ECONOMIC SURVEY - 20-Jan-94

(COMMUNICATED BY GPO)

Jerusalem, 20 January 1994

PEACE ECONOMY:

* KIND AND PALESTINIAN GROUP TO SET UP PLANT FOR PRODUCING PLYWOOD IN TERRITORIES.
Eli Kind is about to enter into a partnership with a Palestinian group to set up a plywood plant in the territories. Kind, owner of the Kind Co., producers and importers of plywood and other lumber products, has already given an NIS 300 thousand loan to a middleman against the deal which he is about to sign with the Palestinian Philistia Industria group. Kind and the Palestinian group will invest about $2 million in the new plywood plant. The agreement obligates the new plant to purchase imported or locally produced lumber, while Kind has obligated itself to purchase half of the new plant's finished product. ('Ma'ariv', 18.1.94)

* LEBANESE TRADE ORGANIZATIONS EXAMINE TRADE POSSIBILITIES WITH ISRAEL.
A delegation including 26 heads of trade organizations in Lebanon recently visited Israel in order to examine trade possibilities between the two countries. The delegation arrived as the guest of the chairman of the Metal, Electricity and Electronics Organization in Haifa and the North, Danny Wertheim, through the mediation of former MK Amnon Lin. The guests from Lebanon toured six enterprises in Haifa Bay. They sought to examine way for communicating directly with enterprises from Israel to supply various goods and services. At the end of the tour, members of the delegation received a catalogue containing information about 110 enterprises belonging to the Metal, Electricity and Electronics Organization. ('Globes', 18.1.94)

* ISRAEL TO PARTICIPATE IN CAIRO FAIR AFTER SEVERAL YEARS' BREAK.
After a break of several years, Israel has received an official invitation to participate again in the international fair in Cairo, to be held 9-22 April 1994. The Cairo show, which draws great interest from Egypt's Arab neighbors as well, including the Persian Gulf states, is a general exposition in which a broad range of industries are presented. Participants include companies from the United States, Japan and most European countries. Thousands of buyers and professionals from the entire Middle East attend on special days during which entrance is by invitation only.
Israel Export Institute 03-5142830

* 14% REAL INCREASE IN SALES REGISTERED ON IN 1993

The Import Department of the Federation of Israeli Chambers of Commerce has reported that business activity will increase in 1994 as a result of the peace agreements (that will lead to an improvement in the Israeli economy). In 1994, a significant increase in sales is anticipated primarily in the following sectors: alcoholic drinks; computers; mechanical and engineering equipment; electric and electronic goods, and; cosmetics. In 1993, the 'mechanical and engineering equipment' sector registered the most unusual rate of growth in sales 60%.
Federation of Chambers of Commerce - 03-5631010

INTERNATIONAL COOPERATION:

* UNITED STATES AND ISRAEL SIGN TECHNOLOGICAL COOPERATION AGREEMENT.
An agreement on technological cooperation has just been signed between Israel and the United States. At the signing ceremony, attended by Prime Minister Yitzhak Rabin, U.S. Commerce Secretary Ron Brown and Trade and Industry Minister Micha Harish, Rabin compared the memorandum of understanding between the sides to the peace process. In science, as in the peace process, said Rabin, one needs determination but also patience and caution before concluding that the goal has been achieved. According to Secretary Brown, who arrived in Israel following visits to Saudi Arabia and Jordan, the fact that he informed the leaders of those countries about the technological cooperation between the Israel and the U.S. constitutes a further brick in building peace between Israel and the Arab countries. Brown and Harish emphasized that the agreement is meant to encourage and create ties in research and development, as well as in the field of private enterprise between the two countries. In the framework of the Memorandum of Understanding, a 14-member joint commission on high technology was established. Brown and Harish will head the commission, and an 8-30 member advisory panel will operate alongside it. The joint commission's budget is about $700 million and it will operate in working groups in the following fields: medicine and biotechnology; information, microelectronics and communications; environmental sciences and energy; agriculture; and a general working group. ('Ma'ariv', 19.1.94)

* ISRAEL AND RUSSIA TO EXAMINE PRODUCTION OF ELECTRICITY FROM SHALE OIL
Israel and Russia will look into the integration of Russian experts in the establishment of stations in Israel for the production of electricity from shale oil. This was concluded during a meeting in Russia between Energy Minister Moshe Shahal and the Russian Minister For Oil and Energy. Other issues, including the Israeli purchase of natural gas from Russia, were also discussed. The intent is to examine the profitability of constructing 8-10 stations power stations which will each supply 25-100 megawatts. ('Ma'ariv', 17.1.94)