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Israel Line 6/5/00

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Jun 5, 2000, 3:00:00 AM6/5/00
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ATTENTION ISRAEL LINE RECIPIENTS

Monday, June 5, 2000

*ALBRIGHT IN ISRAEL TO ADVANCE TALKS
*UN ENVOY CONCLUDES TALKS IN LEBANON, SYRIA
*ISA INCREASES SECURITY AROUND BARAK
*REDEPLOYMENT FROM LEBANON COSTS $375 MILLION
*WOMEN PRAY AT THE WALL
*ECONMIC BRIEFS

ALBRIGHT IN ISRAEL TO ADVANCE TALKS

U.S. Secretary of State Madeleine Albright will meet tonight with Prime
Minister Ehud Barak and Minister of Foreign Affairs David Levy to advance
talks on the framework agreement on permanent status, Israel Radio, KOL
YISRAEL, reported. She will also discuss the possibility of a three-way
summit between Barak, Palestinian Authority Chairman Yasser Arafat and U.S.
President Bill Clinton,
Senior Israeli officials in Jerusalem said that progress will only occur
if the Palestinians change the way they are conducting talks and refrain
from setting forth reasons to postpone them. Barak stated during Sunday's
Cabinet meeting that talks have been marked by Palestinian foot-dragging.
According to MA'ARIV, Israeli officials have also rejected reports in the
international Arab daily Al-Hayat, stating that Israel agreed to take back
hundreds of thousands of Palestinian refugees or allow them to resettle in
PA territory. Officials said while Israel does not recognize the right of
return, it accepts family reunification. In addition, Israel Radio, KOL
YISRAEL, reported that Barak said that the reports had "no basis in reality."

UN ENVOY CONCLUDES TALKS IN LEBANON, SYRIA

United Nations special coordinator for the Middle East peace process Terje
Larsen arrived in Israel on Sunday to provide an update on the results of
his discussions with Lebanon and Syria, Israel Radio, KOL YISRAEL, reported.
Larsen will meet with Prime Minister Ehud Barak and with senior defense
establishment officials.
Larsen said Lebanon and the United Nations agreed on all but three points
along the Israel-Lebanon border. He said that Lebanon demanded that Israel
release prisoners being held in Israeli jails and that it stop pumping water
from one of the sources of the Hazbani.
Officials assess that Lebanon is trying to put up a hard front to delay
the deployment of its army along the border, possibly due to Syrian
recalcitrance or fears of confrontations with terrorist organizations in the
south of the country.
Meanwhile, according to HA'ARETZ, Egyptian Foreign Minister Amr Moussa
said in an interview with the Lebanese weekly Al-Hiwar that there is no
longer any justification for the existence of the Lebanese resistance
movement. He also stated that Egypt expects calm to prevail in the area.

ISA INCREASES SECURITY AROUND BARAK

The Israel Security Agency has tightened security around Prime Minister
Ehud Barak and government ministers and increased personnel and intelligence
operations in light of recent reports that extremists intend to harm Barak,
HA'ARETZ reported.
Senior sources stressed that they had not received concrete information
but, following statements by extremists, the ISA decided to place additional
agents among settlers, increase surveillance of extremist groups and meet
with rabbis and settler leaders in an attempt to convey the severity of the
situation.
According to MA'ARIV, ISA Chief Avi Dichter will meet with settlement
leaders, Yesha Council members and rabbis in order to warn them against the
growing wave of incitement against Barak. According to HA'ARETZ, Attorney
General Elyakim Rubinstein has called upon all public figures to show
restraint and to avoid using terminology which might imply incitement. He
rejected demands made by ministers and members of Knesset to arrest figures
suspected of incitement, stating that Israel was a country of law and order
where people are not hastily put behind bars.

REDEPLOYMENT FROM LEBANON COSTS $375 MILLION

The redeployment of Israel Defense Forces troops along the Israel-Lebanon
border and the absorption of South Lebanese Army personnel and their
families into Israel will cost approximately $375 million, YEDIOT AHARONOT
reported.
This figure includes the erection of the new security fence along the
border, fortifications of existing structures, initial "subsistence funds"
paid to 5,900 SLA soldiers and temporary housing costs incurred by local
authorities. Funds to cover these costs have not been included in the state
budget for 2000.
Ministry of Finance officials said that using funds from the general
reserve to cover these expenses would completely deplete it. There currently
exists, however, a surplus in tax revenue, which might be used for this purpose.

WOMEN PRAY AT THE WALL

For the first time since the High Court ruling two weeks ago allowing
women to pray at the Western Wall, 150 women prayed there on Sunday, the
first day of the Hebrew month of Sivan, YEDIOT AHARONOT reported.
The women, who prayed at the entrance to the women's section, read aloud
from the Torah and wore phylacteries and prayer shawls. They refrained from
approaching the Western Wall itself. Jerusalem police deployed a large
number of policemen to prevent any attempts to harm the women. Several dozen
ultra-Orthodox Jews protected their presence.

ECONOMIC BRIEFS

* Israel will have more companies at Supercom 2000, the leading North
American communications trade show, than any other country in the world,
after the United States and Canada, GLOBES reported. Among the 34 Israeli
companies exhibiting this week in Atlanta are Comverse, ECI, Orckit, Foxcom,
Metalink, Giganet, Checkpoint, Helios and Vocaltec. More than 100
representatives of U.S. companies will participate in a reception sponsored
by the Israel Economic Mission in Atlanta and the Israel Export Institute.

* The board of directors of Bezeq International unanimously agreed to spin
off its Internet business, selling 45 percent of the new Internet venture to
the Most-Ma'ariv group and merging with the Walla! portal company, HA'ARETZ
reported. According to Bezeq International's proposal, the merger of the two
companies would be based on a value of $30 million for Walla! and $120
million for Bezeq International's Internet business.

Today's Israel Line was prepared by Aylon Slater 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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