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To:            arutz-7@arutzsheva.org
From:          Arutz-7 Editor <neteditor@a7.org>
Subject:       Arutz-7 News: Wednesday, January 26, 2000

Arutz Sheva News Service
<http://www.ArutzSheva.org>
Wednesday, January 26, 2000 / Sh'vat 19, 5760
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TODAY'S HEADLINES:
  1. NO MOVEMENT ON SYRIAN TRACK
  2. RALLY FOR JERUSALEM
  3. WATER-SHARING PLAN REVEALED


1. NO MOVEMENT ON SYRIAN TRACK
Prime Minister Barak said today that he expects the talks with the Syrians to resume in six weeks' time.  He instructed Israeli negotiators Uri Saguy and Moshe Kochanovsky to postpone their trip to the United States last night, after their Syrian counterparts neither showed up in Washington nor announced an alternate date for their arrival.  Barak, in Stockholm today, continued to praise Syrian President Assad as a "strong leader" and a "man of his word," even as the Syrian press continues to accuse Barak of lying about his desire for peace.

On the Palestinian track, Ma'ariv reports that Ehud Barak has made a final decision - based on domestic political considerations - to put off the transfer of Jerusalem suburb Abu Dis to the Palestinians for now.  The paper reports that such a move can only be made in the final-status agreement, Barak feels.  Meanwhile, Palestinian sources report that Yasser Arafat has "agreed" to allow Israel to retain settlement blocs next to the Green Line, in exchange for other Israeli land that will be assigned to the Palestinian Authority.  Israeli and Palestinian negotiating teams will
begin an intensive round of talks on Sunday designed to formulate a final-status framework agreement by mid-February.  So announced a Palestinian source this afternoon.

2. RALLY FOR JERUSALEM
An estimated 5,000 people took part in the drive-in/march last night against the continued Waqf desecration of the Temple Mount and in favor of the unity of Jerusalem.  The unique demonstration was organized by the Zo Artzeinu (This is Our Land) movement, and involved many hundreds of cars from all over the country.  The force behind the demonstration, Moshe Feiglin, said, "It's not only the left, or the right, who are causing us to lose Jerusalem - they are both responsible!  We hope to help bring to power a new government that is based on people of faith, one that will restore to our nation its awareness of its special mission."  The rally concluded with a declaration of allegiance to Jerusalem.

3. WATER-SHARING PLAN REVEALED
Water from the Litani River, in southern Lebanon, will be piped to Israel, and Syria will receive water from the Kinneret Sea.  This is the plan that is currently being formulated by the Israeli water committee delegation to the Israeli-Syrian talks, reports Haggai Huberman in HaTzofeh today. Huberman told Arutz-7 today that Ehud Barak had planned to keep the program secret "until the eve of the referendum, and then when the anti-withdrawal people would be screaming that we will be left without the Golan's water sources, he would suddenly produce this plan, like a magician pulling a rabbit out of his hat, and silence the opposition."  The water-sharing plan can be worked in either of two ways: either diverting water from the Litani's "bend" (where the river turns north; see map at "www.fsk.ethz.ch/encop/13/watershe.gif") to the Jordan River and the Kinneret, or piping water from the western end of the river towards Rosh HaNikra (the north-western corner of Israel).  Arab sources have accused Israel of having their eyes on the Litani since the early 1900's.  "What's in it for Lebanon?" Huberman was asked, and responded, "Money."

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To:            arutz-7@arutzsheva.org
From:          Arutz-7 Editor <neteditor@a7.org>
Subject:       Arutz-7 News: Thursday, January 27, 2000

Arutz Sheva News Service
  <http://www.arutzsheva.org>
Thursday, January 27, 2000 / Sh'vat 20, 5760
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TODAY'S HEADLINES:
  1. BARAK ASSOCIATIONS SCANDAL ROCKS ISRAEL
  2. THE REPORT AND THE ISSUES
  3. RABBIS IN FAVOR OF UNITED JERUSALEM

1. BARAK ASSOCIATIONS SCANDAL ROCKS ISRAEL
The publication today of the State Comptroller's official report on party funding in last year's elections has shaken the country's political establishment.  Comptroller Eliezer Goldberg, a former
Supreme Court justice, wrote that the associations working for the campaign of Ehud Barak and his One Israel party had struck a "great blow at the rule of law and at an important fundamental in our lives."  While presenting the report to the Knesset Deputy Speaker today, Comptroller Goldberg had severe criticism of Ehud Barak.  Goldberg said that his investigation had revealed a "worrisome method [of funding] that arrogantly tramples the rule of law," and that a "clear red line must be drawn between 'rule' and 'money.'" 

Although the report briefly analyzed the funding of many of the parties, and levied fines upon them for various offenses contrary to campaign protocol, the State Comptroller spent no less than 23 pages discussing the Barak campaign and the individual associations that took part in it.  He concluded his treatise on the issue by imposing a fine of 13.7 million shekels (over $3.4 million) on the Labor party.

Attorney-General Elyakim Rubenstein, only 15 minutes after the publication of the report, ordered the police to begin a criminal investigation of the associations that helped Ehud Barak win the
elections, as well as of other parties.  Shortly afterwards, Prime Minister Barak delivered a televised speech.  He said that he is happy about the opening of a criminal investigation, and that he would cooperate fully with the police to the extent that he is asked.  Barak does not agree with Goldberg's claim that as head of the party, he "should have known" about the associations' activities.  "As candidate for Prime Minister and party leader, I certainly knew that there was great public support for our party and for my candidacy," he said, but added that he was very busy with campaign appearances and the like and could not get involved with the details.

2. THE REPORT AND THE ISSUES
At issue are 17 associations that helped out in various ways in the campaign of then-MK Ehud Barak.  As Justice Goldberg wrote, the associations were officially established for various philanthropic and social purposes - such as promoting immigration, the social involvement of Israeli students, the deepening of the values of democracy in Israel, and the like - but deviated from these goals by working solely for the election of Ehud Barak.  By the end of the campaign, some 5.2 million shekels had been diverted to, and spent by, the associations in question.  "As my investigation progressed," the report states, "I became increasingly suspicious of the systematic use of entities not officially connected to the party, to illegally further the Barak campaign."

The two key figures in the funding and operation of fictitious associations were the present Cabinet Secretary, atty. Yitzchak Herzog, and Barak campaign advisor Tal Silberstein.  Goldberg explained that Herzog was the chief fundraiser, while Silberstein directed the funds to the respective associations.  According to the report, most of the money came from the estate of the late Jewish philanthropist Octov Butner, who died in Switzerland in the summer of 1998.  Herzog was Butner's legal advisor and the administrator of his philanthropic activities in Israel.  One of Butner's endowments, the "Camilla Fund", was earmarked for the relief of poverty in Israel as well as for the strengthening of Israeli education. Atty. Herzog - who was given the authority by Butner to sign disbursements from the fund - testified before Goldberg that he was acting "within the framework of the deceased Butner's desires."

Another source of money was the Israeli branch of a Canadian charitable fund, which was officially established "to provide funds for Israeli education, health and welfare and culture, aid to medical institutions, research and academic facilities, community centers, and to help new immigrants and economically disadvantaged Israelis."  Atty. Herzog serves as that organization's legal advisor and is authorized to sign on its checks.

In addition to the obscurity surrounding the diversion of the above funds, two major legal problems are highlighted in the Comptroller's report:  Much of the Barak campaign was funded through monies that were in excess of the ceiling set for outside contributors, and the associations were systematically utilized for other than their officially-stated purposes.

Justice Goldberg rejected a Labor party claim that it was unconnected with the associations' operations.  In addition, Labor party officials had claimed that the law governing the limitations of party election funding is not equally applicable to the Prime Ministerial campaign, and that the party had legitimately taken advantage of a legal loophole.  The Comptroller wrote, "A central claim brought before me was that [this interpretation] had been supported by a decision by the Attorney-General. I weighed this claim seriously, and decided that it is unacceptable."

Because of the severity of the illegalities committed by the party and its associations, State Comptroller Goldberg wrote that he felt compelled to specify the names of all the central people involved. The names of two other players, who did not cooperate with Goldberg's investigation, have been passed on to Atty.-Gen. Elyakim Rubenstein.

In his conclusion, Goldberg related to the question of whether Ehud Barak did or did not know of the operations of the associations.  Barak testified that that he was unaware of the associations' specific activities, and stressed that he had instructed his aides to "work only within the parameters of the law."  Justice Goldberg, after summarizing Barak's position, wrote, "In my opinion, a candidate for Prime Minister, who also serves as the chairman of his party's campaign, has not fulfilled his obligation by simply issuing instructions to work according to the law.  He must also take interest in that which is going on in the 'field' in order to ensure that his directions are executed.  This is certainly true in light of the extensive activity, as described in this report, which should have lit a red light in the mind of the candidate, which would motivate him to ascertain that the campaign, for which he is responsible, is operating legally." 

At a press conference following both the report's release and the Attorney-General 's announcement of a police investigation, Barak explained his position:  "I am personally convinced that there is a need to alter the law on party funding, such that both parties and Prime Ministerial candidates can clearly understand what is permissible and what is forbidden...  We won the elections as a result of our broad societal support and volunteers throughout the country."  After reassuring his listeners that he knew nothing of the associations' activities, Barak took issue with the Comptroller's conclusions regarding his overall responsibility: "In such a large-scale campaign, during which I had to make many public appearances, film campaign commercials, give interviews, and simultaneously head the Labor party and One Israel, as well as running for Prime Minister - with such a tremendous personal burden - and when I instructed my aides to operate only within the law, responsible people on whom I rely - it was not my responsibility to oversee the specific execution of my instructions." 

The Likud called a press conference after the release of the report, intending to demand a police investigation.  The effect was ruined, however, when the decision to do so was announced before they had a chance to voice their claim.  MK Limor Livnat said that Barak was acting like a "crybaby" in complaining of his heavy workload:  "If it's so hard to be a candidate and to know about criminal activity going on under his nose, how can he function as Prime Minister?"

Other reactions:
Shinui MKs Lapid and Zandberg demand that a commission of inquiry be formed to look into the entire matter of the associations...  The Shas party: "With the President under investigation for receiving millions of dollars in contributions and half a million dollars in gifts, and the Prime Minister being questioned about millions of shekels in donations, Aryeh Deri should have been tried in the Small Claims court."

3. RABBIS IN FAVOR OF UNITED JERUSALEM
Associated Press reports that the leadership of Orthodox and Conservative rabbis issued a rare joint statement Tuesday rejecting a recent proposal by other rabbis that Jerusalem be shared with the Palestinians.  The Rabbinical Council of America, representing 1,100 Orthodox rabbis, and the Rabbinical Assembly, representing 1,500 Conservative rabbis, called Jerusalem "the united and indivisible capital solely of the State of Israel." Reform leadership declined to sign the statement.  The statement came in reaction to news reports that over 300 Reform, Reconstructionist, and Conservative rabbis of a group called the Jewish Peace Lobby had called for shared Israeli and Palestinian sovereignty over Jerusalem.  The names of the rabbis were
not publicized, and Dr. Jerome Segal, head of the organization, told IMRA this week that this was because "we don't want the people on the list to be harassed."

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To:            arutz-7@arutzsheva.org
From:          Arutz-7 Editor <neteditor@a7.org>
Subject:       Arutz-7 News Brief:  Friday, January 27, 2000

Arutz Sheva News Service
  <http://www.ArutzSheva.org>
Friday, January 27, 2000 / Sh'vat 20, 5760
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TODAY'S HEADLINES:
  1. THE BIG STORM OF 5760
  2. BARAK RAISED MONEY IN L.A.

1. THE BIG STORM OF 5760
The great snowstorm has hit.  Up to seven meters of snow have piled up on the highest summits of Mt. Hermon, and two meters of snow - enough for several weeks of skiing - have been measured at the lower levels of the Hermon.  Close to a half-meter of snow has fallen on Jerusalem and environs.  Heavy snow continues to fall as well in the Galilee and all along northern and eastern Israel, southwards to Mitzpeh Ramon. Light snow fell even in Nazareth Illit, parts of Beit Shemesh, and areas of the coastal plain.  Heavy hail fell in Gush Katif. 

Schools were closed in many areas of the country today, despite the end of the teachers' strike yesterday, and are likely to remain closed on Sunday in many areas.  Electricity was and is sporadic for thousands of consumers in Jerusalem, Tsfat, Binyamin, and other places.  The Jerusalem-Tel Aviv highway continues to be closed on and off, and other roads along the Dead Sea, in the northern Negev, western Galilee, and the Golan were also closed.  In Yesha, the roads to Givat Ze'ev, Beit El, Ofrah, and Gush Etzion have been closed.  Many people - including a busload of passenger on its way to Be'er Sheva, 40 Arabs rescued by the Kiryat Arba emergency unit, and many whose cars were stuck in the tunnels highway - are being cared for in Kiryat Arba. 

At least two people have died as a direct result of the cold; one person is feared dead in a home at the foot of a mountain in Ras el-Amoud, in eastern Jerusalem, after a boulder rolled down onto the house and collapsed the roof.  The house is not accessible by car, and another occupant of the home was rescued after Magen David Adom personnel walked over a kilometer to reach the building. 

The eastern Gush Etzion area - including Tekoa, Nokdim, and other towns - has been without electricity since midnight.  The Electric Company has said that it will not be able to carry out the repairs until at least 2 PM. Some 150 residents of southern Tel Aviv were evacuated from their rain-flooded houses.  Millions of shekels of damage have been caused to agriculture in the Galilee.  Snow will continue until this afternoon in places over 400 meters high; it is expected to stop tonight and turn to rain, which will stop tomorrow morning.  Clear skies and cold temperatures are expected afterwards. 

2. BARAK RAISED MONEY IN L.A.
Another storm continues as well, in the political arena, following the State Comptroller's report of yesterday and the opening of a police investigation into the recent election campaign of the Labor party and Ehud Barak.  Labor party sources raised questions about whether Barak could continue to lead the party, in light of Comptroller Goldberg's assertions regarding him.  Goldberg wrote that Barak should have known about the illegal funding methods carried out in his party, and should have taken action "to ascertain that the campaign, for which he is responsible, is operating legally."  The Likud is considering filing suit with the Supreme Court to have the results of the last election nullified, in light of the Comptroller's findings; Labor is considering filing a suit to have the fines levied against it by Goldberg - totalling 13.7 million shekels - reduced. 

Despite Barak's claim yesterday that he did not engage in fundraising, he did in fact pay a visit to Los Angeles in March 1999, only two months before the election, in order to do just that.  The Parties Funding Law specifically forbids the raising abroad of even one dollar of campaign funds.  JTA reported on March 28 that Barak attended a fund-raising event at the home of billionaire Chaim Saban, which apparently raised at least $600,000. 

Likud MK Michael Eitan related this morning to the differences between the Likud's campaign violations cited by the Comptroller - for which the party was fined only 500,000 shekels - and those of Labor:  "The help that the Yesha Council and millionaire Rabbi Yosef Gutnik provided us was at their initiation, while the associations acted with full coordination and at the behest of One Israel - and this is the 'system' that the Comptroller referred to and condemned."  Eitan called upon Barak and Attorney-General Rubenstein to suspend Cabinet Secretary Yitzchak Herzog from his post, effective immediately. Herzog was one of the main figures involved in the illegal funding.

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To:            arutz-7@arutzsheva.org
From:          Arutz-7 Editor <neteditor@a7.org>
Subject:       Arutz-7 News: Sunday, January 30, 2000

Arutz Sheva News Service
 <www.ArutzSheva.org>
Sunday, January 30, 2000 / Sh'vat 23, 5760
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TODAY'S HEADLINE:

STEPPED-UP DIPLOMACY
Sources in the Prime Minister's Office deny any connection between the intense diplomatic activity scheduled for this week, and the Labor party's illegal fund-raising scandal.  Prime Minister Barak flew to Cairo today, accompanied by permanent-status delegation head Oded Eran, to meet with Egyptian President Hosni Mubarak.  Both the Palestinian and the Syrian tracks will be discussed.  In addition, American envoy Dennis Ross is arriving this week to follow the talks with the Palestinians; the talks will be held all day, every day this week.  Israeli sources say that despite the concentrated pace, the deadline for a permanent-status framework - originally set for mid-February - will not be met, and that another two months will be needed.

Arutz-7 correspondent Haggai Huberman notes that nothing significant has developed on either the Palestinian or Syrian tracks that would prompt a quickened pace of negotiations.  "Just the opposite is true," he explained.

 "A meeting several weeks ago in Barak's home at Kochav Yai'r led to a decision to delay the February 15 target date...  At any rate, the fact that not much has changed on the diplomatic fronts indicates that the talk of more intense negotiations reflects Barak's desire to distract the public from the associations' scandal.  He is already succeeding, as today's papers have begun to talk of a new momentum in the negotiations and less of the scandal," Huberman said.

Despite his efforts, Barak may yet come up empty-handed, Huberman said: "Party insiders are well aware that, at present, the government would not do well in a Golan withdrawal referendum, as even many Barak supporters are opposed to a Golan withdrawal.  Barak initially figured that he would secure a deal with Assad, and then, instead of a referendum, he would go directly to new elections on this issue, while at the same time stressing social and economic issues.  After winning the elections, Barak would announce that he has received a new mandate from Israelis for his diplomatic negotiations.  With these latest developments, however, he is no longer assured of a victory in a national election.  In addition, aside from the difficult job of ensuring a referendum win, members of the Prime Minister's office will now be preoccupied with the associations scandal."

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To:            arutz-7@arutzsheva.org
From:          Arutz-7 Editor <neteditor@a7.org>
Subject:       Arutz-7 News: Monday, January 31, 2000

Arutz Sheva News Service
 <www.ArutzSheva.org>
Monday, January 31, 2000 / Sh'vat 24, 5760
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TODAY'S HEADLINES:
  1. MORE DETAILS EMERGE
  2. KINNERET CREEPS UP

1. MORE DETAILS EMERGE
As the Israeli public continues to attempt to digest the already-revealed details of the Barak-One Israel associations scandal, yet more disturbing aspects continue to emerge.  Today's Yediot Acharonot reported that not only did Labor campaign official Atty. Yitzchak Herzog - the current Cabinet Secretary - funnel money into the campaign from European millionaire Octav Butnar's Camilia Fund, but that Barak campaign manager Tal Silberstein met Butnar in 1996, and one Camilia Fund check was even written out to Silberstein's father, Henry.  Butnar established the Camilia Fund in order to help "the underprivileged and weaker classes."

More significantly, transcripts of phone conversations involving Herzog were published in today's Globes Business Journal by none other than investigative journalist Yoav Yitzchak.  The recorded telephone conversations between Herzog and Tatzpit Research Institute Director Dr. Aharon Fein indicate that Herzog was apparently guilty of obstruction of justice and witness harassment.  Herzog had ordered a Tatzpit survey on behalf of the Labor/Barak campaigns, for which he paid over 28,000 shekels.

Comptroller Goldberg's report stated that investigation showed that the money originated in Octav Butnar's Camilia Fund.  Dr. Fein, in an interview with Arutz-7 some weeks ago, said that after being questioned by a representative of the State Comptroller's office, he called Herzog.  "What particularly perturbed me," Fein said, "was Herzog's reaction. 'How did they get to those checks?' he asked me. He was clearly in shock.  As soon as I heard this response, I began to understand that something was not quite right."

Today's Globes article suggests that there was even more that was "not quite right."  Journalist Yitzchak observes that three such conversations took place between Herzog and Fein, simultaneous with the State Comptroller's investigation.  Under Israeli law, one who has received a "warning" by the Comptroller is forbidden to talk to witnesses about details relating to the investigation.  Herzog, before the conversations with Fein, had been questioned by Justice Goldberg, and received such a warning.  Herzog was clearly aware of the problematics involved in their conversations; in their second call, Herzog said to Fein: "I'm just asking...  I don't want there to be problems, so, I - we didn't talk, okay?"  In the third discussion, Herzog was more explicit:  "I don't want them to think that someone here spoke, or coordinated, forbidden things... OK, when you answer [the Comptroller], just write a standard, simple letter..."

Fein explained to Yitzchak that when he saw that Herzog was not forthcoming on the identity of the donor, and when he heard Herzog's reactions, he began to be suspicious:  "I then taped the conversations - so it would be clear that I was not a partner in activities outside the parameters of the law."

2. KINNERET CREEPS UP
The level of the Kinneret Sea, as reported today by the Kinneret Administration Authority, is 212.58 meters below sea level - 42 centimeters above the red line, and approx. 4.5 meters below the optimal level.  Each centimeter represents 1.7 million cubic meters of water.  Meteorologists are optimistic that if the current rate of rainfall continues in February, the year may no longer be considered a drought year.

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To:            arutz-7@arutzsheva.org
From:          Arutz-7 Editor <neteditor@a7.org>
Subject:       Arutz-7 News: Tuesday, February 1, 2000

Arutz Sheva News Service
   <http://www.ArutzSheva.org>
Tuesday, Feb. 1, 2000 / Sh'vat 25, 5760
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TODAY'S HEADLINES:
   1. PA REJECTS ISRAELI FINAL-STATUS MAPS
   2. BARAK TO PORUSH: CALL OFF PROTEST


1. PA REJECTS ISRAELI FINAL-STATUS MAPS
In the Ramallah region today, the Israeli-Palestinian talks - aimed at establishing principles for final-status negotiations - continue.  The Palestinians rejected final-status maps presented by Israel, insisting on the pre-1967 borders instead.  The maps reportedly propose that Israel annex communities situated on the "Green Line," around Ariel in the Shomron, Ofra and Bet El in Binyamin, and Ma'ale Adumim and the Gush Etzion bloc in Judea.  Israel's final-status vision apparently does not include, however, the majority of townships on the mountain plateau - nor the town of Kiryat Arba.

2. BARAK TO PORUSH: CALL OFF PROTEST
Prime Minister Barak continues to exert heavy pressures on leaders of Agudat Yisrael to refrain from launching a public protest against the government's intention to transfer the Jerusalem suburb of Abu Dis to the Palestinian Authority.  This week, Barak asked Agudat Yisrael Honorary President Rabbi Menachem Porush to call off a massive pro-Jerusalem Rally slated for the near future.  Along with Yesha leaders, Rabbi Porush participated in a joint tour of Jerusalem today; he was accompanied by MKs Nissim Z'ev, Shmuel Halpert (United Torah Judaism) and Yigal Bibi (National Religious Party).  Porush told Arutz-7 last week that the demonstration will unite all Israelis, religious and secular alike, who hold dear the verse, "If I forget thee Jerusalem, may my right hand lose its cunning."

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To:            arutz-7@arutzsheva.org
From:          Arutz-7 Editor <neteditor@a7.org>
Subject:       Arutz-7 News: Wednesday, February 2, 2000

Arutz Sheva News Service
  <http://www.ArutzSheva.org>
Wednesday, February 2, 2000 / Sh'vat 26, 5760
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TODAY'S HEADLINE:

 NEXT WITHDRAWAL APPROVED BY SECURITY CABINET
The security cabinet, meeting in Jerusalem this morning, approved the third and final stage of the second Oslo withdrawal.  The price exacted by Shas Minister Eli Yeshai in return for his support:  a promise by Prime Minister Barak to restore the special emergency services throughout Yesha, as well as Magen David Adom services in Yesha - both of which had been recently cut.  The Israeli retreat, from 6.1% of Judea and Samaria, will be concentrated mainly in the southern Har Hevron region.  Prime Minister Barak will meet with Yasser Arafat tomorrow at the Erez checkpoint in Gaza. 

Arutz-7 correspondent Haggai Huberman was asked today if Jewish residents will feel a change in their day-to-day lives following the next withdrawal.

 "Not unless there is a security problem, such as a terrorist attack," he answered.  He noted that around Beit Haggai and Otniel, only Highway 60 - the access road to the two towns - will continue to be Israeli-controlled, including a few hundred meters on each side.  "In case of an attack," Huberman said, "the Arabs could easily and quickly close off the road." 

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