ECONOMIC SURVEY
(COMMUNICATED BY GPO ECONOMICS DESK)
26 April 1994
FOREIGN TRADE
* ISRAEL SIGNS TRADE AGREEMENT WITH RUSSIA.
A trade agreement was reached between Israel and Russia following
intensive negotiations during Prime Minister Rabin's visit to Russia.
The agreement provides for the relaxation of tax barriers and
encouragement of cooperation in trade issues between the two countries.
The agreement specifies protection in special cases for Israeli
producers from the sale of Russian goods at dumping prices and reduces
taxes placed on goods imported to Russia.
* ISRAEL AIRCRAFT INDUSTRIES AND TADIRAN MOVING FROM TAIWAN TO SOUTH
KOREA.
Following the rise in inmportance of the South Korean market the two
firms are changing their business strategies in South East Asia. Both
firms are moving their area representatives to Korea because over the
past few years the Korean market has become more important than that of
Taiwan. IAI will remove its Taipai office to Seoul, though its
representatives will spend one week a month in Taiwan, and it will
continue a partnership with a Taiwan firm to ensure its presence in the
island's market. (Ma'ariv, 25.4.94)
PEACE ECONOMY:
* ISRAEL MANUFACTURERS ASSOCIATION TO ESTABLISH ITS ECONOMIC COOPERATION
COUNCIL FOR ISRAELI-PALESTINIAN COOPERATION IN JERUSALEM. IF THE SECOND
STOCK EXCHANGE IS ESTABLISHED IN JERUSALEM, THE ASSOCIATION WILL MAKE AN
EFFORT TO BRING PALESTINIAN BUSINESSES INTO THE NEW EXCHANGE.
The Jerusalem region of the IMA called for the establishment of an
economic cooperation council for Israeli and Palestinian businesses to
be established after the final signature of the agreement with PLO.
According to Shaike Altuvia, chairman of the IMA's Jerusalem region,
Jerusalem with its Arab and Jewish population can serve as the bridge
for peace, using trade, industry, and services.
* PEACE THROUGH TRADE.
The International Chamber of Commerce reports it plans to encourage
peace in the region, according to the director general of the world-wide
organization Jean Charles Rouher. Rouher, who is in Israel this week,
told the Federation of Israeli Chambers of Commerce that the world
organization will do everything in its power to bring together Arab,
Palestinian, and Israeli businesspeople.
ENERGY:
* MEMORANDUM OF UNDERSTANDING SIGNED WITH PEOPLE'S REPUBLIC OF CHINA'S
MINISTER OF ELECTRIC POWER.
A memorandum of understanding was signed Wednesday 27.04.94, by Minister
of Energy and Infrastructure Moshe Shahal and China's Minister of
Electric Power Shi Dazhen. The MOU provides for encouraging cooperation
and joint venture projects between the two countries. Potential areas
for cooperation include alternative energy, including geothermal and
solar power, oil shale and coal ash technologies, research into the SNAP
aero electric concept from the Technion and other related manufacturing
ventures. The two ministers agreed to encourage joint ventures such as
Ormat Turbine's sales and installation of geothermal electricity plants,
Cvalim's electric cable cable manufacturing facility, PAMA oil shale
technology transfers, and LUZ solar technology transfers. The two
contries will also create a joint committee to maintain contact and
exchange information on energy and electricity matters.
* LAPIDOTH ACQUIRES ANOTHER WELL DRILLING MACHINE.
Lapidoth, the government owned oil and gas drilling company, reported it
has acquired a new well drilling maching capable of drilling wells up to
5,500 meters. It invested $10 million in the new machine purchased in
the US. This is the eighth driller acquired by the company. Lapidoth is
the only company in the country with land-drilling equipment, although
Isramco has drilling equipment used at sea. (Yediot Ahronot, 26.4.94)