ECONOMIC SURVEY
(COMMUNICATED BY GPO)
Jerusalem, 12 January 1994
FOREIGN TRADE,INVESTMENT AND COOPERATION:
* CHAMBER OF COMMERCE UNVEILS NEW INTERNATIONAL SERVICE.
The service enables Israeli business people to carry out various tasks
via an overseas international company, such as clarifications,
purchasing samples or small products, obtaining various kinds of
information, collecting catalogues, etc. The new service will thus save
time and foreign travel expenses. The Chamber of Commerce operates
information services for the business community, both in Israel and
abroad. The information is based mostly on computerized data bases
located at the Chamber of Commerce's office and on communication to
outside data bases. The data bases help encourage capital investment in
Israel and Israel's foreign trade.
Federation of Israeli Chambers of Commerce (03)-5631010
* ISRAELI AND U.S. TRADE MINISTERS MEET TO DISCUSS COOPERATION.
U.S. Commerce Secretary Ron Brown arrived in Israel Tuesday, inter alia,
to discuss economic relations and bilateral cooperation with Industry
and Trade Minister Micha Harish. Secretary Brown and Minister Harish
have been appointed by President Clinton and Prime Minister Rabin to
chair the joint Hi-Tech Commission. The commission was set up to promote
joint economic activity between Israel and the United States in the
fields of advanced technology and scientific development, in an effort
to encourage the business sectors of both countries, to create jobs and
stimulate economic growth. In the first nine months of 1993, Israeli
exports to the U.S. rose 12.5%, following a 9.8% rise in 1992 (imports
from the U.S. in 1992 totaled $3.336 billion). In 1993, the U.S.
received 32.4% of all Israeli exports, up from 30.5% in 1992. Imports
from the U.S. in 1993 accounted for 18.6% of all imports to Israel,
compared with 17.2% in 1992.
Industry and Trade Ministry - Tzafrir Ronen 02-750324
* U.S. INVESTORS TO INVEST $30 MILLION IN NEW SEMICONDUCTOR PLANT.
A group of American investors is set to set up a semiconductor
manufacturing plant in Israel, at a cost of approximately $30 million.
The investors are organized under a company called Orbit Semiconductor.
They are currently in negotiations regarding a decision about the
location of the plant. Apparently, the plant will be set up in Migdal
HaEmek, the location of a similar plant Tower (formerly National
Semiconductor). The new plant will be the American investors' first
venture in Israel and the plant should employ about 200 workers.
('Globes', 11.01.94)
* TADIRAN GROUP IN PARTNERSHIP WITH CENTEL OF U.S. IN CELL-PHONE TENDER.
The Tadiran-Elbit Group has reached an agreement with Centel of the
United States on competing jointly for the tender to become the second
operator of cellular telephones in Israel. Centel, a subsidiary of U.S.
Sprint, operates cell-phone networks in the United States with about 500
million subscribers. It is planned that the company will be the chief
operator of the corporation. ('Globes', 10.01.94)
* CHINESE TOBACCO CO. IN NEGOTIATIONS ON PARTNERSHIP WITH HAIFA
CHEMICALS.
The management of Haifa Chemicals, Ltd. has recently been conducting
negotiations with the Chinese National Tobacco Company, and the Chinese
Chemical and Agriculture Ministries, on forming a partnership in a Haifa
Chemicals plant in the south, in Mishor Rotem. According to Haifa
Chemicals managing director Ami Cohen, the amount of the investment
being discussed is approximately $30-40 million. Mr. Cohen further said
that the decision in principle to bring in the Chinese as partners in
the plant was made by Haifa Chemicals owner Arie Genger. This, in order
to form long-range marketing agreements with the Chinese, in their
tobacco industries. It is expected that the Chinese will become partners
in the plant after the second stage of the plant in Mishor Rotem is
built. In the second stage, the investment will reach $50 million and
the plant's production capability will be doubled, to 200 thousand tons
of potassium nitrate annually. According to the plant's strategic
planning, all of the second stage's product is intended for the Chinese
market. ('Globes', 12.01.94)
* BANK OF ISRAEL TO AID KENYAN CENTRAL BANK.
The Bank of Israel will aid Kenya's central bank in a number of areas.
This follows an agreement reached at a recent meeting between Bank of
Israel Governor Yaakov Frenkel and the Kenyan central bank governor. The
Bank of Israel assistance will focus on the following areas: developing
a foreign currency market and trade, operating a dealing room and
managing foreign currency reserves; monetary policy and activities in
the open market, including trade in bonds and treasury bills, and
strengthening bank supervision systems. The Kenyan central bank governor
expressed great interest in the Bank of Israel Law, which prevents the
Government from financing debt through printing money and obligates it
to do so only through taxes and public loans. ('Globes', 12.01.94)
DELEGATIONS:
* SENIOR ISRAELI ECONOMIC FIGURES LEAVE FOR MOROCCO.
An economic delegation of senior Israeli corporate executives and
industry officials is currently visiting Morocco to promote trade ties
between Israel and that country. This is the first time that an Israeli
economic delegation is meeting with the Moroccan prime minister,
economic ministers and well-known personalities. The delegation
includes, among others, the presidents of the Manufacturers'
Association, Federation of Chambers of Commerce and Hotels Association,
as well as the chairman or directors of Bank Hapoalim, Clal, Koor, and
Tnuva. MK Rafi Edri is coordinating the delegation. In 1993, Israel's
trade with Morocco totaled about $80 million. ('Ma'ariv', 12.01.94)