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  Israel Faxx                                      \/ /  \/ /
  August 3, 1994 Volume 2, #143                    / /\__/_/\
  Electronic World Communications, Inc.           /__\ \_____\
  8916 Reading Road, Cincinnati, OH 45215             \  /
  Internet: Phone: (513) 563-7424   \/

Two meetings between Saudi and Israeli intelligence allegedly took place last month. The first was on June 14 at the President Hotel in Geneva and the second in Zurich on June 27. These two meetings were attended by representatives from two Arab countries and two European countries. Saudi intelligence was seeking help from Israeli intelligence to suppress any form of opposition. (Source: Israeli & Global News)

Hussein Accepts Invitation to Jerusalem

Jordan's King Hussein told journalists in London that he will accept the invitation extended by Israeli leaders to visit Jerusalem. Israel Radio reports that the Israeli and Jordanian delegations to the peace talks between the two countries completed a tour along the border to examine Israel's proposal for demarcation.

According to Israel Radio, the Jordanians rejected Israel's proposal and then adjourned for further discussions. Davar reports that the negotiations between Israel and Jordan have shifted into high gear. In the Arava region a road between Eilat and Aqaba will be built and direct telephone links will be opened. The newspaper also reports on a meeting between Israeli and Jordanian officials to discuss traffic, tariffs and other issues.

Rabin: Jerusalem to Stay United Under Israeli Rule

PLO Chairman Yasir Arafat said in a press conference in Gaza that the Palestinians want to speed up the negotiations on the future of Jerusalem. Arafat's demand is in response to the Washington Declaration in which Israel recognized the special role of the Hashemite Kingdom of Jordan in Muslim Holy shrines in Jerusalem.

Prime Minister Yitzhak Rabin said that discussions on Jerusalem will start within two years and will based on the Declaration of Principles signed on September 13th, 1993. Rabin declared that "Israel will adhere to its strong and clear position that Jerusalem must stay united under Israeli sovereignty as the capital of the State of Israel."

Argentinean Investigation: Iran is Responsible for the Bombing

By Art Chimes (Jerusalem) and EWCNEWS

President Carlos Menem said that the team investigating the explosion that destroyed the Jewish Community Center building in Buenos Aires on July 18th, believes that the city's Iranian Embassy was involved in the bombing. The Argentinean police are currently investigating five suspects in the bombing and reportedly will publish preliminary findings on the explosion by the end of this week.

Israel Defense Force Chief of Staff General Ehud Barak said that Israel maintains a dialogue with international intelligence services concerning counterterrorism. Barak believes that the international community recognizes that Iran is behind terrorist activities.

Israel has repeated its belief that Iran was involved in recent attacks against Israeli and Jewish targets in Argentina and Britain. But Prime Minister Yitzhak Rabin says there are no plans to retaliate directly against Iran.

Rabin admits Israel still does not have any real proof of Iran's involvement in the bombings. But he says the circumstantial evidence is compelling. Nevertheless, the Israeli leader says there are no plans for retaliation against Iran. "I don't believe that at this stage there is any need to even ask this question."

At the same time, Rabin says Israel reserves the right to strike at Iranian-backed Hizbullah guerrillas in Lebanon. "We are fighting those who fight us from Lebanon. It's one part of the struggle against those of Hizbullah and other terror organizations."

Israeli retaliation against guerrillas in Lebanon has been expected since the London and Buenos aires bombings. But Rabin says the fight against international terrorism will require international cooperation.

Rabin to Arafat: Wait on Jerusalem Talks

By Art Chimes (Jerusalem)

Israel has ruled out early negotiations on the permanent status of Jerusalem. Prime Minister Yitzhak Rabin told reporters Israel insists Jerusalem should not be subject to early negotiations, as called for by Palestinian leader Yasir Arafat on Monday.

"The negotiations on the permanent solution between them and us will take place two years after the completion of the implementation of "Gaza-Jericho first," which means the middle of May, 1996."

In fact, the Israel - PLO agreement says permanent status negotiations will start "as soon as possible," but not later than the two-year deadline cited by Rabin.

Arafat called for early negotiations on Jerusalem after Israel acknowledged a special role for Jordan in administering Muslim holy sites in the city. The Palestinians say they want Arab East Jerusalem as the capital of a future state. The Israelis says Jerusalem will remain undivided as their capital.

Germany Applauds President's Polish Apology

By Evans Hays (Bonn)

German President Roman Herzog's address in Poland on the 50th anniversary of the Warsaw uprising against the Nazis has won widespread praise in Germany.

Herzog's address at memorial events in Warsaw was his first major public speech outside Germany since taking office last month. German politicians and newspaper editorials praised Herzog's remarks.

In his remarks, Herzog asked Poland for forgiveness for "What Germans did to you." One German radio commentator said it was good that Herzog was so open in his speech and did not try to hide behind mild expressions such as what was done, was carried out in the name of Germany.

The main opposition Social Democrats said Herzog made a big contribution to better relations with Poland. A spokesman said Herzog, a conservative, continued the tradition of former Chancellor Willy Brandt, a Social Democrat. Brandt once attended a Warsaw Ghetto uprising ceremony and went down on his knees to ask forgiveness for what Germany had done to Poland.

The conservative newspaper Die Welt said Herzog's speech in Warsaw was not so dramatic, but it was of equal importance. Other German newspaper editorials echoed that view, praising Herzog for his effort to improve relations with Germany's neighbor to the east. One Berlin newspaper said the German president had done exactly the right thing.

Peace = Economic Freedom in Missle East

By Linda Cashdan (Washington)

Great economic gains are anticipated from last month's Israeli - Jordan peace pledge, which brought the 46-year state of war between the two countries to an end. Analysts expect Israel, Jordan, and the Middle East region as a whole to all profit.

Jordan is expected to enjoy a rapid increase in tourism in the months ahead, as the opening of border crossings, and the establishment of electricity and telephone links make it easier for Holy Land tourists to visit Jordanian attractions.

However, the most immediate change for Jordan, US Middle East expert Joseph Sisco predicts, will not come in expanded commerce, but rather in the removal of economic burdens.

"I think for King Hussein, Jordan is hurting economically, and obviously this is going to be helpfully largely because much of the debt that's owed to us (the United States) will be wiped out. But equally important, we're going to encourage other countries, to which Jordan is indebted, to take similar action, so it isn't only the United States. There are a number of other European countries, for example, and so on."

Jordan's cement, textile and wood products industries are primed to take advantage of new trade opportunities in Israel. Patrick Clawson of the US Institute for National Security studies, says that since Israel's economy is about 12 times the size of Jordan's economy, the trade benefits will be much more noticeable in Jordan than in Israel.

However, the overall effects could be greater in Israel, he says, because peace with Jordan could lead to peace with all the other nations that have participated in the Arab economic boycott of Israel.

"The Arab countries as a whole have been coming closer to accepting Israel as a normal business partner. It's an open secret that the Israeli businessmen are in advanced discussions with businessmen in Kuwait, and Qatar and Tunisia, about a variety of business opportunities."

Once it becomes obvious that Arab businesses are taking steps to trade with Israel, Clawson says, the rest of the world will follow, and that will bring Israel the biggest peace dividend of all. Companies in Asia and Europe have, in the past, been so dependent upon Arab oil they have shunned investments in Israel in fear of offending the Arab states. Clawson predicts those very companies will soon begin investing in Israel.

That, Clawson predicts, will mark the first step of greater foreign investment in the region as a whole.

Hostile Arab reaction to the 1979 Camp David Accord greatly curtailed hopes for increased two-way trade between Egypt and Israel. Lingering hostilities between Israel and the Palestinians has hindered realization of the "peace dividend" that was supposed to emerge from the Israeli agreement with the PLO.

What sets the Israel-Jordan agreement apart from those two predecessors, Patrick Clawson predicts, is that the economic payoff for both Jordan and Israel should come quickly.

Brief Faxx

** The United Nations has asked Israel to participate in the supervision of elections in Mozambique to be held on October 27-28, 1994. The International Organizations Department at the Foreign Ministry is dealing with the recruitment of volunteers.

** Amid much Jewish criticism, Pope John Paul II is bestowing papal knighthood on former Austrian President (and former Nazi) Kurt Waldheim.

** US Secretary of State Warren Christopher will arrive in Israel on Saturday night. During his visit he will try to work on achieving progress in the Israel-Syria peace-talks arena.

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