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Israel Line

11 Jul 2005
* IDF Could Enter Gaza to Ensure Attack-Free Disengagement
* Israel to Hand Over Bethlehem to PA this Week 
* PA Welcomes $3b. Aid Package from G-8
* Arab Israeli Wins Maccabiah Gold
* Israel's Jewish Population to Outstrip U.S. by 2006
* Economic & High-Tech Briefs

IDF Could Enter Gaza to Ensure Attack-Free Disengagement
Despite coordination between Israel and the Palestinians over the disengagement, the Israel Defense Forces is still preparing for the option that it might be forced to reoccupy swaths of the Gaza Strip to ensure an attack-free evacuation, THE JERUSALEM POST reported. Military sources said the coordination revolves around setting up proper liaison links and working out measures so that armed Palestinian forces are kept out of the conflict should the IDF decide to enter the Palestinian-controlled areas.
"We want to make sure they won't get in the way of any bits of flying metal," said one of the officers, referring to Palestinian security forces.
The army was also dismissive of the Palestinian efforts to set up its new 5,000-man force to prevent looting of the Jewish settlements. "I have not seen a lot of armies able to recruit and train 5,000 men in 40 days," one senior officer said. "I'm not optimistic and that is an understatement."
The IDF has not given any indication if it will stage any pre-emptive occupation of Palestinian areas to quash chances of attacks. Senior officers said this scenario also depended on the behavior of the Palestinians in the period leading up the August 17 date for the beginning of the evacuation.

Israel to Hand Over Bethlehem to PA this Week 
The Israel Defense Forces is expected to hand over the control of Bethlehem to the Palestinian Authority this week, HA'ARETZ reported. Prime Minister Ariel Sharon and PA Chairman Mahmoud Abbas agreed on the transfer in a meeting a few weeks ago. Sharon told Abbas that the control of Qalqilyah would be transferred a week after Bethlehem. The transfers were delayed due to a series of shooting attacks in the West Bank last month, in which three Israeli citizens were killed.
Meanwhile, settlers vacated Sunday nine illegally built inhabited homes in the Amuna outpost, near the settlement of Ofra, north of Ramallah.
In other news, an unusually large number of shooting incidents occurred Sunday in the Gaza Strip. The amount of attacks in the West Bank is also witnessing a sharp rise.

PA Welcomes $3b. Aid Package from G-8
Palestinian Authority officials welcomed on Saturday an aid package of up to $3 billion announced at the G-8 summit, saying the money had to be disbursed quickly to help rebuild the Gaza Strip after Israel withdraws from the area, THE JERUSALEM POST reported. The officials said that they expected much of the sum to go to job creation and infrastructure projects in the Gaza Strip.
In another development, the Palestinian Legislative Council held a special session in Ramallah on Sunday to discuss the growing state of lawlessness and anarchy in PA-controlled areas.

Arab Israeli Wins Maccabiah Gold
An Israeli Arab teenage girl from the town of Sakhnin became one of the first medalists in this year's Maccabiah Games with a victory in the women's 200-meter breastroke in the Wingate Institute pool, YNET reported. Halaj Shahada, proud father of Asala, 17, said there would be celebrations in Sakhnin following her gold medal win. "The Maccabiah belongs not only to all the Jews, but also to all the Israelis, and I am a proud Israeli," Asala said
The Maccabiah, often called the "Jewish Olympics," are open to Jewish athletes from around the world, and to all Israeli citizens - regardless of their religion. Asala Shahada's gold medal is another accomplishment in a chain of Arab sporting successes in Israel.
The Arab Israeli town of Sakhnin has known many sporting celebrations, but up until now all of them were connected with soccer.

Israel's Jewish Population to Outstrip U.S. by 2006
Israel's Jewish population will be the largest in the world by 2006, at which point it will surpass the United States' for the first time in history, HA'ARETZ reported. The news was revealed in the annual report of the Jewish People Policy Planning Institute on "the situation of the Jewish people" presented today to the Knesset Immigration and Absorption Committee. The institute, which is partly funded by the Jewish Agency, concluded that the State of Israel was the single guarantee of the Jewish people's continued existence.
Today about 5.28 million Jews live in the United States, while 5.235 million live in Israel. Israel is the only country in the world expected to see significant growth in the size of its Jewish population, while all other communities in the world are expected to shrink or remain stable.
The Jerusalem-based institute predicts that there will be 6.25 million Jews in Israel in 2020, compared to 5.25 million today. In North America the number of Jews is expected to remain stable, at about 5.5 million. The number of Jews in Europe is expected to drop from 1.25 million to 1 million.

Economic & High-Tech Briefs
* The Ministry of Finance Accountant General's Office, which published today its economic summary for 2004, announced that GDP grew by 4.3 percent and business product by 5.1 percent, GLOBES reported. The ministry emphasized that the rapid growth reflected great stability, both relatively and in international terms, compared with the mid-1990s. The Accountant General's Office spoke optimistically about the performance of the Tel Aviv Stock Exchange and the sharp rise in stock prices. The Tel Aviv general index rose 17.6 percent in 2004, after rising a sharp 55.4 percent in 2003; the Tel Aviv 100 index rose 19 percent in 2004, after rising 60.7 percent in 2003; and the Tel Aviv 25 index 22.6, after rising 51 percent.

* A program to promote Israeli wine exports, initially to the United States and later to other countries, will be launched in September, GLOBES reported. Vineyard and winery members of the Israel Wine and Grapes Board will invest $375,000 a year for the program; their contribution will be matched by both the Ministry of Agriculture and the Ministry of Industry, Trade and Labor. The vineyards and wineries' investment will be paid by raising their fees to the Wine and Grapes Board. Israel's wine exports are currently $13 million a year, 5 percent of the total production. Most exports go to Jewish communities worldwide.

[Today's Israel Line was prepared by Victor Chemtob at the Consulate General of Israel in New York.]

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