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Israel Line 6/15/00

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Jun 15, 2000, 3:00:00 AM6/15/00
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ATTENTION ISRAEL LINE RECIPIENTS

Thursday, June 15, 2000

*BARAK, CLINTON DISCUSS PALESTINIAN TRACK
*UN CARTOGRAPHERS RESUME, SUSPEND ISRAEL-LEBANON BORDER MAPPING
*NEGOTIATIONS WITH SHAS CONTINUE
*ISRAEL AIDS CYPRUS FIGHT FOREST FIRES
*ISRAELI AND AMERICAN OFFICIALS QUESTION GOUSSINSKY ARREST
*ECONOMIC BRIEFS

BARAK, CLINTON DISCUSS PALESTINIAN TRACK

Prime Minister Ehud Barak and U.S. President Bill Clinton spoke by
telephone on Wednesday night to discuss the Palestinian track prior to
Clinton's meeting with Palestinian Authority Chairman Yasser Arafat, THE
JERUSALEM POST reported.
According to HA'ARETZ, Barak also spoke to Egyptian President Hosni
Mubarak about the peace process. Barak stressed "the importance of reaching
a framework agreement and the dangers of not making a real effort to reach
such an agreement."
Meanwhile, chief Palestinian negotiator Saeb Erekat broke off negotiations
with Israel in Washington on Wednesday over disagreement regarding delaying
the third withdrawal and the release of Palestinian prisoners. According to
THE JERUSALEM POST, officials in Barak's office were surprised by the PA's
decision to put the talks regarding interim issues on hold, and encouraged
the Palestinians to return to the negotiating table. The Prime Minister's
Office issued a statement saying that "Israel is convinced that the only way
to bridge the gaps between the sides is to sit down and negotiate."
Minister of Foreign Affairs David Levy told Israel Radio, KOL YISRAEL, that
"We want peace, but the Palestinians hold negotiations in order to get
everything they want and will only discuss other key issues later. If Israel
doesn't answer their demands, it stands a risk of remaining without peace or
its security assets."

UN CARTOGRAPHERS RESUME, SUSPEND ISRAEL-LEBANON BORDER MAPPING

UN cartographers, together with Lebanese officials, resumed on Wednesday
the mapping
of the border between Israel and Lebanon, HATZOFEH reported.
The mapping, however, was suspended today when the UN team that was
checking a segment of the border at an area facing Kibbutz Misgav Am in
Israel accidentally triggered the suspicion of Israel Defense Forces, who
fired six shots into the air. The UN officials returned to their base, and
will submit a report to UN Secretary General Kofi Annan.
Annan is slated to arrive in the region for an eight-day visit to Israel,
Iran, Syria, Lebanon, and Egypt.
Meanwhile, IDF officials held a press conference on Wednesday to discuss
the construction of the new security fence on the Lebanese border. The
officials, headed by Director General of the Ministry of Defense Gen. (res.)
Amos Yaron, said that if construction is not completed by October, it would
have to be suspended for the duration of the winter. Yaron cited the rocky
terrain and ecological considerations as two key obstacles to completing the
new fence.

NEGOTIATIONS WITH SHAS CONTINUE

Negotiations between officials from Prime Minister Ehud Barak's One
Israel party and Shas have advanced, as Minister of Justice Yossi Beilin met
on Wednesday with Minister of Health and Shas member Shlomo Benizri, to
discuss the issue of permits for Shas currently-illegal radio stations,
MA'ARIV reported. Several of Barak's advisors also met with Shas leader Eli
Yishai.
Speaking before the Committee for Peace and Security in Tel Aviv on
Wednesday, Barak said that "the current political crisis will be solved, and
common sense will prevail."
Reports that Prime Minister Ehud Barak agreed on Wednesday to several
concessions designed to ease the way for the Shas party to return to the
coalition after its resignation on Tuesday circulated throughout Israeli
media outlets. Barak denied the reports.
The alleged proposal included two key issues at the crux of the present
political conflict: transferring control of the Ha Ma'ayan Shas school
system from the Ministry of Education to the Ministry of Science, Culture
and Sport and granting legal permits for Shas radio stations. Under the
proposal, Minister of Science, Culture and Sports Matan Vilnai will take
control of Ha Ma'ayan from Minister of Education Yossi Sarid.

ISRAEL AIDS CYPRUS FIGHT FOREST FIRES

An Israel Air Force plane and two helicopters will depart today for Cyprus
to help local authorities fight large scale forest fires caused by hot, dry
weather, Israel Radio, KOL YISRAEL, reported.
Cypriot President Glefcos Clerides appealed to the Israeli Ambassador in
Nicosia, Shemi Tsur, requesting Israeli assistance in fighting the fires.
The request was forwarded to the Prime Minister's Office, the Ministry of
Foreign Affairs and the Israel Defense Forces, and was approved within half
an hour.

ISRAELI AND AMERICAN OFFICIALS QUESTION GOUSSINSKY ARREST

Numerous Israeli officials, including Prime Minister Ehud Barak, have
asked the Russian government to carefully reevaluate the arrest of Russian
media mogul and president of the Russian Jewish Congress Vladimir
Goussinsky, THE JERUSALEM POST reported. Israel fears that the arrest will
harm the Russian Jewish Congress and its assistance to Israel-bound Russian
Jews.
Minister of Interior Natan Sharansky met today with Russian Deputy
Ambassador to Israel Victor Smirnoff. Sharansky said that Goussinsky's
detention could be labeled a political arrest because he is a media figure
who has criticized Putin and because he was imprisoned without being
formally charged.
Israeli and U.S. officials questioned Russian motives for the arrest. Abe
Foxman, head of the Anti Defamation League, said "this move by the police
raises serious questions about President Vladimir Putin's commitment to the
rule of law and his respect for democratic processes." Putin, who is
currently abroad, said that he would investigate the situation upon his
return to Russia.

Israeli Ambassador to France, Eliyahu Ben Elisar, was invited to attend a
reception today held by the Mayor of Paris in honor of Algerian President
Abdel Aziz Butfalika, HA'ARETZ reported. Although the invitations were sent
by the Mayor's office, it is clear that the guest list was approved by the
Algerian Embassy.

ECONOMIC BRIEFS

* Hotel revenues hit an all-time high of NIS 1.26 billion (approximately
$315 million) in the first quarter, a 23 percent increase over the same
period last year, HA'ARETZ reported. The increase is attributed in part to
the Papal visit to Israel in March.

* Israeli venture capital fund Concord and the publicly traded company
Technoplast Technologies, part owners of U.S. communication company Optical
Solutions, profited on Wednesday from Optical's raising of $65.5 million,
HA'ARETZ reported. The recent financing round valued the company at $400
million. Optical Solutions, founded in 1994, designs, manufactures, and
markets Fiber-To-The-Home, Passive Optical Network for voice, video and data.

Today's Israel Line was prepared by Liel Leibovitz and Jeremy Bob 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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