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Israel Line 6/20/00

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Jun 20, 2000, 3:00:00 AM6/20/00
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ATTENTION ISRAEL LINE RECIPIENTS

Tuesday, June 20, 2000

*SHAS MINISTERS QUIT GOVERNMENT
*THREE-WAY SUMMIT SCHEDULED FOR JULY
*UNIFIL TO EXPAND FORCES IN SOUTHERN LEBANON
*SETTLERS DEMONSTRATE IN JERUSALEM
*ECONOMIC BRIEFS

SHAS MINISTERS QUIT GOVERNMENT

Shas ministers and deputy ministers presented letters of resignation to
Prime Minister Ehud Barak today, HA'ARETZ reported. Rafael Pinchasi, head of
the party's Council of Torah Sages, submitted the letters following
consultations with Shas ministers, deputy ministers and Knesset members.
The resignations will take effect within 48 hours. Negotiations between
Shas and One Israel will continue and if the sides reach an agreement during
the next two days, the resignations of the ministers may be rescinded. The
resignations of the deputy ministers, however, take immediate effect.

THREE-WAY SUMMIT SCHEDULED FOR JULY

Senior sources close to Prime Minister Ehud Barak said that a 10-day
trilateral summit between U.S. President Bill Clinton, Barak and Palestinian
Authority Chairman Yasser Arafat is scheduled to take place on July 6 at
Camp David, YEDIOT AHARONOT reported. The summit is aimed at completing the
framework agreement between Israel and the Palestinians and announcing the
termination of the conflict between the two peoples.
The sources also reported that the PA has agreed to postpone the third
redployment and continue negotiations in the region with the participation
of U.S. Middle East Peace Envoy Dennis Ross. U.S. Secretary of State
Madeleine Albright is also slated to arrive in the region next week to
facilitate preparations for the summit.
Meanwhile, according to HA'ARETZ, the Israel Defense Forces General Staff
and the Peace Directorate in the Prime Minister's Office submitted to Barak
proposals for a temporary arrangement with the Palestinians including the
suggestion that Israel agree to the establishment of a Palestinian state
prior to the resolution of permanent status issues. In the security cabinet
meeting on Sunday, IDF senior officers presented possible scenarios for
relations between Israel and the Palestinian Authority, including the
conclusion of a permanent settlement, a unilateral declaration of state by
the PA which could generate violent clashes in the territories and a
temporary arrangement that would obviate the confrontation expected to be
triggered by a unilateral Palestinian declaration of independence.
According to senior officials in the Jerusalem, under the IDF plan Israel
would continue to supervise border crossings to Jordan and Egypt and the
Palestinian airport in Gaza. In addition, the existing economic, security
and regional cooperation arrangements would remain valid and Israel would
carry out a third redeployment.
Barak told the security cabinet that he prefers first to exhaust the
possibility of attaining a comprehensive framework accord, which would
resolve all outstanding issues. He did not, however, rule out the proposals
for a temporary or partial agreement.
Meanwhile, Deputy Minister of Defense Ephraim Sneh said on Monday before
the Knesset Foreign Affairs and Defense Committee that there has been an
increase in the number of warnings regarding possible terrorist attacks in
Israel by Palestinian rejectionist groups including Hamas and Islamic Jihad.

UNIFIL TO EXPAND FORCES IN SOUTHERN LEBANON

UN Secretary-General Kofi Annan announced on Monday that the United
Nations Interim Force in Lebanon (UNIFIL), currently composed of 4,500
soldiers from nine contributing countries, will receive an additional 1,200
troops, THE JERUSALEM POST reported.
Troop reinforcements are slated to include approximately 600 soldiers from
the Ukraine and forces from Sweden, including sappers equipped with mine
clearing equipment. Many of the existing contingents are sending additional
troops, including India which has a 600-strong battalion supervising the
eastern sector of the former security zone.
UNIFIL is also purchasing armored personnel carriers and other armored
vehicles from Finland. The new vehicles are reportedly equipped with
mine-clearing applications and can withstand explosive devices.
Annan said the reinforcements' main task would be to help the Lebanese
government take charge of the area vacated by the Israel Defense Forces last
month. "UNIFIL's main task will now be to help the Lebanese government
restore its effective authority and assume its responsibility in the area
from which Israel has withdrawn," Annan told the UN peacekeepers. "And that,
of course, will require you to deploy in places you have not covered up to
now."
Meanwhile, according to Israel Radio, KOL YISRAEL, Annan met with Hizbullah
leader Sheik Hassan Nasrallah on Monday night in Beirut. No further details
were available about their meeting. Hizbullah has warned that it will resume
attacks if Israel does not give up land still claimed by Lebanon, despite
the UN verification on Friday that Israel's withdrawal from Lebanon is in
full compliance with Security Council Resolution 425.

SETTLERS DEMONSTRATE IN JERUSALEM

Tens of thousands of settlers from the West Bank and the Gaza Strip
demonstrated in Jerusalem on Monday against territorial concessions, THE
JERUSALEM POST reported.
The day of protest was sponsored by the Council of Jewish Settlements in
Judea, Samaria and Gaza and started with a demonstration in the Wohl
Rose Garden opposite the Knesset followed by a prayer vigil in Zion Square
and a protest opposite the prime minister's residence which was also
attended by right-wing MKs.
Conspicuous throughout the day were the thousands of young children, whose
schools had been shut for the occasion despite opposition from the Ministry
of Education.

ECONOMIC BRIEFS

* ECI Telecom is purchasing the California-based WinNet for $60-80 million
in cash, HA'ARETZ reported. WinNet develops and markets Local Multipoint
Distribution Services which supports wireless telephony and Internet access.

* Debis International, DaimlerChrysler's financial services arm, has formed a
joint venture with Colmobil Group in Israel to provide automotive financial
services, THE JERUSALEM POST reported. In the initial stages, the service
will be limited to customers of DaimChrysler and Colmobil Group, the Israeli
importer of Mercedes Benz, Mistubishi,
Scania, Hyundai, Freightliner, and large turbine engines from MTU
Friedrichshafen.

Today's Israel Line was prepared by Riki Drori and Batsheva Genut at the
Consulate General of Israel in New York.

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

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