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: Thursday, July 23, 1998

Arutz Sheva News Service
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Thursday, July 23, 1998 / Tammuz 29, 5758
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TODAY'S HEADLINES:
  1. EDELSTEIN AGAINST RECIPROCITY-FREE WITHDRAWAL
  2. ARAFAT MEETS WITH SHEETRIT, KAHALANI
  3. FATEFUL VOTES ON WEDNESDAY
  4. JORDAN VALLEY LEADERS: NOT FROM OUR BACK YARD


1. EDELSTEIN AGAINST RECIPROCITY-FREE WITHDRAWAL
Minister of Absorption Yuli Edelstein announced today that he would not
vote for any agreement with the Palestinians that does not include
reciprocity, the changing of the PLO charter, and extradition of all the
wanted terrorists from the autonomy to Israel.  Edelstein met today with
Yoel Tzur, whose wife and son were killed by Arab terrorists, and who is
holding a nightly sit-in vigil outside the Prime Minister's home with his
children.  The Minister said afterwards that the Palestinians are "twisting
us around their little finger" regarding the changing of their charter and
the extradition of terrorists.

Deputy Education Minister Moshe Peled said again that he will vote to
topple the government if it agrees to the withdrawal.  He said that he has
advised the Prime Minister to "take a break for a couple of days, and go to
Australia as he had originally planned to visit with [Chabad
philanthropist] Yosef Gutnick, thus giving a renewed push to construction
in Hevron."  Leading Chabad rabbis met last night and called upon the Prime
Minister not to carry out a withdrawal.  The rabbis decided that Chabad
would begin public protests against the withdrawal, including calls for
Netanyahu's resignation.

2. ARAFAT MEETS WITH SHEETRIT, KAHALANI
Following Arafat's announcement yesterday that he has called off the direct
talks with Israel, he rejected today Defense Minister Yitzchak Mordechai's
repeated requests to meet with either him or Abu Mazen. However, Arafat did
meet with coalition coordinator MK Meir Sheetrit (Likud) this afternoon.
Sheetrit said that he offered new proposals that could lead to a signed
agreement on a second withdrawal. 

Minister Avigdor Kahalani (Third Way) will also meet with Arafat later
today, in an attempt to "see which side is to blame for the obstacles in
the way of the diplomatic process."

3. FATEFUL VOTES ON WEDNESDAY
The Moledet Knesset faction has introduced a no-confidence motion in the
Prime Minister, because of "the manner in which the negotiations with the
Palestinians are being conducted."  The vote will be held next Wednesday,
the day before the Knesset begins its summer recess.  A Labor-party
proposal to disperse the Knesset is scheduled for the same day.


4. JORDAN VALLEY LEADERS: NOT FROM OUR BACK YARD
The leaders of the Jordan Valley communities sent an urgent letter to the
Prime Minister today, protesting the apparent intention to include parts of
the Valley in the second withdrawal.  They wrote that they have learned
"with great alarm" that the 13% withdrawal will include 4% from what they
call the "security belt of the State of Israel."

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Friday, July 24, 1998       1 Av 5758 
Jerusalem Post - Internet Edition


                 Clinton said fed up with Albright

                 By JAY BUSHINSKY

                 JERUSALEM (July 24) - US President Bill Clinton is
                 "frustrated and unhappy" about the recent setbacks
                 sustained by US foreign policymakers in the Balkans,
                 the Middle East and other trouble spots, a diplomatic
                 source said yesterday.

                 According to this assessment, Clinton is having
                 second thoughts about Secretary of State Madeleine
                 Albright's effectiveness in achieving US objectives
                 abroad, as witnessed by her urgent call for
                 resumption of Israeli-Palestinian negotiations which
                 was followed by their breakdown after only three days
                 of intermittent talks.

                 The fact that the State Department's plea for an
                 immediate resumption of the bilateral talks was
                 channeled through Jordanian Crown Prince Hassan to
                 the Palestinian Authority and its chief delegate,
                 Mahmoud Abbas, was interpreted as the latest sign of
                 waning American influence on the parties.

                 A prominent American-Jewish leader traced the
                 president's disenchantment with Albright to her the
                 ultimatum she served Israel, that unless it made some
                 hard decisions the US would reconsider its policy.

                 "She did not take into account the resentment this
                 evoked in the US Jewish community," he said.

                 "Nor was she appreciated for having initially blamed
                 Prime Minister Binyamin Netanyahu for leaking details
                 of the American withdrawal plan to PA Chairman Yasser
                 Arafat, when they actually were conveyed to him by
                 Egyptian President Hosni Mubarak."

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Friday, July 24, 1998       1 Av 5758 
Jerusalem Post - Internet Edition



                 PA says no summit yet

                 By MICHAL YUDELMAN, STEVE RODAN, and news agencies

                 JERUSALEM (July 24) - Palestinian Authority Chairman
                 Yasser Arafat yesterday rejected a request by Prime
                 Minister Binyamin Netanyahu for an immediate summit,
                 with Arafat aides saying talks cannot resume until
                 Israel accepts the US pullback proposals.

                 Netanyahu sent Likud coalition chairman Meir Sheetrit
                 to Arafat's Gaza City office with a request for a
                 summit, so the two leaders could hammer out remaining
                 differences.

                 Channel 1 reported that one of the key proposals
                 rejected by the Palestinians is Israel's suggestion
                 to turn 164 sq. km. of the West Bank into a nature
                 reserve.

                 "My meeting was intended to give another chance to
                 the peace process and save the peace process,"
                 Sheetrit said. "I put forth some new creative ideas.
                 All matters should be discussed by Arafat and
                 Netanyahu. I was urging Arafat to hold such a meeting
                 as fast as possible.

                 "We are at a moment of truth and the prime minister
                 is determined to reach agreement," Sheetrit said.

                 The two leaders last met in October.

                 Arafat aide Ahmed Tibi said that "a meeting between
                 Arafat and Netanyahu could take place after the two
                 parties reach an agreement on the American
                 initiative, but until now the Israelis are rejecting
                 the initiative."

                 Tibi said that Sheetrit's ideas did not contain
                 anything substantive.

                 Arafat's adviser and chief spokesman Nabil Abu
                 Rudeineh said the question of whether there would be
                 further high-level Israeli-Palestinian meetings would
                 be answered within the next 48 hours.

                 Still, Sheetrit emerged optimistic yesterday from his
                 session with Arafat. The Palestinians received him
                 warmly and hosted him for lunch, promising to
                 consider his suggestions seriously over the weekend.

                 "It was an excellent meeting, and a delicious lunch,"
                 Sheetrit said. "I'm returning with a much bigger hope
                 for the peace process. I brought with me ideas to
                 advance the negotiations towards implementing the
                 pullback," he said.

                 Asked how he succeeded where others failed, he
                 replied "it's the Sheetrit charm. I'm known as
                 someone whose heart and mouth are one. They know I'm
                 sincere in trying to advance peace.

                 "Sometimes one's image makes all the difference.
                 That's one of the prime minister's problems: his
                 image in the Palestinians' eyes - which I think is
                 wrong - regarding his desire for peace," he said.
                 "The ball is now in Arafat's court."

                 PA International Cooperation Minister Nabil Shaath
                 said he was pleased with Sheetrit's visit, adding
                 that "over the weekend, there will be a serious study
                 of what can be done."

                 One Palestinian official predicted that Arafat would
                 accept the summit invitation, but doubted if any
                 positive results would ensue. He attributed the
                 potential impasse to Netanyahu's "unacceptable
                 bridging proposals."

                 But a Palestinian political analyst contended that
                 "Arafat simply does not want to meet Netanyahu" and
                 for that reason alone Sheetrit's initiative would be
                 stillborn.

                 US President Bill Clinton told reporters at the White
                 House last night that the US hasn't despaired of the
                 Israelis and Palestinians reaching an agreement. "I
                 still haven't thrown in the towel," Israel Radio
                 quoted Clinton as saying.

                 Netanyahu seemed optimistic despite the obstacles. At
                 a Herzliya celebration marking the anniversary of the
                 Egyptian revolution, he said an agreement could be
                 achieved shortly if there is goodwill on all sides.

                 Egyptian Ambassador Mohammed Bassiouny said: "I do
                 believe that if we take the basis of the American
                 initiative, for sure we can reach agreement."

                 Defense Minister Yitzhak Mordechai also seemed
                 optimistic, saying, "I think that the talks will
                 resume in the near future and I think there is a
                 basis to progress in the talks. I don't think there
                 are any other alternatives and the way is to sit at
                 the senior levels and find ways to bridge the gaps
                 and reach an agreement in the shortest time
                 possible."

                 Today Arafat is scheduled to meet Internal Security
                 Minister Avigdor Kahalani in Ramallah.

                 Palestinian sources assert that Arafat has won
                 widespread support from opposition elements, as well
                 as from his Fatah movement, for ending the
                 negotiations with Israel.

                 PA Secretary-General Tayeb Abdul Rahim said in a
                 ceremony yesterday that the Palestinians would now
                 seek Arab support in the form of an Arab League
                 summit. "All our options are open," he said.

                 (Jay Bushinsky contributed to this report.)

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Friday, July 24, 1998       1 Av 5758
Jerusalem Post - Internet Edition



                 Iran test-fires Shihab-3 missile

                 By STEVE RODAN, ARIEH O'SULLIVAN, and news agencies

                 JERUSALEM (July 24) - Iran has successfully tested a
                 Shihab-3 missile with a range of nearly 1,300
                 kilometers, putting it within striking range of
                 Israeli cities.

                 American officials fell short of calling the test a
                 success, saying the rocket blew up well into its
                 flight. Still, officials here described the
                 development as possibly a major breakthrough by
                 Teheran in its intermediate-range missile program.

                 Israeli officials said they were not surprised by the
                 launch, but asserted that it advances US assessments
                 that the Islamic republic could deploy the Shihab-3
                 by late next year.

                 "It changes the timetable and brings everything
                 closer," a senior official said.

                 He said most assessments had forecast the test-launch
                 of Shihab-3 from the latter half of this year to
                 mid-1999.

                 "I would say, then, that this marks a turning point
                 and realizes what we've been warning about the entire
                 time,"