ECONOMIC SURVEY
Jerusalem, 25 January 1994
(COMMUNICATED BY GPO)
FOREIGN TRADE:
* ISRAEL WILL BE ABLE TO EXPORT ROCKET ENGINES TO THE UNITED STATES.
SENIOR SECURITY ESTABLISHMENT SOURCE: MANY POSSIBILITIES ARE BEING
OPENED FOR COMMERCIAL COOPERATION WITH AMERICAN COMPANIES.
Israel will be able to sell equipment for launching civilian satellites
into space to the United States. This was communicated to Prime Minister
Rabin at the beginning of the week by President of the United states
Bill Clinton. The significance of the [presidential] approval is that
IMI, IAI, and Rafael will be able to compete for rocket tenders in the
United States and to sell engines and additional technology.
'The approval opens significant possibilities for commercial cooperation
with American companies for several of our defense industries,' a senior
security establishment source said last night. In the announcement
published by Rabin's Bureau, it was said: 'This is the first time that
Israel will be allowed to participate in tenders and competitions for
deals in the area of civilian space technology in the United States. The
approval is likely to create many sources of employment for Israeli and
American factories.'
Many possibilities are now being opened for Israel's defense industries.
IMI has developed, and is manufacturing, the engines that are installed
in the 'Shavit' launcher, that is being used to launch the satellites of
the 'Ofek' series into space. These engines are smaller and more
efficient than those manufactured in the United States. IAI has even
signed an agreement in principle with the American ARC company, which
deals with the development of satellite launchers, but was not able to
transfer technology to it because of Administration-imposed
restrictions. The approval will enable the agreement to be implemented.
Rafael, as well, manufactures equipment connected to space launches and
the entry by satellites into low orbits. IAI, too, has developed several
unique systems connected to civilian satellites. ('Yediot Ahronot',
21.01.94)
* RABIN: 'LIMITED ECONOMIC ACTIVITY IN MOROCCO IS IMPORTANT'
Prime Minister Yitzhak Rabin said that Morocco will be a model country
for Israel's future system of economic relations with other Arab states.
The Prime Minister said this at the meeting of an economic delegation
that visited Morocco last week. The head of the delegation, Bank
Hapoalim Chairman Amiram Sivan, reviewed the meetings [the delegation]
held with the heads of important Moroccan concerns and with senior
officials in the Moroccan economic establishment, and pointed out the
benefits of the opening to all sides.
During the visit, Sivan signed a cooperation agreement with the large
Wafbank concern, which presides over operations in the fields of
industry, banking, and tourism, in Morocco. Clal Managing Director David
Winshel is checking on the possibility of cooperating with enterprises
in the food and electronics fields. Delta Chairman Dov Lautman reached a
cooperation agreement with several textiles enterprises, with the
intention of transferring the production of certain products to Morocco.
Dan Hotels Chairman Michael Federman is checking on the possibility of
cooperation between hotel chains and in the field of tourist traffic.
('Globes', 21.01.94)
THE BUSINESS SECTOR:
* VISHAY FACTORY TO BE SET UP IN ISRAEL.
Vishay International is planning to transfer its factory from Germany to
Israel. This arises from from the request by the President of Vishay
Israel, Moshe Shamir, for the new factory in Migdal Ha'emek to receive
the status of an approved enterprise. The demand for receiving state
guarantees in order to assure the transfer of the factory to Israel was
removed from the amended request. Thus, the other alternative, that of
moving the factory to Mexico, was dropped from the agenda.
The factory that is to be set up in Migdal Ha'emek is set to employ
between 500 and 1,000 workers. The scope of the planned investment is
estimated at approximately $70-100 million. By setting up the factory in
Migdal Ha'emek, included in an 'A' development area according to the Law
on Encouraging Capital Investment, Vishay will be eligible for a
Government grant of up to 38% of the overall investment or tax
preferences of equal value, according to its choice. In addition, the
Government will participate in financing the costs of employing workers,
at the amount of approximately $16,000 per worker for four quarters.
('Globes', 20.01.94)
* BATTELLE TO ASSIST ISRAELI COMPANIES LOCATE STRATEGIC PARTNERS IN U.S.
Representatives of Battelle, one of the largest consulting firms in the
United States, specializing in implementing R&D and advanced
technologies in industry, recently visited Israel. The company has been
retained by the Israeli foreign ministry to locate suitable American
companies and match them with Israeli firms seeking partners. It intends
to focus on locating companies in the American midwest. During their
visit to Israel, the Battelle representatives focussed on the following
industries: metal, advanced materials, adhesives, plastics, engines,
electronics, processes control, and water and sewage recycling and
treatment.
Industry and Trade Ministry - Tzafrir Ronen 02-750324
FINANCE:
* INDUSTRY AND TRADE MINISTER MICHA HARISH CALLS ON BUSINESSPEOPLE TO
SUPPORT THE ESTABLISHIMENT OF SECOND STOCK EXCHANGE FOR HIGH-TECH
INDUSTRIES.
The Minister said that he is calling on businesspeople to support the
establishment of a second stock exchange that would have great
importance for the high-tech industry, which needs sources for raising
capital. Harish said that, in his opinion, the coming decade is the
'high-tech' decade, with the greatest hidden potential in advanced
technology being the reservoir of manpower, which is our greatest
relative advantage.
Industry and Trade Ministry - Tzafrir Ronen, 02-750324/5/6
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