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February 14 - 18, 2005

  • EX-LEBANESE PM HARIRI KILLED
    • Ex-Lebanese PM Hariri Killed in Beirut Motorcade Blast
    • Mofaz Says Pro-Syrian Group Behind Hariri Assassination
  • ISRAEL-PALESTINIAN DIALOGUE
    • No Agreement Reached Yet on Handover of Jericho to PA
    • U.S. Security Coordinator for Mideast Meets with PM Sharon
    • Court Upholds Prisoner Release Decision
    • IDF to Halt Demolition of Terrorists' Homes
    • Peres: IDF Might Consider Leaving Philadelphi Route
  • DIPLOMACY
    • France Refuses to Add Hezbollah to EU Terror List
    • U.S. Singles Out Syria as State Funding Terror
  • SECURITY
    • Mortars Land in Gaza Despite Ceasefire
  • HOME
    • Cabinet to Vote on Evacuation from Settlements Sunday
    • Mofaz Decides Ya'alon Will Step Down as IDF Chief of Staff Next July
    • Knesset Passes Historic Pullout Bill
    • Case Against PM Sharon in Funding Affair Closed
    • PM Sharon Tries to Convince Shinui to Back 2005 Budget
  • ECONOMY
    • Fitch Sets Israel's Local Currency Outlook to "Stable"

 

EX-LEBANESE PM HARIRI KILLED

Ex-Lebanese PM Hariri Killed in Beirut Motorcade Blast
Monday, February 14, 2005

Reacting to the news of the killing of former Lebanese prime minister Rafik Hariri in an explosion today, Minister of Foreign Affairs Silvan Shalom said the attack proved that some groups - including countries such as Lebanon and Syria - were trying to destabilize the region and prevent democracy from reaching the Arab world, HA'ARETZ reported. Hariri was killed when a massive explosion targeted his motorcade as it traveled through Beirut today. At least nine other people were killed in the blast along the city's famed seafront boulevard. Those killed included at least one of his bodyguards.
Shalom, who was meeting with French President Jacques Chirac when he heard about the explosion, said it was an attempt to sow instability in the sensitive Middle East. The blast "proves that there are organizations and countries, such as Syria and Lebanon, striving to undermine the stability in the region and prevent democratization in the Arab world," Shalom noted.
Hariri, a self-made billionaire, led Lebanon for most of the period since the 1975-1990 civil war ended. Since leaving office in October, he was considered to be in opposition - in large part because of a dispute concerning Syria's controversial role in Lebanon.

 

Mofaz Says Pro-Syrian Group Behind Hariri Assassination
Tuesday, February 15, 2005

Minister of Defense Shaul Mofaz stressed today that Syria was most likely behind the assassination of former Lebanese Prime Minister Rafik Hariri on Monday, THE JERUSALEM POST reported. Speaking after a briefing at an army base near the Lebanon border, Mofaz said the attack against Hariri had been launched by "a pro-Syrian terror organization, which, from what we know, is apparently supported by Syria."
"The attack (on Hariri) was intentional," Mofaz was reported as saying. "The organization wanted to strike him because he opposed the Syrian presence in Lebanon. Syria is using terror not only in Lebanon but also in Iraq against coalition forces."
Recalling that Syria strongly backed Hezbollah, Mofaz expressed the hope that the foreign ministers of the European Union will on Wednesday add the group to the EU list of terrorist organizations.
Meanwhile, the Lebanese Army declared a state of emergency today, spreading its forces in Beirut and Sidon following attempts by supporters of Hariri to attack Lebanese Prime Minister Omar Karami's house. Additionally, supporters of Hariri reportedly burned pictures of Syrian President Bashar Assad.

 

ISRAEL-PALESTINIAN DIALOGUE

No Agreement Reached Yet on Handover of Jericho to PA
Tuesday, February 15, 2005

Israel Defense Forces Chief of Staff Moshe Ya'alon said today that the military was so far opposed to transferring the West Bank village of Uja, on the northern outskirts of Jericho, to the Palestinian Authority, HA'ARETZ reported. Ya'alon's comments contradict Palestinian claims that an agreement had been reached on the handover of Jericho and its surroundings. Israel is concerned that a handover of Uja will endanger its citizens, as the Jordan Valley highway - often used by Israeli vehicles - passes through the village.
Last week, Israel agreed in principle to hand over Jericho to Palestinian control, but the two sides have been at odds over the size of the area from which IDF troops will withdraw. The Palestinians want Israel to transfer control of Uja as well as Jericho, and remove the main IDF checkpoint at the entrance to the city.
Jericho will serve as an important model for the upcoming handover of four additional West Bank towns.

 

U.S. Security Coordinator for Mideast Meets with PM Sharon
Thursday, February 17, 2005

U.S. security coordinator for the Middle East, Army Lt. Gen. William Ward, was meeting today with Prime Minister Ariel Sharon and U.S. ambassador to Israel Dan Kurtzer, HA'ARETZ reported.
Later today, Ward is slated to meet with Minister of Defense Shaul Mofaz and outgoing Israel Defense Forces Chief of Staff Moshe Ya'alon.
Ward, who was assigned to the region earlier this month, will supervise, among other things, the reform of the Palestinian security forces. He is being assigned the task of helping the Palestinians rebuild their forces - in terms of training and equipment - and will examine the Palestinian Authority's readiness to take over security control of the Gaza Strip.
Ward met with Palestinian Prime Minister Ahmed Qurei this morning in the West Bank city of Ramallah and with PA Chairman Mahmoud Abbas on Wednesday. No comments were issued after the meetings.

 

Court Upholds Prisoner Release Decision
Thursday, February 17, 2005

The High Court of Justice rejected the petition by the Legal Institute for Terror Research against the government's intention to release hundreds of Palestinian prisoners as part of several gestures towards Palestinian Authority Chairman Mahmoud Abbas, THE JERUSALEM POST reported. In their decision, the justices, Supreme Court President Aharon Barak, Deputy President Mishael Cheshin and Dorit Beinisch wrote, "We are cognizant of the pain of the petitioners who lost their loved ones. Release of prisoners and detainees definitely does not sit well with them, but, nevertheless, we do not find cause to intervene in the government's decision."
When submitting the petition, the petitioners, represented by Ya'acov Rubin and Ze'ev Dassberg, said the decision to release prisoners was unreasonable since the government was unaware of facts proving how dangerous such a move would be.
Earlier this week, the Prison Service published the names of 500 Palestinian security prisoners scheduled to be released next week. The list contains 118 administrative detainees and 382 security prisoners, including a large number who have not yet served two thirds of their sentence, and were linked to shooting attacks against soldiers and civilians.

 

IDF to Halt Demolition of Terrorists' Homes
Friday, February 18, 2005

In a landmark decision, Minister of Defense Shaul Mofaz instructed the army on Thursday to halt the demolition of terrorists' houses, THE JERUSALEM POST reported. Mofaz upheld recommendations forwarded by Israel Defense Forces Chief of General Staff Moshe Ya'alon, after a committee established to examine the issue concluded that the process caused more damage than benefit and failed to serve as a deterrent.
A statement issued by the IDF Spokesman warned, however, that "in the event of an extreme change in circumstances, the army would be free to reevaluate the policy" and possibly resume house demolitions in the future.
In another goodwill gesture towards the Palestinian Authority, twenty Palestinians who were among the 39 exiled to Europe and the Gaza Strip as part of a deal to end the standoff in Bethlehem's Church of the Nativity in May 2002 will be allowed to return once the Palestinians receive security control over the city. Mofaz announced the decision on Thursday night, after meeting with Israeli representatives of the various security committees to hear updates on their meetings with Palestinian officials.
According to ministry officials, Mofaz said that Israel would permit 20 of the Palestinians "without blood on their hands" to return to the region. Officials did not reveal whether the 20 were among those expelled abroad or to the Gaza Strip.

 

Peres: IDF Might Consider Leaving Philadelphi Route
Friday, February 18, 2005

Vice Premier Shimon Peres said today Israel could possibly withdraw from the Gaza-Egypt border zone known as the Philadelphi route, HA'ARETZ reported. Peres' comments came in response to hints by Palestinian Authority Chairman Mahmoud Abbas' security advisor Mohammed Dahlan that the presence of Israel Defense Forces in the Philadelphi corridor could provoke a new round of terror attacks.
Dahlan said in an interview that a continued military presence along the route could create a security dynamic resembling that of the Sheba Farms region near the northern border with Lebanon, where IDF soldiers have repeatedly clashed with Hezbollah. Dahlan said if Israel did pull out of the buffer zone between Gaza and Egypt, the PA would commit to preventing weapons smuggling and acting against terror in the area.

 

DIPLOMACY

France Refuses to Add Hezbollah to EU Terror List
Monday, February 14, 2005

French President Jacques Chirac turned down today a request by Minister of Foreign Affairs Silvan Shalom to add Hezbollah to the European Union's list of terror organizations, HA'ARETZ reported. The EU will soon hold an initial discussion on the Israeli request, which is based on the danger posed by Hezbollah to new Palestinian Authority Chairman Mahmoud Abbas. France has played the primary role so far in blocking the addition of Hezbollah to the list.
Both Israeli and Palestinian sources have accused Hezbollah of trying to organize attacks in order to torpedo the ceasefire reached between Abbas and Prime Minister Ariel Sharon at Sharm el-Sheikh last week.
During their meeting, Shalom also asked Chirac to use France's influence in the Arab world to promote warmer Arab-Israeli ties.

U.S. Singles Out Syria as State Funding Terror
Tuesday, February 15, 2005

The United States is "greatly disappointed" with Syria for failing to take adequate steps to stop the flow of money to terrorist and insurgent organizations, particularly in Iraq, a top U.S. Treasury official said on Monday, THE JERUSALEM POST reported. Visiting Israel and the Palestinian Authority, Undersecretary of the Treasury Stuart Levey said Syria was continuing to allow former Iraqi elements to operate on its soil and to allow money to flow into Iraq to fund the insurgency. He said Washington had identified the Commercial Bank of Syria as a "primary money laundering concern."
Speaking to reporters in Jerusalem between meetings with security officials, Levey said his mission was to make it more difficult for people to fund terrorism. He indicated that the United States was offering to set up a trilateral mechanism with Israel and the PA to share intelligence and better monitor money laundering.
In meetings with the Palestinians scheduled for today, Levey was expected to urge them to work with Israel to crack down on money transfers to terrorist organizations. "Anything we can do to better facilitate the better cooperation between Israelis and Palestinians on fighting terrorism is valuable," he said. "There is a constructive role for the United States to play."

 

SECURITY

Mortars Land in Gaza Despite Ceasefire
Wednesday, February 16, 2005

The firing of mortars continued in the Gaza Strip today despite the ceasefire reached with the Palestinians in Sharm el-Sheikh last week, Israel Radio, KOL YISRAEL, reported. Two mortars fell on the Jewish town of Morag this morning. Three additional mortars were fired at Israeli targets in the strip earlier in the morning, and two others were fired on Tuesday night at the Neve Dekalim area and close to an IDF position. No one was hurt in any of the incidents.
In other news, soldiers killed two armed Tanzim members on their way to carry out an attack Tuesday night near the Har Bracha settlement, not far from Nablus.

 

HOME

Cabinet to Vote on Evacuation from Settlements Sunday
Monday, February 14, 2005

Prime Minister Ariel Sharon has told the Knesset Foreign Affairs Committee that the cabinet would vote this coming Sunday on the evacuation of all settlements outlined in the disengagement plan, THE JERUSALEM POST reported. Sharon said evacuation would be carried out over a 12-week period starting in July. Sharon also said that until the Palestinian Authority dismantled all terror groups, there would not be any diplomatic advancement. He described the current diplomatic state as the "pre-road map period."
During the Knesset Foreign Affairs Committee meeting, an Israel Defense Forces official noted that there had been a dramatic decline in all types of terrorist attacks since the ceasefire had been declared. But an intelligence official pointed out that Hezbollah continued to attempt to carry out attacks.
Meanwhile, according to Israel Radio, KOL YISRAEL, the cabinet agreed on Sunday that 500 Palestinian security prisoners would be released in the coming days. The list does not include prisoners with blood on their hands.

 

Mofaz Decides Ya'alon Will Step Down as IDF Chief of Staff Next July
Wednesday, February 16, 2005

Minister of Defense Shaul Mofaz has decided not to extend the tenure of Israel Defense Forces Chief of Staff Lt.-Gen. Moshe Ya'alon who will step down from his position next July, THE JERUSALEM POST reported. Ya'alon will wind up his stint as army chief after three years of service, and only days before the implementation of the disengagement plan.
Mofaz's decision comes despite Ya'alon's desire to keep his role for another year. It is only the third time in the history of the IDF that a time extension has not been granted to an army chief.
The security establishment was shocked by Mofaz's move that army sources qualified as an expression of no confidence in the chief of staff. Across the political spectrum, messages of criticism against the Defense Minister's action to remove Ya'alon were expressed.
The next chief of staff who likely either be current deputy Maj.-Gen. Dan Halutz, or his predecessor Maj.-Gen. Gabi Ashkenazi.

 

Knesset Passes Historic Pullout Bill
Thursday, February 17, 2005

Marking a turning point in the history of the nation, the Knesset approved the Disengagement Implementation Law by a wide majority on Wednesday, empowering the government to pay NIS 3.8 billion to 9,000 settlers from the Gaza Strip and northern West Bank, and to begin their evacuation in five months, THE JERUSALEM POST reported. The law was approved in a 59-40 vote with five abstentions. MKs from the Likud, Labor, Shinui, Yahad, and the United Arab List supported the law. The National Religious Party, National Union, Shas and 17 Likud MKs, including Knesset Speaker Reuven Rivlin and coalition chair Gideon Sa'ar, voted against.
Prime Minister Ariel Sharon got another boost when the Knesset expressed resounding opposition to a referendum on the disengagement.
The Knesset voted in 1982 to evacuate the Sinai settlements, but the vote Wednesday cedes settlements in areas that are considered to be part of the Land of Israel. The four isolated northern West Bank settlements are Ganim, Kadim, Homesh, and Sa-Nur.

 

Case Against PM Sharon in Funding Affair Closed
Thursday, February 17, 2005

Attorney General Menachem Mazuz announced today that he was closing the investigation against Prime Minister Ariel Sharon, due to insufficient evidence, in the case of shell companies allegedly set up to raise and disburse funds for his 1999 primaries campaign, HA'ARETZ reported. However, Mazuz decided to indict the premier's son, MK Omri Sharon, for his role in the funding affair.
In addition, Mazuz indicted Annex Research company and its director, Gabriel Manor.
Citing insufficient evidence, he also said he would close the case against former Sharon bureau chiefs Uri Shani and Dov Weisglass (currently a senior Sharon adviser), who were also suspects in the case.
The indictment against Omri Sharon will be submitted pending a judicial hearing, after the Knesset lifts the MK's parliamentary immunity. If convicted, Omri Sharon could serve up to seven years in jail, and could be subject to a fine.

 

PM Sharon Tries to Convince Shinui to Back 2005 Budget
Friday, February 18, 2005

Prime Minister Ariel Sharon has invited the chairman of the Shinui party, Yosef Lapid, to his Negev ranch Saturday evening, in an effort to win the secular party's backing for the 2005 State Budget, HA'ARETZ reported. Shinui left the coalition late last year, following a dispute over a budgetary provision of NIS 290 million for Haredi educational institutions.
Officials in Sharon's bureau said today that they have begun an intensive campaign to garner a Knesset majority for the budget, which Sharon must pass by March 31 or lose his government.
The officials said that Shas would also be targeted in an effort to persuade the ultra-Orthodox party to reverse its recent decision to vote against the budget and remain in opposition. No date for the budget vote has yet been set.

 

ECONOMY

Fitch Sets Israel's Local Currency Outlook to "Stable"
Monday, February 14, 2005

International ratings agency Fitch Ratings revised the outlook on Israel's Long-term local currency rating to "Stable" from "Negative," GLOBES reported. Fitch has also affirmed the Long-term local currency rating at 'A', the Long-term foreign currency rating at 'A-' Outlook Stable, and the Short-term foreign currency rating at 'F1'.
"The improved local currency rating Outlook reflects a decline in Israel's public debt ratio in 2004 and better medium-term debt dynamics," commented Richard Fox, Senior Director in Fitch's Sovereign team. "Demonstrable spending control and a political commitment to spending restraint and deficit limitation lead Fitch to conclude that the debt ratio has at least stabilized and will probably trend down in the medium-term, albeit gradually. This marks a significant, if not decisive, turning point in Israel's public debt dynamics."

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