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>JN
>Israel Faxx
>PD Jan. 6, 1995, V3, #4

Defense Ministry; Israel is Not Transferring U.S. Technology to

China

Defense Ministry Director General David Ivri said Israel is not transferring U.S. technology to China. Ivri was responding to recent media reports that Israel had transferred U.S. technology used in the now dormant Lavi fighter-plane project to China without American permission.

Ivri said Israel is prepared to clarify for American officials any questions regarding this matter. He added that Israel has only transferred to China security-related aerospace technology from the Lavi project that was developed solely by Israel.

Peres: Cairo Talks Went Well

By Al Pessin (Jerusalem)

Israeli Foreign Minister Shimon Peres says there was some substantive discussion during his talks with his Palestinian counterpart in Cairo earlier this week, in spite of tension resulting from clashes between Israeli troops and Palestinian police. Peres believes that tensions will ease over time.

Reports from Cairo indicated no significant developments from what had been planned as a substantive meeting on key issues. Indeed, the reports said the only decision had been to hold another Palestinian-Israeli summit to try again to make progress on those issues. The reason for the apparent deadlock was a series of shootouts between Israeli troops and Palestinian police.

But Peres said Thursday he and senior Palestinian official Nabil Shaath did manage to do some serious negotiating, in spite of the difficult situation. "I believe that while the talks with the Palestinians opened in a sour mood, the conclusion was, again, more positive and more promising and, as I told you, I believe that we started already, informally, to negotiate the second stage."

That second stage involves the expansion of Palestinian autonomy and the withdrawal of Israeli troops from some parts of the territory they now occupy. There are many difficult issues connected with that plan, and it appeared to be made even more difficult by the fighting between Israeli troops and Palestinian police in and around autonomous Gaza. But Peres says the Israeli and Palestinian forces which work most closely together are building a good relationship, and he believes it will spread to the rest of the forces.

"It looks like the joint patrols became a success. This was the most doubtful arrangement, and yet today it's the most promising one. And I believe we shall see more and more of joint patrols and that may increase the coordination and, for that reason, (may increase) the confidence of the two parties in guarding the peace."

Peres also defended the Israeli government's position on expanding Jewish settlements in the occupied territories -- which the Palestinians see as a threat to the peace process. He says there will be no new settlements, but existing ones must be allowed to grow as their populations do. He also says that in the widely publicized case of the Efrat settlement, in order to protect the peace process, the government denied the settlers their legal right to build on a hillside near a Palestinian village and forced them to build on another, less controversial, site instead.

Peres says Israel's main concern in the current negotiations is security, and it is willing to address a variety of Palestinian concerns. But he says when Palestinian officials publicly express dissatisfaction about Israel's settlements policy or the pace of prisoner releases or slow progress on other issues, they diminish their own achievements. Peres says the two sides have accomplished much together in establishing the Palestinian autonomous areas and should focus more on that. He also acknowledges there are what he calls "many difficult corridors" to pass through on the way to full Israeli-Palestinian peace, but he believes the process is moving forward and will succeed.

Peace with Syria This Year or ...

By Al Pessin (Jerusalem)

Israeli Foreign Minister Shimon Peres says Syria must make it possible for Israeli-Syrian peace talks to move more quickly, or the opportunity for peace will be lost.

Peres says if Israel and Syria do not make peace by the middle of this year, the Israeli government will not be able to take the politically difficult steps necessary as it gets close to the 1996 election campaign.

Israeli officials have made similar statements before, but Peres was more specific. He said the Israeli government is fully occupied, implementing its peace agreements with Jordan and the Palestinians, and trying to build regional cooperation. He says implementation of a deal with Syria would therefore take more time, and so must be reached sooner to be completed -- or at least well launched -- by this time next year. Peres says the Israeli government wants to make peace with Syria, but it must happen soon.

"We shall continue to negotiate. We are not going to interrupt it. Whether a miracle will happen or not, I don't know."

Later he said it might not take "a miracle," and that "a breakthrough" might be enough.

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