From:          Arutz-7 Editor <editor7@virtual.co.il>
To:            arutz-7@ploni.virtual.co.il, arutz7-b@ploni.virtual.co.il
Subject:       Arutz-7 News: Wednesday, July 22, 1998

Arutz Sheva News Service
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Wednesday, July 22, 1998 / Tammuz 28, 5758
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TODAY'S HEADLINES:
  1. ARAFAT ENDS TALKS
  2. SHARON: SECRET NEGOTIATIONS WITH SYRIA HAVE BEGUN
  3. HENDEL STRIKES BACK
  4. GOLAN BILL PASSES
  5. COALITION POLITICS
  6. JORDANIANS FEAR FOR KING HUSSEIN


1. ARAFAT ENDS TALKS
Yasser Arafat announced in Gaza this afternoon that the bilateral
negotiations with Israel have ended, and that "no progress was achieved."
He said that Israel had not come to the talks with any new proposals.  The
PLO Chairman said that he would not object to another American mediation
attempt.  Beforehand, Defense Minister Yitzchak Mordechai had called for
American intervention in the talks. 
At this hour, Prime Minister Netanyahu and Mordechai are meeting with Third
Way party leader Minister Avigdor Kahalani, in an attempt to convince him
not to quit the coalition in the event that no agreement is reached on a
withdrawal before the end of the current Knesset session.

2. SHARON: SECRET NEGOTIATIONS WITH SYRIA HAVE BEGUN
Prime Minister Binyamin Netanyahu denies reports that he is conducting
secret talks with the Syrians about a retreat from the Golan Heights.  This
follows Minister Ariel Sharon's announcement last night to the effect that
Netanyahu is holding talks with Syria.  Ma'ariv reporter Menachem Rahat
told Arutz-7 that Sharon's statement is mainly an attempt to prevent the
government from toppling:  "He is telling the Third Way - which is
demanding a 13% withdrawal, or else - that they should not be so pushy,
because a similar withdrawal awaits them in the Golan Heights."  The
assumption is that the Third Way, which was elected on a platform of
retaining the Golan, would then back down from its threats against the
government.  Rahat said that Sharon is also doing all he can to prevent
such a large withdrawal:  "Sharon is acting like a politician, but he also
apparently truly believes that although a withdrawal is unavoidable, more
than 9% is simply too dangerous for Israel."

Rahat further said that he feels that Netanyahu is actually interested in
carrying out the withdrawal, but that the Palestinians may not let him:
"Netanyahu insists on certain security requirements, and even though he has
conceded on some points - such as not requiring the Palestinian National
Council to change the PLO charter, but rather some other Palestinian body;
not demanding the extradition of terrorists, but rather their incarceration
under American supervision; not requiring the return of illegal weapons to
Israel, but rather their collection by the Palestinians - it seems to be
not enough for the Palestinians.  It could be that Abba Eban was right when
he said that the Palestinians never miss a chance [to miss a chance]."

3. HENDEL STRIKES BACK
Fears have re-arisen among the Knesset Land of Israel front that Netanyahu
will implement the withdrawal during the summer Knesset recess.  In an
interview with Arutz-7 today, MK Tzvi Hendel was very firm: "If Netanyahu
plans to carry out a 'fast one,' by agreeing to a withdrawal and carrying
it out during a time when we, his friends and allies in the coalition,
cannot object, and on such a critical issue for our nation, then I can tell
him that we also know how to play these kind of games."  Hendel's fears
were re-kindled because his attempt yesterday to allow no-confidence
motions during the recess was not successfully completed.

Hendel said, "If Netanyahu pulls this trick, we have several options.
First of all, we can vote together with the opposition next week in favor
of dissolving the Knesset, if I do not receive a perfect guarantee from
Netanyahu that he will not pull such a trick.  Secondly, there is a
no-confidence motion scheduled for next week.  And thirdly, I believe that
we will have the support of the Supreme Court if we introduce a
no-confidence motion during the recess, because both the Knesset legal
counsel and the Attorney-General have approved the idea." 

Hendel further said, "Aside from the political aspects, if it turns out
that the Prime Minister has crossed the red lines that he himself
established - reciprocity, the extradition, the extent of the withdrawal,
the inclusion of the third withdrawal within the second one - then we will
have no choice but to vote against and topple the government."

4. GOLAN BILL PASSES
The Knesset voted today by a large majority, 65-32, that no sovereign
Israeli territory - such as the Golan Heights - could be transferred to a
foreign country without the support of at least 61 Knesset Members and
without a popular referendum.  Science Minister Sylvan Shalom announced
from the Knesset podium before the vote that the government does not oppose
the proposal.

5. COALITION POLITICS
22 Labor party Knesset Members have signed a letter promising not to
support a no-confidence motion against Netanyahu throughout 1998, if he
carries out the second withdrawal.  This could be, according to sources
within the Knesset, the beginning of an initiative by Shimon Peres to
convene a national unity government (comprised of both the Likud and Labor).

Mr. Netanyahu said again today that he will not give in to any coalition
pressure regarding the next withdrawal.  He said that the purpose of the
current negotiations with the Palestinian Authority is to achieve an
appropriate balance between Israel's security interests and the
implementation of the reciprocity principle.  This is an apparent reference
to the "phased withdrawal" plan, wherein the withdrawal is carried out in
stages at the same time that the Palestinian fulfill their commitments in
stages.

6. JORDANIANS FEAR FOR KING HUSSEIN
King Hussein of Jordan is ill with cancer.  Currently hospitalized in the
U.S., he wrote to his brother Crown Prince Hassan - who is next in line to
the throne - that he will begin chemotherapy treatment within the coming days.

*************************************************************************

Thursday, July 23, 1998       29 Tammuz 5758
Jerusalem Post - Internet Edition



                 Jordan's Hassan mediates in talks

                 By JAY BUSHINSKY, LIAT COLLINS and STEVE RODAN

                 JERUSALEM (July 23) - The intervention of Jordanian
                 Crown Prince Hassan to prevent the total collapse of
                 the Israeli-Palestinian talks enabled Defense
                 Minister Yitzhak Mordechai to announce that he would
                 be meeting Palestinian Authority Deputy Chairman
                 Mahmoud Abbas today.

                 "The defense minister received a message that the
                 Palestinians are interested in renewing contacts,"
                 Mordechai's spokesman Avi Benayahu said. "We expect
                 that there will be a meeting today."

                 However, Abbas, upon returning from Amman last night,
                 denied that the talks would resume.

                 "We have not agreed on holding further meetings with
                 Mordechai after the Palestinian leadership decided to
                 stop negotiations," he told Reuters.

                 This formulation could signal disagreement at the
                 highest level of the Palestinian leadership about
                 whether to proceed with the peace process at this
                 stage and under the current circumstances.

                 PA Chairman Yasser Arafat, asked whether he had
                 called for a halt in the negotiations replied,
                 "Approximately."

                 Hassan's skillful diplomacy achieved an objective
                 sought by the US but which the State Department
                 preferred to leave in his hands, rather than become
                 directly involved in a potentially dangerous dispute
                 between the two sides.

                 A concurrent attempt by Mordechai to bring US special
                 envoy Dennis Ross back to the Middle East in the
                 belief that he could bridge the chasm between him and
                 Abbas was rebuffed by US diplomats.

                 Foreign Ministry Director-General Eytan Bentsur
                 attributed the Jordanians' decisive involvement to
                 the talks conducted earlier this week in Jerusalem by
                 Jordanian Foreign Minister Jawad Anani with Prime
                 Minister Binyamin Netanyahu.

                 "Since Anani's visit and the briefing he received
                 from the prime minister, Jordan has been fulfilling a
                 constructive role," Bentsur said.

                 Mordechai was unequivocal in his belief that Ross
                 could rescue the fledgling peace effort, resuscitated
                 Sunday at the behest of US Secretary of State
                 Madeleine Albright.

                 "What is necessary now is for US negotiator Dennis
                 Ross to arrive in the area and to complete the
                 negotiations between the Palestinians and Israel,"
                 Mordechai said.

                 A State Department official said he was not aware
                 that Ross had any plans to visit the Middle East.

                 "We are in touch with both parties on a very regular
                 basis, but there's not going to be a big American
                 initiative at this stage," the official told Reuters.

                 However, a different senior US official said the US
                 is leaning toward sending Ross to the region.

                 However, this official did not think the negotiations
                 are at an advanced enough stage for Ross to help
                 clinch an agreement.

                 "Personally, I think that it's a ploy by Netanyahu to
                 drag out the negotiations and give the impression
                 that there's progress," the official said.

                 Mordechai was insistent on the need for American
                 intervention.

                 "What it needs is that the highest levels of the
                 Palestinian and Israeli sides will have a meeting to
                 conclude the subjects that we are discussing now. It
                 is possible. And if the US will really take part now
                 in continuing its initiative, will make a little bit
                 more effort so we can reach an agreement."

                 Mordechai said security remains one of the last
                 issues in dispute. On other issues, he said, Israel
                 and the Palestinians are very close.

                 "I think if the US takes part, we can move forward,"
                 he said.

                 Arafat was adamant earlier in the day that direct
                 talks with Israel were finished, saying this week's
                 round of negotiations failed to produce any results.

                 Arafat, speaking hours after his decision was
                 endorsed by the Palestinian leadership, informed
                 former prime minister Shimon Peres of the suspension
                 of talks during a meeting in Gaza.

                 The two men discussed the proposals submitted by
                 Israeli negotiators during the three sessions with
                 the Palestinians.

                 Later, Arafat adviser Nabil Abu Rudeineh blamed
                 Israel for the failed talks.

                 "The talks came to a deadlock because of the
                 insistence of Israel to refuse to accept the US
                 initiative," he said. "The Israeli side did not
                 present any new ideas."

                 PA officials said Israel did not fulfill their basic
                 demand to continue the talks: an Israeli government
                 acceptance of the US proposal to hand over 13.1
                 percent of the West Bank to full Palestinian control.

                 They said the Israelis proposed creating a new
                 "nature reserve" area that would be off-limits to
                 Palestinian or Israeli construction.

                 Such a proposal, the officials said, constituted an
                 Israeli attempt to change the US plan.

                 "We won't accept any attempt to change what already
                 has been agreed upon," PA chief negotiator Saeb
                 Erekat said.

                 PA officials said they expected a new shuttle effort
                 by Ross.

                 They said they would not oppose Ross's arrival in the
                 region but asserted that Washington must carry out
                 its pledge to release the US plan and assign blame
                 for its failure.

                 Arafat termed the Israeli invitation to Ross to
                 return to the region as "an attempt to return the
                 issue to the Americans, which we are not against."

                 Hillel Kuttler contributed to this report.

********************************************************************

Thursday, July 23, 1998       29 Tammuz 5758 
Jerusalem Post - Internet Edition



                 Barak tells 'groveling' party to take
                 'political Viagra'

                 By MICHAL YUDELMAN

                 TEL AVIV (July 23) - Labor Party leader Ehud Barak
                 yesterday blasted the party initiative to give Prime
                 Minister Binyamin Netanyahu a parliamentary "safety
                 net" that would allow him to pursue a redeployment
                 agreement, describing Labor as "a groveling poodle"
                 in need of "a political Viagra pill."

                 Under the plan, Labor would promise not to try to
                 topple the government for four months, to give
                 Netanyahu a chance to arrive at and implement a
                 redeployment agreement.

                 Barak was angered at the desire of the safety-net
                 promoters to promise Netanyahu any breathing space in
                 advance.

                 "Labor has turned itself into a political and public
                 joke," Barak said at a stormy faction meeting, which
                 ended with a decision to put off the decision
                 regarding a safety net until Netanyahu is close to
                 reaching an agreement on the pullback.

                 MK Shimon Peres, who initiated the safety-net plan,
                 was in Gaza meeting Palestinian Authority leader
                 Yasser Arafat and did not attend the meeting.

                 "Labor appears like a limp party which has lost the
                 will to live and needs a political Viagra to lead the
                 state," Barak said.

                 He called the safety-net plan "a slippery political
                 trick."

                 "Whoever reaches national unity in this way - like
                 some groveling, crawling poodle begging for tidbits -
                 will look like a fig leaf hanging on the nakedness of
                 this government," Barak said.

                 He said what Labor was doing "is political madness
                 and political suicide."

                 The initiative was headed by MK Rafi Edri, who signed
                 a number of faction members on a letter urging the
                 party to back Netanyahu for four months. Among the
                 signatories were Peres, Uzi Baram, Yossi Beilin, Yael
                 Dayan, Nissim Zvilli, Sallah Tarif, Nawaf Massalha
                 and Rafi Elul.

                 Peres defended the move, saying peace is more
                 important than personal or partisan issues. He said
                 Labor was always in favor of the pullback, and it was
                 vitally important to counterbalance the 10 right-wing
                 MKs threatening to topple Netanyahu if he implements
                 the pullback.

                 "In my view, endangering the pullback is a fatal blow
                 to the state. We're providing a backing for peace,
                 not for Netanyahu. Peace is the issue, not Labor.
                 It's legitimate to ask to discuss a safety net."

                 He said Labor's backing is intended to guarantee
                 Netanyahu implements the pullback, and would be
                 revoked if, for example, Netanyahu begins building on
                 Har Homa.

                 MK Dalia Itzik said, however, "Peres is making a big
                 mistake. I know he's very concerned for the peace
                 process, he's thinking of what's best for the country
                 and our children. But Netanyahu is deceiving him, as
                 he's deceiving his colleagues."

                 About the differences in Labor, Itzik said "Every
                 time Barak takes off, someone from within the party
                 shoots him down."

                 She added that as far as a unity government is
                 concerned, Peres was quite isolated in the faction.

                 MK Avraham Shohat said Peres's move "is political
                 idiocy, a fatal error, a radical and worrying lack of
                 judgment. Labor is wearing a sack on its head and
                 lets Netanyahu tie its hands behind its back."

                 MK Eli Goldschmidt said "we all know ways to trip up
                 our leaders; it's a genetic self-destructive motif."

                 Labor's bickering over the safety net drew fire and
                 mocking remarks from both the opposition and
                 coalition.

                 One Likud MK observed mockingly that "Arafat is
                 breaking up the talks and Labor's MKs are laying
                 themselves on the fence to provide Netanyahu with
                 backing for a pullback."

                 MK Moshe Gafni (United Torah Judaism) said "it's
                 crime and punishment. Whoever takes on the haredim
                 breaks his political neck. This is what happened to
                 Barak. He's destroyed his leadership, split Labor and
                 ruined his camp. He is no longer the leader of this
                 camp."

                 Meretz came out sharply against Labor, which it
                 accused of being ineffective as opposition.

*********************************************************************

Thursday, July 23, 1998       29 Tammuz 5758
Jerusalem Post - Internet Edition


                 Palestinians get 'embassy' in Britain

                 By JAY BUSHINSKY and DOUGLAS DAVIS

                 JERUSALEM (July 23) - The British government raised
                 the diplomatic rank of the Palestinian mission to the
                 Court of St. James to that of "Palestinian General
                 Delegation," thereby affording it virtually the same
                 status enjoyed by a bona fide embassy, an official
                 said yesterday.

                 Deputy Foreign Minister Derek Fatchett was described
                 as the driving force behind this move, which took
                 Israeli diplomats by surprise.

                 A European diplomatic source attributed Fatchett's
                 initiative to a desire to be "in line with the
                 European Union's approach" to the Palestine
                 Liberation Organization's representatives.

                 "It's not really such a big deal," he said.

                 The Foreign Ministry said yesterday that it is
                 concerned about the upgrade and instructed the
                 Israeli Embassy in London to ascertain all the
                 pertinent details.

                 Meanwhile, Prime Minister Binyamin Netanyahu
                 yesterday launched a vigorous attack on the European
                 Union over its threats to exclude Israeli goods made
                 across the Green Line from the 1995 economic accord
                 between the EU and Israel.

                 In an interview with London's Daily Telegraph,
                 Netanyahu said it would be unwise for France to
                 attempt to drag the EU into an anti-Israel crusade.

                 He said that Israel's gross domestic product is fast
                 approaching 40 percent of the combined GDP of the 22
                 Arab states, and within 15 years it would be
                 equivalent to 80%.

                 "Israel's economy will be almost equal to the
                 economic potential of the entire Arab world," he
                 said. "I think people, including Europe, need to
                 reevaluate its assessments of where its interests
                 lie."

                 Sanctions against Israel, he continued, would not
                 work, "not just because we have a robust economy.
                 It's also because of the sheer injustice and blatant
                 unfairness of a democratic country that is being
                 pressed by other democratic countries to do something
                 that endangers its security."

                 Netanyahu said he did not think that Washington,
                 impatient with Israel over the peace process, might
                 "wink" at the specter of the EU flexing its muscles
                 in this way.

                 "You can't wink in the international community
                 without everyone knowing," he said. "I don't think
                 America is about to send such a message, winking or
                 otherwise."

                 On the question of whether violence might follow
                 further redeployments, he said that "if the
                 withdrawals are irresponsible and bring us more or
                 less the indefensible 1967 boundaries, the answer is
                 an unqualified yes."

                 Commenting editorially, the paper noted: "For too
                 long, EU intervention in the Middle East has been
                 motivated by folie de grandeur and resentment of
                 American 'hegemony.' The effect has been both to
                 worsen relations with Israel and to encourage a
                 stiffening of Palestinian demands.

                 "The late Moshe Dayan once said that whereas the
                 Soviet Union held the key to war in the Middle East,
                 America held the key to peace. If he were alive
                 today, he might say that the EU is capable of
                 throwing only a spanner in the works."

**********************************************************************

Thursday, July 23, 1998       29 Tammuz 5758
Jerusalem Post - Internet Edition


                 Government not worried over Jordanian
                 stability

                 By JAY BUSHINSKY and news agencies

                 JERUSALEM (July 23) - King Hussein's admission that
                 he's probably suffering from lymphoma was met
                 yesterday with wishes for recovery from regional
                 leaders and speculation on the future of the
                 Hashemite kingdom.

                 Besides expressing hope that Hussein would be able to
                 overcome cancer, Israeli leaders said yesterday they
                 believe Jordan's stability is not endangered by his
                 illness, citing the competence Jordanian security
                 forces have demonstrated in quashing extremism and
                 disorder.

                 These qualities came into focus as government
                 officials contemplated the political consequences of
                 the 62-year-old monarch's medical condition and
                 considered whether his prospective successors would
                 be able to govern effectively.

                 That Crown Prince Hassan, who holds the royal status
                 of regent, was able to wield the requisite influence
                 to bring the Israeli and Palestinian delegations back
                 to the negotiating table last night was interpreted
                 as evidence of his political acumen and skill.

                 Prime Minister Binyamin Netanyahu said his overriding
                 hope is that Hussein's "spiritual and physical
                 powers" will enable him to achieve a speedy and
                 thorough recovery.

                 Netanyahu's Communications Director David Bar-Illan
                 described Hussein as "a friend of Israel and a friend
                 of peace."

                 In a radio interview broadcast shortly after
                 Hussein's illness was made public, Netanyahu said he
                 regrets the monarch is suffering and hopes he will
                 recover.

                 "He must know that on this point I speak not only in
                 my own name and on behalf of the Israeli government
                 but also for the entire nation of Israel, which
                 favors peace with Jordan and appreciates the
                 courageous steps taken by King Hussein with us in
                 recent years," Netanyahu said.

                 Palestinian Authority Chairman Yasser Arafat also
                 wished Hussein well, telling reporters, "I hope he
                 will be in good health very soon."

                 Hussein has said he will undergo chemotherapy if a
                 diagnosis of lymphoma is confirmed at the Mayo
                 Clinic, where he is expected to remain for about
                 three weeks, the clinic said yesterday.

                 Hussein sent a letter to Hassan, which was read on
                 Jordanian television, saying he felt better but would
                 begin chemotherapy if the cancer diagnosis is
                 confirmed.

                 "Everyone said although all the symptoms point to me
                 having lymphoma, they cannot until now diagnose this
                 for certain," the king said in the letter to his
                 brother.

                 The Mayo Clinic's brief statement quoted the king's
                 letter as saying, "My general condition is better,
                 although I still suffer from bouts of fever. I am
                 still on antibiotics and I am in high spirits."

                 Jordanian officials said clinic doctors were
                 examining lymph node tissues for suspected lymphoma.

                 "The type of treatment depends on the type, grade and
                 stage of the disease... complete recovery can happen
                 in certain types of localized lymphoma," one doctor
                 in Jordan said.

                 Since undergoing cancer surgery at the clinic six
                 years ago, Hussein has returned for regular checkups.
                 He had an operation on his prostate last year and
                 later had a swollen lymph gland removed.

                 In January, he was treated in London for a bacterial
                 infection that caused him extreme exhaustion and
                 recurrent fever.

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