ECONOMIC SURVEY - 12-May-94

GPO ECONOMICS DESK 12 May 1994

PEACE ECONOMY:

* BRODET: THERE IS NO ONE IN THE AUTONOMY TO WHICH WE CAN TRANSFER ECONOMIC AUTHORITY.
DIFFICULTIES IN IMPLEMENTING THE ECONOMIC AGREEMENT WITH THE PLO. BUDGET DIRECTOR IN THE FINANCE MINISTRY [DAVID BRODET] BEGAN A DISCUSSION ON

(TUESDAY), 10.5.94, ON THE GOVERNMENT'S VIEW ON IMPLEMENTING THE AGREEMENTS. THE FINANCE MINISTRY IS WORRIED THAT A DELAY IN IMPLEMENTATION BY THE PALESTINIANS WILL HARM ACTIVITIES IN THE TERRITORIES.
Brodet says that as of yet those responsible for developing the economic sector in the autonomous areas have not been appointed and therefore, there is no one in the field to whom Israel can transfer economic authority. The economic agreement is supposed to begin implementation in various areas during May. 'In any event, we expect a difficult birthing period until the Palestinian organizations are fully operational and implement the various services and operations on their own,' said Brodet. Brodet added that he 'hopes the economic authorities will be soon be established and staffed by the Palestinian authorities, in order that there be someone to whom authority and responsibility can be turned over to, for full and regular economic operations in Jericho and Gaza.' Director Generals from various ministers and other top government officials participated in the meeting, whose purpose was to crystallize management and practical working methods until the organizations begin to operate in Gaza and Jericho. Brodet asked all of the offices to prepare for the legal changes necessary following the agreement that will require the Knesset's approval, which could happen as early as next week.

(Ma'ariv, 11.5.94)

* 45,000 PALESTINIAN CONSTRUCTION WORKERS FROM THE AUTONOMOUS REGIONS TO WORK IN ISRAEL. IN THE AGREEMENT NO SPECIFIC NUMBER IS AGREED TO. BUILDERS ASSOCIATION: ADD 30,000 MORE FOREIGN WORKERS.
According to the agreement Palestinian workers will be permitted to work in Israel only via Labor Ministry Employment offices. Though no number was included in the agreement, it is likely that 45,000 workers from the Autonomous Regions will work in the construction field in Israel. The Builders Association has requested the Construction and Housing Ministry to approve more foreign workers in addition to the 20,000 already approved. Before the current closure, some 180,000 people worked in the industry with 65,000 of them from the territories. (Yediot Ahronot, 12.5.94)

FOREIGN TRADE:

* AMERICAN UNILEVER WILL SOON PURCHASE AN ISRAELI FOOD COMPANY, ACCORDING TO AMNON DICK, GENERAL MANAGER OF JAFORI-TABORI. THE US FIRM HAS A TURNOVER OF $22 BILLION.
Dick, who spoke yesterday (Wednesday) 11.5.94, at the Israel Food Fair also said that American giant Philip Morris and French giant BMN are also examining investments in Israel by acquiring a local food manufacturer. Dick also said large international food firms with representatives in Israel will likely appoint new representatives to deal with the Palestinian Autonomous regions. (Ma'ariv, 12.5.94)

* FEDERMAN GROUP AND DAIMLER BENZ NEGOTIATING WITH TADIRAN TO ESTABLISH A BATTERY FACTORY. THE TWO HAVE ALSO SIGNED AN AGREEMENT TO SET UP THE EUROTECH INDUSTRIAL INVESTMENT FIRM WITH THE GOVERNMENT'S YOZMA FUND AND DEG, A GERMAN INDUSTRIAL DEVELOPMENT BANK. EXAMINING AN INVESTMENT IN OR TAL.
The new fund has already raised $10 million and is looking to double this by year's end. The fund is talking with Tadiran about establishing a factory for producing batteries for solar powered cars. Daimler Benz holds 20% of the fund, Yozma 40%, the Federman Group 20%, and 20% is held by DEG. (Yediot Ahronot, 11.5.94)

* KIBBUTZ NATIV HA-LAMED HEY AND THE TAMAN GROUP TO ESTABLISH WATER PURIFICATION FACTORY IN RUSSIA.
The two will establish the factory in Russia, south of Moscow, to produce home water purification systems. The factory, to be built with an investment of $20 million, will be a joint venture with a private group of Russian investors. The new factory, to be called Tana will employ 1,300 workers and produce more than 350,000 'Tami 4' systems annually.

(Yediot Ahronot, 12.5.94)

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