.

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