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Israel Line

18 Oct 2004
* IDF officer hurt, 6 militants killed in Gaza 
* Likud convenes to discuss referendum
* Evacuated settlers won't have to pay tax on compensation
* U.S. campus group refuses to condemn Palestinian terror
* Other News in Brief
* Economic & High-Tech Briefs

IDF officer hurt, 6 militants killed in Gaza 
An Israel Defense Forces officer was moderately wounded and six Palestinian militants were killed in separate clashes across the Gaza Strip today, HA'ARETZ reported. The officer was wounded and two Palestinian gunmen were killed near the Kissufim crossing in the central Gaza Strip this morning in a shootout between soldiers and terrorists.

Earlier today, IDF soldiers killed two armed Hamas terrorists who infiltrated Israel from the southern Gaza Strip, entering close to the community of Holit. One was carrying an explosive device that detonated, killing him immediately, Israel Radio said. Soldiers found more explosives in the area.

Meanwhile, in the West Bank, IDF forces overnight Sunday detained 17 wanted Palestinians in various operations throughout the West Bank. Six men were arrested in the city of Jenin, 10 were arrested in the vicinity of Ramallah and one man was detained near Hebron.

Likud convenes to discuss referendum
The Likud faction began discussions today on the issue of holding a national referendum on Prime Minister Ariel Sharon's disengagement plan, and may possibly hold a vote on the matter, THE JERUSALEM POST reported. Today's meeting was closed to everyone but Likud Knesset members, with assistants and central committee members relegated to the hallway outside the conference room.

Sharon said earlier today that even if the Likud faction votes in favor of a referendum, he would not hold one. "I am determined to bring the disengagement plan to Knesset approval on the date designated - October 25," the PM said. Members of the Likud had been pressuring coalition chairman Gideon Sa'ar to hold a vote on the referendum proposal at the end of the Likud faction meeting, while officials who support Sharon have requested that Sa'ar, who himself opposes the disengagement plan, not hold a vote on the issue. Following the meeting the PM agreed to establish a Likud faction team that will examine all aspects of a possible referendum on disengagement.
 
Evacuated settlers won't have to pay tax on compensation
The Justice Ministry announced today that settlers evacuated from their homes in the West Bank or Gaza Strip will not pay tax on their compensation money, THE MARKER reported. The average compensation package for a family is $200,000, and those who agree to move to the Galilee or the Negev desert will receive an extra payment of approximately $10,000.

The director-general of the ministry, Aharon Abramovich, presented members of the Knesset Foreign Affairs and Defense Committee with the draft of the disengagement bill, drawn up by ministry officials, which includes details of the compensation packages to be awarded. According to the bill, anyone who owns property by the cut-off date of June 6, 2004 would be eligible for compensation, and would have up to three years to claim the money from the time that they were evacuated. The bill also includes a clause stating that settlers who oppose the disengagement will not be eligible for supplementary compensation.

U.S. campus group refuses to condemn Palestinian terror
At the annual convention of the Palestine Solidarity Movement (PSM), which was held this year at Duke University in North Carolina and drew some 500 activists, Israel was compared to South Africa under apartheid, called a "disease," and there were calls to stop American aid to Israel, HA'ARETZ reported. One of the main complaints against PSM - which Jewish organizations view as the most radical pro-Palestinian organization active on U.S. campuses - is that the movement refuses to condemn terrorism. At the convention, which ended Sunday, representatives voted on resolutions to change a clause in the organization's guidelines that stipulates a neutral stance on terror attacks. However, the proposals were defeated by a majority, so the movement maintains its refusal to condemn terror.

Other News in Brief
* Some 75,000 school pupils, youth movement members and adult volunteers visited homes across Israel today as part of the Israel Cancer Association's annual Knock on the Door campaign. The aim is to raise NIS 12 million for cancer research, treatment, rehabilitation and education. Of the 20 million people around the world who have beaten cancer, 120,000 are Israelis - but 23,500 new cases are diagnosed in the country each year.

Economic & High-Tech Briefs
* The Evergreen venture capital fund is expected to invest in three Israeli companies: Illuminator, Varonis and Aduva, THEMARKER.COM. Illuminator, a spin-off from Integrity, is developing a software solution to restore data after disaster. The startup is completing a $ 5million financing round led by Evergreen. Varonis, a data security company, is working on a $3.5 million funding round, led by Evergreen and Accel Partners. Aduva, which is developing a system to manage installations, support and maintain Linux-based enterprise computer systems, is raising between $5 million to $8 million. Evergreen has invested there in the past and the Gemini fund is joining as a new investor.

* Israel's economy will grow by 4 percent in 2004, according to preliminary Central Bureau of Statistics estimates, THEMARKER.COM reported. The bureau projects that private consumption will increase 4.5 percent this year compared with 2003 as the economy rebounded from a three-year recession. Exports, which have been a key engine driving Israel's economic growth in 2004, are expected to rise by 11.5 percent. If the bureau's estimates are accurate, then Israel's economic growth will have exceeded most forecasts. At the end of 2003, the Finance Ministry was predicting 2.5 percent growth this year, a figure it later lifted to 3.8 percent.

[Today's Israel Line was prepared by Arielle Bernstein and Dina Wosner at the Consulate General of Israel in New York.]

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