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Briefing to the Foreign Press by Major-General Yaakov Or, Coordinator of Government Activities in the Territories,
on socio-economic issues in the territories
Jerusalem, May 30, 2001
I'll try in a very short brief statement to give you the latest information as well as figures relating to the policy as decided by the government of Israel about two months ago, in order to enable you to try to understand the logic behind this decision and the concept, and as well the results and of course what will be the continuation, in our opinion, of this policy.
First of all, the steps, adopted by the Israeli government up until today, based on implementing a policy designed to answer the question: how to ease the life of the population in a very uncertain situation, in a terrorism environment, and a very risky situation. There were two main outcomes of the events from September or October, eight months ago, that made in fact a real change in the basic situation and the social-economic relations between us and the Palestinians. And both of them are a result, of course, of the security situation, which has completely changed.
One, is that Israelis are not allowed to enter the Palestinian Areas A and B in the territories. And second, that Palestinians can't enter Israel.
As you remember, until eight months ago, during the years of 2000 and 1999, approximately 150 Israelis entered the Palestinian territories weekly - mainly for those economic relations. Most well-known are the cities along the Green Line - Jenin, Tulkarem, Kalkilia, where people were buying, selling, for mutual relations. At the same time, between 150,000-180,000 Palestinians entered Israel daily, and I'm counting legally and illegally together. I personally recommended to many Israelis and investors to try to build economic relations between us and the Palestinians, based on mutual interests, and were based on the mutual interests of both sides. We developed continuous work, which was very good indeed in the last four years until the events of last October, even in very sensitive situations, as it was in 1996 and 1997, with the Palestinian workers entering Israel.
These two core issues changed completely with the terrorism and events which developed from October. It started with the entry by Israelis into Ramallah, into Tulkarem, where they were slaughtered and killed. We could not afford the luxury of any Israeli entering into Palestinian territory because we are responsible for them. And because of the Hamas terrorism, we can't allow Palestinians to enter into Israel freely.
Of course, this affected immediately, and gradually as well, the Palestinian economy, the whole economic situation. The decision was made by the Israeli government, even with this increase in the terrorism, and in the environment of terrorism, not only in the actual events, to minimize restrictions and constraints by trying to differentiate between terrorism and population. Of course it's very difficult to differentiate, but as a principle to differentiate. As a concept, this policy must be stable, continuous; the results can't be seen in one day, and there is a very deep risk in it. And it is questioned by many, no doubt.
I'll give an example from yesterday, when terrorists from Bethlehem, or Ramallah, or Nablus, who ambushed Israelis and then escaped by car to the main Palestinian cities. Again, this raised the question: the easiest way to avoid, as much as possible, such ambushes, is by not allowing Palestinian cars into the main axes - a very simple answer is to block the roads. And of course, a full closure. On the other side, it's not only answering the question of security, it's also answering the question of trying to maintain the bridge of mutual relations, of social-economic relations.
The concept dealt, as did the implementation, with the main areas of the flow of goods, trade, trade relations, the main passages, as well as entrance into the West Bank and Gaza, movement in the territories, and the main subject of labor, employment in Israel, major projects relating to infrastructure, electricity, water, sewage that were mainly done by the donor countries.
Unfortunately I have to say that the main steps that were decided and implemented two months ago were not only completely ignored, but were completely denied by the Palestinian officials. I can't explain what is the actual reason for it. On the day that we tried to increase the number of workers in Israel, on the day that issued the permits, the same people told the media that they didn't receive any permits, that it was a lie, that there was no such thing. We are not issuing permits directly to the workers in Gaza or in Nablus, we are dealing with the Palestinian Authority. We have left, and we are not controlling the place like six years ago. I personally am in close relations with my colleague on the Palestinian side who is responsible for social and economic subjects, and in person they told
me, "It's very good, it's very important," but at the same time they denied it. It's a virtual reality. Later on, the same people that got the permits, went through Erez, and we counted them. So it's not like he could say, "They didn't go out," because they went.
It's all part of brainwashing, of drawing a picture of suffering in which, the situation is bad by itself, but in addition to place the blame on Israel, saying that Israel is responsible for everything and that the Israeli goal and main aim is to destroy everything. From my knowledge, after two months, the steps that were taken on the ground are only now having an actual effect. But to build anything in an economy takes time.
Now I'll go through the main factors that were decided and are being done.
You have the figures, but I'll try to emphasize some of them. First, as I mentioned before, the closure was lifted in most of the West Bank and Gaza, enabling and enlarging the commercial movement between places in the A territories - in Nablus, Jenin, Ramallah, as well as other places - enabling, in fact, the commercial life, and minimizing limitations. I'm not saying there are no limitations, I'm not saying that there are no barriers or inspections along the roads, because of the threat of terror. But there are no limitations in fact on the movement of goods from Israel or via Israel, from the ports to the West Bank and Gaza, except of course those materials that are serving the factories of explosive charges or munitions, or elements that serve terrorism.
Today about 800 trucks daily export and import to Gaza via the Karni passage,. The mean figures for 2000, before the outbreak of violence, were approximately 900 to 950. At the main passages to Jordan and Egypt - the Allenby Bridge and Rafah - as well, there is a flow of goods without any limitations, with just a necessary degree of inspection, of course.
The question of workers in Israel is a crucial point, because it has a major influence on the GDP, and mainly when the unemployment is so high in the West Bank and Gaza together. And as I mentioned before, even with the threat of terrorism, we decided to renew the continuous work in Israel. The figures now are approximately 13,000 permits that were issued, with about 11,000 entering Israel daily of those who received the permits. Above and beyond this, about 10,000 are working in the industrial areas, mainly in Erez and in the West Bank - in Erez about 4,000, and in the West Bank settlements there are about 4-5,000 working legally.
I have to say that 11,000 or even 13,000 does not seem a huge number. But it's a very important starting point. We should remember that even in 1995-95, when there were the terrorist attacks in Tel-Aviv, explosive charges, we stopped completely the entrance of Palestinians into Israel. I can't say that people are not asking, how there was an explosive charges in Natanya, in Hadera, in Kfar Saba and other places, and at the same time so many thousands are entering Israel every day. It's a real question, and it was asked in '95 and '96, and then the decision was taken to stop it completely.
Then, in '97 and '98, we developed the current idea of continuous work that would be continued even in sensitive situations. But when we developed this concept, it was based not only on our inspection, but also on the cooperation of the Palestinian authorities, on the fact that the head of the security organization on the Palestinian side also inspected the people and signed the list of approved workers. Today we can't rely on anyone vouching for someone that enters into Israel with the expectation that it'll be a good insurance.
This is a decision that has been in effect during the last two months, increasing every day. Today, as I mentioned, the figure is about 11,000. I believe it will be raised and can be doubled, as well, and we are looking at this very seriously. Permits have also been issued for the entry of businessmen, merchants - today there are about 2,000, and I believe it will be increased in the coming weeks. This may be the generator for the economic relations, because when business people can't enter Israel, of course it causes many problems. No doubt there are criteria: there are no young people among the workers and the businessmen.
About infrastructure: Infrastructure is one of the most serious subjects that we share together with the Palestinians. We are producing electricity for the West Bank and still to Gaza until the power station there will be completed, and hopefully that will be as soon as possible. We are also facing a lot of problems of how to send the professionals to carry out repairs, because there are some damages in the territories, mainly to water installations, which is quite a problem. But I can say that in the area of electricity, in fact the situation is running quite well. There was a meeting last week with the Minister of Energy on the Palestinian side and with our people in Gaza. And water as well - the renewing of the JWC meeting, talking about adding wells and connecting with water from northern Israel in order to try to solve part of the problem of the summer that we are facing together. There was also a decision to connect a pipe from the northern part of Israel to the area of Jenin, and as well some other projects that can be done, I believe.
We are looking now together - of course starting in our side, but later on we shall sit together because it has to be together - at some major projects. A railway from Erez, in the northern part of Gaza to Ashdod, to ease the movements of goods, mainly from the ports, and later on maybe to the West Bank, is being looked at very seriously. Last week was the very silent opening of the new Allenby Bridge, which is completely a new bridge, replacing the old bridge, which can significantly enlarge the movement of goods and people between Israel and the West Bank and Jordan. And there are some other very advanced projects that can be, for example the movement of cement. Of course, this will take time - these aren't things that can be changed in one week.
At the same time, I have to say that I still believe what will be very effective on the ground is the willingness of investors to invest in major projects that were very close to being concluded in 2000, such as industrial estates - for example the Kaduri industrial estate, everything was ready in order to build it. In fact, it should have started somewhere in September or October 2000, and mainly it was stopped because the place was attacked so many times by Tanzim and by other groups from Tulkarem, with the result that no investors are willing to invest a single dollar. Unfortunately, the same is true of with the industrial estate in Jenin.
Terrorism is the main interference, and it's nothing new, to say this. But not less than the actual events, just as harmful to building or maintaining the present economic situation in such a long period of crisis, is the continued fostering of a negative approach towards anything that is being done, which is preventing normal life. There are those among the Palestinians who are painting a very dark picture - the question of boycott, for example: it's not the actual boycott, that whatever Israel is producing is bad, so it has to be thrown from the shops. It's the approach that Israel symbolizes everything bad, which I call a brainwash.
Therefore, we must all understand that terrorism is the main enemy not only against Israel, but is also hindering the efforts to build social-economic relations, in such a very unstable, uncertain, and sensitive situation.
Thank you very much.
* * *
In reply to questions, Major-General Or added:
Yes, the taxes are frozen. Before last October is was about $50 million per month and today it's decreasing - I think today it's about 40 million. We are holding these funds, as you know, because we believe they are used to strengthening the Palestinian security organizations which in fact are at least participating, or more than participating, pushing the terrorism.
The same questions are being raised by the many countries donating money as donors for infrastructure, for things that have to be built, as distinct from supporting funds that are being used as cash money for the Palestinian security organizations and the Palestinian Authority.
Israel has not only declared a ceasefire, but has adopted the comprehensive approach of Mitchell, of which the ceasefire is a part. It's not a question of ceasefire, it's a question of violence, of terrorists, and how this can by stopped, and it's a question that has to be asked also by Arafat and the Palestinian Authority. We have to answer, as a part of our responsibility, how we can stop or minimize the threat of producing mortars, explosive charges, that are used against Israel. We can pray, but it's not enough. And if this can be accomplished by stopping the transfer money, this is better than other methods maybe that are available.
There are about 4,000 Palestinian people who are working in the Erez industrial estate - a very successful industrial estate - in about 150 factories, 20 of which are owned by Palestinians, most of the others by Israelis. The workers are completely Palestinians. For two months there were daily demonstrations to attacks on the people entering the industrial estate because it's just on the border between Gaza and Israel. But worse, the people that gathered there marched from Gaza, about 3 kilometers, and someone could easily have stopped them. What's the big deal about stopping 20, 30, 50 people from marching to Erez? It could have been stopped, but the idea, again, was to interfere with the workers.
Until last week, there were daily attacks, very close to the Karni Passage. So I have to ask: What is the sense in attacking the place? We are doing our very best, because there are Israeli civilians who are working there, who are wondering if they are secure enough, and we have to push them, so that the place will be opened.
The Karni passage has been closed by us during the last eight months for 5 to 6 days altogether. It was, by the way, closed by the Palestinian side as an initial part of the events, in October, as far as I remember, for 14 days. The excuse was their refusal to allow the Israeli authorities to inspect those Palestinians who are working our side, as is common in any airport in the world. In my opinion only as an excuse, because there is no sense in stopping the movement of goods through Karni to one million people in Gaza. And then Arafat, while visiting Spain, said, "The Israelis are blocking Karni, and there is no entry of goods via Karni." And I personally went and discussed this with the highest officials on the Palestinian side.
The permits that we are issuing are in accordance with a plan that we developed a long time ago that we call "continuous working" in Israel, a plan of continuous work based on people who have already worked in Israel, and that have employers in Israel that know them very well and are ready to employ them. Today, the criterion is age 35 and above, and married. Some of the employers say "we are not ready", or some of them have changed their work. We are trying to increase the number by looking at the criteria of the security demands, so we can allow ourselves this calculated risk. There are about 15,000-16,000 on this list, among which we have to date issued about 13,000 permits, of which 11,000 have been used. Remember that about three months ago (Feb 14), the man who drove the bus into a group of people at the Azor junction, killing 8 and injuring 25, had worked for many years in Israel and had a permit. The risk is always there.
The assumption that we allowed people to enter Israel illegally, is not correct. The fact is that the West Bank is completely open to Israel, and unfortunately, because of the assumptions that were made before, in the last six years, about 20,000 Palestinians entered Israel illegally daily. No doubt that we have to do everything, everything to stop it, because it's very risky. Part of the terrorism actions that were held in Israel were done actually or partially by people that entered into Israel illegally and worked in Israel illegally.
The Israeli government decided in 1998, and again in 1999, that Palestinians are preferable in Israel to other foreign workers. Unfortunately, we have to place many more limitations today, as I mentioned the age of 35, because of the threat. And still it's a very high risk. I cannot know if the 11,000 or 13,000, and I hope it will be much more, pose a threat and no one from the Palestinian side can help guarantee this.
