INDEX

ISRAEL'S NEWS UPDATE: THE LAST 24 HOURS          BY DR. AARON LERNER

BREAKING NEWS

Two Islamic Jihad terrorists killed during an arrest activity in the village of Arabe

Attributed to "security sources" [Provided by the IDF Spokesperson's Office]. During a joint IDF, ISA, and Israel Police activity for the arrest of wanted Islamic Jihad terrorists in the village of Arabe, south of Jenin today, two wanted Islamic Jihad terrorists, Nidal Abu Sa'ade and Ahmed Tubasi, were killed after an exchange of fire erupted as the forces were trying to arrest them. A Border Police officer was severely wounded during the exchanges of fire. Following is information on the two terrorists: Nidal Ali Latif Abu Sa'ade, 28, resident of the village of Illar, northeast of Tulkarm was involved in various criminal acts, including car theft, and therefore maintained close contacts with operatives inside Israel. Using these connections as a platform for his terrorist activity, Abu Sa'ade was in charge of dispatching suicide bombers to carry out attacks inside Israel. Abu Sa'ade was directly involved in all of the suicide bombing attacks carried out by the Islamic Jihad infrastructure in the northern West Bank during the past year:

* Suicide bombing at the "Stage" club in Tel Aviv in February 2005, in which five Israeli civilians were murdered.
* Suicide bombing at the "Sharon" mall in Netanyah in July 2005, in which five Israeli civilians were murdered.
* Suicide bombing at the Hadera market in October 2005, in which six Israeli civilians were murdered.
* Suicide bombing at the "Sharon" mall in Netanyah in December 2005, in which five Israeli civilians were murdered.
* Double suicide bombing at an IDF security crossing south of Tulkarm in December 2005 - two suicide bombers on their way to carry out
an attack in Rosh Ha'Ayin during the holiday season detonated the explosives concealed on their persons, killing an IDF officer, Lieut. Uri Binamo. During the recent past, Abu Sa'ade operated alongside other members of Islamic Jihad in planning additional terrorist attacks. Ahmed Hassam Sa'id Tubasi, 18, from the Jenin refugee camp, who was armed during the activity, had been operating during the recent past alongside senior members of Islamic Jihad infrastructure in the northern West Bank, including Abu Sa'ade, in planning and attempting to carry out terrorist attacks against Israel. Tubasi, along with Abu Sa'ade, was directly involved in the double suicide bombing at an IDF security crossing south of Tulkarm in December 2005, a bombing that was due to take place in the city of Rosh Ha'Ayin.
 

 

LATEST POLL

Poll: Kadima 42 Labor 19  Likud 16, deciding issue: Security 24% Social 19% Investment in education 17% Economics 15%
By Dr. Aaron Lerner     Date: 24 January 2006

Maagar Mochot for Mishal Cham television program - telephone poll of a representative sample of 513 adult Israelis (including Arab Israelis)  carried out on 23 January 2006. [all results are net undecided]
42 [00] Kadima
16 [40] Likud
19 [21] Labor
00 [15] Shinui
10 [11] Shas
08 [08] Arab parties
05 [06] Yachad [Meretz]
06 [07*] National Union
05 [07*] Yisrael Beiteinu [Lieberman]
06 [05] Yahadut Hatorah
03 [06] NRP
00 [00] Tafnit headed by Uzi Dayan
00 [00] Aleh Yarok (legalize hashish)
* National Union & Yisrael Beiteinu together have 7 seats 00 = did not pass minimum percentage. Of the following personalities who do you most trust? Olmert 31% Netanyahu 22% Peretz 20% Other replies 27%. What is the most important subject when deciding which party to vote for?. Security 24% Social 19% Economics 15% Personal trustworthiness in the leaders 14%. Investment in education 17% Dealing with corruption 11%

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Updated Summary of IDF Humanitarian Aid Delegation to Kenya

The IDF rescue delegation which left last night for Kenya following the collapse of a building in Nairobi has been working since the early hours of the morning at the disaster site, assisting in rescuing and providing medical treatment to those trapped under the rubble. As of yet the delegation has rescued two trapped people and uncovered three bodies. Kenyan President Mr. Mwai Kibaki arrived at the site this afternoon and met with the Head of the IDF Home Front Command, Maj. Gen. Gershon (Jerry) Yitzhak, Israeli Ambassador Mr. Emanuel Seri and the rest of the delegation and thanked them for their efforts. The delegation will do everything in its power to make use of the professional knowledge and experience which the IDF has attained in order to save lives.

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Departure of IDF Humanitarian Aid Delegation to Kenya

Following the collapse of a building in Nairobi, Kenya and in accordance with the decision of the Defense Minister, it has been decided to send an IDF rescue delegation carrying humanitarian and medical aid from Israel to the disaster area in Nairobi. The delegation, which has been coordinated with the Ministry of Foreign Affairs, left tonight, January 24th, 2006 from the IAF base in the city of Lod. Members of the delegation will assist in rescuing and providing medical treatment to those trapped under the rubble.  The delegation, commanded by Maj. Gen, Gershon (Jerry) Yitzhak, Head of the Home Front Command, will be comprised of some 80 IDF search and rescue professionals and medical personnel. The delegation will transport technological rescue equipment, as well as humanitarian equipment, to the disaster area.  The delegation will do everything in its power to make use of the professional knowledge and experience which the IDF has attained in order to save lives.

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The following are excerpts from an interview given by Iranian political  analyst Dr. Majid Goudarzi, which was broadcast on the Iranian News Channel

Dr. Majid Goudarzi: He [white supremacist Paul Fromm] said something very interesting: "In Europe you can deny the existence of God, but you cannot deny the Holocaust." I read in the Italian constitution that the fine for blasphemy is around three dollars, but if someone in France denies the Holocaust he is fined at least 3,000 francs. In addition, he is silenced and is fired from his job. [...] In 23 days, the Jews will mark the Holocaust celebrations. This will be on January 27. They have this celebration. They claim that there were attempts to commit genocide against them. But I refer to the Bible itself: The Book of Esther, Chapter 9. They themselves say there was a woman named Esther, who was brought into the court of Xerxes, by a man called Mordechai the Jew. She was incited into killing around 170,000 Iranians. She killed many people in what is known today as the city of Susa. They celebrate this every year. They hold a two-day annual celebration of  the killing of Iranians, acelebration of the genocide against the Iranians. 23-24 centuries ago, 170,000 constituted the population of an entire country. They were the ones who wanted to annihilate an entire country's population. They are the ones who commit genocides - not us.

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Lauder School of Government, Diplomacy and Strategy  Institute for Policy and Strategy Patriotism and Israel's National Security Herzliya Patriotism Survey 2006

Uzi Arad  Gal Alon, by the Institute for Policy and Strategy

[IMRA: The sampling and interviews were conducted by the Statistics Department at Haifa University in early December 2005,  of a representative sample of the adult population in Israel - about 800 adult Israeli citizens, including about 150 Muslims and about 20 Christian Arabs. It should be noted that the statistical error for the results for the small sample of 170 Arab is +/- 7.5 percentage points.

Key Findings:
The study and discussion of patriotism in Israel, as a conceptual whole andas a sociopolitical phenomenon, has long been shunted aside for various reasons, some of which  derive from processes that Israeli society has undergone. In view of the fact that the  Institute for Policy and Strategy and the annual Herzliya Conferences focus on assessing  the balance of national strength and security, and since it is impossible to measure a country's strength without addressing the patriotic component among its citizenry, a  direct examination of patriotism is required. Thus, we have taken it upon ourselves to  study patriotism on various levels, mapping it via a specific and in-depth survey - which  we aspire to conduct annually - through an analysis of all its aspects. This document presents the first survey results in detail, as well as the questionnaire used  in it. In preparing and conducting the survey, we built upon similar existing  questionnaires and surveys undertaken by universities and research institutes in the U.S.  and other countries. In addition, the document includes two conceptual discussions of  patriotism in order to place it in the relevant context. Our main interest focuses on the implications of the degree of patriotism in society on  Israel's national security. Following are several significant findings in this vein: The citizens of Israel possess a large degree of Israeli patriotism according to two  intrinsic criteria - willingness to fight for it (85%) and the desire to remain planted  on its soil (87%). In comparison to other developed countries in the West, there is  none that surpasses Israel in this declared readiness to fight for one's country. On the other hand, the pride of Israeli citizens in their country (77%) is low  compared to other countries, and is certainly not "blind pride". The main sources  of pride for Israelis are the scientific and technological achievements of their  country (97%) and its security forces (86%), while the lowest levels of pride are  attributed to the way its democracy works (38%) and its social welfare system  (22%). In general, it seems that the current spirit of Israeli patriotism - more than being  fed by ideology or Israel's historic heritage, or utopian aspirations (to be "a light  unto the nations") - is anchored in a deep attachment to country and a sense of  its being under threat. Most of the Israeli Arabs are not proud of their citizenship (56%), and are not  ready to fight to defend the state (73%). But the rate of Arab Israelis who believe  that Israel is better than most other countries (77%) is among the highest in the  developed world with regards to this measure. Notably, the number of Arabs  who are proud of the welfare system (53%) is three times higher than that  among Jews (17%). There are differences between the type and expression of patriotism among Jewish citizens of Israel and those of Arab citizens. Among the latter, patriotic  feeling is subdued. When patriotic sentiment is given expression, twice as many  Arabs define themselves as Palestinian patriots than as Israeli patriots. The patriotism of the Jewish citizens is stronger among the right than in the ranks  of the left; stronger among the religious and traditional than among the secular;  stronger among the more affluent than among the less affluent; stronger among  older people than among younger ones; and stronger among those without  university education than among those with academic degrees. Alienation is felt among low-wage earners in the Jewish public: They are hesitant  in their willingness to fight, and about a tenth of them are not prepared to do so.  Although their sense of attachment to the country is high, they are nonetheless  reluctant to define themselves as ardent patriots. There is a noticeable "patriotic decline" through the generations. Unlike those  born during the years of the state's establishment, among younger people the  elements of patriotic sacrifice and rootedness have weakened. While refusal to  fight was almost unheard of among older people, one in every seven young  Jewish citizens claims that he is not willing to fight to defend his country (14%).  Two in every five are prepared to leave the country if their standard of living  would be significantly improved by moving abroad (44%). The full findings of the survey warrant study and analysis. These are likely to yield lessons  and conclusions which merit discussion. For example, the weakening of the patriotic spirit  among the young Jewish generation, which is perhaps the most troubling finding in terms  of the threat to the future strength of Israel, raises questions about the educational  conclusions to be drawn - should the weaknesses be dealt with or should the strengths be further nurtured? Two different approaches towards the "patriotic deficit" can be  identified. One approach, which is post-Zionist in essence, accepts the change and suggests adapting the state's values to the multicultural reality that is developing within  it. The second approach, on the other hand, advocates weaving a new Zionism that  preserves Israel's formative values as a Jewish state and aspires to adapt them to the  agenda of the 21st century. Inasmuch as the responsibility for instilling and inspiring a  spirit of patriotism rests with Israel's leaders and educators, it is their task to resolve the dilemma and cope with the challenge highlighted by this survey. The Key Findings of this document, together with the chapter on "Patriotism and National Strength in Israel," were written by Prof. Uzi Arad. The survey findings, together with the chapter dealing with "Conceptual Outlines for Patriotic Affinity," was written by Mr. Gal Alon. Prof. Ephraim (Efi) Yuchtman-Yaar served as an advisor to the Patriotism Project. Mr. Kalman Gayer assisted with the sampling process. The taskforce that contributed to the survey analysis included Dr. Faisal Azaiza, Prof. Maoz Azaryahu, Dr. Amos Carmel, Mr. Amnon Lord and Ms.  Ahuva Yanai. Complex statistical analysis was conducted with the assistance of Ms. Yasmin Alkalai.

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Senior Islamic Jihad terrorist arrested in Silat A-Hartiya

During a joint IDF, ISA and Border Police activity, this morning, January 22nd 2006, in the village of Silat A-Hartiya, northwest of Jenin, forces arrested Hassin Bahgat Anis Jaradat, 33, one of the leading figures of the Islamic Jihad terrorist infrastructure in northern Samaria. Jaradat was arrested in the 1990s for his activity in the Islamic Jihad terror organization. Following his release in 1996 he resumed his terror activity in the organization. The Islamic Jihad terror cell in the northern West Bank, of which Jaradat is one of the leading figures, executed five suicide bombing attacks in Israel during the year 2005, in which dozens of Israeli civilians were murdered and hundreds were wounded:

* Suicide bombing at the "Stage" club in Tel Aviv in February 2005, in which five Israeli civilians were murdered.
* Suicide bombing at the "Sharon" mall in Netanyah in July 2005, in which five Israeli civilians were murdered. 
* Suicide bombing at the Hadera market in October 2005, in which six Israeli civilians were murdered.
* Suicide bombing at the "Sharon" mall in Netanyah in December 2005, in which five Israeli civilians were murdered.
* Double suicide bombing at an IDF security crossing south of Tulkarm in December 2005 - two suicide bombers on their way to carry out an attack inside Israel during the holiday season exploded the explosives concealed on their persons, killing an IDF officer, Lieut. Uri Binamo.


 

 


Vice Prime Minister Ehud Olmert's Speech at the Herzliya Conference
January 24, 2006. Translation provided by the Israel Government Press Office

Distinguished Guests,

Unfortunate circumstances have led to my appearance before you here this evening in place of Prime Minister Ariel Sharon.  Two years ago, at this Conference, Prime Minister Ariel Sharon delivered his speech later known as "the Herzliya Speech", the speech in which he announced the Disengagement Plan.  From this place, one of our greatest commanders embarked on the most dramatic and significant, campaign of his life, the diplomatic, public and political campaign of the Disengagement Plan.  That speech, and the Disengagement Plan which followed, are milestones in the history of the State of Israel. I had the honor working beside Ariel Sharon throughout this bold political process.  I accompanied him during the long months of internal conflict and confrontation.  I witnessed how he withstood the supreme test faced by every leader: the temptation to preserve the status quo and not take the risks even if these could ensure a better future.  Arik Sharon did not act in this manner.  His policy always prioritized initiative over inaction, breakthrough over the monotonous route.  He knew it was better for Israel to initiate political steps, and not be dragged into dangerous moves forced on it by others.

The State of Israel is still a young nation.  There are many more steps we must take in order to build a ethical society with strong values: building a value-based education system, infusing our lives with Jewish content, strengthening our connection to the Jews of the Diaspora, shaping a system of equal opportunities with the Arab minority, based on rights and responsibilities, and developing a strong, just, compassionate and reactive economy.  However, there is no doubt that the most important and dramatic step we face is the determination of permanent borders of the State of Israel, to ensure the Jewish majority in the country. Zeev Jabotinsky defined the importance of a Jewish majority in his insightful and keen way: "The term 'Jewish nation' is absolutely clear: it means a Jewish majority.  With this, Zionism began, and it is the basis of its existence, it will continue to work towards its fulfillment or it will be lost." The existence of a Jewish majority in the State of Israel cannot be maintained with the continued control over the Palestinian population in Judea, Samaria and the Gaza Strip. 

We firmly stand by the historic right of the people of Israel to the entire Land of Israel.  Every hill in Samaria and every valley in Judea is part of our historic homeland.  We do not forget this, not even for one moment.  However, the choice between the desire to allow every Jew to live anywhere in the Land of Israel to the existence of the State of Israel as a Jewish country - obligates relinquishing parts of the Land of Israel.  This is not a relinquishing of the Zionist idea, rather the essential realization of the Zionist goal - ensuring the existence of a Jewish and democratic state in the Land of Israel. In order to ensure the existence of a Jewish national homeland, we will not be able to continue ruling over the territories in which the majority of the Palestinian population lives.  We must create a clear boundary as soon as possible, one which will reflect the demographic reality on the ground. Israel will maintain control over the security zones, the Jewish settlement blocs, and those places which have supreme national importance to the Jewish people, first and foremost a united Jerusalem under Israeli sovereignty. There can be no Jewish state without the capital of Jerusalem at its center. This is the path Prime Minister Ariel Sharon announced several years ago. We - who were his partners in its formation - worked with him in order to establish a new public movement, which will determine our path in the coming years, and which will propel Israel forward. The existence of two nations, one Jewish and one Palestinian, is the full solution to all the national aspirations and problems of each of the peoples, including the issue of refugees who will be absorbed solely in a Palestinian state.  We will not allow the entry of Palestinian refugees into the State of Israel.  This is our clear stance, which is backed by the unequivocal American position expressed in the United States President's letter of April 2004, to the Prime Minister.  The only way to achieve this goal is the full implementation of the Roadmap, and of President Bush's vision of June 2004 (2002). The Roadmap is based on a simple and just idea: if the Palestinians abandon the path of terror, and stop their war against the citizens of Israel, they can receive national independence in a Palestinian state with temporary borders, even before all the complicated issues connected to a final agreement are resolved.  All these issues will be resolved later during negotiations between the two countries, in the accepted manner in which countries resolve their differences. On the eve of elections in the institutions of the Palestinian Authority, I say here, on behalf of the Government of Israel, that we will uphold all the obligations we have taken upon ourselves in the framework of the Roadmap, and we demand that the leadership in Ramallah do likewise. Israel has already proven, including through the Disengagement, that it is prepared to advance peace.  It will continue to act so in relation to the commitments it has taken upon itself, in exchange for Palestinian commitments. 

 This includes: limiting construction in the settlements, improving the quality of life of the Palestinian population, and dismantling unauthorized outposts. The Government of Israel will not be deterred by the threats of a minority of lawbreakers.  The unauthorized outposts will be dismantled, and I have already given the appropriate instructions in this regard to our security forces and those entrusted with upholding the law.  We will forcefully defend the values of the rule of law, even when attacked from within. We have begun fulfilling our commitments, which are not easy to implement given the internal disagreements in our country, and the disengagement from the land of our ancestors.  Loyal to the path of Sharon, we prefer the wisdom of compromise to emotion, and we demand that the Chairman of the Palestinian Authority and his government act similarly. The Palestinians, headed by Chairman Mahmoud Abbas have committed themselves to implementing a series of concrete steps, which will abrogate the capability to threaten Israel and the political process with terror.  Among them is the dismantling of all terror organizations starting with the Hamas, confiscating illegal weapons, enforcing law and order in their territory, implementing government, security and financial reforms, and ceasing the incitement and education of hatred against Israel. The key to moving the political process forward is for the Palestinians to abandon the path of terror.  This is not a matter for words, statements and empty promises - we had our fill of these in the past. The Roadmap determines that, only after all these steps are fully completed, will they be entitled to the status of national independence and equal rights and obligations in the international community.  This is not solely an Israeli demand.  This is a general international prerequisite  required of them.  Led by the United States, the countries of the European Union, Russia, the UN and the moderate Arab states, led by Egypt and Jordan. The Government of Israel, under my leadership, will insist on the full implementation of the Roadmap, and of all its phases, exactly as was agreed, because this is the only way to preserve security and bring about peace.  It would be a serious, historic mistake to allow the Palestinians to avoid the fulfillment of their commitment to dismantle terror organizations.  We must adhere to the Roadmap, conduct negotiations on its implementation, and act to create massive international pressure on the Palestinians to fight terror. Those who are in a rush have asked whether, because of the elections, the present Government has already committed to another disengagement if future contacts with the Palestinians are not successful.  We would prefer an agreement.  If our expected partners in the negotiations in the framework of the Roadmap do not uphold their commitments, we will preserve the Israeli interest in every way. The elections taking place tomorrow in the Palestinian Authority are an historic opportunity for the Palestinians to take a giant step towards realizing their goal - to achieve national independence in a country of their own. In 1947, the Palestinians rejected the offer to establish a country. History has provided them with another opportunity to establish an independent state.  The actualization of this opportunity involves relinquishing some of their national dreams, just as we have relinquished some of our national dreams. In the elections tomorrow, and in the steps which will follow, they will have to decide: whether to take their fate into their hands or to again leave the key in the hands of the extremists, those who led them from bad to worse and condemned them to a life of misery and suffering. It is important to be clear: we are interested in neighborly relations which are good, productive and progressive.  We support the establishment of a modern, democratic Palestinian state which respects civil rights, and is economically prosperous.  Their welfare is our welfare, their well-being is our well-being, their stability is our stability.

I am following the Palestinian elections closely.  We have made important decisions whose purpose is to allow the existence of free and orderly elections.  I hope that the results will allow the elected government under the leadership of Mahmoud Abbas to move forward towards a settlement. I am not a partner to all the doomsayers who are already telling us how hard and horrible it will be here after the elections in the Authority.  Israel will know how to operate and act in any circumstance, faced with any scenario, in order to preserve its security and political horizons, and  advance the hopes for a changed reality. Backed by broad international support, Israel will continue to demand that all the phases of the Roadmap be carried out.  If the Palestinians continue to evade their commitments, we have the ability to defend Israel and strike back at terror and those who carry it out, as we have until today, and even with more intensity. The difficult war against terror has not stopped, and will not stop as long as there is a threat to the security of the citizens of Israel. Acceleration of the construction of the security fence, together with the improved ability of the IDF and other security forces, as well as Israel's increased latitude - will be our answer to terror.

Ladies and Gentlemen,

Alongside our significant effort to realize our dream of tranquility, peace and security, we cannot ignore what is occurring within us, the quality of life within our home - our commitment to building a strong, value-based society is complete and unequivocal. For several years, the State of Israel suffered a severe economic recession, which threatened its social stability.  We began taking significant steps to pull out of the recession.  The Government steps jumpstarted economic growth.  We achieved a growth rate of 5.2% in 2005, higher than that which exists in Europe and the United States.  We stabilized employment and lowered the unemployment rate from 11% to approximately 9%.  We encouraged foreign investors to invest unprecedented sums in Israeli industry and the
Israeli financial system.  The amount of direct foreign investment in the Israeli economy reached more than $6 billion in 2005.  All the economic indicators point to a strong Israeli economy, which serves as an attractive target for foreign investors.  These steps were taken by the Government, headed by Ariel Sharon, with his full and unprecedented backing, and under the leadership of then-Minister of Finance Benjamin Netanyahu. Nevertheless, we have still not done enough to narrow the gaps in society. We have not done enough to defend those sectors of the public which are in dire need.  We have not shown enough compassion towards those who have nothing.  Since I took upon myself the responsibility of shaping the State of Israel's economic and social policy, we have decided to change our emphasis, and determine a new set of priorities. Achieving this goal will not be realized through a return to the regime of distributing allowances and support, rather by determining clear goals in the two central spheres of modern society: education and employment.  We must allow equal opportunities for every citizen of Israel, and achieve equality in the possibility to realize these opportunities.  Every Israeli  citizen deserves the best education, and a supportive and stimulating environment in which to earn an honorable living.  Combining these two components is the key to growth and narrowing the social gaps. Before his hospitalization, the Prime Minister directed that work plans be prepared, which would include clear goals and detailed paths of action in those spheres.  These plans will be presented to the public shortly, and will constitute the core building blocks of the Government's policy.

Ladies and Gentlemen,

Allow me to end on a personal note.  For 32 years, I have served the State of Israel.  From the position I have assumed due to Prime Minister Sharon's illness, I see an Israel fighting difficulties and great hardships, but I also see the glimmer of hope in the eyes of many Israelis, for the first time in many years.  And as Ariel Sharon said: "We must not let this new spirit, which grants our peoples hope, pass us by and leave us empty-handed - I have no intention of missing this opportunity." From here, from this podium, I declare: I believe in the people of Israel and in the State of Israel.  I believe in the genuine will of the citizens of Israel to live in peace, security and tranquility, and I believe in our ability to achieve this goal when we are united.  From here, I send my wishes for a speedy recovery to the man who, over the past five years, has led us into a reality in which there is a chance for a better future.  I hope that we will soon be able to stand before him and tell him: we have walked in your light.

Thank you.
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EU Says Donations to PNA Could Not Be Unconditional European Union Suspends $42m in Aid, World Bank Freezes 60% of Funding

Palestine Media Center - PMC. Facing a "suffocating financial crisis," Palestinian officials have no immediate comment yet on an EU decision on Tuesday to suspend 35 million euros ($42 million) in aid to the Palestinian National Authority (PNA), coming shortly after freezing 60% of funding for the PNA's operational budget by the World Bank. The European Union has suspended 35 million euros ($42 million) in aid to the Palestinians, citing their lack of budgetary discipline, visiting EU's commissioner for external relations Benita Ferrero-Waldner said in Jerusalem on Tuesday. Ferrero-Waldner said European aid to the Palestinians had previously been held up in 2002 and 2003, said such donations "could not be unconditional."

 The Palestinians reportedly receive about $1 billion a year in international  aid - about half the PNA's budget. The European Union is the largest donor  to the PNA and EU assistance is slated to reach $312 million in 2006. The EU "sanction underscored intensified foreign donor scrutiny on the PNA  since Israel quit the Gaza Strip last year after 38 years of occupation. The  impoverished territory is widely seen as a testing ground for statehood,"  Reuters reported on Tuesday. Visiting the region ahead of Palestinian legislative elections on January  25, Ferrero-Waldner said half of 70 million euros ($84 million) donated  through the World Bank in November has not been released, and that the issue  was under discussion. "The biggest donor is the European Commission, and we have not paid because  the benchmarks have not been fulfilled," she told reporters in Jerusalem. "We have a long-term commitment with the Palestinian people that we would  like to improve their living conditions (but) we are not only pumping money  into the Palestinians without asking for very clear benchmarks," she said. "There has to be a credible finance minister, but there also has to be a  budget and the budget should also remain within the limits of what the  budget has foreseen," she added.

There has been no replacement appointed for Salam Fayyad, who quit as  Palestinian finance minister in November to run for parliament, leading the  "Third Way" national list. Before resigning, Fayyad predicted aid from a World Bank trust fund would be  cut in response to ballooning Palestinian government wage costs. The trust  has paid out at least &230 million to the Palestinians since its founding in  2004. Early in January, Fayyad said that, "there is no doubt that the Palestinian  Authority is going through a suffocating financial crisis," adding: "We are  in desperate need of Arab aid." A tour by Palestinian President Mahmoud Abbas in the GCC countries early in  January has yet to yield results.

 

 

 

 

 

Budgetary Discipline . a Pretext?

Budgetary discipline, cited by Ferrero-Waldner as the reason for freezing the EU 43 million dollars in aid to the PNA, could be confused by Palestinians as a pretext to cover US and EU latest threats to review their aid to the PNA should the Islamic Resistance Movement "Hamas" join a new
Palestinian government after the January 25 elections. The United States and the European Union blacklist Hamas as a "terrorist  organization" and joined their Quartet partners, the United Nations and  Russia, recently in a statement opposing Hamas' participation in the  elections unless it disarms and recognizes Israel's right to exist as a
state.

The EU and US positions vis-à-vis Hamas adopts the Israeli official policy and corners Palestinian President Abbas in a very difficult position. The EU move could not be strictly isolated from Palestinian accusations of pressuring the PNA on Hamas and of interference in Palestinian elections. "It will be complicated for the European Union to continue financing  Palestinian Authority activities if Hamas continues to play a negative role  in the process and will not renounce violence," said EU foreign policy chief  Javier Solana on December 18. "The taxpayers in the European Union, members of the parliament of the European Union, will not be in a position to sustain that type of political activity," Solana added. However some Palestinian candidates have accused the ruling Fatah movement of using the PNA to employ thousands of would-be voters and raise the salaries of others to improve their chances in the elections.

The First Donors' 'Sanction'

Nonetheless the EU move was the second "sanction" by the donors to the PNA. The World Bank had frozen 60% of the funding for the PNA's operational budget shortly earlier. The World Bank representative in the West Bank and the Gaza Strip, Nigel
Roberts, told Israeli online daily Haaretz on January 10 that the PNA's lack of responsibility "forced the Bank, supported by the European Commission," to freeze 60 percent of funding the PNA's operational budget. This far-reaching step was taken because the Palestinians did not fulfill their commitments on "budget control," he said, adding that the PNA raised salaries "at a time when resources are unavailable." However Roberts warned also that the PNA "is facing a crisis that could unable it, as early as next month, from paying the salaries of at least 130.000 officials and members of its security forces." The PNA "is on the verge of functional bankruptcy; its failure to pay the hundreds of thousands of employees will make them unable to buy their basis daily needs, which will directly affect thousands of suppliers and merchants who earn their living from the employees," he added.

Roberts noted that the amount of assistance the PNA is getting - reportedly $5 billion in five years, or $300 per capita annually - is the highest granted to any entity since World War II, Haaretz reported. "To maintain the deep involvement of the donors, and their diplomatic attention, as well as the desire of the private sector to invest additional money, the PA must improve its performance," he said. A donors' conference in London in December refused to pledge aid to the PNA until after the legislative elections. Palestinian Central Bureau of Statistics (PCBS) said that there was an increase of 9% in the number of unemployed persons between 2nd and 3rd
quarter of 2005 while the consumer price index increased in the Occupied Palestinian Territories (OPT) by 1.93% during October 2005.

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IRAN COULD ACHIEVE NUKE CAPABILITY IN 2006

 Iran has acquired sufficient technology and equipment to produce nuclear weapons, a report said. A report published by the U.S. Army War College asserted that Iran has virtually completed the nuclear fuel cycle and was ready to assemble weapons. The report, financed by the Defense Department, said Iran could reach nuclear weapons capability as early as 2006. "The truth is that Iran soon can and will get a bomb option," the report, entitled "Getting Ready for a Nuclear-Ready Iran," said. "All Iranian engineers need is a bit more time: 1 to 4 years at most." The report, released in late 2005, differed significantly from CIA and State  Department estimates on Iran's nuclear program. The U.S. intelligence  community has assessed that Iran would need another decade to produce  nuclear weapons.

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Riots break out in northern Israel after police officers kill suspect;
later, police disperse rioters


[IMRA: Highway 65 - in Wadi Awa - was the site of Israeli Arab rioting that let to the shooting deaths of rioting Israeli Arabs during the Barak administration.]

Riots in northern Israel: Highway 65 in the north of the country was blocked for a short while Thursday afternoon after Arabs in the area began rioting in response to the killing of a local resident by police officers. Policemen were eventually able to disperse the rioters, who were stoning police and security forces. An initial investigation showed police detectives were attempting to search a suspect's home. The officers said the suspect aimed a gun at them, prompting them to fire at him in self defense. The man was taken to hospital for treatment but shortly thereafter succumbed to his wounds. The riots on the highway broke out about an hour after the incident. Police officials said an intelligence tip prompted them to raid the suspect's home on suspicion of drug dealing. According to the information, the man also possessed a large quantity of weapons in his home. According to police, the suspect emerged from the house armed after detectives knocked on his door. The officers reportedly asked the man to hand over his weapon but he refused, and cocked it instead, prompting the officers to fire at him. However, the man's relatives said the suspect was sleeping when police arrived and was shot after he woke up even though he was not armed. Hundreds of police officers were dispatched to the scene of the riots and senior security officials also arrived in the area.

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