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MIDDLE  EAST  PEACE  PROCESS 


Y  4.  IN  8/16:  H  58/10 

fliddle  East  Peace  Process,   104-1  He.. 


HEARING 

BEFORE  THE 

COMMITTEE  ON 

INTERNATIONAL  RELATIONS 

HOUSE  OP  REPRESENTATIVES 

ONE  HUNDRED  FOURTH  CONGRESS 

FIRST  SESSION 


SEPTEMBER  20,  1995 


Printed  for  the  use  of  the  Committee  on  International  Relations 


U.S.  GOVERNMENT  PRINTING  OFFICE 
2i_733  WASHINGTON     :     1996 

For  sale  by  the  U.S.  Government  Printing  Office 

Superintendent  of  Documents,  Congressional  Sales  Office,  Washington,  DC  20402 

ISBN  0-16-052177-7 


MIDDLE  EAST  PEACE  PROCESS 


Y  4.  IN  8/16:11  58/10 

fliddle  East  Peace  Process,   104-1  He... 

HEARING 

BEFORE  THE 

COMMITTEE  ON 

INTERNATIONAL  RELATIONS 

HOUSE  OF  REPRESENTATIVES 

ONE  HUNDRED  FOURTH  CONGRESS 

FIRST  SESSION 


SEPTEMBER  20,  1995 


Printed  for  the  use  of  the  Committee  on  International  Relations 


U.S.  GOVERNMENT  PRINTING  OFFICE 
21-733  WASHINGTON     :     1996 

For  sale  by  the  U.S.  Government  Printing  Office 

Superintendent  of  Documents,  Congressional  Sales  Office,  Washington,  DC  20402 

ISBN  0-16-052177-7 


COMMITTEE  ON  INTERNATIONAL  RELATIONS 

BENJAMIN  A.  GILMAN,  New  York,  Chairman 


WILLIAM  F.  GOODLING,  Pennsylvania 

JAMES  A.  LEACH,  Iowa 

TOBY  ROTH,  Wisconsin 

HENRY  J.  HYDE,  Illinois 

DOUG  BEREUTER,  Nebraska 

CHRISTOPHER  H.  SMITH,  New  Jersey 

DAN  BURTON,  Indiana 

JAN  MEYERS,  Kansas 

ELTON  GALLEGLY,  California 

ILEANA  ROS-LEHTINEN,  Florida 

CASS  BALLENGER,  North  Carolina 

DANA  ROHRABACHER,  California 

DONALD  A.  MANZULLO,  Illinois 

EDWARD  R.  ROYCE,  California 

PETER  T.  KING,  New  York 

JAY  KIM,  California 

SAM  BROWNBACK,  Kansas 

DAVID  FUNDERBURK,  North  Carolina 

STEVEN  J.  CHABOT,  Ohio 

MARSHALL  "MARK"  SANFORD,  South 

Carolina 
MATT  SALMON,  Arizona 


AMO  HOUGHTON,  New  York 

LEE  H.  HAMILTON,  Indiana 

SAM  GEJDENSON,  Connecticut 

TOM  LANTOS,  California 

ROBERT  G.  TORRICELLI,  New  Jersey 

HOWARD  L.  BERMAN,  California 

GARY  L.  ACKERMAN,  New  York 

HARRY  JOHNSTON,  Florida 

ELIOT  L.  ENGEL,  New  York 

ENI  F.H.  FALEOMAVAEGA,  American 

Samoa 
MATTHEW  G.  MARTINEZ,  California 
DONALD  M.  PAYNE,  New  Jersey 
ROBERT  E.  ANDREWS,  New  Jersey 
ROBERT  MENENDEZ,  New  Jersey 
SHERROD  BROWN,  Ohio 
CYNTHIA  A.  McKINNEY,  Georgia 
ALCEE  L.  HASTINGS,  Florida 
ALBERT  RUSSELL  WYNN,  Maryland 
MICHAEL  R.  McNULTY,  New  York 
JAMES  P.  MORAN,  Virginia 
VICTOR  O.  FRAZER,  Virgin  Islands  (Ind.) 


Richard  J.  Garon,  Chief  of  Staff 

Michael  H.  Van  Dusen,  Minority  Chief  of  Staff 

Deborah  Bodlander,  Professional  Staff  Member 

Veronica  A.  Craig,  Staff  Associate 


(II) 


ERRATA 

MIDDLE  EAST  PEACE  PROCESS 


Y4.IN  8/16: M  58/10/ 
ERRATA 

Errata,  Hiddle  East  Peace  Process, 


HEAKING 

BEFORE  THE 

COMMITTEE  ON 

INTERNATIONAL  RELATIONS 

HOUSE  OF  REPRESENTATIVES 

ONE  HUNDRED  FOURTH  CONGRESS 
FIRST  SESSION 


SEPTEMBER  20,  1995 


Printed  for  the  use  of  the  Committee  on  International  Relations 


DEPOSITORY 
JUN  0  5  1996 
Boston  Public  Library 


U.S.  GOVERNMENT  PRINTING  OFFICE 
21-733  CC  WASHINGTON  :  1996 


ERRATA 

The  name  of  Mr.  Amo  Houghton  was  inadvertently  listed  as  a 
Democrat  on  the  right  hand  column  of  the  committee  member  ros- 
ter. The  list  should  read  as  follows: 


COMMITTEE  ON  INTERNATIONAL  RELATIONS 
BENJAMIN  A.  GILMAN,  New  York,  Chairman 


WILLIAM  F.  GOODLING,  Pennsylvania 
JAMES  A.  LEACH,  Iowa 
TOBY  ROTH,  Wisconsin 
HENRY  J.  HYDE,  minois 
DOUG  BEREUTER,  Nebraska 
CHRISTOPHER  H.  SMITH,  New  Jersey 
DAN  BURTON,  Indiana 
JAN  MEYERS,  Kansas 
ELTON  GALLEGLY,  California 
ILEANA  ROS-LEHTENEN,  Florida 
CASS  BALLENGER,  North  Carolina 
DANA  ROHRABACHER,  California 
DONALD  A.  MANZULLO,  Illinois 
EDWARD  R.  ROYCE,  California 
PETER  T.  KING,  New  York 
JAY  KIM,  California 
SAM  BROWNBACK,  Kansas 
DAVID  FUNDERBURK,  North  Carolina 
STEVEN  J.  CHABOT,  Ohio 
MARSHALL  "MARK"  SANFORD,  South 

Carolina 
MATT  SALMON,  Arizona 
AMO  HOUGHTON,  New  York 


LEE  H.  HAMILTON,  Indiana 

SAM  GEJDENSON,  Connecticut 

TOM  LANTOS,  California 

ROBERT  G.  TORRICELLI,  New  Jersey 

HOWARD  L.  BERMAN,  California 

GARY  L.  ACKERMAN,  New  York 

HARRY  JOHNSTON,  Florida 

ELIOT  L.  ENGEL,  New  York 

ENI  F.H.  FALEOMAVAEGA,  American 

Samoa 
MATTHEW  G.  MARTINEZ,  California 
DONALD  M.  PAYNE,  New  Jersey 
ROBERT  E.  ANDREWS,  New  Jersey 
ROBERT  MENENDEZ,  New  Jersey 
SHERROD  BROWN,  Ohio 
CYNTHIA  A.  MCKINNEY,  Georgia 
ALCEE  L.  HASTINGS,  Florida 
ALBERT  RUSSELL  WYNN,  Maryland 
MICHAEL  R.  McNULTY,  New  York 
JAMES  P.  MORAN,  Virginia 
VICTOR  O.  FRAZER,  Virgin  Islands  (Ind.) 


Richard  J.  Garon,  Chief  of  Staff 

MICHAEL  H.  Van  DUSEN,  Democratic  Chief  of  Staff 

JOHN  P.  MackEY,  Investigative  Counsel 

Veronica  Craig,  Staff  Associate 


(II) 


CONTENTS 


WITNESSES 


Wednesday,  September  20,  1995:  Page 

The  Honorable  Sam  Gejdenson,  Member  of  Congress 4 

The  Honorable  Dan  Burton,  Member  of  Congress 6 

The  Honorable  Tom  Lantos,  Member  of  Congress 8 

The  Honorable  Michael  Forbes,  Member  of  Congress  10 

The  Honorable  James  Saxton,  Member  of  Congress  14 

The  Honorable  Peter  Deutsch,  Member  of  Congress 16 

The  Honorable  Eliot  Engel,  Member  of  Congress 44 

The  Honorable  Howard  Berman,  Member  of  Congress  47 

Mr.  Joseph  E.  Kelley,  Director-in-Charge,  International  Affairs  Issues, 
National  Security  and  International  Affairs  Division,  U.S.  General  Ac- 
counting Office  48 

Mr.  Dan  Polisar,  executive  director,  Peace  Watch,  Jerusalem,  Israel  56 

Mr.  Robert  Satloff,  executive  director,  Washington  Institute  for  Near 

East  Policy  58 

Mr.  Neal  Sher,  executive  director,  American  Israel  Public  Affairs  Com- 
mittee    69 

Dr.  Mandell  Ganchrow,  president,  Union  of  Orthodox  Jewish  Congrega- 
tions of  America  83 

Mr.  David  A.  Harris,  executive  director,  American  Jewish  Committee 85 

Dr.  Jim  Zogby,  president,  Arab  American  Institute  87 

Mr.  Rand  Fishbein,  board  of  advisors,  Center  for  Security  Policy  90 

Mr.  Morton  Klein,  president,  Zionist  Organization  of  America 93 

Mr.  Richard  Hellman,  president,  Christians'  Israel  Public  Action  Cam- 
paign    95 

Mr.  Seymour  Reich,  president,  American  Zionist  Movement  97 

APPENDK 

Prepared  statements: 

Congressman  Dan  Burton 123 

Congressman  Michael  Forbes 126 

Congressman  James  Saxton  129 

Congressman  Peter  Deutsch 138 

Congressman  Eliot  Engel 139 

Congressman  Tom  DeLay  144 

Congressman  Gary  Ackerman  147 

Mr.  Joseph  E.  Kelley  148 

Mr.  Dan  Polisar  157 

Mr.  Robert  Satloff 170 

Mr.  Neal  Sher  173 

Dr.  Mandell  Ganchrow  176 

Mr.  David  Harris  181 

Dr.  Jim  Zogby  187 

Mr.  Rand  Fishbein 190 

Mr.  Morton  Klein 195 

Mr.  Richard  Hellman  206 

Mr.  Herbert  Zweibon,  chairman,  Americans  for  a  Safe  Israel 216 

Ms.  Gail  Pressberg,  director,  Center  for  Israeli  Peace  and  Security,  Amer- 
icans for  Peace  Now 218 

The  Anti-Defamation  League  221 

(III) 


IV 

Page 
Prepared  Materials: 

Submitted  by  Hon.  Michael  Forbes: 

Article  by  Cal  Thomas  entitled  "Arafat  Is  Putting  One  Over  on  the 

Israelis"   11 

Article  by  Jamie  Dettmer  from   Insight  Magazine,   "PLO   Misuses 

U.S.  Dollars" 13 

Article  by  Mr.  Robert  Satloff  entitled  "The  Path  to  Peace"  223 

Article  by  Dr.  James  Zogby  entitled  "Peace  at  Risk"  230 

Press  Releases  from  the  Zionist  Organization  of  America  entitled: 

"New  Poll  Shows  Majority  of  U.S.  Jews  Oppose  U.S.  Aid  to  PLO 

and  Distrust  Arafat"  232 

"ZOA:  U.S.  Aid  to  PLO  Must  be  Conditioned  on  PLO  Pursuing  Ter- 
rorists Who  Killed  Americans" 233 

"CIA  Director  Gave  Senate  Erroneous  Information  on  Terrorism  by 

PLO  Factions"  234 

Transcripts  of  video  tapes  supplied  by  Hon.  Peter  Deutsch  17 

Letter  from  the  American  Jewish  Congress  regarding  the  Middle  East 

Peace  Process  , 236 

Letter  from  Hadassah — The  Women's  Zionist  Organization  of  America 

regarding  the  Middle  East  Peace  Process 238 

(The  following  materials  were  submitted  by  Mr.  Rand  Fishbein): 
H.R.  1960,  A  bill  to  govern  relations  between  the  United  States  and 
the  Palestine  Liberation  Organization  [PLO],  to  enforce  PLO  compli- 
ance with  standards  of  international  conduct,  and  for  other  purposes  ....  240 
Memorandum,  subject:  Concatenation  of  Palestinian  Violations,  IDF 
Judge  Advocate-General  Headquarters,  Assistant  to  the  Judge  Advo- 
cate-General for  International  Law 274 

Release  of  the  Palestinian  National  Authority — Ministry  of  Information, 

Ramallah,  September  23,  1995 290 

Palestinian  National  Council:  PLO  plan  of  phases,  Cairo,  June  9,  1974  ....     294 
Article  from  Forward  entitled  "Clinton  Claps  Secret  Cover  on  Report 

on  PLO  Finances"  296 

Article  from  The  Weekly  Standard  by  Yoram  Hazony  entitled  "The  End 

of  Zionism  and  the  Last  Israeli"  297 

Material  from  BTselem  (The  Israeli  information  center  for  human  rights 

in  the  occupied  territories)  entitled  "Neither  Law  Nor  Justice"  303 

Briefing  paper  from  the  National  Criminal  Intelligence  Service  [NCIS] 
entitled  "An  Outline  Assessment  of  the  Threat  and  Impact  by  Orga- 
nised/Enterprise Crime  Upon  United  Kingdom  Interests"  Appendix  B  ...      317 
Second  briefing  from  NCIS— organised  crime  unit  entitled  "An  Outline 
Assessment  of  the  Threat  and  Impact  by  Organised/Enterprise  Crime 

Upon  United  Kingdom  Interests 320 

The  Palestine  National  Covenant  323 

Dear  Colleague  letter  from  Senator  Alfonse  D'Amato  regarding  the  Mid- 
dle East  Peace  Compliance  Act  of  1995  327 

PEACEWATCH  press  release  entitled  "Report  on  Financial  Issues  Facing 
PA  and  Donors  Reveals  Erosion  of  Standards  for  PA's  Economic  Deci- 
sionmaking and  Accountability"  329 

PEACEWATCH  report  entitled  "Economic  Issues  Facing  the  Palestinian 
Authority  and  the  Donor  Nations"  331 


MIDDLE  EAST  PEACE  PROCESS 


WEDNESDAY,  SEPTEMBER  20,  1995 

House  of  Representatives, 
Committee  on  International  Relations, 

Washington,  DC. 

The  committee  met,  pursuant  to  notice,  at  10  a.m.  in  room  2172, 
Rayburn  House  Office  Building,  Hon.  Benjamin  A.  Gilman  (chair- 
man of  the  committee)  presiding. 

Chairman  Gilman.  The  committee  will  come  to  order.  This  morn- 
ing's hearing  is  on  the  Middle  East  peace  process.  It  is  our  inten- 
tion to  hold  such  a  hearing  at  the  request  of  a  number  of  organiza- 
tions and  people  who  are  concerned  about  it. 

With  our  committee's  legislative  responsibilities  regarding  our 
foreign  affairs  program  and  agencies  largely  completed,  we  are 
pleased  that  we  could  schedule  today's  hearing  despite  the  heavy 
calendar  in  the  Congress.  We  look  forward  to  the  testimony  of  our 
witnesses. 

Two  years  ago  this  month  Israel's  Prime  Minister,  Yitzhak 
Rabin,  and  PLO  Chairman,  Yasir  Arafat,  signed  a  Declaration  of 
Principles  on  interim  self-government  for  the  disputed  territories. 

Since  then  we  have  seen  some  other  positive  developments  in  the 
Middle  East.  Israel  and  Jordan  have  signed  a  peace  treaty.  Bilat- 
eral talks  have  continued  between  Israel  and  Syria  and  between  Is- 
rael and  Lebanon.  The  Gulf  Cooperation  Counties  announced  that 
they  were  lifting  the  secondary  and  tertiary  boycotts  against  Israel. 

But  the  center  of  attention  has  been  the  negotiations  between  Is- 
rael and  the  PLO.  Under  the  declaration,  Prime  Minister  Rabin 
recognized  the  PLO  as  the  representative  of  the  Palestinian  people 
and  agreed  to  negotiate  with  the  PLO. 

The  PLO  Chairman,  Yasir  Arafat,  recognized  Israel's  right  to 
exist  and  accepted  U.N.  Security  Council  Resolutions  242  and  338. 

He  renounced  terrorism  and  violence,  stated  that  language  in  the 
Palestinian  Covenant  calling  for  the  destruction  of  Israel  was  in- 
valid, and  promised  to  seek  its  deletion. 

To  support  the  peace  process,  the  United  States  has  pledged 
$500  million  over  5  years  to  the  PLO  as  part  of  a  $2  billion  inter- 
national package  of  economic  and  development  assistance  for  the 
Palestinian  Authority. 

The  Congress  adopted  the  Middle  East  Peace  Facilitation  Act, 
known  as  MEPFA.  That  legislation  enabled  the  administration  to 
provide  this  kind  of  assistance  to  the  PLO,  subject  to  compliance 
with  the  commitments  it  undertook,  and  permitted  the  PLO  to 
open  an  office  in  Washington. 

(l) 


MEPFA  also  required  the  administration  to  submit  periodic  re- 
ports to  Congress  stating  that  the  PLO  was  adhering  to  the  com- 
mitments made  under  the  Declaration  of  Principles. 

Regrettably,  these  reports  can  best  be  described  as  a  mixture  of 
naivete  and  optimism,  perhaps  borne  of  a  desire  by  the  administra- 
tion to  see  matters  not  as  they  are  but  as  they  would  wish  them 
to  be. 

For  example,  despite  Mr.  Arafat's  commitment  to  end  violence,  it 
has  continued;  and  the  Palestinian  Covenant  still  calls  for  the  de- 
struction of  the  State  of  Israel. 

While  Chairman  Arafat  is  quoted  in  the  international  news 
media  as  deploring  incidents  of  violence,  there  are  numerous  re- 
ports that  his  comments  are  far  different  to  Arabic  audiences. 

Another  aspect  of  the  peace  process  to  be  explored  is  the  eco- 
nomic aid  that  has  been  authorized  under  MEPFA. 

There  have  been  serious  questions  concerning  the  PLO's  assets, 
its  ability  to  effectively  utilize  that  aid,  and  whether  aid  funds  will 
in  fact  go  to  assist  people  in  the  self-rule  areas  and  not  be  siphoned 
off  for  other  purposes. 

Last  year,  I  requested  that  the  GAO  conduct  a  financial  survey 
of  the  PLO  in  order  to  establish  that  it  has  the  necessary  structure 
and  could  provide  the  accountability  that  is  usually  called  for  in 
connection  with  our  economic  assistance  activities. 

Regrettably,  the  GAO  report  has  been  submitted,  but  it  is  classi- 
fied; so  we  have  been  unable  to  share  its  findings  with  other  inter- 
ested parties.  I  understand  that  a  representative  of  the  GAO  is 
with  us  today,  and  hopefully  he  will  be  able  to  shed  some  light  on 
this  situation. 

The  search  for  peace  in  the  Middle  East  has  been  among  the 
most  important  and  most  contentious  of  the  challenges  facing  the 
international  community. 

The  end  of  the  cold  war  has  brought  an  opportunity  for  peace  in 
that  region  which  cannot  and  must  not  be  ignored.  However,  there 
are  those  who  have  serious  concerns  about  the  current  negotia- 
tions. 

The  purpose  of  today's  hearing  is  to  try  to  address  some  of  those 
concerns  and  to  shed  some  light  on  these  issues. 

Today  we  will  hear  from  a  series  of  panels  that  include  Members 
of  Congress,  the  General  Accounting  Office,  research  institutions, 
and  membership  organizations. 

Before  introducing  our  first  panel  of  witnesses,  do  any  of  my  col- 
leagues have  opening  remarks  they  would  like  to  make? 

Mr.  Hastings.  Mr.  Chairman,  yes,  with  your  permission. 

Chairman  Gilman.  Mr.  Hastings.  Please  be  brief. 

I  would  like  to  note  that  we  have  a  very  heavy  schedule.  We  also 
have  a  heavy  schedule  on  the  floor  today.  We  are  going  to  ask  our 
witnesses  to  limit  their  remarks  to  5  minutes,  and  we  will  also  re- 
quest our  colleagues  to  be  as  brief  as  possible. 

Mr.  Hastings.  I  thank  the  Chairman. 

Mr.  Chairman,  I  am  most  delighted  to  have  an  opportunity  to 
hear  from  our  colleagues  on  such  an  important  issue. 

But  I  do  put  a  couple  of  questions.  If  the  peace  process  were  to 
disintegrate  today,  what  would  be  the  result?  Is  it  possible  to  re- 
turn to  the  preaccord  status? 


This  peace  process,  like  this  legislation,  is  far  from  perfect;  but 
there  is  no  turning  the  clock  back  to,  nor  would  anyone  want  to 
bring  back,  the  Intifada. 

Any  fair-minded  person  has  to  concede  that  we  are  better  off  in 
the  peace  process  today  than  we  were  5,  3,  or  even  2  years  ago  or 
even  a  year  ago  before  the  Oslo  Agreement  was  signed. 

Our  objective  should  be  how  to  make  the  process  better,  not  to 
how  to  allow  fringe  groups  to  kill  it  by  saying  we  are  making  it  bet- 
ter. 

There  are  those  who  say  we  want  peace,  but  we  are  placing  such 
demands  as  to  undermine  the  sincerity  of  such  statements.  What 
we  hear  from  some  of  these  groups  is  so  uncompromising  as  to  be- 
tray their  true  motives  and  undermine  any  claims  that  they  make 
that  they  truly  want  peace. 

Most  of  us  know  Prime  Minister  Rabin,  and  I  know  his  history. 
He  is  not  some  naive  dove  who  is  going  to  sell  out  his  country  to 
the  likes  of  Yasir  Arafat.  He  is  a  tough  and  proven  warrior  and  a 
tried  and  tested  political  leader. 

I  must  say  I  have  much  more  faith  in  his  political  judgment 
about  the  current  situation  between  the  Israelis  and  Palestinians 
and  making  peace  with  the  Palestinians  than  I  do  with  many  of  the 
persons  who  stop  by  my  office  to  complain  about  the  process. 

I  believe  that  we  are  holding  these  hearings  today  because  par- 
tisan Israelis  political  pressures  are  spilling  over  into  the  United 
States  political  agenda.  And  I  believe  that  Israeli  domestic  politics 
have  no  place  in  the  U.S.  Congress. 

And  I  just  want  to  say  very  clearly  that  I  am  shocked  and  ap- 
palled at  the  blatant  and  disruptive  lobbying  that  opponents  of  the 
peace  process,  including  persons  who  used  to  represent  the  Govern- 
ment of  Israel  in -Washington,  are  carrying  out  in  the  U.S.  Con- 
gress. 

We  in  America  have  a  long-standing  principle  that  politics  stops 
at  the  water's  edge.  How  would  we  feel  if  top  officials  of  a  former 
administration,  such  as  the  White  House  Chief  of  Staff,  would  go 
to  the  capitals  of  our  closest  allies  to  lobby  them  to  adopt  legisla- 
tion and  pass  laws  that  would  hobble  the  conduct  of  American  pol- 
icy, especially  policy  which  is  vital  to  our  national  security? 

We  would  be  absolutely  appalled.  It  is  really  beyond  our  com- 
prehension. I  am  all  for  free  speech  and  the  democratic  process,  but 
I  am  disgusted  by  the  attempts  by  opposition  parties  in  Israel  to 
manipulate  the  sincere  concerns  of  many  American  jews  in  order 
to  further  their  own  political  agenda. 

I  thank  the  Chair. 

Chairman  Gilman.  Thank  you,  Mr.  Hastings. 

We  will  now  proceed  with  our  congressional  panel.  I  thank  our 
colleagues  for  taking  the  time  to  join  us. 

Mr.  Gejdenson. 


STATEMENT  OF  HON.  SAM  GEJDENSON,  A  REPRESENTATIVE 
IN  CONGRESS  FROM  THE  STATE  OF  CONNECTICUT,  ACCOM 
PANIED  BY  HON.  DAN  BURTON,  A  REPRESENTATIVE  IN  CON- 
GRESS FROM  THE  STATE  OF  INDIANA;  HON.  TOM  LANTOS,  A 
REPRESENTATIVE  IN  CONGRESS  FROM  THE  STATE  OF  CALI- 
FORNIA; HON.  MICHAEL  FORBES,  A  REPRESENTATIVE  IN 
CONGRESS  FROM  THE  STATE  OF  NEW  YORK;  HON.  JAMES 
SAXTON,  A  REPRESENTAITVE  IN  CONGRESS  FROM  THE 
STATE  OF  NEW  JERSEY;  HON.  PETER  DEUTSCH,  A  REP- 
RESENTATIVE IN  CONGRESS  FROM  THE  STATE  OF  FLORIDA; 
AND  HON.  ELIOT  ENGEL,  A  REPRESENTATD7E  IN  CONGRESS 
FROM  THE  STATE  OF  NEW  YORK 

STATEMENT  OF  SAM  GEJDENSON 

Mr.  GEJDENSON.  Thank  you,  Mr.  Chairman. 

I  want  to  first  commend  my  colleague  from  Florida  for  his  state- 
ment. Those  of  us  who  have  spent  some  time  watching  the  develop- 
ments in  the  Middle  East  can  remember  the  critics  of  the  Camp 
David  process.  And  even  after  peace  was  achieved,  there  were 
those  who  continued  to  criticize  the  quality  of  the  peace. 

But,  indeed,  it  is  that  peace,  the  peace  that  began  at  the  Camp 
David  process,  that  has  enabled  this  administration  to  take  the 
next  step  in  the  process. 

And  it  really  has  been  the  position  of  the  American  people, 
throughout  the  history  of  this  country,  to  support  the  peace  process 
in  the  Middle  East.  From  Harry  Truman's  courageous  act  in  rec- 
ognizing the  State  of  Israel  to  Bill  Clinton  and  his  efforts  at  bring- 
ing Palestinians  and  Israelis  together,  the  American  Congress  and 
the  American  people  have  stood  with  their  Presidents  on  this  issue. 

President  Carter's  Camp  David  accord,  as  I  have  said  before,  had 
many  of  its  critics  during  the  process  and  afterwards.  With  some 
history  behind  us  now,  we  can  see  how  critical  that  process  at 
Camp  David  was  to  developing  what  we  have  seen  in  the  last  year, 
that  memorable  handshake  at  the  U.S.  Capitol  between  Prime  Min- 
ister Rabin  and  Mr.  Arafat,  and  with  President  Clinton  at  the 
White  House. 

The  Israeli  peace  agreement  with  Jordan  has  taken  the  peace 
process  a  major  step  forward,  really  the  longest  border  that  Israel 
shares  with  another  country. 

There  is  now  serious  discussions  ongoing  with  the  Syrians. 

And  for  the  millennium  that  there  has  been  conflict  in  the  Mid- 
dle East,  we  now  have  the  first  real  opportunity  to  see  peace,  and 
a  lasting  peace,  for  the  people  of  that  region. 

The  cost  of  not  pursuing  the  peace  process  has  risen 
exponentially  in  recent  years.  In  the  past,  we  had  to  worry  about 
a  hand  grenade,  a  sniper,  a  shotgun  in  the  crowd.  Today,  chemical 
and  biological  weapons,  nuclear  weapons,  put  the  entire  populace 
of  the  region  into  continuous  and  every-growing  danger. 

Without  the  Palestinian  peace  with  the  Israelis,  there  could  not 
have  been  the  progress  that  has  already  occurred  with  the  govern- 
ments that  Israel  has  now  made  agreements  with,  the  Jordanians, 
and  with  the  talks  going  on  with  the  Syrians. 

There  is  always,  in  human  nature,  a  resistance  to  moving  past 
the  status  quo.  There  is  that  feeling  that  if  you  can  just  hold  onto 


the  present  situation,  it  may  be  safer.  That  certainly  is  not  what 
history  has  taught  us  about  the  Soviet  Union.  It  is  not  what  it 
taught  us  about  the  history  of  Yugoslavia.  Strong  military  govern- 
ments, dictatorships,  held  those  countries  together  and  did  not  re- 
solve the  underlying  tensions;  and  today  there  is  no  mailing  ad- 
dress for  the  Soviet  Union.  There  is  none  for  Yugoslavia.  Their  peo- 
ple live  in  pain  and  in  torture. 

We  have  seen  the  very  difficult  situations,  without  any  question. 
And  there  are  still  challenges  to  be  met.  But  those  challenges  have 
been  dealt  with  by  an  able  Israeli  Government  meeting  directly 
with  the  Palestinians. 

The  reference  to  the  language  in  the  Palestinian  Charter  is  dealt 
with  by  Mr.  Rabin's  agreement  and  the  Israeli  Government's  agree- 
ment with  the  Palestinians.  It  says  after  elections,  within  2  months 
of  those  elections,  they  will  remove  that  defensive  language. 

Some  people  argue  that  the  PLO  and  Mr.  Arafat  are  not  good 
managers.  It  would  leave  you  with  the  sense  that  if  you  got  one  of 
the  big  accounting  firms  to  move  into  the  West  Bank  and  Gaza  to- 
morrow, that  somehow  the  situation  would  be  better. 

I  think  there  are  no  better  players  at  this  date  to  bring  the  two 
sides  together  to  try  to  resolve  the  issues  that  are  still  outstanding. 

The  pain  that  continues  affects  all  of  us.  Within  recent  months, 
a  woman  from  Connecticut  lost  her  life  to  a  terrorist  incident.  And 
the  terrorists'  violence  continues. 

And  while  the  incidents  have  been  reduced,  sadly  the  number  of 
people  who  have  died  has  increased  as  a  result  of  larger  killings 
in  several  of  the  incidents.  But  we  do  now  have  the  Palestinians 
and  the  Israelis  working  together  to  try  to  reduce  the  violence. 

There  has  been,  also,  a  surge,  a  surge  by  those  who  would  want 
to  see  the  peace  process  disrupted.  The  last  gasp  by  Hamas  and 
other  extremists,  who  would  like  to,  if  they  could,  kill  enough  on 
both  sides  to  have  the  countries  lose  their  resolve,  have  the  Israelis 
and  the  Palestinians  lose  their  resolve  in  this  peace  process. 

For  the  children  of  the  region,  for  the  grandparents  of  the  region, 
for  the  people  of  the  region,  it  is  our  responsibility  to  provide  every 
possible  assistance  to  move  forward  in  this  peace  process.  There  is 
no  peace  process  that  is  an  easy  one,  clearly  not  in  an  area  with 
a  history  as  it  exists  in  the  Middle  East. 

But  to  give  in  to  Hamas  and  the  Islamic  Jihad  and  other  fun- 
damentalist organizations  who  would  like  to  go  back  to  confronta- 
tion and  war  and  who  would  want  to  avoid  a  lasting  peace  agree- 
ment between  Palestinians,  Israelis,  and  others  in  the  region,  is  a 
mistake. 

Is  this  process  perfect?  No.  But  it  is  the  best  process  before  us. 

I  have  heard  from  the  opposition  in  Israel.  Their  opposition  is  to 
the  present  policy.  They  have  no  alternative  policy.  And  it  is  impos- 
sible to  turn  the  clock  back. 

I  believe  we  need  to  support  the  President,  and  we  need  to  sup- 
port the  Israeli  Government  and  the  leadership  of  the  Palestinians 
that  are  taking  the  tough  road,  taking  the  losses  and  the  casual- 
ties, putting  the  effort  in  to  move  forward  in  that  peace  process. 

From  the  safety  and  security  of  our  seats  here  in  the  Capitol, 
from  the  security  and  the  lack  of  threats  that  we  face,  we  have  to 


be  very  careful  as  we  interfere  in  a  process  that  may  bring  peace 
to  the  Middle  East  for  the  first  time  in  the  millennium. 

Thank  you,  Mr.  Chairman. 

Chairman  Gilman.  Thank  you,  Mr.  Gejdenson. 

Mr.  Burton  had  made  a  prior  request,  since  he  is  on  a  markup, 
to  go  at  the  earliest  possible  time. 

So  with  the  indulgence  of  our  colleagues,  we  will  call  on  Mr.  Bur- 
ton next. 

Mr.  Burton. 

STATEMENT  OF  HON.  DAN  BURTON,  A  REPRESENTATIVE  IN 
CONGRESS  FROM  THE  STATE  OF  INDIANA 

Mr.  Burton.  Thank  you,  very  much,  Mr.  Chairman.  And  I  want 
to  thank  you  very  much  for  having  this  hearing.  I  think  it  is  very 
timely  and  very  important. 

I  do  not  think  anybody  is  against  the  peace  process,  in  Israel  or 
here  in  the  United  States.  I  think  we  all  want  to  see  peace  brought 
to  the  Middle  East,  to  Israel,  to  the  entire  region. 

The  problem  is  what  kind  of  land  mines  or  risks  are  involved  in 
the  current  process  in  the  way  we  approach  it? 

I  remember  back  in  the  early  1980's  when  Ronald  Reagan  asked 
me  and  you  and  many  other  members  of  the  Foreign  Affairs  Com- 
mittee to  support  putting  troops  in  Beirut  as  a  peacekeeping  force. 
And  we  all  said,  well,  he  is  our  President,  our  Commander  in 
Chief,  he  knows  best.  And  we  went  ahead  and  allowed  several  hun- 
dred Marines  to  be  placed  in  Beirut;  and  a  terrorist  bomber,  with 
a  truckload  of  dynamite,  drove  through  a  very  loose  barricade  and 
blew  up  the  headquarters  and  killed  over  230  Marines. 

It  was  a  tragic  day  for  the  United  States  and,  I  think,  for  the 
entire  world. 

Now  we  are  talking  about  such  things  as  putting  American 
troops  on  the  Golan  Heights  as  an  intermediary  or  peacekeeping 
force  to  make  sure  that  a  long-term  peace  agreement  between  Is- 
rael and  Syria  will  survive,  will  last. 

And  I  want  you  to  know  that  I  have  great  reservations  about 
that  kind  of  a  policy,  and  I  think  anyone  who  really  thinks  about 
it  should  have  reservations. 

First  of  all,  even  though  the  peace  process  has  been  going  for- 
ward between  the  PLO  and  the  Israeli  Government,  the  fact  re- 
mains that  there  have  been  terrorist  bombings  at  bus  stops,  on 
buses,  at  various  locations  in  Israel.  And  those  who  oppose  the 
peace  process  are  not  going  to  stop. 

And  for  the  United  States  to  put  American  troops  in  harm's  way, 
when  it  is  not  really  in  our  national  interest,  is  a  terrible,  terrible 
mistake.  And  I  can  see  the  same  thing  happening  on  the  Golan 
Heights  with  a  Hezbollah  terrorist  or  a  Hamas  terrorist  blowing  up 
a  bunch  of  American  troops,  who  are  sitting  ducks  over  there,  that 
just  like  that  which  happened  back  in  the  early  1980's  in  Beirut. 

Now  I  have  expressed  my  concern  to  Shimon  Peres.  I  do  not  take 
a  back  seat  to  anybody  in  this  Congress  in  my  support  of  Israel. 
Since  the  day  I  arrived  in  Congress,  I  have  been  a  supporter  of  Is- 
rael, I  have  voted  for  support  for  Israel,  and  I  will  continue  to. 

But  I  can  tell  you  that  I  truly  believe  if  we  put  our  troops  in 
harm's  way  and  some  of  them  get  killed,  there  is  going  to  be  a  hue 


and  cry  in  this  country  from  the  American  people  to  curtail  foreign 
aid,  and  it  will  hurt  our  relationship  with  Israel.  And  I  do  not 
think  that  that  need  occur. 

But  there  are  those  who  continue  to  say  that  we  must  do  this  in 
order  to  further  the  peace  process.  If  everything  had  been  working 
as  we  wanted  it  to  and  there  had  been  no  terrorist  attacks,  I  would 
say,  well  maybe  that  is  something  worth  looking  at.  But  today  and 
every  single  day  we  know  terrorism  still  exists  on  the  West  Bank, 
in  Jerusalem  itself,  and  in  other  parts  of  Israel;  and  I  just  cannot 
see  the  logic  of  it. 

And  so  I  would  once  again  say,  if  Mr.  Peres  was  here,  or  Mr. 
Rabin,  I  think  you  are  making  a  terrible  mistake;  and  I  think  our 
administration  here  in  Washington  is  making  a  terrible  mistake  if 
we  get  into  a  quagmire  that  is  going  to  involve  American  troops 
being  placed  on  the  Golan  Heights. 

The  Syrian  military  and  the  Israeli  military  are  strong.  The  Is- 
raeli military  and  the  Syrian  military  and  the  Israeli  Government 
can  work  out  an  agreement  where  they  can  put  a  dividing  line  be- 
tween them  that  will  make  sure  that  peace  survives  on  the  Golan 
Heights  without  American  troops  being  placed  there. 

If  any  troops  are  going  to  be  placed  there,  they  should  be  a  mul- 
tinational force  and  not  American  troops.  They  should  be  under  the 
auspices  of  some  other  agency. 

Now,  let  me  just  talk  real  briefly  about  the  PLO.  The  PLO,  until 
just  the  last  few  years,  has  been  considered  a  terrorist  state  by  the 
U.S.  Government.  They  have  been  listed  year  after  year  after  year 
by  the  State  Department  as  a  terrorist  state. 

Now,  Yasir  Arafat  and  the  Government  of  Israel  have  signed  an 
accord.  And  we  all  applaud  that.  I  watched  with  great  admiration 
and  respect  when  I  saw  the  leaders  of  Israel  and  Yasir  Arafat 
shake  hands  at  the  White  House.  I  said,  my  gosh,  maybe  the  mil- 
lennium has  come  and  we  are  going  to  see  peace  over  there.  So  I 
think  we  all  applauded  that. 

But  there  still  are  major  problems  in  the  West  Bank.  And  the 
PLO  still  has  not  been  able  to  contain  or  control  those  terrorists 
that  are  perpetrating  these  attacks  on  various  parts  of  Israel. 

And  because  of  that,  I  think  we  should  think  long  and  hard  be- 
fore we  give  large  sums  of  American  taxpayers'  dollars  to  the  PLO 
while  this  kind  of  a  problem  exists. 

In  addition  to  that,  and  this  is  very  important,  Mr.  Chairman — 
British  intelligence  has  told  us  that  the  PLO  has  up  to  $8  billion 
in  foreign  banks,  in  Switzerland  and  elsewhere,  $8  billion. 

And  for  the  United  States  to  give  them  $500  million  over  the 
next  5  years  at  a  time  when  they  simply  do  not  need  those  re- 
sources makes  absolutely  no  sense  to  me. 

The  fact  of  the  matter  is  we  were  under  severe  budgetary  con- 
straints here  in  the  Congress  of  the  United  States.  We  are  trying 
to  balance  our  Federal  budget.  The  American  people  just  do  not 
like  foreign  aid  in  any  form.  And  those  of  us  who  support  some  for- 
eign aid  for  our  allies  in  important  causes  around  the  world  are 
subject  to  criticism  on  a  regular  basis. 

How  do  we  defend  giving  the  PLO  $500  million  over  the  next  5 
years  when  they  have  $8  billion  in  the  bank? 


8 

I  just  do  not  see  how  you  can  justify  that,  especially  with  the 
problems  we  are  having  fiscally  here  at  home. 

And  some  people  say,  well,  they  do  not  have  $8  billion.  The  GAO, 
as  I  understand  it,  has  looked  into  this;  and  they  do  not  refute 
what  British  intelligence  has  told  us.  So  we  must  go  under  the  as- 
sumption that  they  do  have  $8  billion. 

And  so  I  would  just  like  to  say  in  closing,  Mr.  Chairman,  thank 
you,  once  again  for  having  this  hearing.  I  think  it  is  timely  and 
very,  very  important.  And  I  would  like  to  urge,  urge  the  Congress 
of  the  United  States  and  the  President  not  to  put  our  troops  on  the 
Golan  Heights. 

Support  the  peace  process.  We  should  do  that.  We  should  support 
every  avenue  and  make  sure  every  avenue  is  explored.  But  do  not 
put  our  troops  in  harm's  way  like  we  did  in  the  early  1980's  in  Bei- 
rut, because  I  believe  we  will  reap  the  whirlwind  and  a  lot  of  them 
will  be  killed,  that  is  No.  1;  and,  finally,  No.  2,  I  do  not  believe  at 
this  time  we  should  be  giving  $500  million  to  the  PLO  when  they 
have  adequate  resources  to  do  the  job  that  they  want  to  have  done. 

And  that  does  not  mean  in  any  way  that  I  oppose  the  peace  proc- 
ess. I  strongly  support  it.  And  my  predecessor  at  this  microphone 
said  that  we  were  taking  one  side  or  the  other  in  the  governmental 
conflict  in  Israel.  I  do  not  believe  Likud  and  I  do  not  believe  Labor 
are  against  the  peace  process.  They  just  have  different  approaches 
to  solving  this  problem. 

And  so  with  that,  Mr.  Chairman,  thank  you  once  again.  I  appre- 
ciate you  putting  me  on  the  schedule  early  so  I  could  get  to  the 
floor. 

[The  prepared  statement  of  Mr.  Burton  appears  in  the  appendix.] 

Chairman  GlLMAN.  Thank  you,  Mr.  Burton. 

I  am  going  to  ask  our  panelists,  if  they  would,  stay  as  long  as 
you  can  so  that  our  colleagues  may  be  able  to  ask  questions  of  you. 

Mr.  Burton.  Mr.  Chairman,  may  I  submit  the  rest  of  my  state- 
ment for  the  record? 

Chairman  GlLMAN.  Yes,  your  statement  will  be  accepted  for  the 
record  without  objection. 

Mr.  Lantos. 

STATEMENT  OF  HON.  TOM  LANTOS,  A  REPRESENTATIVE  IN 
CONGRESS  FROM  THE  STATE  OF  CALIFORNIA 

Mr.  Lantos.  Thank  you  very  much,  Mr.  Chairman.  I  want  to 
commend  you  for  holding  this  hearing  and  for  your  long-standing 
leadership  on  this  issue. 

Mr.  Chairman,  I  would  like  to  begin  by  setting  the  framework  for 
my  testimony.  As  you  and  some  of  my  colleagues  know,  I  am  the 
only  survivor  of  the  Holocaust  ever  elected  to  Congress,  and  I  take 
the  subject  of  Israel's  safety  and  future  extremely  seriously. 

I  have  visited  Israel  on  more  than  four  dozen  occasions  beginning 
with  1956.  And  during  my  most  recent  visit,  I  had  the  opportunity 
for  long,  private  meetings  in  the  region  with  Mr.  Asad,  Mr.  Arafat, 
Mr.  Mubarak,  the  Jordanian  and  Saudi  leadership,  the  Sultan  of 
Oman,  and  of  course  the  Israeli  leadership  on  both  sides  of  the  po- 
litical fence. 

So  I  speak  as  a  friend  of  Israel.  But  I  want  to  approach  this  sub- 
ject from  the  vantage  point,  which  is  the  only  proper  vantage  point 


9 

for  us;  namely,  the  United  States  foreign  policy  and  national  secu- 
rity interests. 

I  stipulate  at  the  outset,  Mr.  Chairman,  that  the  criticisms  that 
we  have  heard  and  the  criticisms  that  we  will  hear  concerning  Mr. 
Arafat,  the  PLO,  and  others  are  most  likely  to  be  fully  accurate. 
It  is  very  difficult  not  to  recognize  the  enormous  shortcomings  of 
the  PLO  side  in  this  development. 

Having  said  that,  however,  I  find  it  inconceivable  and 
mindboggling  that  serious  people  would  take  the  position  of  opposi- 
tion to  the  peace  process.  The  peace  process  has  already  brought 
enormous  benefits.  The  peace  with  Jordan  is  a  major  breakthrough. 
Relinquishing  control  over  Gaza  has  been  an  enormous  benefit  to 
the  State  of  Israel.  Subsidiary  benefits  of  establishing  diplomatic 
and  commercial  and  economic  relations  with  a  tremendous  range  of 
countries  across  the  globe  as  a  result  of  the  peace  process  can  be 
invaluable  in  the  future  and  are  immeasurably  helpful  to  date. 

The  peace  process,  Mr.  Chairman,  must  continue.  It  is  easy  at  a 
time  when  we  are  looking  at  the  past  to  conclude  that  it  is  incon- 
ceivable to  move  in  the  direction  of  peace. 

Germany  and  France  had  warfare  stretching  over  generations, 
culminating  in  the  most  horrendous  war  of  history  in  the  Second 
World  War.  Yet  Germany  and  France  today  are  fully  integrated  po- 
litically, economically,  culturally,  and  socially. 

I  have  no  such  illusions  with  respect  to  the  Middle  East.  It  will 
take  many  generations  before  comparable  developments  can 
emerge. 

But  it  is  self-evident  that  the  leadership  of  the  State  of  Israel, 
represented  by  Mr.  Rabin — who  has  devoted  a  lifetime,  a  lifetime 
to  the  protection  and  building  of  his  country — is  fully  conscious  of 
all  the  dangers,  all  of  the  problems  and  all  of  the  difficulties  that 
lie  along  the  way  of  the  process  of  the  peace  negotiations. 

If  there  is  anything  I  find  objectionable — because  I  presume  ev- 
erybody coming  to  this  table  comes  with  good  intentions — it  is  the 
virulent  attacks  against  individuals  who  have  devoted  a  lifetime  to 
building  the  State  of  Israel  and  to  making  it  safe  and  secure. 

I  have  never  hesitated  to  take  a  position  contrary  to  this  admin- 
istration. I  have  taken  a  position  contrary  to  this  administration  on 
a  broad  range  of  issues  ranging  from  NAFTA  to  my  resolution 
passed  by  the  Congress  unanimously  of  issuing  a  visa  to  the  Presi- 
dent of  Taiwan. 

But  I  must  say  that  in  this  case,  the  Clinton  administration  is 
pursuing  the  right  policy,  the  only  rational  policy,  the  only  policy 
which  is  in  the  interests  of  the  United  States,  in  the  interests  of 
the  State  of  Israel,  and  all  elements  in  the  Middle  East  that  are 
committed  to  a  constructive  and  peaceful  development. 

And  I  want  to  conclude  by  giving  my  full  and  unqualified  support 
to  the  administration  in  its  pursuit  of  supporting  the  peace  process. 

Thank  you,  Mr.  Chairman. 

Chairman  GlLMAN.  Thank  you,  Mr.  Lantos. 

Mr.  Forbes. 


10 

STATEMENT  OF  HON.  MICHAEL  FORBES,  A  REPRESENTATIVE 
IN  CONGRESS  FROM  THE  STATE  OF  NEW  YORK 

Mr.  FORBES.  Mr.  Chairman,  thank  you  very  much  for  this  oppor- 
tunity. 

Before  I  begin  my  testimony,  I  would  like  the  opportunity  to  ask 
the  committee's  indulgence  to  revise  and  extend  my  remarks. 

And  given  the  shortness  in  which  we  were  able  to  pull  together 
testimony  for  this  hearing,  if  the  committee  would  indulge  us  and 
allow  the  record  to  remain  open  for  14  days  to  include  additional 
materials,  I  would  be  most  appreciative. 

Chairman  Gilman.  Without  objection. 

Mr.  Forbes.  Thank  you. 

Mr.  Chairman,  thank  you  very  much  for  allowing  me  this  oppor- 
tunity today  to  address  this  committee;  and  I  certainly  know  of  the 
chairman's  and  many  members  of  this  committee's  stalwart  sup- 
port for  Israel  and  for  a  stable  and  lasting  peace  in  the  Middle 
East,  no  question  about  it. 

I  would  like  to  be  aligned  with  my  colleagues  who  believe,  I  think 
unanimously,  that  none  of  us  wants  to  see  this  peace  process  bro- 
ken apart  whatsoever.  As  a  matter  of  fact  I  think  that  we  certainly 
embrace  the  efforts  to  build  for  a  lasting  peace  in  the  Middle  East. 

As  many  of  you  know,  I  have  had  an  intense  interest  in  the  Mid- 
dle East  for  many  years,  and  I  am  certainly  a  staunch  supporter 
of  our  ally,  Israel. 

Mr.  Chairman,  I,  like  so  many  other  Americans,  was  encouraged 
2  years  ago  with  the  signing  of  the  Oslo  accords.  The  long  struggle 
for  peace  in  this  troubled  region  was  certainly  a  breakthrough;  and 
despite  a  lifetime  of  mistrust  of  the  PLO  and  the  revulsion  toward 
too  many  of  their  terrorists  tactics,  I  originally  supported  the  Clin- 
ton administration's  promise  of  United  States  assistance  to  the  Pal- 
estinians. 

But,  Mr.  Chairman,  most  of  us  were  under  the  impression  that 
the  PLO  would,  indeed,  make  an  effort  to  meet  at  least  a  minimum 
standard  of  behavior  before  aid  would  start  flowing. 

Unfortunately,  I  am  compelled  to  be  here  today  because  I  do  not 
believe  that  this  has  been  the  case. 

A  minimum  standard  should  be  the  tenets  of  the  Oslo  accords 
themselves  in  which  the  PLO  did  make  a  number  of  pledges,  none 
of  which  has  been  met. 

It  is  an  open  secret  that  the  PLO  is  systematically  violating  the 
accords,  Mr.  Chairman  and  members  of  this  committee;  yet,  U.S. 
taxpayer  money  continues  to  flow,  much  of  it  directly  to  Arafat  and 
his  cronies.  And  I  would  like  to  reference  and  include  in  the  com- 
mittee hearing  record  an  article  by  the  syndicated  columnist  Cal 
Thomas. 

[The  article  follows:] 


11 


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12 

Mr.  Forbes.  I  cannot  explain  to  my  constituents,  and  I  certainly 
have  trouble  watching  as  an  unrepentant  enemy  of  Israel  gets  built 
up  with  taxpayer  money  and  continues  to  pose  a  potential  threat 
to  our  ally. 

Thus  I,  along  with  my  distinguished  colleagues,  Tom  DeLay,  Jim 
Saxton,  Cliff  Stearns,  Rob  Andrews,  and  several  others  have  intro- 
duced H.R,  1960,  the  Middle  East  Peace  Compliance  Act,  which  has 
been  introduced  in  the  U.S.  Senate  by  Senator  D'Amato  as  S.  915. 

H.R.  1960  would  suspend  all  aid  to  the  Palestinians  until  they, 
in  fact,  do  comply  with  the  provisions  of  the  Oslo  accords. 

Among  other  items,  Mr.  Chairman,  this  would  require  that  the 
PLO  amended  its  charter  to  delete  the  provisions  calling  for  the  de- 
struction of  Israel;  they  must  cease  support  for  terrorist  organiza- 
tions, such  as  Hamas  and  Islamic  Jihad;  prosecute  terrorists  fully; 
and  cease  support  for  the  arms  struggle  against  Israel. 

These  are  base  components  so  necessary  to  any  lasting  peace  in 
the  Middle  East. 

If  I  might,  Mr.  Chairman,  let  me  make  clear  that  compliance 
would  still  not  allow  for  money  to  be  channeled  directly  to  the  PLO 
or  any  of  their  affiliates. 

I  think  it  is  clear  that  our  experience  with  government-to-govern- 
ment aid  around  the  world  has  not  been  a  good  one,  and  the  evi- 
dence that  the  PLO  has  diverted  and  misused  our  funds  is  cer- 
tainly quite  strong. 

On  that  topic,  I  would  submit  for  the  record  an  August  14  article 
that  was  in  Insight  magazine  which  documents  these  diversions  of 
U.S.  aid  citing  internal  PLO  documents  and,  as  Mr.  Burton  pre- 
viously referred,  British  intelligence  reports. 

[The  article  follows:] 


13 


World:  Mideast 


PLO  Misuses 
U.S.  Dollars 


By  Jamie  Dertmer 


Secret  documents  reveal  that  the 
PLO  chairman  has  redirected 
millions  in  international  funds. 

Evidence  that  Palestine  Liberation 
Organization  Chairman  Yasser 
Arafat  allegedly  has  used  millions 
of  dollars  in  international  and  US. 
aid  to  fund  clandestine  political  oper- 
ations in  Israel  has  been  obtained  by 
Insight. 

Copies  of  Palestinian  Authority 
correspondence  show  that  PECDAR, 
the  Palestinian  Economic  Council  for 
Development  and  Reconstruction,  a 
body  almost  completely  funded  by 
international  donors  including  the 
United  States,  has  apparently  on  the 
instructions  of  Arafat  secretly  pur- 
chased large  amounts  of  real  estate  in 
Jerusalem  in  a  bid  to  strengthen  Pales- 
tinian claims  to  the  city. 

The  documents  also  purport  to 
show  that  PECDAR  funds  have  been 
used  to  reward  Arafat's  cronies  and 
relatives,  including  his  mother-in-law, 
and  they  indicate  that  Arafat,  presi- 
dent of  the  new  Palestinian  Authority 
in  Gaza  and  the  West  Bank,  has  been 
determined  to  use  international  aid  to 
strengthen  political  allies  at  the 
expense  of  Palestinians  who  are  not 
members  of  his  al-Eatah  faction  of  the 
PLO. 

The  United  States  donated  $100 
million  last  fall  to  the  Palestinian 
Authority  on  the  understanding  that 
the  money  would  be  used  only  to  devel- 
op the  economies  of  the  squalid  Gaza 
and  West  Bank.  Republicans  in  Con- 
gress are  expressing  alarm  at  the 
increasing  reports  of  Arafat's  misuse 
of  international  donations. 

Rep.  Jim  Saxton,  a  New  Jersey 
Republican  who  has  secured  his  own 
copies  of  PECDAR  correspondence, 
condemns  Arafat's  diversion  of  aid 
from  the  United  States  and  the  Euro- 
pean Union  to  "projects  in  direct  vio- 
lation of  the  peace  agreements"  with 
Israel.  Saxton  is  seeking  a  freeze  on 
further  U.S.  donations  to  the  fledgling 

August  14,  1995 


Palestinian  regime  —  nearly  $500  mil- 
lion has  been  earmarked  by  the  Clin- 
ton administration,  with  $100  million 
to  go  by  Aug.  15.  "I  believe  that  before 
we  spend  another  dollar  on  aid  to  the 
PLO,  we  need  certain  questions 
answered  —  namely,  how  much  of  our 
aid  money  is  being  used  to  advance  the 
condition  of  the  Palestinians  and  how 
much  is  being  used  to  fund  the  pet  pro- 
jects of  Arafat?"  says  Saxton. 

Sen.  Alfonse  D'Amato  and  Rep. 
Michael  Forbes,  both  New  York 
Republicans,  have  introduced  legisla- 
tion that  would  cut  off  further  US.  for- 
eign aid  unless  certain  stringent  con- 
ditions are  met. 

Rep.  Benjamin  Gilman,  a  New  York 
Republican  and  chairman  of  the 
House  International  Relations  Com- 
mittee, also  has  cast  doubt  on  whether 
the  PLO,  which  governs  the  Palestin- 
ian Authority,  needs  massive  interna- 
tional aid.  Prompted  by  a  British  intel- 
ligence assessment  that  the  PLO  has 
assets  worth  $8  billion  to  $10  billion 
and  annual  revenues  of  up  to  $2  billion, 
Gilman  last  May  requested  a  General 
Accounting  Office  analysis  of  PLO 
finances.  The  GAO  report  was  com- 
pleted in  June,  but  in  a  highly  unusu- 
al move  the  CIA  insisted  that  the  doc- 
ument be  classified.  U.S.  intelligence 
sources  tell  Insight  that  the  analysis 
basically  confirms  the  British  find- 
ings. Gilman  has  written  to  the  GAO 
comptroller  general  demanding  that 
the  report  be  published. 

The  internal  documents 
of  the  Palestinian  Author- 
ity secured  by  Insight  con- 
sist of  correspondence  be- 
tween Arafat's  minister  of 
finance,  Muhammad  Zuhdi 
Alnashashibi,  and  the 
PECDAR  chairman.  The 
letters  were  written  last 
summer  and  fall,  after  the 
international  aid  started  to 
flow. 

One  letter  from  Alna- 
shashibi which,  like  all  the 
others,   is   marked   "Top 
Secret"  and  "Not  to  be  Read 
without  the  Permission  of  the 
President,"  lists  building  a 
PLO  presence  in  "holy  Je- 
rusalem" as  a  high  priority 
and  informs  the  PECDAR 
chairman  that  Arafat  wants  to 
set  up  a  land  corporation 
there  with  an  initial  capital 
outlay  of  $15  million.  The  cor- 
poration's activities  must  not 
be  traced  back  to  the  Palestin- 
ian Authority,  cautions  Alna- 
shashibi. He  writes:  "We  stress 
that  it  is  the  desire  of  the  com- 


rade leader  Abu  Amar  [Arafat]  that 
the  meetings  of  this  group  should  be 
held  secretly  and  its  activities  should 
not  be  noticed  and  it  should  keep  its 
documents  and  registries  away  from 
the  other  party  [Israel] " 

PECDAR  correspondence  also 
shows  that  $20  million  was  funneled 
secretly  to  fund  covert  political  activ- 
ities inside  Israel,  including  the  financ- 
ing of  politicaJ  parties  and  re-equip- 
ping a  Palestinian  newspaper,  the 
Journal  of  the  Return.  A  further  $12 
million  was  allocated  on  the  orders  of 
Arafat  for  purchasing  apartments  in 
Jerusalem.  These  were  to  be  given  to 
Arafat's  al-Fatah  loyalists. 

Throughout  the  correspondence 
Alnashashibi  stresses  the  importance 
of  keeping  money  transfers  secret;  the 
PECDAR  chairman  is  keen  to  reassure 
his  boss  on  that  front.  In  one  letter,  the 
finance  minister  warns,  "The  activities 
should  not  be  noticed  by  the  public  and 
they  should  be  far  and  away  from  jour- 
nalists and  statesmen."  The  PECDAR 
chairman  writes:  "The  method  of 
transfer  of  the  amount  is  sophisticat- 
ed and  convincing.  The  other  party 
[Israel]  will  never  be  able  to  discover 
the  way  and  method  whereby  the 
transfer  is  effected." 

The  documents  also  show  that 
Arafat  would  like  all  PECDAR- 
financed  enterprises  to  be  staffed  with 
"the  faithful  and  reliable  elements 
from  among  the  cadre  of  Fatah."      • 


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Correspondence  indicates  that  Arafat  is  cheating. 
Insight  •  1 1 


14 

Mr.  Forbes.  While  some  people  might  dispute  these  accusations, 
Mr.  Chairman,  what  is  indisputable  is  that  the  PLO  has  kept  vir- 
tually none  of  the  promises  that  it  made  in  the  Oslo  accords. 

To  my  mind,  it  is  nothing  short  of  scandalous  that  U.S.  taxpayer 
moneys  would  continue  to  flow  to  Arafat  and  his  anti-Israel  allies 
under  these  circumstances. 

The  administration  insists  on  sweeping  all  of  this,  it  seems, 
under  the  rug,  most  blatantly  by  classifying  the  recent  GAO  report 
that  reportedly  confirms  some  of  our  worst  fears  about  PLO  behav- 
ior. I  would  ask  that  the  committee  press  for  an  immediate  release 
of  this  document. 

Therefore,  Mr.  Chairman,  it  devolves  to  us  in  Congress  to  stand 
up  on  behalf  of  the  American  taxpayer  and  our  Israel  friends. 
Enough  truly  is  enough.  The  PLO  must  live  by  some  of  these  rules 
if  it  wants  to  join  the  international  community  and  receive  Amer- 
ican taxpayer  support  to  build  its  infrastructure  and  to  help  build 
a  lasting  peace  in  the  Middle  East. 

I  would  respectfully  request,  Mr.  Chairman,  that  the  committee 
give  H.R.  1960  its  full  consideration. 

I  thank  the  committee  and,  Mr.  Chairman,  yourself  for  your  in- 
dulgence. 

Chairman  GlLMAN.  Thank  you,  Mr.  Forbes,  for  your  statement. 

Mr.  Saxton. 

STATEMENT  OF  HON.  JAMES  SAXTON,  A  REPRESENTATIVE  IN 
CONGRESS  FROM  THE  STATE  OF  NEW  JERSEY 

Mr.  Saxton.  Mr.  Chairman,  along  with  the  other  members  who 
have  appeared  this  morning,  I  want  to  thank  you  for  giving  us  the 
opportunity  to  conduct  this  public  dialog  on  the  objective  and  goal 
that  we  all  share;  and,  of  course,  that  is  a  true  and  lasting  peace. 

As  I  sat  and  listened  to  my  good  friend  Mr.  Lantos'  testimony 
here  this  morning,  my  mind  went  back  a  year  or  so  to  a  time  when 
Mr.  Lantos  and  I  and,  I  think,  you,  Mr.  Chairman,  and  probably 
Mr.  Deutsch,  and  others  had  the  opportunity  to  have  lunch  with 
President  Mubarak  of  Egypt.  And  we  discussed  at  great  length  at 
that  luncheon,  as  you  will  remember,  the  peace  process;  and  he  put 
it  in  a  very  different  context  than  I  had  thought  of  before. 

He  put  it  in  the  context — he  used  an  example,  a  metaphor,  I 
guess,  and  said  that  the  peace  process  is  like  a  giant  rolling  stone 
and  that  it  started  rolling  many  years  ago  and  that  sometimes  it 
rolls  fast  and  sometimes  it  rolls  slow.  We  went  through  Camp 
David,  and  we  have  been  through  bad  times;  and  with  the  signing 
of  the  peace  accords  by  Mr.  Arafat  and  Prime  Minister  Rabin,  it 
was  thought  that  this  was  a  good  time  and  that  the  stone  was  roll- 
ing faster. 

So  the  question  to  Mr.  Mubarak — and  I  think  this  is  an  excellent 
perspective  within  which  we  can  deal  with  it  is — is  that  the  peace 
process  is  moving  forward.  Sometimes  we  like  it,  sometimes  we  do 
not.  It  has  problems  with  it,  but  it  will  move  forward.  And  it  is  all 
of  our  responsibilities  to  see  that  it  does  so  in  the  most  expeditious 
way  so  that  we  arrive  at  our  final  objective;  and  that,  of  course,  is 
a  true  and  lasting  peace  for  all  of  the  parties  in  the  Middle  East, 
which  is  also,  I  might  note — needless  to  say  to  you,  Mr.  Chairman, 


15 

and  the  other  members  of  this  committee — very  much  in  our  na- 
tional interest  to  share  in  that  objective. 

And  so  with  that  perspective,  I  think  it  is  fair  to  say,  make  no 
mistake  about  it,  there  are  going  to  be  good  times  and  bad.  And 
that  when  we  recognize  bad  times  and  things  that  are  not  going 
correctly  to  keep  that  stone  moving  at  an  adequate  pace,  that  it 
seems  to  me  that  inasmuch  as  we  have  chosen  to  be,  as  a  country, 
involved  in  this  process,  it  is  our  responsibility  not  to  look  the  other 
way  when  things  go  wrong,  but  quite  to  the  contrary  to  try  to  help 
smooth  the  road  and  to  keep  the  process  moving  in  the  right  direc- 
tion so  that  we  do  achieve  our  ultimate  objective. 

This  is  not  an  emotional  issue  as  some  would  make  it,  or  it 
should  not  be,  at  least.  And  it  is  an  issue  where  we  should  recog- 
nize that  those  people  who  make  this  process  work  are  the  people 
who  are  mostly  in  the  middle.  In  other  words,  they  are  not  the  rad- 
ical forces  of  the  Palestinian  movement  and  the  Hamas  movement 
and  the  Islamic  Jihad  movement. 

And,  on  the  other  hand,  it  is  not  the  far  right  folks  who  would 
have  the  process  stopped,  if  there  are  such  folks.  It  is  the  people 
in  the  middle.  Those  are  the  people  that  we  have  to  deal  with. 

And  I  might  say  that  all  sides  of  this  process  have  a  responsibil- 
ity or  a  set  of  responsibilities.  The  Israelis  have  responsibilities. 
And,  of  course,  the  Palestinians,  Mr.  Arafat,  and  the  PLO  have  re- 
sponsibilities. 

And  the  question  is:  When  are  those  responsibilities  met?  And 
when  are  they  not? 

And  I  think  there  are  two  very  basic  questions  that  we  need  to 
ask  ourselves  and  look  at  in  terms  of  evaluating  where  we  are  cur- 
rently in  the  process. 

One  question  is:  What  has  happened  to  the  money  that  we  have 
sent  to  the  PLO?  Has  it  been  used  according  to  the  provisions  of 
the  accords?  Or  has  it  not? 

And  the  second  question  is:  Has  the  PLO  lived  up  to  the  commit- 
ments so  far — maybe  I  should  not  say  the  PLO — have  the  parties 
to  the  accord  lived  up  to  the  commitments  that  they  made  in  sign- 
ing those  papers? 

The  first  question,  I  think,  begs  an  answer  which  all  of  us  have 
tried  to  look  at  as  the  process  has  moved  forward. 

And  of  course,  I  guess  it  is  also  important  to  say  here  that  when 
the  accords  were  signed  and  the  PLO  was  promised  a  certain 
amount  of  money  from  the  American  coffers  that  it  was  to  be  used 
for  a  specific  purpose  and  that  was  to  help  the  Palestinian  people 
increase  their  lot  collectively  so  that  they  would  have  a  better  life- 
style. 

And  I  think  that  it  is  fair  to  say  that  there  has  been  ample  evi- 
dence that  has  emerged  that  says  that  that  is,  perhaps,  not  the 
case. 

Chairman  Gilman.  The  gentleman's  time  has  almost  ended. 
Would  the  gentleman  try  to  wind  up? 

Mr.  Saxton.  I  will  certainly  try  to  wrap  this  up  quickly. 

We  know  that  through  certain  papers  that  were  obtained  from 
the  Palestinian  Economic  Council  for  Development  Reconstruction 
that — and  I  will  submit  those  papers  for  the  record,  Mr.  Chairman, 
so  that  I  do  not  need  to  talk  about  them. 


16 

Chairman  Gilman.  Without  objection. 

[Information  not  submitted.] 

Mr.  Saxton  [continuing].  That  has  not  been  the  case,  that  mon- 
eys have  been  diverted  for  purposes  unintended. 

And  we  also  know  that  the  PLO  has  failed,  in  many  instances, 
to  live  up  to  the  commitments  they  have  made  vis-a-vis  terrorism 
and  other  issues  that  are  related  to  that. 

So,  yes,  I  have  cosponsored  Mr.  Forbes'  bill;  and  I  have  also  co- 
sponsored  a  bill  by  Mr.  Engel.  And  I  hope  that  the  committee  will 
take  seriously  those  efforts  and  provide  some  kind  of  legislation  to 
help  us  through  what  I  view  is  a  bad  time  in  this  process. 

[The  prepared  statement  of  Mr.  Saxton  appears  in  the  appendix.] 

Chairman  Gilman.  We  thank  the  gentleman  for  taking  the  time 
to  appear. 

Mr.  Deutsch. 

STATEMENT  OF  HON.  PETER  DEUTSCH,  A  REPRESENTATIVE 
IN  CONGRESS  FROM  THE  STATE  OF  FLORIDA 

Mr.  Deutsch.  Thank  you,  Mr.  Chairman.  And  I  appreciate  the 
opportunity  to  be  here  to  testify  and  also  to  be  back  at  the  Inter- 
national Relations  Committee. 

I  also  would  ask,  without  objection,  that  a  statement  that  I  have 
be  submitted  for  the  record  so  I  can  summarize  that  statement. 

Chairman  GlLMAN.  Without  objection. 

Mr.  Deutsch.  And  I  would  also  ask  that — a  number  of  video 
tapes  and  transcripts  of  the  video  tapes,  which  I  will  talk  about  in 
a  couple  of  minutes,  could  also  be  submitted  to  the  record? 

Chairman  GlLMAN.  Without  objection. 

If  you  will  please,  though,  identify  the  tapes,  the  date,  and  place, 
et  cetera. 

[The  material  follows:] 


17 


B 


[1] 
Speeches  of  Yassir  Arafat 

in  Gaza:  June-July,  1995 

[2] 

For  Peace  Education,  Ltd 

tel  03-695-6868 

fax  03-695-0132 

[3] 

eulogy  given  by  Arafat 

on  June  15,  1995 

[4] 

for  Abd  Al  Karim 

A1  Aqluq 

[5] 

the  head  of 

PLO  censorship  division 

[6] 

one  of  the  veterans 

of  the  Fatah  on  the  fortieth  day 

[7] 

since  his  death 

Gaza  19.6.95 

[8] 

Yassir  Arafat, 

[9] 

a  ceremony  was  held  this  evening 

at  University  Al  Azhar  in  Gaza 

[10] 

to  mark  the  40th  day  of 

the  death  of  the  heroic  fighter 

[11] 

Abd  Al  Karim 

Al  Aqluq 

[12] 

the  man  who  headed 

the  censorship  office 

[13] 

at  the  Palestine  National 

Authority. 

[14] 

President  Arafat  delivered 

a  eulogy  in  which  he  said: 

[15] 

we  are  all  seekers  of  martyrdom 

in  the  path  of  truth  and  right 

[16] 

toward  Jerusalem  the  capital 

of  the  State  of  Palestine. 

[17] 

the  president  added: 

the  commitment  stands 

[18] 

and  the  oath  is  firm  to  continue 

this  long  and  ardous  jihad 

[19] 

in  the  path  of  martyrdom 

the  path  of  sacrifices, 

[20] 


18 


victory  1  glory,  not  only 
for  our  Palestinian  people 

[21] 

but  for  our  entire  Arab 

and  Islamic  nation, 

[22] 

until  a  Palestinian  child 

shall  raise  the  Palestinian  flag 

[23] 

over  the  walls  of  Jerusalem 

her  mosques  and  churches. 

[24] 

"in  the  name  of  Allah 

the  all -merciful" 

[25] 

Allah  has  acquired  from  the 

believers 

[26] 

their  souls  &  posessions, 

for  they  will  have  paradise" 

[27] 

my  sister,  Um-Al-Abd 

[28] 

my  brother,  my  comrades  in  this 

long  road, 

[29] 

verily  we  all  are  in  the 

quest  of  the  martyrdom, 

[30] 

in  the  path  of  truth  &  right 

the  path  of  this  sacred  cause, 

[31] 

the  path  of  Jerusalem  the  capital 

of  the  state  of  Palestine. 

[32] 

yes,  my  brothers,  the  dowry 

of  Palestine  is  high 

[33] 

and  this  people 

is  a  people  of  giants. 

[34] 

Allah  the  exalted  and  almighty 

has  granted  this  nation  his  grace 

[35] 

as  it  says  (in  Quran), 

"and  they  will  stand 

[36] 

on  the  frontlines  until 

the  judgement  day" 

[37] 

words  are  too  few  here 

in  the  spirit 

[38] 

except  for  the  fundamental 

commitment 

[39] 

that  commitment  and  oath 

that  we  have  all  made: 


19 


[40] 

the  commitment  still  stands 

and  the  oath  is  firm 

[41] 

to  continue  this  difficult 

Jihad,  in  this  long  Jihad, 

[42] 

in  this  arduous  Jihad, 

in  the  path  of  martyrs, 

[43] 

the  path  of  sacrifices, 

[44] 

but  this  is  a  path 

of  victory  and  glory 

[45] 

not  only  for 

our  Palestinian  people 

[46] 

but  also  for  our  Arab 

and  Islamic  nation. 

[47] 

to  Islamic  women's  assn 

in  Gaza 

June  18,  1995 

[48] 

in  which  arafat  praises 

Abir  wahidi,  that  murdered 

Zvi  Klein  in  1991 

[49] 

and  Dalai  Maghribi, 

who  participated  in  the  1978 

bus  attack  on  the  coastal  road. 

[50] 

you  heard  from  Nabil  Sha'ath 

[51] 

he  spoke  with  Shachal, 

the  minister  of  police 

[52] 

about  the  sisters 

(who  are  still  prisoner  women) 

[53] 

and  among  them  Abir  Wahidi. 

[54] 

Shachal  said:  Abir?  She  is 

the  most  dangerous  of  them  all  - 

[55] 

a  real  man  even  more 

than  men,  because 

[56] 

we  will  not  forget  how  she  led 

the  attack  with  her  machine  gun. 

[57] 

and  truthfully  don't  forget 

that  she  is  the  military  commander 

[58] 

of  the  central  region. 

[59] 

that  is  Abir  Wahidi. 


20 


[60] 

Dalai  Magribi,  the  commander, 

the  star  from  among  the  heroes 

[61] 

who  carried  out  the  landing 

operation  on  the  coast. 

[62] 

she  was  the  commander 

of  the  squad  that  pioneered 

[63] 

the  first  Palestinian  republic 

[64] 

on  that  bus!!  On  that  bus!! 

[65] 

This  is  the  Palestinian  Woman, 

with  all  its  meanings 

t66]   , 

and  implications.  The  woman 

that  we  are  proud  of  and  take  pride 

[67] 

in  and  compete  with  her  glory 

with  other  nations 

[68] 

and  people  of  the  world. 

[69] 

at  the  "Popular  Struggle  Front" 

(APLO  faction) 

[70] 

on  the  occaision 

of  its  28th  anniversary. 

June  19,  1995 

[71] 

together  with  us 

[72] 

Also  to  our  true  martyrs 

and  to  our  prisoners 

[73] 

and  to  our  wounded. 

[74] 

Our  commitment  stands 

and  our  oath  is  firm 

[75] 

to  continue  in  this  path 

despite  trials  and  tribulations 

[76] 

and  di asters, 

[77] 

until  a  Palestinian  boy 

or  Palestinian  girl 

[78] 

those  whom  I  called 

the  "new  generals" 

[79] 

that  is  how  we  called  them? 

And  why?? 

[80] 

because  they  have  defeated  the 

Israeli  generals  in  seven  years. 


21 


[81] 

until  the  Palestinian  boy  or 

Palestinian  girl  will 

[82] 

truly  wave  the  Palestinian  flag 

on  the  walls  of  Jerusalem 

[83] 

on  her  mosques 

and  her  churches. 

[84] 

They  see  it  as  distant 

and  we  see  it  as  imminent, 

[85] 

and  verily 

we  are  right. 

[86] 

"and  they  will  enter 

the  mosque  (Al  Aqsa) 

[87] 

"and  they  will  enter 

the  mosque  (Al  Aqsa) 

[88] 

as  they  have  entered  it  the 

first  time"  (quoting  the  Quran) 

[89] 

"Allah,  Allah  will  not  break 

his  promise" 

[90] 

will  not  break 

his  promise 

[91] 

that  promise  that  was  given 

to  us,  God  will ing 

[92] 

that  Jerusalem  is  the  capital 

of  the  Palestinian  state 

[93] 

whether  someone  likes  it 

or  not 

[94] 

and  as  far  as  those 

who  do  not  like  it 

[95] 

they  can  drink 

from  the  waters  of  gaza... 

[96] 

if  any  of  you  have  reservations 

about  the  oslo  accord 

[97] 

I  have  a  thousand  reservations 

with  the  Oslo  accord. 

[98] 

I  know  that  the  road  has  been 

long  and  hard,  my  brothers, 

[99] 

but  I  say  to  our  prisoners, 

[100] 

and  especially  to  their  prince, 


22 


Sheik  Ahmad  Yasin 

[101] 

I  am  saying  this, 

ny  friends 

[102] 

the  late  mayor  of  nazareth 

Taufiq  Ziyad 

[103] 

that  was  given  at 

Al  Azhar  University 

on  July  16,  1995 

[104] 

yes  the  holy  Palestinian  stone 

[105] 

with  the  holy  Palestinian  stone 

seven  years,  seven  years, 

[106] 

blessings,  seven  years,  Intifada 

seven  years,  Intifada, 

[107] 

the  Palestinian  general 

was  victorious, 

[108] 

the  Palestinian  general 

was  victorious, 

[109] 

the  Palestinian  generals, 

the  Palestinian  generaals, 

[110] 

they  beat 

the  Israeli  generals!!!! 

[HI] 

and  when,  my  brothers, 

when? 

[112] 

After  what?  After  they  thought 

that  they  had  finished 

[113] 

with  the  Palestine 

Liberation  Organization. 

[114] 

and  after  what  my  brothers? 

[115] 

after  the  siege  of  Beirut, 

and  after  the  first  massacre 

[116] 

at  Shatila  (committed) 

by  Sharon 

[117] 

and  after  the  second  Shatilla 

massacre 

[118] 

(committed)  by 

other  Sharons 

[119] 

my  brothers.  Yes  my  brothers. 

[120] 

They  thought  that  they 


23 


iad  finished 

[121] 

vith  the  Palestinian 

-evolution. 

[122] 

and  truly,  my  brothers. 

You  have  given  them  the  answer. 

[123] 

therefore,  when  we  say  Intifada 

[124] 

it  is  not  from  1967  if  we  want 

to  set  the  date  straight, 

[125] 

rather,    it  began  in  1986. 

[126] 

and  for  those  who  claim 

that  they  pioneered  the  Intifada 

[127] 

no,   those  who  began 

the  Intifada  were 

[128] 

the  sons  and  daughters 

of  the  Fatah,  brothers. 

[129] 

I  want  to  remind  you, 

my  brothers, 

[130] 

and  I  remind  you  my  brothers 

and  I  rememember  it  well, 

[131] 

that  at  the  time  Rabin  was 

he  minister  of  defence 

[132] 

and  he  was  in  Washington. 

[133] 

they  said  to  him  that 

there  is  an  Intifada, 

[134] 

there  is  an  Intifada 

and  Rabin  said,  "what  Intifada??" 

[135] 

"two  days  and  I  will  finish 

them  off" 

[136] 

"two  days,  i'll  come  back 

i '11  take  care  of  it" 

[137] 

I  answered  him: 

"You'll  have  two  days,  two  weeks 

[138] 

and  two  months  and  two  years 

and  we  are  with  you 

[139] 

and  with  all  the  time 

(that  you  need) 

[140] 

and  we  are  with  you  and  with 

all  the  time  (that  you  need) 


24 


[141] 

isn't  that  right? 

[142] 

0  mountain,  no  wind  will 
shake  thee!! 

[143] 

Therefore  I  say  to  you, 

0'  Abu  Amin  (Toufik  Zayid) 

[144] 

rest  in  peace  and  quiet 

with  the  beloved  ones. 

[145] 

the  righteous  martyrs 

in  the  high  heavens 

[146] 

with  the  prophets  and 

the  righteous  and  the  martyrs, 

[147] 

Let  them  keep  you 

in  friendly  company, 

[148] 

rest  in  peace,  Abu  Amin, 

rest  in  peace, 

[149] 

because  we  will  complete 

the  march 

[150] 

1  will  not  forget  the  words 
that  you  spoke 

[151] 

"with  my  own  eye  lids  I  will 
carve  your  path  of  return" 
[152] 

"with  my  eye  lids  I  will 
carve  your  path  of  return" 
[153] 

but  he  did  not  pave  the  path 
with  his  eyelids 
[154] 

but  he  did  pave  the  way 
with  his  flesh  and  blood, 
[155] 
and  body. 
[156] 

therefore  I  say  to  you 
again  Abu  Amin 
[157] 

rest  in  peace, 
[158] 

because  in  this  road,  in  this 
road,  in  this  road 
[159] 

we  are  marching. 
[160] 

Peace  Education  ltd 
[161] 

Calling  from  Israel 
03-695-6868 


25 


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Faxxing  from  Israel 

03-695-0132 

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Call ing  from  abroad 

972-3-695-6868 

Faxxing  from  abroad 

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26 


t1] 

The  Institute 

for  Peace  Education  Ltd. 

Tel  03-695-6868 

Fax  03-695-0132 

[2] 

Speech  by  Arafat  at  a  gathering 

at  the  University  of  Al  Azhar 

On  the  occasion  of  Arafat's 

birthday  and  the  birth 

of  his  daughter.  August  6,  1995 

[3] 

<tmarg450>President  Arafat  emphasized 

that  we  are  going  through 

[4] 
a  critical 
and  decisive  stage 
[5] 
in  which  we  are  commanded 
to  exert  every  effort  and  sweat 
[6] 
and  our  potential  m  order  to 
reach  our  ultimate  goal: 
[71 
Jerusalem. 

[8] 

This  message  was  conveyed 
at  a  festive  rally 

[9] 

that  took  place  at  the 

Sheikh  Muhammad  Awad  Hall 

[10] 

at  the  Al  Azhar  University 

last  night 

in  honor  of 

the  President's  birthday 

[12] 

and  the  occasion  of  the  birth 

of  his  daughter,  Zahwa. 

[13] 

The  rally  was  organized  by  the 

prominent  families  of  Rafah, 

[14] 

Abu  Taha,  Abu  Asi, 

Nahhal  Zu'rub. 

[15] 

At  a  speech  given  at  that 

occasion,  the  President  added 

[16] 

that  we  are  "standing 

on  the  front  line 

[17] 

"until  the  Day  of  Judgement". 

[18] 
The  Palestinian  people  have 
sacrificed  many  sacrifices 

[191 

in  order  for  the 

Palestinian  flag  to  fly 

[20] 

over  the  walls  of  Jerusalem, 

its  mosgues  and  its  churches. 

[21] 

All  of  us  shall  pray 

in  Jerusalem, 

[22] 

whether  anyone 

likes  it  or  not. 

[23] 


27 


"Tne  soul  and  the  blood  we  shall 
give  for  your  sake,  Abu'Ammar" 
[24] 
"The  soul  and  the  blood  we  shall 
give  for  your  sake,  Abu  Ammar" 
[251 
The  blood  of  the  martyrs 
of  the  Palestinian  people 
[26] 
that  did  not  stop 
for  one  moment 
[27] 
from  his  noble  sacrifice 
of  his  blood,  his  soul, 
[28] 
his  money  and  his  potential 
to  defend  this  land. 

129] 
A  Jerusalem  tradition 
has  it: 
[30] 
"There  will  always  be  a  group 
within  my  people  (The  Muslims) 
[31] 
"that  will  protect  the  faith, 


..132] 
ill 


"and  will  go  against 
its  enemy. 
[33] 
"They  will  not  be  harmed 
by  those  hostile  to  them 
134] 
"and  they  will  be  victorious 
with  the  help  of  Allah". 
[35] 
It  further  says: 
[36] 
"0  messenger  of  Allah, 
[37] 
"Who  is  this  Muslim  group 
and  where  are  they?" 
[38] 
And  the  prophet  answered: 
[39] 
"In  Jerusalem 
and  in  its  environs" 
[40] 
"In  Jerusalem 
and  in  its  environs" 
[411 
"And  they  shall  be  standing 
on  the  front  line 
[42] 
"until  the  Day  of  Judgement". 
[43] 
This  is  the  grace,  my  brothers 
that  Allah  has  bequeathed  upon  us 

[44] 
We  are  on  the  front  lines 
[45] 
until  the  the  Day 
of  Judgement 

and  it  says  more, 

my  brothers, 

[47] 

And  to  whom  did  the  messenger 

of  Allah  say  it? 

[48] 

To  Whom? 


28 


To  his  companions ! 
[491 
"And  one  martyr 
from  among  them 
[50] 
"is  worth  seventy  martyrs". 
[51] 
"And  one  martyr 
from  among  them 
[521 
is  worth  seventy  martyrs". 
[53] 
Therefore  my  brothers 
it  says: 
[541 
"They  will  stand 
on  the  front  line 
155] 
until  the  Day 
of  Judgement 
[56] 
and  we  are  on  the  front  line, 
my  brothers. 
[57] 
We  are  the  people 
of  the  front  line. 
[58] 
Therefore  my  brothers 
it  is  not  accidental, 
[591 
that  a  hundred  years  ago 
they  said 

.   [60] 

at  the  (First)  World  Zionist 

Congress  in  Basle: 

[61] 

"a  land  without  a  people 

to  a  people  without  a  homeland". 

[62] 

And  when  Golaa  Meir  was  asked 

about  the  Palestinian  people 

L63I 
she  said:  "Where  is 

the  Palestinian  people? 

[641 

"Are  there  Palestinians?" 

I  am  the  Palestinian ! " 

.[65] 

Then  came  this  agreement  (Oslo; 

with  the  good  and  bad  in  it. 

[66] 

And  if  anyone  of  you  have 

any  objection  to 

[67] 

the  Oslo  accord  - 

[68] 

well,  I  have 

a  thousand  objections. 

[69] 

But  my  brothers,  I  would  like 

to  remind  you  of  something. 

[70] 

The  prophet,  when  he  signed 

the  Hudaybiya  accord 

I  want  to  remind  you  that  he 

wanted  it  to  be  titled: 

[72] 

"In  the  name  of  Allah 

the  All-Merciful" 


29 


[73] 
but  the  tribe  of  Qoreish 
said: 
[74] 
"Stop! 
We  do  not  agree  to  that". 
[75] 
Wasn't  it  so? 
[76] 
And  it  read  also:  "Muhammad 
the  messenger  of  Allah 
[77] 
But  Qoreish  said  to  him: 
"Stop!  Who  told  you 
[78]   . 
"that  we  recognize  you 
as  the  messenger  of  Allah?" 
[79] 
So  the  prophet  instructed  All: 
"Erase  it!  Ali,  erase  it!" 
[80] 
And  put  instead: 
"Muhammad  son  of  Abdallah" 
[811 
Omar  Ibn  Al  Khattab 
rushed  to  him  saying: 
[82] 
"How  can  that  be? 

0  messenger  of  Allah?" 

[83] 
And  the  prophet  said: 
"Be  Quiet"! 
[84] 
And  wrote  with  his  noble  hand: 
"Muhammad  son  of  Abdallah" . 
[85] 
He  himself  erased  it. 
He  asked  them: 
[86] 
"Where  is  it  written? 
Muhammad  the  messenger  of  Allah?" 
[87] 
But  you  know  that  the 
noble  prophet  was  illiterate 
[88] 
He  said:  "Where  is  it  written? 
And  they  said,  "Over  here". 
[89] 
And  he  erased  it  himself. 
And  they  wrote: 
[90] 
"Muhammad  Son  of  Abdallah" . 
[91] 
And  even  more  so, 
my  brothers, 
[92] 
the  prophet  agreed  that  whoever 
comes  (from  Qoreish) 

[93] 

to  convert  to  Islam  - 

will  be  turned  back. 

[94] 

And  whoever  reneges  Islam,  they 

will  not  stand  in  his  way. 

[95] 
Isn't  it  so, 

1  am  only  reminding  you? 

,.  .  [?61  , 
I  am  not  bringing  from  my  own, 

I  am  just  reminding  you. 


21-733  O  -  96  -  2 


30 


[971 
Omar  Ibn  Al  Kattib 
called  the  agreement: 
[98] 
"The  despised  agreement", 
and  asked: 
[99] 
"How  can  we  accept  such  a 
humiliation  of  our  religion?" 
[100] 
But,  my  brothers, 
[101] 
it  xs  all  the  same  with 
the  Palestinian  people. 
[1021 
"And  they  will  stand 
in  the  front  line 
[1031 
"until  the  Day  of  Judgement." 
[104] 
There  were  days 
when  they  said: 
[105] 
"There  is  no 
Palestinian  people." 
[106] 
"The  Palestinian  people 
is  finished." 
[107]  , 
And  here  is 
the  Palestinian  people. 
[108] 
They  remain  on  this  land, 
[109] 
to  fight  on  this  land 
and  around  this  land 
[HOI 
as  it  said:  "And  they  shall 
stand  on  the  front  line 
[1111 
"until  the  Day  of  Judgement." 
[112] 
The  longest  revolution 
in  the  modern  era 
[113] 
is  the  Palestinian 
revolution. 
[114] 
The  longest  revolution, 
[115] 
the  longest  Intifada, 
seven  blessed  years. 
[116] 
Isn't  it  so,  my  brothers? 

[1171 

Am  I  bringing  something 

of  my  own? 

[118] 

I  am  just  sharpening 

your  memory.  Just  that. 

[119] 

I  am  saying  this  because  we  are 

in  the  midst  of  negotiations  now, 

[120] 

However ( 

if  the  Israelis  think 

[121] 

that  we  have  no  alternatives 

(to  negotiations)  - 

[122] 


31 


by  Allah  (I  swear) 

that  they  are  wrong. 

[123] 

The  Palestinian  people  are 

prepared  to  sacrifice 

[1241 

their  last  boy 

and  their  last  girl, 

J12V 
in  order  to  wave 

the  Palestinian  flag. 

[126] 

The  soul  and  the  blood 

[127] 

we  shall  give  for  your  sake, 

Abu  Ammar, 

[128] 

so  that  the  Palestinian 

flag  will  wave 

{1291 

over  the  walls  of  Jerusalem, 

its  mosques  and  its  churches. 

[130] 

"They  see  it  as  distant, 

[131] 

and  we  see  it  as  imminent, 

and  verily  we  are  right!" 

[1321 

"And  they  will  enter 

the  Mosque  (Al-Aqsa) 

[133] 

as  they  enterd  it  the 

first  time . " ( Qoran ) 

[1341 

"And  they  will  enter 

the  Mosque  (Al-Aqsa) 

[1351 

as  they  did  the  first  time" . 

(Qoran) 

[136] 

"Allah  will  not  break 

his  promise". 

[1371 

God  willing 

we  shall  all  pray 

[138] 

and  sit  in  Jerusalem 

like  we  do  now. 

[139] 

And  I  say  Jerusalem. 

And  I  say  Jerusalem, 

[140] 

whether  someone 

likes  it  or  not. 

[141] 

Jerusalem  the  capital 

of  the  State  of  Palestine, 

[142] 

whether  someone 

likes  it  or  not. 

[143] 

And  whoever 

doesn't  like  it  - 

[1441 

let  him  drink 

from  the  sea  of  Gaza! 

[145] 

<tmarg250>Speech  delivered  by  Arafat 

at  reception  held  in  his  honor 

in  Gaza  by  the  Turcman  Tribe 


32 


from  Jenin  area,  July  1995. 

[146] 

<tmarg450>I  want  to  tell  you  one  thing 

about  this  Palestinian  people: 

[1471. 

Despite  their  dispersion, 

[148] 
despite  the  imperialistic 
attack  on  it, 
[1491 
and  despite  the  fact  that  we 
are  fighting  100  years  now, 
[150]  m 
100  years,  is  it  not? 
[151] 
Since  the  first  Zionist 
Congress  in  Basle,  in  1897, 
[152]  . 
and  here  we  are  in  1995, 
[153] 
that  is  to  say  that  for  100  years 
we  are  now.  (fighting) 
[154] 
Therefore  we  pass  the  flag  on 
from  generation  to  generation 
[155] 
so  that  this  land  will  stay 
Arab ,  Arab ,  Arab . 
.   [156]. 
From  this  starting  point, 
we  want  your  effort, 
[157] 
your  knowledge,  your  struggle 
and  your  Jihad 
[158] 
so  that  we  can  build 
together  this  state. 
[159] 
My  brothers, 
[160] 
I  ask  of  you  further 
patience  and  perseverance 
[161] 
and  we  must  not 
"descend  from  the  mountain" 

[162] 
(we  must  not  stop  fighting) 
It  is  an  important  thing. 
[163] 
Still  we  must  not  (descend) . 
[164] 
We  should  not  act  as  in  the 
battle  of  Uhud 
[165] 
(where  Muslims  descended 
from  the  mountain ) . 
[166] 
We  are  still  in  need  of  people 
to  stay  at  the 
[167] 
"top  of  the  mountain" , 
Do  you  understand? 
[168] 
until  we  are  really  able 
to  pass  over  this  flag 
[169] 
to  our  sons, 
who  are  our  new  generals, 
[170] 
those  whom  we  are  so  proud  of. 


33 


who  for  7  years  carried 

[171] 

the  Intifada,  seven  blessed 

years  and  defeated  and  succeeded 

[172] 

in  standing  up  against  the 

strongest  army  in  the  region, 

[173] 

and  against 

the  Israeli  generals. 

[174] 

Therefore  I  say  to  you: 

Welcome: 

[175] 

And  together  as  one  man 

unto  Jerusalem,  unto  Jerusalem. . . 

[176] 
<tmarg200>Speech  given  by  Arafat 
at  a  ceremony  at  the  concluding 
program  of  summer  camp  organised 
by  the  "Directorate  of  National 
Guidance"  of  the  Ministry  of 
Education  and  Culture,  July  1995. 
[177] 
<tmarg450>"Either  martyrdom  ("Shahada"), 
or  liberation". 
[178] 
"Either  martyrdom  ("Shahada") 
or  liberation" . 
[179] 
"The  soul  and  the  blood 
we  will  give  for  your  sake, 
[180] 
"Abu  Ammar" . 
[181] 
"For  your  sake  Palestine." 
"For  your  sake  Palestine." 
[182] 
"The  soul  and  the  blood  we'll 
given  for  you  Palestine. 
[183] 
"The  soul  ana  the  blood  we'll 
give  for  you  Palestine. 
[184] 
"The  soul  and  the  blood  we'll 
give  for  you  Palestine. 
[185] 
My  loved  ones,  I  am  proud  of  you. 
I  thank  those  who  participated 
.[186] 
in  organizing  these  summer 
camps  for  the  Palestinian  youth, 
[1871 
the  generation  of  the  future. 
[1881. 
<tmarg200>The  concluding  ceremony  or 
girls  summer  camp  organized  by 
the  "Directorate  of  National 
Guidance"  of  Palestinian  Ministry 
of  Education  and  Culture. 
July  1995. 
[189] 
On  the  flag  and  emblem  of  the 
"Directorate  of  National  Guidance" 
appears  a  map  of  Palestine  that 
encompasses  the  State  of  Israel. 
[190] 
<tmarg450>The  last  item  on  this  edition: 
[191] 
The  "Directorate  of  National 


34 


Guidance"  held  a  final  ceremony 

[192]   .   - 

gathering  at  the  girls  camp 

neadguarters  at  Beit  Hanoon 

[193] 

that  featured  various  artistic 

and  cultural  performances 

[1941 

in  the  presence  of  dignitaries 

from  the  Palestinian  Authority. 

[195] 
<tmarg250>Excerpts  from  one  of 
receptions  held  in  honor  of  Arafat 
in  Gaza.  July  1995. 
[196] 
<tmarg450>"Be  blessed  Gaza  and  celebrate, 
0  Gaza  0  Gaza, 
[197] 
for  your  sons  are  returning 
after  a  long  separation. 
[198] 
0  Gaza,  0  Gaza,  0  Gaza 
[199] 
your  sons  are  returning, 

[200] 
0  Jaffa,  0  Lod,  0  Haifa, 
0  Jerusalem, 
[201] 
you  are  returning, 
you  are  returning. 
[202] 
<tmarg250>Remarks  by  Arafat,  regarding 
the  negotiations  with  Israel 
and  the  release  of  Hamas 
prisoners  in  a  speech  given  in 
Gaza,  end  of  July,  1995. 
[203] 
<tmarg450>Unity,  national  unity! 
[204] 
Yes  my  brothers,  we  have 
refused  from  the  beginning 
[205] 
this  bargaining  over 
our  prisoners, 
[206] 
and  I  made  the  famous  statement 
that  the  first  prisoner  that 
[207] 
I  demand  to  be  released 
is  the  warrior  Sheich 
[208] 
Ahmad  Yasin 
[209] 
Therefore  my  brothers,  we  have 
refused  from  the  beginning 
[210] 
and  we  will  continue  to  refuse 
to  divide  the  prisoners  into 

[211] 

categories,  for  they  are  all 

prisoners  of  Palestine, 

[212] 

prisoners  of  the  revolution, 

of  the  Palestinian  struggle 

[213] 

and  the  prisoners  of 

the  Palestinian  Intifada 

[214] 

and  the  prisoners  of  the 

Palestinian  independent  decision. 


35 


[215] 

Therefore  we  nave  refused  from 

the  start. 

[216] 

We  shall  continue  to  refuse 

to  bargain  over  any  prisoner 

or  in  any  other  way 
that  was  offered  to  us. 
[2181 
For  they  are  all,  as  far 
as  we  are  concerned, 
[219] 
prisoners  of  Palestine 
and  heroes  of  Palestine, 
[220] 
torches  of  Palestine 
and  lights  of  Palestine. 
[221] 
<tmarg200>Report  on  the  Palestinian  TV 
about  Arafat ' s  speech  at  the 
reception  ceremony  in  his  honor 
by  the  Beduin  tribe  of  Tarabin, 
in  July  1995. 
[222] 
<tmarg450>Last  night,  President  Arafat 
met  with  a  large  delegation 
[223] 
from  the  Tarabin  tribe  at  the 
Al-Azhar  University  in  Gaza. 
[224] 
They  came  to  give 
their  allegiance 
[225] 
to  the  honored  President 
and  to  emphasize 
[226]  . 
that  they  stand  behind  his  wise 
leadership  for  our  people. 
[227] 
The  President  said: 
[2281 
"Ahead  of  us  we  face  a  long, 
a  hard  and  a  fierce  battle, 
[229] 
"and  we  are  in  the  midst  of  one 
of  our  most  difficult  battles. 

[230] 
You  must  "not  descend  from  the 
mountain"  (Do  not  stop  fighting) 
[231] 
"unless  (you  reach)  Jerusalem, 
for  prayer" . 
[2321 
The  President  further  said  that 
we  still  face  serious  obstacles 
[233] 
over  the  water  issue,  and  who 
knows  what  the  situation 
[2341 
will  be  when  we  discuss  with 
them  (Israelis)  the  land  issue. 
[235] 
The  President  emphasized  that 
every  time  we  get  closer 
[236] 
to  Jerusalem,  the  plots 
(against  us)  increase 

[237] 
and  the  danger  to  us 


36 


grows 

[238] 

The  President  praised 

the  Tarabin  Tribe 

[239] 

who  took  part  in  all  the 

battles  in  defence 

[240] 

of  the  revolution 

and  the  Arab  nation, 

[241] 

and  mentioned  the  fighter 

Abir  Al-Wheidi 

[242] 

with  pride  and  admiration 

and  described  her 

as  a  heroine  and 
as  a  commander. 
[244] 
<tmarg250>The  Institute  for 
Peace  Education 
Tel.  03-695-6868 
Fax   03-695-0132 
[245] 
<tmarg450> 
[246] 

[247] 


37 


TRANSCRIPT  OF  PLO  CHAIRMAN  YASSER  ARAFAT'S 
REMARKS  AT  THE  'AL  FATAH*  GIRLS  SCHOOL 
OPENING  OF  SCHOOL  YEAR.  SEPTEMBER  3   1995 

Girls  singing:  "Our  weapon,  we  raised  it  in  our  hand.  T'was  a 
lengthy  night  of  slumber,  leader  of  the  revolution,  Abu  Amman" 

Arafat:  "Yes,  we  are  proud  of  the  Palestinian  girl,  the  Palestinian 
woman  and  the  Palestinian  child  who  fulfilled  these  miracles.  And 
I  say  this  not  at  all  out  of  flattery.  The  Palestinian  woman 
participated  in  the  Palestinian  revolution.  The  Palestinian  girl 
participated  in  the  revolution.  Abir  Al-Waheidi,  commander  of  the 
central  region  [participated  in  the  murder  of  Zvi  Klein, 
December,  1991],  Dalai  Al-Maghrabi,  Martyr  of  Palestine 
[participated  in  the  murder  of  Israeli  civilians  in  coastal  bus 
terror  attack,  March,  1978], I  bow  in  respect  and  admiration  to 
the  Palestinian  woman  who  receives  her  martyred  son  with  joyful 
cheering.        The    soul    and    blood    for    you,    O    Palestine!" 


38 


April  16  1995  speech  given  by  Yassir  Arafat 

rf:lle4        «v*?>«~ 


n\ji  1 1  id  1333  bpeei_n  given  oy  Tassir  MraTat 

at  Gaza  stadium,  10  days  after  the  Cfar  Darom/U/L*f<  A'«$^  p(o.t>^  «-.  A-«^t. 
attack,  on  the  occaision  of  the  date  that  *jfk\     ff 


marks  Abu  Jihad's  1988  assassination  at  the 
hands  of  the  IDF  in  Tunis. 

This  speech  was  reported  in  the  media  as 
a  speech  of  support  for  the  peace  process. 

"In  the  name  of  Allah  the  all  merciful, 

Allah  has  bought  from  the  believers 

their  souls  and  their  monies 

and  they  will  indeed  enter  paradise. 

They  will  fight  for  the  cause  of  Allah 

and  they  will  kill  and  they  will 

be  killed.  That  is  a  promise  of  the  truth 

in  the  Torah,  in  the  New  Testamant,  and 

in  the  Koran. 

Those  loyal  to  the  commitment  to  Allah, 

hear  the  good  news  in  giving  your  allegience 

to  those  with  whom  you  gave  your 

allegience. 

Listen  to  the  good  news. 

This  is  a  great  win. 

(THE  CROWD):  The  soul  and  the  blood  we  w?,ll 

sacrifice  for  you  0'  Arafat. 

(Arafat)  The  soul  and  the  blood  we  shall 

sacrifice  for  thee  0' Palestine. 

(Arafat)  The  soul  and  the  blood  we  shall 
sacrifice  for  thee  O'Palestine. 

(Arafat)  The  soul  and  the  blood  we  shall 
sacrifice  for  thee  O'Palestine. 

(Arafat)  The  soul  and  the  blood  we  shall 
sacrifice  for  thee  O'Palestine. 

(Arafat)  The  soul  and  the  blood  we  shall 
sacrifice  for  thee  O'Palestine. 

Yes  my  brothers  my  beloved,  my  comrades 
in  destiny 

We  look  at  you  from  Gaza  and  you  are  now 
in  the  high  heavens  with  the  highest 
of  comrades . (Abu  Jihad). 
We  look  at  you  from  the  first  Palestinian 
liberated  land  that  was  liberated. 
But  we  shall  look  at  you  as  is  destined 
by  the  oath  that  still  stands  and  by  the 
commitment  that  is  still  valid. 
(REPEATING:  "THE  OATH  IS  VALID  AND 
THE  COMMITMENT  STANDS) 
And  we  shall  look  at  you  tomorrow  sitting 
in  Jerusalem,  the  capital  of  Palestine 
When  the  prophet  made  the  peace  of  Hudybiya. 
I  remind  you  and  I  remind  all  of  our  people, 
and  our  Arab  nation  and  our  Islamic  nation 


39 


that  the  tribe  of  Qureish  objected  to 

make  any  mention  of  the  title  "messenger  of  Allah" 

and  the  noble  illiterate  prophet  said  to  scratch 

out  the  title  "messenger  of  the  Allah"  and 

instead  to  insert  the  title  "Muhammad  Ibn  Abdallah" 

Omar  Ibn  Al-Khattab  said  and  Ali  Ibn  Abi  Talib  said  ' 

"how  we  can  accept  an  accord  like  that". 

Moreover,  Omar  called  it  "the  despised  peace" 

and  asked  "how  we  can  accept  such  humiliation 

of  our  religion... 0  messenger  of  Allah" 

And  we  when  we  signed  the  accord  in  Oslo,  if  any  of  you  has 
in  objection  to  that  agreement,  I  have  a  hundred  ones 

From  here  0  brothers  we  speak 
in  candor  and  in  clarity. 
In  Israel  as  I  said  in  the  beginning  of 
my  address,  there  is  an  attempt 
to  obstruct  the  accord  so  as  not  to  implement 
what  they  have  signed  on. 
And  Unfortunately,  there  are  some  who  give 
them  the  pretext  of  the  so-called  security, 
security,  and  security. 
They  kill  us  with  the  word  security. 


From  here  I  say  my  brothers, 

we  managed  with  the  help  of  our  brothers 

in  the  Palestinian  team,  the 

heroes  who  represented  Palestine. 

They  actually  succeeded  to  become  the 

Palestnian  team,  not  the  joint  Jordanian 

Palestinian  team.  With  all  due  respect 

and  appreciation  to  our  brothers  in  Jordan. 

But  It  is  the  right  of  this  people  we, 

who  for  a  hundred  years  since  1897, 

since  the  first  Zionist  congress  in  Basel, 

This  people  are  in  the  frontline. 

As  the  prophet  said: 

And  they  are  in  the  frontline  until  the 

judgement  day. 

Yes, we  are  for  a  hundred  years  on  the  front  line. 

The  Balfour  Declaration  was  proclaimed 

and  called  you  "minorities". 

After  that  World  War  II,  I  am  just  reminding 

you,  nothing  more. 

The  Yalta  Conference  came,  not  Malta, 

Yalta,  Malta  is  a  different  thing 

and  I  will  tell  you  about  it  later. 

The  Yalta  Conference  came  and 

they  agreed  to  create  the  state  of  Israel 

and  they  passed  it  in  the  United  Nations. 

With  a  majority  of  one  vote,  and  they 

postponed  the  voting  for  two  days 

until  they  got  this  majority. 

Until  they  got  this  vote. 


40 


Isn't  that  true,  this  is  international 

legitimacy.  In  1947,  the  partition  plan, 

then  56,  then  67,  they  occupied  all  of 

Palestine,  and  Golda  Meir  said: 

"  Where  is  the  Palestinian  People? 

Only  I  am  a  Palestinian." 

The  number  of  Palestinian  children 

would  make  her  sad. 

Those  who  were  sitting  near  me 

just  a  while  ago. 

And  those  who  are  in  front  of  me  that 

are  born  every  day  to  this  people. 

This  is  the  demographic  bomb  with 

which  we  are  confronting  the  enemy. 

I  say  this  because  the  decision  was  to 

erase  the  Palestinian  people, 

erasing  it  from  the  political  and  geographic  map. 

so  that  we  become  just  numbers 

in  the  records  of  UNWRA.  Nothing  more. 

But,  brothers,  the  martyrs  of  the  Palestinian 

people,  and  their  leader,  the  prince  of 

martyrs  Abu  Jihad,  the  injured  of  this  people, 

the  prisoners  of  the  Palestinian  people,  and 

at  their  head  my  brother  Sheik  Ahmad  Yasin. 

Yes  brothers,  the  new  generals,  the  new 

generals,  who  are  the  new  generals? 

It  is  the  children  of  the  stones 

whom  I  named  the  new  generals, 

then  the  Fatah  youth,  the  Fatah  youth, 

the  Palestinian  Army  of  Liberation. 

Yes,  the  generals  of  the  initifadah, 

and  the  PLA,  I  don't  want  to  say  what 

they  write  about  them  in  their  papers. 

These  heroes  they  have  fought  for 

thirty  years  of  battles  on  all  Arab 

fronts. 

And  when  I  say  on  all  fronts  I 

challenge  any  army  that  fought  on 

all  fronts  like  the  Palestinian  army. 

Therefore  brothers  I  say  in  the  name 

of  this  Palestinian  people  in  the  name 

of  the  PLO. 

In  the  name  of  the  Palestine  Authority 

on  the  first  Palestinian  liberated  land, 

in  the  name  of  our  martyrs,  in  the  name  of  our  injured,  in 
the  name  of  our  prisoners,  in  the  name  of  the  generals  of 
the  stones,  we  shall  preserve  this  Palestinian  dream.  On 
this  Palestinian  infant,  the  road  to  the  Palestinian 
independent  stae,  and  its  capital  Jerusalem.  And  when  I  say 
its  capital  Jerusalem,  regardless  of  whoever  agrees  to  it  or 
rejects,  and  whoever  doesn't  like  it  may  they  drink  from  the 
sea  of  Gaza. 

And  if  he  doesn't  like  the  sea  of  Gaza,  let  him  drink  from 
the  Dead  Sea. 


41 


B 


[1] 
Speeches  of  Yassir  Arafat 

in  Gaza:  June-July,   1995 

[2] 

For  Peace  Education,  Ltd 

tel  03-695-6868 

fax  03-695-0132 

eulogy  given  by  Arafat 

on  June  15,  1995 

[4] 

for  Abd  Al  Karim 

Al  Aqluq 

[5] 

the  head  of 

PLO  censorship  division 

[6] 

one  of  the  veterans 

of  the  Fatah  on  the  fortieth  day 

[7] 

since  his  death 

Gaza  19.6.95 

[8] 

Yassir  Arafat, 

[9] 

a  ceremony  was  held  this  evening 

at  University  Al  Azhar  in  Gaza 

[10] 

to  mark  the  40th  day  of 

the  death  of  the  heroic  fighter 

[11] 

Abd  Al  Karim 

Al  Aqluq 

[12] 

the  man  who  headed 

the  censorship  office 

[13] 

at  the  Palestine  National 

Authority. 

[14] 

President  Arafat  delivered 

a  eulogy  in  which  he  said: 

[15] 

we  are  all  seekers  of  martyrdom 

in  the  path  of  truth  and  right 

[16] 

toward  Jerusalem  the  capital 

of  the  State  of  Palestine. 

[17] 

the  president  added: 

the  commitment  stands 

[18] 

and  the  oath  is  firm  to  continue 

this  long  and  ardous  jihad 

[19] 

in  the  path  of  martyrdom 

the  path  of  sacrifices, 

[20] 


42 


victory  &  glory,  not  only 

for  our  Palestinian  people 

[21] 

but  for  our  entire  Arab 

and  Islamic  nation, 

[22] 

until  a  Palestinian  child 

shall  raise  the  Palestinian  flag 

[23] 

over  the  walls  of  Jerusalem 

her  mosques  and  churches. 

[24] 

"in  the  name  of  Allah 

the  all -merciful" 

[25] 

Allah  has  acquired  from  the 

believers 

[26] 

their  souls  &  posessions, 

for  they  will  have  paradise" 

[27] 

my  sister,  Um-Al-Abd 

[28] 

my  brother,  my  comrades  in  this 

long  road, 

[29] 

verily  we  all  are  in  the 

quest  of  the  martyrdom, 

[30] 

in  the  path  of  truth  &  right 

the  path  of  this  sacred  cause, 

[31] 

the  path  of  Jerusalem  the  capital 

of  the  state  of  Palestine. 

[32] 

yes,  my  brothers,  the  dowry 

of  Palestine  is  high 

[33] 

and  this  people 

is  a  people  of  giants. 

[34] 

Allah  the  exalted  and  almighty 

has  granted  this  nation  his  grace 

[35] 

as  it  says  (in  Quran), 

"and  they  will  stand 

[36] 

on  the  front! ines  until 

the  judgement  day" 

[37] 

words  are  too  few  here 

in  the  spirit 

[38] 

except  for  the  fundamental 

commitment 

[39] 

that  commitment  and  oath 

that  we  have  all  made: 


43 

Mr.  Deutsch.  Thank  you. 

I  think  the  focus  of  today's  hearing  should  be — and  hopefully  it 
will  end  up  being — a  relatively  narrow  focus.  That  focus  is  the 
issue  of  the  PLO  compliance  of  the  Oslo  Agreement  and  how  that 
affects  America's  interaction  to  the  peace  process. 

We  are  a  partner  in  this  peace  process.  There  are  many  other  is- 
sues which  are  going  on  in  the  Middle  East  and  in  that  region  of 
the  world  right  now.  Mr.  Burton  alluded  to  the  issue  of  the  poten- 
tial of  troops  in  the  Golan,  others  have  mentioned  a  variety  of 
other  issues. 

But  I  think  the  issue  of  day,  the  issue  that  is  a  relevant  issue 
at  the  moment — in  fact,  right  now  at  this  moment,  is  on  the  Senate 
floor,  in  the  Senate  Foreign  Operations  bill  with  the  Helms-Pell 
amendment  in  it  is  the  extension  of  the  PLO  Compliance  Act. 

This  bill  is  being  voted  on  without  hearings  ever  having  been 
made;  and  without  a  full  airing  of  this  issue,  I  really  believe  that 
we  will  be  doing  a  disservice  to  each  of  our  constituents  and  to  the 
country  and  to  our  role  as  a  Congress. 

It  is  an  issue  which  I  think  needs  to  be  aired  in  the  light  of  day. 
We  need  to  hear  and  understand  the  facts  on  the  ground  of  what 
is  going  on,  specifically,  again,  on  the  PLO  compliance  to  Oslo  One. 

And  I  think  that  is  very  relevant  because  our  commitment  of 
$100  million  last  year,  our  commitment  of  $100  million  this  year, 
is  tied  to  that  compliance.  That  was  the  bill  of  goods  that  we  were 
set  up  with  when  we  were  asked,  as  Members  of  Congress,  to  ap- 
propriate that  amount  of  money  toward  this  peace  process. 

And  I  think,  as  other  Members  have  pointed  out,  and  I  think,  to 
some  extent,  the  Israeli  Government  themselves  would  acknowl- 
edge, the  records,  the  facts,  seem  to  be  irrefutable  and  non-debat- 
able, that  the  Palestinian  Authority — we  are  not  really  talking 
about  the  PLO,  we  are  talking  about  the  Palestinian  Authority,  be- 
cause that  is  who,  in  a  sense,  the  negotiation  is  with,  not  the  Pal- 
estinian National  Authority,  which  is  also  a  violation  of  the  agree- 
ments in  terms  of  even  calling  themselves  that — but  that  the  party 
to  the  agreement  has  almost,  point  by  point,  violated  those  agree- 
ments. 

Whether  it  is  the  issue  of  extraditing  terrorists  to  Israel — and  al- 
most without  exception,  when  the  Israeli  Government  has  given 
names,  even  locations  of  specific  people  who  are  involved  in  terror- 
ist actions,  including  murder,  including  murder  of  American  citi- 
zens, the  Palestinian  Authority  has  refused,  almost  without  excep- 
tion, to  extradite  those  people  to  Israel  promptly,  which  is  a  clear 
violation  of  the  agreements. 

There  are  Palestinian  Authority  organizational  structures  within 
Jerusalem.  It  is  almost  a  daily  thing  where  the  Israeli  Government 
is  going  back  and  forth.  But  this  also  is  a  clear  violation  of  what 
the  agreements  are  set  out  and  what  specifically  they  talk  about. 

I  mention  as  well,  I  mean,  it  is  almost  a  parody,  but  in  terms 
of  what  the  entity  is,  in  terms  of  the  Palestinian  Authority  and  Mr. 
Arafat,  you  know,  both  on  occasion  calling  himself  a  state  or  calling 
himself  a  national  authority,  again,  is  clearly  a  violation. 

But  in  some  ways  the  most  disturbing  violation  remains  the  fact 
in  the  PLO  Charter  itself  remains  calling  for  the  destruction  of  the 


44 

State  of  Israel  and  that  the  intentions  of  the  Palestinian  Authority, 
of  Mr.  Arafat  himself,  I  think  are  really  still  not  clear. 

The  intentions,  in  his  own  words,  are  very  disturbing,  to  say  the 
least.  And  that  is  the  heart  of  the  agreement,  that  is  the  heart  of 
the  American  role  in  this  peace  process 

Chairman  Gilman.  Mr.  Deutsch,  your  time  is  running- 


Mr.  DEUTSCH.  It  is  going  to  be  short.  I  clipped  the  video  very 
short.  Let  me  just  really  get  to  the  end  of  it:  That  the  real  question 
is  the  intentions  and  also  the  ability  to  follow  through  on  the  inten- 
tions. We  all  understand  domestic  politics;  but  what  is  disturbing 
is  that  if  Mr.  Arafat  is  making  statements  to  this  effect,  how  bad 
are  his  domestic  politics  that  he  has  to  do  that? 

And  I  think  this  Congress,  this  committee,  has  responsibility, 
more  than  flippantly,  more  than  in  short  order,  really  focusing  on 
legislation.  We  spent  2  weeks  on  Waco.  We  spent  2  weeks  on 
Branch  Davidians.  We  spent  2  weeks  on  the  Idaho  shootings.  And 
we  will  spend  no  time  on  this. 

Chairman  Gilman.  Mr.  Deutsch,  your  time  has  expired. 

Mr.  Deutsch.  Mr.  Chairman,  in  terms  the  video? 

Chairman  GlLMAN.  We  have  incorporated  the  time  for  the  video 
in  your  time.  The  timer  is  off,  and  we  are  using  a  mechanical  timer 
up  here. 

Mr.  Deutsch.  OK.  Mr.  Chairman,  then,  if  I  can,  it  is  only  about 
a  minute  tape,  let  me  close  with  Mr.  Arafat's  own  words. 

The  testimony  that  I  submitted  has  statements  of  Mr.  Arafat 
starting  in  September,  this  month,  going  back  several  months  to 
April,  as  recently  as  September. 

But  on  June  15  of  this  year,  this  is  about  a  2-minute  statement; 
and  maybe  we  can  just  start  it.  Maybe  less  than  2  minutes. 

Chairman  Gilman.  Would  you  please  identify  the  tape? 

Mr.  Deutsch.  It  is  a  tape  of  Mr.  Arafat  on  June  15  of  this  year 
Al  Azhar  University. 

[The  following  statement  by  Mr.  Arafat  is  a  translation  from  Ara- 
bic:] 

Mr.  Arafat.  "...  words  are  too  few  here  in  the  spirit  except 
for  the  fundamental  commitment,  that  commitment  and  oath  that 
we  have  all  made:  The  commitment  still  stands  and  the  oath  is 
firm  to  continue  this  difficult  Jihad,  in  this  long  Jihad,  in  this  ar- 
duous Jihad,  in  the  path  of  martyrs,  the  path  of  sacrifices,  but  this 
is  a  path  of  victory  and  glory.  .  .  ." 

Mr.  Deutsch.  Thank  you,  Mr.  Chairman. 

[The  prepared  statement  of  Mr.  Deutsch  appears  in  the  appen- 
dix.] 

Chairman  Gilman.  Thank  you,  Mr.  Deutsch. 

Mr.  Engel. 

STATEMENT  OF  HON.  ELIOT  ENGEL,  A  REPRESENTATIVE  IN 
CONGRESS  FROM  THE  STATE  OF  NEW  YORK 

Mr.  Engel.  Thank  you,  Mr.  Chairman.  I  would  like  to  thank  you 
for  holding  this  hearing  today  as  you  promised  you  would. 

As  the  author  of  one  of  the  three  major  bills  to  replace  the  expir- 
ing Middle  East  Peace  Facilitation  Act  and  as  cochair  of  the  Con- 
gressional Peace  Accord  Monitoring  Group,  along  with  Congress- 
man Saxton,  I  am  profoundly  interested  in  the  Middle  East  peace 


45 

process;  and  I  am  glad  that  the  committee  is  taking  time  to  con- 
sider this  issue  at  this  critical  time. 

Two  years  and  one  week  ago  today,  the  world  witnessed  a  his- 
toric event:  The  leaders  of  two  people's  who  had  been  at  war  for 
almost  half  a  century  joined  hands  at  the  White  House  with  Presi- 
dent Clinton  in  a  symbolic  culmination  of  months  of  secret  negotia- 
tions. 

I  recall  this  day  as  though  it  was  only  yesterday.  My  wife  was 
8  months  pregnant,  could  barely  move,  it  was  a  very  hot  day,  and 
we  remember  sitting  on  the  White  House  lawn  feeling  tremendous 
joy  in  the  hope  that  we  were  observing  the  end  of  decades  of  war 
and  terror. 

Today,  I  look  back  with  the  awareness  that  much  of  the  initial 
excitement,  a  sense  of  hope  which  surrounded  the  signing  of  the 
Declaration  of  Principles,  has  dissipated  considerably.  Terror  has 
returned  as  those  trying  to  destroy  the  peace  process  strive  to  turn 
public  opinion  against  it  with  acts  of  random  violence. 

Let  me  be  absolutely  clear  on  where  I  stand.  I  fully  support  the 
Middle  East  peace  process.  I  have  no  greater  desire  than  to  see  the 
conflict  between  Israel  and  the  Arab  world  consigned  permanently 
to  the  pages  of  history. 

Moreover,  I  am  proud  that  the  United  States  has  offered  its 
ample  resources — diplomatic,  technical,  and  financial — to  help 
move  the  negotiations  along. 

In  short,  we  must  do  everything  possible  to  help  the  peace  proc- 
ess succeed. 

Nevertheless,  I  believe  our  support  cannot  be  unconditional.  I 
firmly  believe  that  the  parties  must  live  up  to  their  sides  of  the 
bargain  and  that  we  must  always  be  mindful  of  the  sordid  history 
of  the  PLO,  a  track  record  of  some  of  the  most  heinous  acts  of  ter- 
ror committed  during  the  1970's  and  1980's. 

Prior  to  signing  the  Declaration  of  Principles,  Israeli  Prime  Min- 
ister Yitzhak  Rabin  and  PLO  Chairman  Yasir  Arafat  exchanged 
several  commitments,  solemn,  bilateral  duties  to  underpin  the 
peace  process. 

In  exchange  for  Israel's  recognition  of  the  PLO,  Yasir  Arafat  com- 
mitted his  organization:  To  recognize  Israel's  right  to  exist  in  peace 
and  security;  to  accept  U.N.  Security  Council  Resolutions  242  and 
338;  to  renounce  the  use  of  terrorism  and  violence;  to  assume  re- 
sponsibility over  all  PLO  elements  in  order  to  prevent  and  punish 
acts  of  terrorism  or  violence;  to  call  upon  Palestinians  to  oppose  vi- 
olence and  terrorism;  to  submit  to  the  Palestine  National  Council 
changes  to  the  Palestinian  National  Covenant,  eliminating  calls  for 
Israel's  destruction;  and  to  implement,  in  good  faith,  the  Declara- 
tion of  Principles. 

With  the  signing  of  the  Gaza-Jericho  Agreement  in  Cairo  last 
year,  Israel  and  the  PLO  made  specific,  several  of  the  security-re- 
lated commitments  undertaken  on  the  White  House  lawn. 

In  particular,  it  is  now  clear  that  the  PLO  must:  Transfer  sus- 
pects requested  by  Israeli  authorities;  confiscate  illegal  weapons, 
exclude  terrorists  from  security  services;  and  avoid  the  type  of  vit- 
riolic rhetoric  which  only  tends  to  incite  violence. 

The  PLO's  record  in  complying  with  its  commitments  is  mixed  at 
best.  On  the  positive  side,  Yasir  Arafat  has  recognized  Israel  and 


46 

accepted  Security  Council  Resolutions  242  and  338.  Many  news  re- 
ports also  indicate  that  he  has  finally  begun  to  crack  down  on  ter- 
rorists. 

Nevertheless,  it  has  demonstrated  significant  disregard  for  many 
of  the  other  obligations  to  which  it  has  committed  itself. 

Terrorism  has  been  rhetorically  denounced,  yet  individual  acts  of 
terror  have  gone  uncondemned.  And  even  when  Yasir  Arafat 
speaks  out  in  English,  equivalent  words  in  Arabic  to  those  who 
most  need  to  hear  go  unspoken. 

And  that  is  not  all.  The  following  items  represent  some  of  the 
more  significant  violations  of  very  specific  legal  obligations  con- 
tained in  the  peace  accords:  Sections  of  the  PLO  Covenant  calling 
for  Israel's  destruction  have  yet  to  be  removed;  calls  for  jihad  by 
Yasir  Arafat  continue;  the  ban  on  unlicensed  weapons  goes  unen- 
forced; suspected  terrorists  have  not  been  transferred  to  Israel;  and 
the  Palestinian  Authority  continues  to  locate  its  institutions  in  Je- 
rusalem. 

Mr.  Chairman,  no  nation  has  been  more  engaged  in  the  effort  to 
move  the  peace  process  forward  than  the  United  States.  Not  only 
was  the  historic  document  signed  on  the  lawn  of  the  White  House, 
but  no  other  nation  pledged  $500  million  over  5  years  in  an  at- 
tempt to  end  the  historic  conflict,  not  even  the  wealthy  Arab  states 
of  the  Persian  Gulf,  who  have  the  most  to  gain  by  the  end  of  hos- 
tilities. 

I  am  proud  of  our  involvement. 

But  the  PLO  should  be  clear  that  American  generosity  is  not  un- 
limited. America  must  hold  Yasir  Arafat's  feet  to  the  fire  and  de- 
mand that  he  and  the  Palestinian  Authority 

Chairman  GlLMAN.  The  gentleman's  time  has  expired.  Please 
wind  up. 

Mr.  ENGEL.  OK.  Let  me  submit  the  rest  of  this  into  the  record. 

And  let  me  just  say  that  the  bottom  line  for  me  is  this:  If  Arafat 
and  the  PLO  comply  with  their  commitments,  then  U.S.  money 
should  continue  to  flow.  If  they  do  not,  then  they  will  be  the  blame 
for  the  destruction  of  peace. 

I  believe  very  carefully  that  a  threshold  ought  to  be  set — a  rea- 
sonable threshold,  not  an  unreasonable  threshold — a  threshold  to 
which  the  PLO  and  Yasir  Arafat  can  meet  if  they  are  sincere. 

I  do  not  believe  in  blowing  up  the  peace  process.  I  think  it  is  very 
important  to  continue.  But  I  think  it  is  important  that  all  parties 
live  up  to  what  they  agree  to. 

Again,  my  bill — and  I  hope  we  would  mark  it  up  in  the  commit- 
tee— I  think  sets  realistic  thresholds  that  the  PLO  and  Yasir 
Arafat  can  meet  if  they  so  desire. 

I  would  hope  that  that  is  what  we  do  as  we  strengthen  MEPFA. 
And  I  would  hope,  again,  that  all  parties  concerned  join  the  com- 
mitment to  the  peace  process. 

Chairman  GlLMAN.  The  gentleman's  time  has  expired. 

Mr.  Berman  would  like  to  submit  a  statement. 

Mr.  Berman.  Mr.  Chairman,  I  am  listed  as  a  witness.  We  are  in 
an  Immigration  markup.  We  are  voting  on  amendments  every  3 
minutes  or  5  minutes.  So  rather  than  testify,  I  would  like  to  intro- 
duce my  statement  into  the  record  if  I  could. 

Chairman  GlLMAN.  We  appreciate  the  gentleman's  cooperation. 


47 

Mr.  Berman.  And  then  I  would  like  to  make  just  two  points. 
Chairman    GlLMAN.    Without    objection,   you    may    submit   your 
statement  in  full. 

STATEMENT  OF  HON.  HOWARD  L.  BERMAN,  A  REPRESENTA- 
TIVE IN  CONGRESS  FROM  THE  STATE  OF  CALIFORNIA 

Mr.  Berman.  Thank  you. 

I  am  on  the  side  of  wanting  the  peace  process  to  continue.  I  want 
to  see  MEPFA  renewed  for  a  reasonably  long  period  of  time. 

But  I  do  not  agree  with  the  notion  that  there  is  something  wrong 
or  that  it  is  necessarily  counterproductive  to  raise  questions  about 
where  there  has  been  PLO  compliance  and  where  there  has  not  for 
two  reasons. 

One,  it  is  somewhat  disingenuous  to  have  these  principles,  these 
commitments,  this  law,  and  then  try  to  sweep  it  under  the  rug.  I 
do  not  think  the  process  is  helped  by  that. 

And  I  think  we  can  cite  a  number  of  things  where  there  has  been 
compliance  and  where  steps  have  been  taken  and  where  things  are 
improving  and  in  other  steps  they  are  not. 

The  second  reason  is,  I  think  we  can  be  of  assistance  in  promot- 
ing greater  compliance  by  virtue  of  raising  some  of  these  issues. 

The  bottom  line,  when  it  all  comes  down  to  it,  at  least  from  what 
I  know  now,  I  think  it  is  critically  important  that  the  process  con- 
tinue and  that  we  extend  MEPFA;  and  I  hope  that  the  Congress 
would  do  that  soon. 

Thank  you. 

Chairman  GlLMAN.  Thank  you,  Mr.  Berman. 

Mr.  Wynn.  Mr.  Chairman. 

Chairman  Gilman.  Yes.  The  gentleman  is  recognized.  Mr.  Wynn. 

Mr.  WYNN.  I  would  be  curious  as  to  whether  we  are  going  to 
have  anybody  from  the  State  Department  here? 

Chairman  GlLMAN.  Mr.  Wynn,  we  requested  that  a  State  Depart- 
ment witness  appear,  but  we  have  been  told  that  they  were  not 
available  for  today. 

We  made  a  further  request  that  if  they  were  not  available,  for 
them  to  come  at  a  later  date.  No  later  date  has  been  established 
yet. 

But  we  will  have  the  State  Department  appearing  at  a  subse- 
quent hearing. 

Mr.  Wynn.  Thank  you  very  much,  Mr.  Chairman. 

Chairman  Gilman.  Thank  you,  Mr.  Wynn. 

The  next  witness  is  Mr.  Kelley  with  the  General  Accounting  Of- 
fice. 

Mr.  Kelley. 

The  Chair  would  like  to  note  that  our  witness,  Mr.  Joe  Kelley, 
will  be  retiring  from  the  General  Accounting  Office  on  September 
29,  just  a  few  days  from  now.  He  served  the  GAO  and  our  Nation 
for  38  years  in  a  meritorious  manner. 

Joe  Kelley  now  serves  as  director  in  charge  of  International  Af- 
fairs issues  at  the  GAO.  He  spent  many  years  working  on  a  wide 
variety  of  matters  in  the  international  area  and  has  worked  with 
many  members  and  staff  of  this  committee  as  manager  of  many  im- 
portant GAO  studies  that  have  aided  us  in  our  oversight  respon- 
sibilities. 


48 

Mr.  Kelley,  I  am  certain  that  the  members  of  the  committee 
would  join  me  in  paying  tribute  to  you  for  your  dedicated  service 
to  the  American  people  and  in  wishing  you  a  great  deal  of  happi- 
ness and  good  health  in  your  forthcoming  retirement. 

Mr.  Kelley. 

STATEMENT  OF  JOSEPH  E.  KELLEY,  DIRECTOR-IN-CHARGE, 
INTERNATIONAL  AFFAIRS  ISSUES,  NATIONAL  SECURITY 
AND  INTERNATIONAL  AFFAIRS  DIVISION,  U.S.  GENERAL  AC- 
COUNTING OFFICE 

Mr.  Kelley.  Thank  you,  Mr.  Chairman.  I  was  quite  surprised 
with  that.  And  I  want  the  record  to  show  that  I  am  not  retiring 
because  I  am  up  here  testifying  today. 

Mr.  Chairman,  I  would  like  to  introduce  Mr.  ten  Kate  on  my 
right  here.  He  was  the  gentleman  that  was  kind  of  in  the  trenches 
doing  the  work  for  us. 

Chairman  Gilman.  What  is  Mr.  ten  Kate's  title? 

Mr.  Kelley.  He  is  a  supervisory  evaluator. 

Mr.  Chairman,  I  would  like  to  submit  my  statement  for  the 
record. 

Chairman  GlLMAN.  Without  objection. 

Mr.  Kelley.  I  will  try  to  adhere  to  your  5-minute  rule  and  just 
go  through  quickly  and  summarize  some  of  the  salient  points,  espe- 
cially on  the  issue  of  the  classification  of  the  report. 

Our  testimony  discusses  the  audit  work  that  supports  our  re- 
cently issued  classified  report  on  the  Palestine  Liberation  Organi- 
zation's finances. 

I  will  also  discuss  in  my  testimony  the  principal  cooperation  is- 
sues we  dealt  with  on  this  assignment.  And  finally,  my  written  tes- 
timony covers  our  efforts  to  have  this  report  declassified  in  re- 
sponse to  the  requests  from  you,  Mr.  Chairman,  and  several  Mem- 
bers of  Congress. 

As  far  as  the  audit  objectives,  Mr.  Chairman,  at  your  request,  we 
reviewed  the  PLO's  finances  in  connection  with  the  decision  by  the 
United  States  to  help  fund  long-term  development  projects  in  the 
West  Bank  and  the  Gaza. 

With  respect  to  the  work  we  performed  in  our  review  we  at- 
tempted to  obtain  financial  information  directly  from  the  PLO  at 
the  outset.  The  PLO  told  us  to  provide  written  questions  on  the  in- 
formation we  required  and  then  declined  to  respond  to  them. 

The  PLO  also  chose  not  to  respond  to  our  written  requests  for 
meetings  with  PLO  and  Palestinian  authority  officials  in  the  self- 
rule  territories. 

With  respect  to  the  agencies  we  covered,  Mr.  Chairman,  in  Wash- 
ington we  interviewed  Palestinian  affairs  experts  and  program  offi- 
cials from  the  State  Department,  USAID,  and  several  other  agen- 
cies, which  are  listed  in  my  statement. 

We  also  conducted  work  in  London,  Tel  Aviv,  and  Jerusalem,  and 
interviewed  officials  from  essentially  the  same  agencies. 

We  met  with  U.S.  intelligence  experts  from  State's  Intelligence 
and  Research  Bureau,  the  Central  Intelligence  Agency,  Defense  In- 
telligence Agency,  and  the  National  Security  Agency. 

British  intelligence  officials  declined  our  requests  for  meetings  on 
the  basis  that  they  had  no  useful  information  to  share  with  us. 


49 

However,  v/e  were  able  to  interview  a  senior  official  from  Brit- 
ain's National  Criminal  Intelligence  Service  to  discuss  a  February 
1994  estimate  that  the  PLO  had  $8  to  $10  billion  in  assets  and  an 
annual  income  of  $1.5  to  $2  billion.  This  was  mentioned  earlier  by 
prior  witnesses. 

Citing  the  confidential  nature  of  his  sources,  the  author  of  this 
statement  declined  to  provide  us  with  any  data  or  documentation 
to  support  this  claim. 

With  respect  to  the  cooperation  issues,  which  I  discuss  in  my 
written  testimony,  in  general,  Mr.  Chairman,  we  received  good  co- 
operation from  the  agencies  that  I  have  mentioned  previously  in 
the  statement. 

We  did  encounter  some  limited  access  to  records  and  cooperation 
problems  at  the  State  Department,  CIA,  and  the  Federal  Bureau 
of  Investigation. 

With  regards  to  the  State  Department  and  the  CIA,  the  problems 
we  experienced  did  not  materially  affect  our  final  report  message 
or  conclusions. 

I  have  listed  in  the  statement  examples  where  we  had  some 
problems;  but  through  the  effort  of  your  staff,  we  worked  these  is- 
sues out  at  the  State  Department. 

Initially,  the  CIA  was  unwilling  to  cooperate  with  us  or  share 
available  intelligence  data  about  the  PLO. 

As  you  know,  agency  officials  provided  us  with  two  background 
briefings  on  the  PLO  only  after  you  asked  the  CIA  to  cooperate 
fully  with  us  on  our  review. 

The  agency  declined  to  facilitate  contacts  with  foreign  govern- 
ments for  us. 

Now  I  would  like  to  turn  to  the  issue  of  the  efforts  we  made  to 
get  the  report  declassified. 

You  sent  us  a  letter,  Mr.  Chairman,  requesting  that  we  take  the 
necessary  steps  to  have  our  classified  report  on  the  PLO's  finances 
declassified  to  facilitate  increasing  public  discussion  of  the  topic. 

This  request  was  followed  by  other  requests  from  members,  total- 
ing, of  approximately  about  seven,  asking  us  the  same  question,  to 
get  the  report  declassified. 

I  would  like  to  point  out  that  on  the  classification,  the  GAO  gen- 
erates classified  information  derivatively;  that  is,  the  information 
we  use  in  GAO-produced  documents  carries  the  classification  of  the 
originating  source,  which  is  within  the  agencies. 

The  GAO  does  not  have  authority  to  declassify  or  downgrade 
classified  information.  This  authority  is  vested  solely  by  authorized 
executive  branch  officials. 

When  there  is  a  perceived  need  to  downgrade  or  declassify  infor- 
mation, the  originating  agency's  concurrence  must  be  obtained. 
And  that  is  one  of  the  things  we  have  been  doing  with  the  agencies. 

My  statement  points  out  that  we  informed  the  Agency  and  State 
Department  that  the  chairman  had  asked  that  our  report  on  PLO's 
finances  be  declassified. 

In  a  letter  to  GAO  dated  September  5,  1995,  the  CIA  responded 
that,  with  certain  minor  exceptions,  none  of  the  CIA  material  used 
in  our  report  could  be  declassified. 

The  State  Department  has  not  yet  responded  to  our  declassifica- 
tion request. 


50 

That  summarizes  my  statement,  Madam  Chairman. 

[The  prepared  statement  of  Mr.  Kelley  appears  in  the  appendix.] 

Ms.  Ros-Lehtinen  [presiding].  Thank  you  so  much,  Mr.  Kelley. 
We  appreciate  your  being  here.  The  chairman  would  like  for  me  to 
point  out  that  the  CIA  was  invited  to  testify,  but  the  agency  de- 
clined. 

The  chairman  would  like  to  make  sure  that  some  questions  and 
especially  your  answers  are  entered  into  the  record. 

Therefore,  although  you  might  have  covered  some  of  this  in  your 
testimony,  I  would  like  to  ask  you  some  questions  for  the  record 
today,  Mr.  Kelley. 

Can  you  tell  us  why  the  PLO  asset  study  was  classified? 

Mr.  Kelley.  It  is  classified,  essentially — well,  I  really  cannot  re- 
spond to  that  because  the  letter  they  sent  back  to  me  explaining 
why  they  could  not  declassify  it  contained  the  reasons  why  they 
could  not  do  it,  and  they  were  classified.  So  I  am  having  a  little 
difficulty  here  explaining  that  to  you. 

Ms.  Ros-Lehtinen.  So  their  explanation  as  to  why  it  was  classi- 
fied is  classified  as  well? 

Mr.  Kelley.  Yes. 

Ms.  Ros-Lehtinen.  Ah,  it  is  very  clear  now. 

Which  agencies,  organizations,  governments,  and  individuals  did 
you  contact  as  you  worked  on  this  investigation? 

Mr.  Kelley.  Well,  my  statement  lists  several.  State  Department, 
obviously;  CIA;  Overseas  Private  Investment  Corporation;  AID;  De- 
partment of  Treasury;  and  the  World  Bank.  We  did  a  lot  of  work 
with  the  World  Bank.  And  then  the  Drug  Enforcement  Administra- 
tion. 

We  contacted  those  agencies  here  in  Washington  as  well  as  over- 
seas. 

Ms.  Ros-Lehtinen.  And  what  kind  of  cooperation  did  you  receive 
from  those  agencies  or  individuals? 

Mr.  Kelley.  As  my  statement  mentions,  we  had  some  difficulties 
kind  of  getting  started  with  this  job  with  respect  to  the  State  De- 
partment and  the  CIA. 

And  essentially  we  were  delayed  in  getting  some  of  the  informa- 
tion. We  had  done  a  cable  search  and  listed  those  which  we 
thought  would  be  pertinent — these  are  State  Department  cables — 
pertinent  to  our  review.  It  took  some  time  to  get  those  cables.  We 
had  come  back  up  and  talked  to  the  staff,  Mr.  Garon  and  the  staff, 
about  problems,  shortly  thereafter,  we  started  getting  some  of 
these  cables. 

We  ended  up  with  probably  a  small  number  that  we  did  not  get. 
And,  essentially,  the  basis  for  that  is  what  they  call  "deliberative 
process."  That  is  it  has  information  in  there  of  personal  opinions 
and  things  like  that  that  really  do  not  represent  the  department. 

So,  as  I  said  in  my  statement,  with  respect  to  the  State  Depart- 
ment and  the  CIA,  when  we  sit  back  and  analyze  the  data  and 
analyze  what  efforts  they  made,  we  feel  that  they  really  did  not  im- 
pact on  where  we  came  out  with  respect  to  the  issues. 

Ms.  Ros-Lehtinen.  Getting  back  to  the  classification  question,  in 
spite  of  the  absurdity  of  the  answer  that  it  entails,  if  you  could 
elaborate  further. 


51 

There  is  a  lot  of  anxiety  in  many  communities  about  this  classi- 
fied document,  and  when  you  classify  something,  it  leads  to  further 
speculation  as  to  what  it  contains.  It  creates  quite  a  furor. 

If  you  could  explain  just  a  little  bit  further  about  this  controversy 
of  having  this  very  important  report  labeled  as  a  classified  docu- 
ment. 

Mr.  Kelley.  You  mean  how  the  process  works? 

Ms.  Ros-Lehtinen.  How  the  process  worked  and  if  it  was  your 
intention  to  have  it  classified;  did  you  believe  that  it  merited  such 
classification. 

Just  give  us  a  little  further  insight  on  this  controversy  of  the 
classified  document. 

Mr.  Kelley.  Well,  essentially,  when  we  do  work  at  the  State  De- 
partment and  DOD,  primarily,  I  personally  do  not  do  that  much 
work  at  CIA — but  we  have  access  to  classified  documents. 

And,  essentially,  we  have  an  understanding  with  the  agencies 
that  we  will  abide  by  an  executive  order  which  gives  the  President 
the  right  to  establish  who  in  the  executive  branch  can  classify  doc- 
uments. 

And  we,  basically,  have  to  abide  by  that.  And,  essentially,  it  is 
kind  of  a  practical  thing  that  if  we  are  asking  for  classified  docu- 
ments in  a  review  and  then  we  turn  around  and  distribute  them 
and  make  them  public,  we  are  not  going  to  get  any  more  docu- 
ments; you  can  count  on  that. 

So  essentially  we  work  on  that  basis.  By  law,  we  do  not  have 
classification  authority;  and  the  classification  authority,  as  I  said 
in  the  statement,  is  with  the  agency. 

What  we  try  to  do,  Madam,  is,  when  we  get  the  report  back,  if 
we  think  there  are  some  things  in  there  that  may  be  overclassified 
or  we  could  wordsmith  it,  so  to  speak,  to  remove  some  of  the  of- 
fending information,  if  release  would  be  a  problem  for  national  se- 
curity purposes. 

Ms.  Ros-Lehtinen.  National  security — if  the  release  of  that  in- 
formation could  pose  a  problem  for  national  security  issues,  as  you 
said,  whose  national  security  would  you  be  speaking  about? 

Mr.  Kelley.  Well,  the  U.S.  Government.  I  am  only  talking  the 
U.S.  Government's  national  security. 

Ms.  Ros-Lehtinen.  U.S.  Government. 

Of  what  general  area  would  that  be  a  threat  to  national  security? 

Mr.  Kelley.  Well,  if  there  is  information,  for  example,  in  DOD 
on  capabilities  of  a  particular  weapon  system,  if  they  are  highly 
sensitive. 

If  there  is  information,  I  guess,  in  the  intelligence  agencies  that 
they  do  not  want  to  see  released  because  it  might  reveal  the 
sources  of  the  information  that  they  obtained  or  the  methods  that 
they  used  to  obtained  it. 

Ms.  Ros-Lehtinen.  No,  I  understand  that  certain  documents 
must  be  classified.  But  this  subject  matter  is  the  PLO's  assets,  and 
it  just  strains  the  imagination  to  think  how  anything  related  to  the 
PLO's  assets  could  be  deemed  as  a  threat  to  U.S.  national  security. 

If  anything,  it  would  be  quite  helpful  for  all  of  us  to  know  about 
that  information.  Not  knowing  and  not  having  that  information 
could,  then,  be  a  threat  to  U.S.  national  security.  But  certainly  not 
the  withholding  of  that  information. 


52 

I  understand  how  some  documents  should  be  classified.  But  I  do 
not  know  how  the  PLO's  assets  could  fall  into  that  category. 

Mr.  Kelley.  I  think  at  the  CIA,  obviously,  things  they  do  affect 
national  security. 

But  I  think  that,  as  you  know,  they  are  a  fairly  secretive  agency; 
and  information  that  they  collect  and  analyze  and  report  on  is  very 
seldom,  especially  if  it  is  involving  data  obtained  through  intel- 
ligence gathering  methods,  they  are  normally  not  in  the  process  of 
putting  that  information  out  because,  as  I  understand  it,  the  other 
side  could  figure  out  where  their  sources  were  or  who  the  agents 
were,  I  presume. 

I  think  you  are  better  off  asking  the  Agency  as  to  how  that 
works. 

Ms.  Ros-Lehtinen.  Well,  although,  I  guess  I  would  make  a  dis- 
tinction between  certain  information  dealing  with  them  that  would, 
perhaps,  be  able  to  be  classified  as  documents,  the  methods  you 
used  to  obtain  the  information,  or  the  contacts. 

But  the  information  on  the  assets  themselves,  I  do  not  see  how 
that  would  have  to  be  classified. 

Would  you  not  agree  that,  perhaps,  the  distinction  could  have 
been  made  between  that  information  which  maybe  somebody  could 
see — methods,  informants,  ways  of  getting  at  it — it  should  be  clas- 
sified, but  the  information  itself  dealing  with  the  assets,  the 

Mr.  Kelley.  Well,  I  am  really  at  a  disadvantage  in  defending 
why  the  Agency  has  done  this.  I  think  that,  presumably,  if  they 
showed  some  numbers  that  it  might  reveal  something  to  someone 
else  that  they  know  where  this  information  is  coming  from. 

That  is  the  best  I  can  do  for  you  on  that. 

Ms.  Ros-Lehtinen.  Well,  thank  you.  I  realize  that  you  are  not 
the  individual  who  would  perhaps  best  answer  that,  and  the  CIA 
would — we  would  have  loved  to  have  had  them  answer  those  de- 
tailed questions  about  the  classification. 

But  if  the  request  to  detail  PLO  assets  would  be  made  again, 
how  would  we  do  this  differently?  How  would  you  do  it  differently? 
Or  for  the  most  part  you  would  handle  that  investigation  in  the 
same  way?  Whether  it  is  about  cooperation  or  classified  documents 
or  testifying  in  front  of  committees  for  other  agencies,  what  would 
you  do  differently? 

Mr.  Kelley.  I  do  not  know  that  I  would  do  much  differently.  We 
as  an  agency  do  not  have  the  basis  to  go  out  and  try  to  gumshoe 
and  pin  down  exactly  what  the  assets  are. 

As  I  say  in  my  statement,  we  tried  to  use  sources  in  Treasury 
to  help  us  out.  But  we  as  an  agency  basically  rely  on  what  the 
other  agencies  have. 

Now,  we  look  at  it  and  we  try  to  evaluate  it  and  make  sure  that 
it  is  not  off  the  wall;  but  when  you  get  into  issues  relating  to  intel- 
ligence, it  does  become  somewhat  difficult  for  us  to  take  everything 
apart  and  say,  oh,  right;  we  got  our  own  sources  out  here,  and  we 
do  not  think  you  are  right. 

So  I  do  not  know  that  I  would  do  anything  different.  I  think  that 
the  team  that  did  this  work  just  kind  of  turned  over  every  stone 
we  could  find,  as  I  related  in  the  statement,  and  as  I  discussed  it 
with  the  staff,  that  we  made  every  effort  to  try  to  obtain  the  infor- 
mation on  their  finances. 


53 

We  were  just  limited  to  getting  the  information  from  the  CIA. 
And  they  were,  as  I  said,  reluctant  at  first  to  provide  us  briefings. 
But  we  did  eventually  get  some  very  good  briefings  from  them. 

Ms.  Ros-Lehtinen.  And  about  the  seeking  of  documents  and  in- 
formation, there  were  some  allegations  that  the  PLO  had  diverted 
funds  to  a  variety  of  projects,  including  housing  in  Jerusalem. 

How  did  the  GAO  finish  up  that  project? 

Some  reports  have  said  that  those  documents,  those  letters  are 
fake.  Others  have  said  that  they  were  real.  Have  you  been  able  to 
come  to  a  conclusion  as  to  the  veracity  of  those  documents,  of  that 
information? 

If  those  letters  are  real  and  the  funds  mentioned  are  not  U.S. 
funds  or  donor  funds,  could  they  be  among  the  PLO's  current  secret 
assets? 

Mr.  Kelley.  We  have  received  the  request  from  the  chairman  on 
that  a  month  or  so  ago,  and  we  have  been  pursuing  that.  We  have 
not  reached  a  final  conclusion  on  that.  We  are  trying  to  get  some 
information  from  the  agencies  in  the  Middle  East  to  try  to  see  how 
they  go  about  verifying  the  expenditures. 

However,  we  are  coming  to  a  conclusion  on  it,  but  I  am  not  really 
ready  to  discuss  where  we  come  out  on  it.  We  were  concerned  origi- 
nally about  whether  or  not  the  documents  were  valid.  And  I  guess 
the  chairman  had  asked  the  Agency,  the  CIA,  to  take  a  look  at  it. 
I  do  not  know  that  they  have  completed  their  analysis  yet. 

But  I  am  just  not  in  a  position  to  give  you  a  bottom  line  at  this 
point  in  time.  But  we  should  be  finished  with  that  fairly  soon.  I 
would  say  in  another  3  weeks. 

Ms.  Ros-Lehtinen.  Oh,  in  about  3  weeks? 

Mr.  Kelley.  I  would  hope  so. 

Ms.  Ros-Lehtinen.  And  you  would  be  sharing  that  information 
with  us? 

Mr.  Kelley.  Well,  we  would  be  sending  a  letter  back  to  the 
chairman. 

Ms.  Ros-Lehtinen.  Thank  you. 

About  the  PLO  funds  in  general,  could  you  give  us  a  better  idea 
of  who  controls  those  funds?  From  where  do  those  funds  originate? 

Any  information  that  there  may  be  on  the  legal  holdings  of  the 
PLO  or  where  they  are  located?  What  is  the  estimated  value? 

Mr.  Kelley.  If  I  knew  that,  I  would  have  told  you  when  I  first 
sat  down  here. 

I  might  have  to  call  on  my  sidekick  here  to  help  me  out.  The 
PLO,  as  we  understand  it,  was  obtaining  a  lot  of  funds  from  sev- 
eral Middle  Eastern  countries  and  also  some  taxes  coming  back 
from  workers  who  worked  in  the  Middle  East. 

Let  me  talk  to  my  colleague  here  for  a  second. 

[Pause.] 

Mr.  Kelley.  I  am  told  that  I  am  straying  into  the  classified  part 
of  this  exercise.  So  let  me  end  it  there. 

Yes,  I  guess  I  really  cannot  go  much  further  than  that. 

Ms.  Ros-Lehtinen.  Let  me  ask  a  specific  question.  When  Arafat 
returned  to  Gaza  in  the  summer  of  1994,  there  were  a  lot  of  reports 
that  he  had  been  charging  journalists  for  interviews.  Do  you  know 
if  that  is  true,  and  are  the  charges  still  being  extracted  from  jour- 
nalists? 


54 

There  had  been  some  reports  that  some  large  sum  was  paid  by 
an  Italian  magazine  for  an  interview  with  Arafat  about  his  daugh- 
ter's birth. 

Do  you  know  any  reports  or  any  followup  on  those  rumors  of  hav- 
ing journalists  pay? 

Mr.  KELLEY.  Madam,  I  do  not  have  any  information  on  that  at 
all. 

Ms.  Ros-Lehtinen.  Well,  we  will  look  forward  to  having  the 
chairman  share  his  report  on  the  possible  diversion  of  funds  with 
us  in  a  few  weeks  then. 

We  will  give  you  a  very  declassified  "thank  you"  for  your  com- 
ments today. 

Thank  you. 

Mr.  Kelley.  Thank  you,  Madam. 

Mr.  Johnston.  Madam  Chair,  may  I  ask  just  one  or  two  ques- 
tions? 

Ms.  Ros-LEHTINEN.  Oh,  sorry,  Mr.  Johnston,  I  did  not  see  you 
there.  The  last  time  I  glanced,  I  was  the  only  one  here. 

Thank  you. 

Mr.  Johnston. 

Mr.  Johnston.  I  sneaked  in  on  you.  That  is  all. 

And  I  was  not  privy  to  some  of  your  non-answers.  But  Mr.  Bur- 
ton earlier  testified  that  British  intelligence  had  stated  that  the 
PLO  has  now  $8  billion  in  the  bank  and  that  the  GAO  confirmed 
that  figure. 

Do  you  have  any  comment  on  Mr.  Burton's  testimony? 

Mr.  Kelley.  That  we  confirmed  that  figure? 

Mr.  Johnston.  Yes. 

Mr.  Kelley.  That  is  not  the  case. 

In  my  statement  there  is  a  discussion  in  there  about  the  fact  that 
there  was  a  British  intelligence  agency  that  put  a  report  out  that 
had  those  numbers  in  it — $8  to  $10  billion  I  believe  it  was — and 
Mr.  ten  Kate,  on  my  right  here,  met  the  individual  who  prepared 
that  report  in  London;  and  he  could  not — he  would  not  provide  us 
any  information  which  would  serve  as  a  basis  for  his  conclusions 
or  his  numbers.  And  that  is  stated  in  the  testimony. 

Mr.  Johnston.  Because  I  have  received  information,  unclassified, 
from  our  intelligence  that  the  PLO  was  broke  and  that  since  the 
gulf  war,  the  Arabs  and  the  Kuwaitis  have  cut  them  off  because 
they  chose  the  wrong  side  and  that  their  payroll  deduction  plan  for 
Palestinians  that  work  throughout  the  Middle  East,  particularly  in 
the  oil  areas,  had  been  stopped. 

Do  you  have  any  comment  on  that? 

Mr.  Kelley.  That  gets  back  into  the  area  of  the  problem  I  am 
having  with  the  intelligence  business. 

Mr.  Johnston.  OK. 

Mr.  Kelley.  Although,  you  say  you  got  it  unclassified.  That  is 
kind  of  interesting. 

Mr.  Johnston.  Thank  you  very  much. 

Mr.  Kelley.  Yes,  sir. 

Chairman  Gilman  [presiding].  Thank  you,  Mr.  Johnston. 

Mr.  Kelley,  is  there  anything  we  can  do  to  open  up  this  report? 

Mr.  Kelley.  Mr.  Chairman,  I  would  propose  that — after  we  got 
the  turn  down  from  the  agencies,  I  had  Mr.  ten  Kate  go  back  with 


55 

the  marked  up  copy  that  came  back  as  to  what  had  to  remain  clas- 
sified, I  wanted  to  see  what  we  had  left. 

Chairman  GlLMAN.  So  now  you  have  received  a  review  by  the  in- 
telligence agency? 

Mr.  Kelley.  Yes,  sir. 

Chairman  GlLMAN.  You  have  a  marked  up  copy? 

Mr.  KELLEY.  Yes.  And  what  I  want  to  do  is,  could  we  go  through 
that  and  see  if  we  have  a  cogent,  understandable  document  that  we 
could  issue. 

Chairman  Gilman.  Right.  How  long  would  it  take  you  to  do  that? 

Mr.  Kelley.  Think  it  would  take  probably  a  couple  of  weeks. 

Now,  I  will  say  this,  Mr.  Chairman,  that  the  report  with  respect 
to  the  key  issue  we  have  been  talking  about  today  is  still  not  de- 
classified. 

The  rest  of  it,  there  is  a  lot  of  information  in  there  that  is  unclas- 
sified that  deals  with  how  they  do  their  budgeting  and  the  account- 
ability issues. 

Chairman  GlLMAN.  Well,  I  would  hope  that  after  you  go  through 
it — and  I  hope  that  you  could  do  it  in  less  than  a  couple  of  weeks — 
that  you  would  then  meet  with  our  committee  so  that  we  could  ex- 
plore with  the  intelligence  agency  whether  more  of  that  could  be 
declassified,  if  you  would. 

Mr.  Kelley.  The  material  I  am  talking  about  is  excluding  not 
marked  classified,  so  I  do  not  see  a  problem. 

They  want  me  to  come  back  and  show  them  what  I  am  going  to 
do  if  I  am  going  to  do  something  like  this. 

I  think  there  is  a  lot  of  information  in  that  report  that  would  be 
fairly  helpful  to  the  committee. 

Chairman  Gilman.  Well,  we  would  welcome  being  able  to  release 
the  report. 

Will  you  be  pursuing  this  issue  any  further  with  an  attempt  to 
get  any  more  information? 

Mr.  Kelley.  There  were  a  few  things  that  were  kind  of  loose 
ends  that  I  was  going  to  have  Mr.  ten  Kate  check  on.  But,  essen- 
tially, I  think  we  are  pretty  much  finished  with  it.  I  do  not  think 
it  would  be  very  productive  for  us  to  continue. 

Chairman  Gilman.  The  British  intelligence  agency  was  not  will- 
ing to  share  with  you  any  information? 

Mr.  Kelley.  That  is  correct.  And  I  say  that  in  my  statement. 

And  I  want  to  point  out,  too,  that — I  just  mentioned  to  Mr.  John- 
ston— Mr.  ten  Kate  did  talk  to  the  author  of  that  study;  and  we 
asked  him  for  the  backup  or  the  basis  for  his  numbers,  $8  to  $10 
billion.  And  he  said  that  he  could  not  share  them  with  us.  He  could 
not  share  the  basis  for  his  report  with  us. 

Chairman  Gilman.  Have  you  talked  to  anyone  else  in  addition  to 
the  intelligence  people  about  trying  to  get  a  release  of  their  infor- 
mation? 

Mr.  Kelley.  No,  sir.  I  have  dealt  with  the  State  Department  and 
the  CIA.  I  have  not  talked  to  any  other  agency  about  it. 

You  mean  outside  the  agencies? 

Chairman  Gilman.  Yes,  outside 

Mr.  Kelley.  No,  I  have  not,  sir. 


56 

Chairman  Gilman.  I  would  urge  you  to  try  to  discuss  it  with  any 
other  agency  of  the  Government  that  might  be  able  to  satisfy  our 
inquiry,  if  you  would  further  pursue  that. 

Mr.  Kelley.  I  can  give  it  a  try. 

Chairman  Gilman.  Would  you?  Then  let  us  know  how  you  make 
out. 

Mr.  Kelley.  All  right. 

Chairman  Gilman.  We  would  welcome  that. 

Mr.  Kelley.  Yes,  sir. 

Chairman  Gilman.  Mr.  Hamilton. 

Mr.  Hamilton.  Thank  you,  Mr.  Chairman.  I  have  no  questions. 

Mr.  Kelley,  I  understand  you  will  be  retiring  after  38  years  of 
service,  and  I  just  want  to  extend  my  appreciation  to  you  for  all 
of  the  work  that  you  have  done  for  this  committee.  We  have  appre- 
ciated that  very  much.  It  is  an  excellent  record  of  service. 

Mr.  Kelley.  Well,  thank  you,  Mr.  Hamilton. 

Sometimes  maybe  I  did  not  get  the  reports  up  here  as  soon  as 
you  needed  them,  and  I  apologize  for  that;  but  I  enjoyed  working 
with  Mike  and  his  team. 

And  I  enjoyed  working  with  your  team  as  well  as,  Mr.  Chairman. 

Chairman  Gilman.  Well,  Mr.  Kelley,  we  wish  you  well  in  your 
future  endeavors.  Thank  you  for  being  with  us. 

Mr.  Kelley.  Thank  you,  sir. 

Chairman  Gilman.  We  will  now  call  Panel  3,  Mr.  Polisar  of 
Peace  Watch,  and  Mr.  Robert  Satloff  of  the  Washington  Institute 
for  Near  East  Policy,  if  they  would  please  come  to  the  table. 

Both  panelists,  you  can  submit  your  statement  in  full  and  sum- 
marize it  or  read  your  statement;  but  bear  in  mind  we  are  under 
a  5-minute  rule. 

So  please,  Mr.  Polisar,  proceed. 

STATEMENT  OF  DAN  POLISAR,  EXECUTIVE  DIRECTOR,  PEACE 
WATCH,  JERUSALEM,  ISRAEL,  ACCOMPANIED  BY  ROBERT 
SATLOFF,  EXECUTIVE  DIRECTOR,  WASHINGTON  INSTITUTE 
FOR  NEAR  EAST  POLICY 

Mr.  Polisar.  Thank  you  very  much,  Mr.  Chairman. 

I  am  Dan  Polisar,  the  director  of  Peace  Watch,  which  is  a  neu- 
tral, unaffiliated  peace  accord  monitoring  organization  in  Israel, 
which  monitors  accords  signed  by  Israel  and  its  Arab  neighbors,  to 
date,  Egypt,  the  PLO,  and  Jordan. 

We  are  in  the  business  of  giving  out  facts  on  compliance,  not  of 
making  recommendations  either  to  the  parties  to  the  accords  or  to 
the  U.S.  Government. 

I  want  to  focus  just  on  a  couple  of  highlights  from  the  written 
testimony.  The  first  of  those  has  to  do  with  what  compliance  is, 
which  ought  to  be  a  straightforward  question,  but  apparently  it  is 
not. 

When  you  are  monitoring  compliance,  what  you  are  looking  at, 
what  you  have  to  be  looking  at,  is  what  are  the  obligations  that 
each  side  has  taken  upon  itself?  And  what  is  their  actual  behavior. 
That  is  how  we  do  it.  That  is  how  it  has  traditionally  been  done. 

There  were,  in  recent  State  Department  reports  on  this  subject, 
however,  two  alternative  approaches  to  compliance,  neither  of 
which  really  constitutes  a  valid  way  to  look  at  it. 


57 

One  of  them  is  a  relative  standard.  That  is,  instead  of  looking  at 
what  the  PLO  was  supposed  to  do  and  what  they  did,  the  State  De- 
partment gave  a  sort  of  impressionistic  view  of  whether  a  particu- 
lar 6-month  period  was  better  or  worse  than  the  6-month  period 
prior  to  that.  And  that  relative  standard  does  not  give  you  a  good 
reading  on  compliance. 

Second,  you  cannot  substitute  the  views  of  the  parties  in  the  con- 
flict for  an  objective  analysis  of  compliance. 

It  very  often  happens  that  Israel  will  demand  of  the  PLO  more 
than  the  accords  actually  say.  Israel  will  tell  the  PLO  you  cannot 
talk  about  having  Jerusalem  as  your  capital  in  the  future,  even 
though  there  is  nothing  wrong  with  talking  about  that  on  a  future 
level. 

Israel  will  say  to  the  PLO,  you  have  to  extradite  even  people 
whose  extradition  we  have  not  yet  formally  requested.  The  accord 
does  not  mandate  it.  Israel  is  demanding  more.  Sometimes  Israel 
demands  less,  is  not  as  stringent  as  the  accords  are,  and  the  same 
thing  in  the  opposite  direction. 

Whether  you  are  talking  about  Peace  Watch  or  the  U.S.  Con- 
gress, if  you  want  to  do  an  objective  job  of  monitoring,  you  cannot 
substitute  the  judgments  of  the  sides.  You  have  to  say  to  yourself: 
What  were  the  parties  supposed  to  do?  And  what  are  they  actually 
doing? 

And  that  is  the  standard  which  motivates  these  remarks. 

I  want  to  touch  on  a  couple  of  aspects  of  compliance.  The  first 
of  those  is  what  I  refer  to  as  meta-compliance.  That  is,  what  is  it 
that  the  PLO  leadership  is  saying  about  the  most  fundamental  as- 
pects of  the  accords?  The  recognition  of  Israel?  The  cessation  of  the 
armed  struggle?  And  most  importantly,  the  sanctity  of  the  accords 
themselves? 

Part  of  compliance  has  to  do  with  a  commitment  that  you  will 
comply  at  all  times  with  the  accords  that  you  have  signed. 

And  I  think  the  most  disturbing  thing  on  this  note  is  that  more 
than  half  a  dozen  times  in  the  last  several  months,  Chairman 
Arafat  has  gone  on  public  record  as  comparing  the  Oslo  accords  to 
accords  that  were  signed  by  the  Prophet  Muhammad  with  the 
Tribe  of  Quraysh. 

Now,  those  accords  were  a  10-year  accord,  a  cease-fire;  and  after 
2  years,  when  it  became  expedient  to  do  so,  Muhammad  broke 
those  accords  in  order  to  defeat  the  Tribe  of  Quraysh.  And  that  be- 
speaks a  very  problematic  attitude  toward  compliance.  It  suggests 
that  an  accord  is  something  you  comply  with  when  it  is  convenient; 
and  when  it  becomes  inconvenient,  you  do  not  comply  with  it. 

A  second  issue  of  compliance  relates  to  the  preemptive  measures 
which  have  been  taken  to  fight  against  terror.  There  are  a  number 
of  measures  that  must  be  taken  according  to  the  accords: 
confiscating  weapons  is  part  of  that  picture;  shutting  down  training 
grounds;  also  stopping  an  attack,  when  you  hear  about  it,  stopping 
it  before  it  occurs. 

And  I  would  just  like  to  close  by  noting  a  couple  of  examples  be- 
cause Chairman  Arafat  and  other  leaders  of  the  PLO  have  stated 
on  a  number  of  occasions  that  they  have  stopped  10  attacks,  they 
have  stopped  12  attacks,  they  have  stopped  14  attacks. 


58 

Now,  the  nature  of  these  claims  is  very  difficult  to  investigate. 
Someone  says  I  stopped  attacks;  I  cannot  tell  you  for  security  rea- 
sons who  was  going  to  attack  and  where  they  were  going  to  attack; 
but  take  my  word  for  it,  I  stopped  it. 

Now,  the  three  cases  that  we  investigated  indicated  as  follows: 
No.  1,  there  was  a  case  in  which  the  claim  was  that 

Chairman  GlLMAN.  Mr.  Polisar,  your  time  is  rapidly  expiring. 

Mr.  Polisar.  OK.  Then  I  will  rapidly  bring  my  remarks  to  a 
close.  Thank  you,  Mr.  Chairman. 

A  case  in  which  a  claim  was  made  that  440  pounds  of  explosives 
had  been  destroyed.  It  turned  out  it  was  440  pounds  of  perfectly 
innocuous  pesticides. 

A  claim  that  a  suicide  bomber  on  a  bus  was  coming  from  Jericho 
to  Jerusalem.  It  turned  out  that  there  was  no  bomber,  there  was 
no  bus,  there  was  no  explosives,  and  there  was  no  plan. 

There  was — and  I  will  close  on  this  note — one  case  in  which 
there  was  a  kernel  of  truth  to  the  claim.  Chairman  Arafat  said  that 
a  planned  suicide  bombing  attack  for  a  particular  destination  had 
been  thwarted.  It  turns  out  someone  was  in  the  process  of  being 
recruited  to  engage  in  an  attack  at  some  future  point,  and  the  Pal- 
estinian police  arrested  the  recruiters.  It  was  not  exactly  what  was 
claimed;  but  it  was,  in  fact,  a  thwarting  of  a  possible  attack 

Thank  you  very  much,  and  I  look  forward  to  taking  your  ques- 
tions. 

[The  prepared  statement  of  Mr.  Polisar  appears  in  the  appendix.] 

Chairman  GlLMAN.  Thank  you,  Mr.  Polisar.  We  appreciate  your 
taking  the  time  to  be  with  us. 

Mr.  Satloff. 

STATEMENT  OF  ROBERT  SATLOFF 

Mr.  Satloff.  Thank  you,  Mr.  Chairman.  Thank  you  for  the  op- 
portunity to  provide  testimony  to  this  committee.  This  is  my  inau- 
gural testimony  before  this  committee. 

Mr.  Chairman,  I  just  returned  2  days  ago  from  leading  a  delega- 
tion of  the  Washington  Institute  to  the  Middle  East  where  we  met 
with  senior  leaders  from  Turkey,  Jordan,  Israel,  and  the  Palestin- 
ian Authority;  and  where  we  convened  our  annual  conference  in 
Amman,  Jordan,  to  discuss  with  200  Arabs,  Israelis,  and  Ameri- 
cans the  future  of  the  peace  process. 

I  bring  those  insights  from  those  conversations  to  this  testimony. 

Now,  Mr.  Chairman,  in  a  process  replete  with  critical  moments, 
we  are  entering  one  of  the  most  critical.  Gaza- Jericho  was  a  signal 
achievement;  however,  it  was  only  the  first  phase  of  an  interim  ar- 
rangement. Despite  great  misgivings  about  the  record  of  Oslo,  both 
Israel  and  its  Palestinian  partner  have  decided  to  press  on  to  a  sec- 
ond-stage agreement.  This  will  include  Israeli  redeployment  out  of 
populated  areas  of  the  West  Bank,  elections  for  the  first-ever  Pal- 
estinian Council,  and  the  extension  of  the  Palestinian  self-govern- 
ment throughout  the  West  Bank. 

This  is  a  complex  and  complicated  agreement.  It  envisions  three 
zones  of  withdrawal  and  differing  rules  for  security  governing  these 
zones.  Implementing  this  agreement  will  be  exponentially  more  dif- 
ficult than  implementing  phase  one. 


59 

Nevertheless,  Mr.  Chairman,  and  despite  the  continuance  of  ter- 
rorism by  radical  elements  opposed  to  the  peace  process,  Israel  be- 
lieves its  best  interests  lie  in  advancing  to  the  next  stage  so  as  to 
ensure  that  Gaza-Jericho  does  not  wither  on  the  vine  as  many 
Arab  friends  of  the  Palestinians  seem  willing  to  permit. 

While  there  is  great  anxiety  among  the  Israeli  public  and  within 
the  Israeli  Army  about  implementing  the  next  phase,  significant 
majorities  continue  to  support  the  government's  pursuit  of  the 
peace  process. 

Second,  Mr.  Chairman,  the  Palestinian  Authority  has  had  a  few 
good  months.  The  Palestinian  capital  is  reportedly  beginning  to  ar- 
rive in  Gaza,  $600  million  since  the  new  year.  Cooperation  between 
the  Israeli  and  PLO  security  forces  has  improved  significantly. 

Nevertheless,  Mr.  Chairman,  there  is  still  much  room  for  im- 
provement, both  in  terms  of  promoting  free  market  investment  and 
especially  in  terms  of  taking  preventive  and  preemptive  measures 
to  combat  terrorism. 

In  my  view,  the  key  for  the  next  phase  will  be 

Chairman  GlLMAN.  Mr.  Satloff,  I  am  going  to  have  to  interrupt. 
I  have  4  minutes  to  get  to  the  floor. 

Ms.  Ileana  Ros-Lehtinen  will  be  returning.  We  will  continue  in 
just  a  few  minutes.  In  the  meantime,  we  will  recess  for  just  a  few 
moments. 

[Recess.] 

Ms.  Ros-Lehtinen  [presiding].  The  committee  will  please  come 
to  order.  Thank  you  so  much  for  the  witnesses'  kindness  and  pa- 
tience. 

Mr.  Satloff,  we  apologize.  I  understand  that  you  were  in  the  mid- 
dle of  the  beginning  of  your  statement,  let  us  say;  and  if  you  could 
continue  please. 

Thank  you.  Mr.  Satloff. 

Mr.  Satloff.  Thank  you  very  much,  Madam  Chairman.  If  I 
could  just  pick  up  where  I  left  off. 

The  Palestinian  Authority,  Madam  Chairman,  has  had  a  few 
good  months.  The  Palestinian  capital  is  reportedly  beginning  to  ar- 
rive in  Gaza,  $600  million  since  the  new  year.  Cooperation  between 
the  Israeli  and  PLO  security  forces  has  improved  significantly. 

Nevertheless,  there  is  still  much  room  for  improvement,  both  in 
terms  of  promoting  free  market  investment  and  especially  in  terms 
of  taking  preventive  and  preemptive  measures  to  combat  terrorism. 

In  my  view,  Madam  Chairman,  the  key  for  the  next  phase  of 
Oslo  will  be  whether  the  PA  adopts  the  Gaza  model  in  the  West 
Bank  or  the  Jericho  model.  The  former  being  a  laisser-faire  atti- 
tude toward  radical  groups  and  their  possession  of  weapons.  The 
latter  being  an  activist  approach  to  security. 

Replicating  the  Gaza  model  will  be  a  recipe  for  disaster.  An  ac- 
tivist approach  may  prove  successful. 

Third,  Madam  Chairman,  Jordan-Israel  peace.  This  is,  perhaps, 
the  most  hopeful  element  in  the  new  Arab-Israel  equation;  but  it 
needs  support  lest  it  grows  sterile. 

The  key  theme  of  our  conference  in  Amman  was  that  this  peace 
is  much  more  complex  than  a  personal  agreement  between  King 
Hussein  and  Prime  Minister  Rabin.  That  personal  connection  may 
carry  the  day  for  a  period  of  time;  but  for  peace  to  survive  its  ere- 


60 

ators,  it  must  be  bolstered  by  tangible  changes  in  the  lives  of  the 
people  that  are  affected  by  it,  especially  the  Jordanians. 

The  success  or  failure  of  the  Jordan-Israel  peace  should  not  be 
left  hostage  to  the  success  or  failure  of  the  Israel-Palestinian  rela- 
tionship. 

To  ensure  that,  it  is  necessary  to  find  low-cost  ways  to  assist  the 
Jordanians  and  to  convince  Jordan  to  turn  its  economic  sights  from 
Iraq  in  the  east  to  the  West  Bank,  Israel,  and  the  Mediterranean 
in  the  west. 

Fourth,  despite  all  the  talk  about  Syria's  strategic  choice  for 
peace,  it  is  not  yet  clear,  Madam  Chairman,  whether  Syria  is  part 
of  the  problem  or  part  of  the  solution. 

Syria  today  is  the  only  peace  process  principal  that  continues  to 
entertain  the  use  of  terrorism  as  policy  and  that  is  engaged  in  ter- 
rorism against  the  peace  process  it  claims  to  support. 

Today,  living  in  Damascus  or  the  Syrian-controlled  Bekaa  are 
anti-peace  process  terrorists  and  anti-Turkish  terrorists.  Syria  is 
taking  direct  steps  to  undermine  reconciliation  among  the  Iraqi 
Kurds;  and  it  is  flouting  procedural  agreements  to  renew  peace 
talks  with  Israel. 

I  can  find  little  evidence,  Madam  Chairman,  that  repeated  Unit- 
ed States  entreaties  and  demarches  to  Syria  have  brought  direct 
results  on  these  issues. 

Just  three  quick  points  on  U.S.  policy  and  then  a  final  caveat. 

First,  the  peace  process  is  very  much  in  American  interests.  With 
the  absence  of  a  Soviet  Union,  the  rationale  has  shifted,  but  it  has 
not  diminished.  It  used  to  have  a  defensive  rationale,  keeping  the 
Soviets  out. 

It  is  now  a  more  positive  rationale,  to  create  a  strategic  consen- 
sus among  moderate  pro- West  elements,  Arabs,  Israelis,  and  Turks, 
to  combat  the  twin  threats  of  Iraqi's  secular  radicalism  and  Iran's 
religious  militancy. 

Success  requires  American  leadership  to  deter  the  region's  radi- 
cals. This  is  where  the  process  began.  This  is  where  it  must  con- 
tinue. Without  it,  the  process  will  die. 

Second,  our  job  is  to  work  with  the  peace  makers. 

Ms.  Ros-Lehtinen.  It  you  could  summarize,  because  your  time 
is  up.  Thank  you. 

Mr.  Satloff.  Yes. 

We  need  to  work  with  the  peace  makers,  with  the  Israelis,  with 
the  Palestinians.  We  have  a  unique  role  in  helping  to  shore  them 
up  as  well  as  insisting  on  full  compliance. 

And  let  us  not  forget  Egypt.  This  is  the  most  important  relation- 
ship in  the  Arab  world.  We  must  work  on  it  now. 

With  Syria,  Madam  Chairman,  I  would  suggest  that  we  need  to 
step  back  for  a  moment.  We  have  shown  the  urgency;  the  Israelis 
have  shown  the  urgency;  it  is  unclear  whether  the  Syrians  have 
shown  the  urgency. 

In  next  week's  meeting  between  Secretary  Christopher  and  For- 
eign Minister  Sharaa,  perhaps  America's  own  bilateral  list  of  is- 
sues— proliferation,  human  rights,  Lebanon,  narcotics,  counterfeit- 
ing, and  Syria's  role  in  Lebanon — should  be  on  the  agenda. 

A  final  note,  Madam  Chairman,  as  an  historian,  it  is  important 
for  all  of  us  to  take  the  long  view.  Though  great  progress  has  been 


61 

achieved,  there  is  still  much  to  go.  We  are  still  in  an  early  phase, 
getting  leaders  to  make  peace.  It  will  take  years  before  those  stra- 
tegic decisions  filter  down  to  the  people.  Success  in  the  peace  proc- 
ess is  not  just  one  shuttle  mission  or  one  signing  ceremony  away. 
The  process  is  not  irreversible.  Achievements  are  not  irrevocable. 
The  process  can  falter.  It  can  succumb  to  terrorists.  Nothing  is  in- 
evitable. Nothing  is  impossible.  We  must  take  nothing  for  granted. 

For  America,  the  key  to  securing  its  interests  is  to  remain  en- 
gaged at  every  step,  supporting  the  peace  makers,  and  actively  de- 
terring the  enemies  of  peace. 

Thank  you  very  much,  Madam  Chairman,  for  the  opportunity. 

[The  prepared  statement  of  Mr.  Satloff  appears  in  the  appendix.] 

Ms.  Ros-Lehtinen.  Thank  you.  I  appreciate  it.  Thank  you  so 
much. 

I  would  like  to  ask  a  question  to  the  panelists.  A  FBIS  report  of 
September  1  of  this  year,  just  a  few  weeks  ago,  cites  an  Israeli 
newspaper  as  saying  that  Arafat  has  transferred  $20,000  to  a 
Hamas  organization  known  as  the  Young  Muslims  Association 
headed  by  Sheikh  Tal'at  Sadr,  one  of  the  leaders  of  the  political 
arm  of  this  organization,  via  the  Palestinian  Sports  Ministry. 

And  we  have  heard  reports  and  indications  that  Arafat  has 
transferred  funds  to  these  Hamas-sponsored  institutions. 

How  do  you  assess  this  report?  And  what  does  it  indicate  about 
the  relations  between  the  PLO  and  Hamas? 

Mr.  Satloff.  Madam  Chairman,  first  of  all,  I  do  not  know  the 
specifics  of  the  report.  I  was  traveling  in  the  region  at  the  time. 

My  understanding  of  Chairman  Arafat's  approach  is  to  try  to  iso- 
late the  military  wing  of  Hamas  and  to  try  to  bring  in  the  soft  sup- 
port that  Hamas  receives  from  those  who  are  the  most  economi- 
cally disadvantaged. 

In  the  last  6  months,  the  PLO  has  taken  great  steps  to  isolate 
the  military  wing  of  Hamas.  There  is,  I  believe,  great  consternation 
about  the  relationship  between  Arafat  and  Hamas  on  a  political 
level. 

I  am  not  familiar  with  financial  transfers  between  the  PA  and 
Hamas. 

Ms.  Ros-Lehtinen.  And  this  one  referred  to  transferring  it  via 
this  Palestinian  Sports  Ministry.  Would  you  know  about  any 

Mr.  POLISAR.  If  I  could  just  interject  a  comment? 

Ms.  Ros-Lehtinen.  Yes. 

Mr.  Polisar.  We  at  Peace  Watch  checked  out  the  report  both  on 
the  PLO  side  and  on  the  Hamas  side.  And  all  of  the  parties  openly 
admit  that  that  transfer,  in  fact,  took  place  and  that  there  are 
other  transfers  like  that  in  the  offing. 

Ms.  Ros-Lehtinen.  Thank  you.  Would  you  say  that  the  PLO  and 
Hamas  are  about  to  sign  an  agreement  between  them?  And  what 
are  the  principles  of  this  agreement?  What  will  result  after  this  is 
signed? 

Mr.  Polisar.  The  PLO  and  Hamas  have  been  about  to  sign  an 
agreement  for  about  the  last  8  or  9  months  based  on  press  ac- 
counts, which  means  you  cannot  take  them  that  seriously. 

I  know  what  was  under  negotiation  as  of  a  couple  of  months  ago. 
The  deal  was  going  to  be  that  the  PLO  would  agree  to  release  all 
of  the  Hamas  people  who  had  been  convicted  by  Palestinian  courts 


62 

of  crimes  whose  sentences  ranged  up  to  life  imprisonment;  and 
Hamas  was  going  to  agree  to  stop  its  attacks  from  those  areas  con- 
trolled by  the  Palestinian  Authority. 

And  it  was  not  clear  whether  they  were  only  talking  about  Gaza 
and  Jericho  or  whether  they  were  talking  about  those  areas  which 
would  be  under  Palestinian  control  in  phase  two  of  Oslo. 

But  I  do  not  believe  that  anybody  knows  what  is  actually  going 
to  be  in  it  because  the  sides  have  not  signed  anything  on  paper. 

Ms.  Ros-Lehtinen.  Thank  you. 

Mr.  Satloff.  If  I  could  just  add  one  note. 

Ms.  Ros-Lehtinen.  Yes. 

Mr.  Satloff.  In  fact,  the  PLO  and  Hamas  have  had  ongoing  ne- 
gotiations since  the  early  days  of  the  Intifada  that  go  back  to  1988. 
This  is,  at  its  core,  an  adversarial  relationship  that,  for  moments 
of  time,  there  are  tactical  overlaps. 

So  while  there  could  very  well  be  an  agreement  between  the  po- 
litical wing  of  Hamas  and  the  PA  at  some  point,  I  still  believe  that 
there  is  a  fundamental  divide  that  separates  these  two. 

Ms.  Ros-Lehtinen.  And  about  this  divide,  how  effective  would 
you  say  that  Arafat's  control  over  the  Palestinian  institutions  in 
the  self-rule  areas  is?  And  to  what  extent  would  he  be  vulnerable 
to  a  challenge  from  Hamas  or  other  groups  that  are  opposed  to  his 
policy  of  supposedly  pursuing  the  peace  process,  in  his  terms? 
Would  his  faction  win  in  a  fairly  contested  ballot  when  and  if  elec- 
tions are  held  for  a  Palestinian  Council,  in  your  opinions? 

Mr.  Satloff.  In  my  opinion,  Chairman  Arafat  himself  would  win 
a  rather  significant  majority  in  an  election  for  the  chairmanship  of 
the  Palestinian  Council.  There  may  not  even  be  an  opposition  in 
that  election.  The  factions  that  support  Oslo  would  also  win  the 
council  vote,  but  there  would  be  a  significant  minority  that  would 
be  elected  from  the  opposition,  both  from  the  far  left  and  the  far 
right. 

All  the  opinion  polls  that  I  have  seen  give  Hamas  somewhere 
around  less  than  20  percent  of  the  vote. 

In  terms  of  security,  I  have  no  doubt  that  should  there  be  a  secu- 
rity show-down  between  the  forces  supporting  Oslo  and  the  forces 
opposing  it,  the  forces  supporting  Oslo  would  win  hands  down. 

Mr.  POLISAR.  I  would  just  add  to  that  that  the  polling  data  show- 
ing Fatah,  Arafat's  wing,  would  win  as  well  as  Arafat  himself.  That 
data  has  been  consistent  from  September  1993  through  to  the 
present  with  Arafat  getting  stronger  and  stronger. 

However,  it  is  not  precisely  an  issue  of  support  for  or  opposition 
to  the  Oslo  accords.  You  will  get  in  the  same  poll  that  people  sup- 
port Arafat,  and  the  majority  also  supports  the  continuation  of  the 
armed  struggle  against  Israel.  So  it  seems  to  be  more  on  a  personal 
and  organizational  level  than  purely  ideological. 

Ms.  Ros-Lehtinen.  That  is  interesting.  Thank  you  so  much. 

Mr.  Johnston. 

Mr.  Johnston.  Just  two  brief  questions.  And  if  I  could  have 
equally  brief  answer,  possibly. 

Mr.  Polisar,  who  underwriters  Peace  Watch? 

Mr.  Polisar.  Peace  Watch  is  underwritten  by  private  donors  and 
foundations  who,  like  its  board,  run  the  gamut  in  terms  of  their  po- 
litical views. 


63 

Mr.  Johnston.  OK.  The  other  question  is,  in  your  12  pages  of 
testimony  you  dealt  almost  solely  with  the  PLO  and  Palestinian 
Authority  and  things  of  that  nature. 

You  are  dealing,  in  the  Oslo  accord,  with  two  adversarial  parties, 
Israel  and  the  PLO.  Would  not  the  opinion  of  the  Israeli  Govern- 
ment be  paramount  in  determining  whether  the  PLO  is  complying 
with  the  Oslo  Agreement? 

Mr.  POLISAR.  The  opinion  of  the  Israeli  Government  is  significant 
for  a  number  of  things  politically.  But  when  you  want  to  monitor 
compliance,  you  are  not  monitoring  what  one  party  thinks  of  the 
other.  You  are  monitoring  what  do  the  accords  say,  and  what  are 
the  actual  behaviors? 

It  could  be  the  Israeli  Government  will  say  compliance  is  bad, 
and  we  do  not  care;  or  compliance  is  great,  and  we  want  more. 
They  are  entitled  to  a  political  opinion,  and  the  U.S.  Congress  is. 

But  as  the  representative  of  a  monitoring  organization,  I  cannot 
substitute  the  judgment  of  an  interested  party  for  an  objective 
analysis  based  on  obligations  and  actual  behavior. 

Mr.  Johnston.  So  what  you  are  saying — and  you  used  the  term 
twice — a  political  opinion,  so  the  government  is  only  issuing  a  polit- 
ical opinion  on  compliance? 

Mr.  Polisar.  It  can  also  say  compliance  is  good,  but  we  think  the 
process  should  not  go  on.  Or  it  could  say  compliance  is  bad,  and 
we  think  it  should  not. 

In  other  words,  there  are  two  separate  phases.  One  is  the  judg- 
ment on  compliance.  The  judgments  on  compliance  of  the  Israeli 
Government  are  something  that  we  weigh  just  as  we  weigh  any- 
body else's  judgment. 

But,  bottom  line,  we  have  to  give  our  analysis  of  the  facts.  That 
is  our  mandate.  And  I  think  that  is  also  the  mandate  of  anyone, 
like  the  U.S.  Congress,  who  wants  to  sit  in  judgment  of  compliance. 

Mr.  Johnston.  How  long  has  Peace  Watch  been  in  existence? 

Mr.  Polisar.  Since  a  month  after  the  Israel-PLO  accords  were 
signed.  That  is,  since  October  1993. 

Mr.  Johnston.  OK.  Thank  you. 

Mr.  Burton  [presiding].  The  gentleman  yields  back  the  balance 
of  his  time. 

Does  the  gentlemen  from  New  York  have  some  questions  of  the 
panel? 

Mr.  Engel.  Yes.  Thank  you. 

Gentlemen,  I  would  like  to  ask  both  of  you  about  PLO  compli- 
ance. On  a  scale  of  0  to  10,  with  10  being  totally  in  compliance  and 
0  being  totally  not  in  compliance,  how  would  you  rate  the  PLO? 

Can  we  start  with  Mr.  Satloff? 

Mr.  Satloff.  That  is  a  fascinating  question,  Mr.  Congressman. 

There  is  a  difference  between  effort  and  results.  I  would  give  the 
PLO  a  6  or  7  in  terms  of  its  effort  and  a  5  in  terms  of  the  results. 

Mr.  Engel.  OK. 

Mr.  Polisar. 

Mr.  Polisar.  I  am  going  to  duck  the  question  with  a  short  expla- 
nation. 

At  Peace  Watch,  we  scrupulously  refrain  from  giving  overall 
grades.  It  is  not  our  job  to  say  this  party  is  good  in  compliance  or 
bad.  We  look  obligation  by  obligation,  because  that  is  the  approach 


64 

that  we  believe  helps  to  correct  problems  while  highlighting  what 
things  are  going  well. 

So  if  you  want  to  ask  me  about  any  particular  area,  I  will  rate 
it  1  to  10  or  1  to  100  or  tell  you  what  I  think  needs  to  be  fixed 
or  what  is  going  great;  but  I  prefer  not  to  give  an  overall  esti- 
mation, even  at  the  risk  of  losing  a  good  headline. 

Mr.  Engel.  What  about  in  effort — let  me  just  ask  you,  if  you  do 
not  want  to  give  numbers — what  kind  of  effort — because,  you  know, 
to  me  effort  is  probably  more  important  than  results  because  those 
of  us  here  in  Washington  sometimes  make  a  great  deal  of  effort, 
and  sometimes  the  results  are  less  than  we  would  like  to  see.  So 
I  think  effort  is  usually  a  pretty  good  indication  of  the  sincerity  of 
the  parties  involved. 

What  kind  of  an  effort  do  you  think  Mr.  Arafat  has  been  making 
to  comply? 

Mr.  POLISAR.  For  me,  or  for  Peace  Watch,  effort  is  the  only  stand- 
ard. You  cannot  expect  someone  to  guarantee  results.  He  can  only 
guarantee  his  actions. 

But  my  answer  is  the  same:  Effort  is  not  a  category  in  terms  of 
compliance.  If  you  want  to  ask  me  about  extradition,  which  is  one 
of  the  subjects  you  discussed,  I  will  give  you  an  answer.  But  I  will 
not  give  an  overall  rating  for  their  effort.  It  is  not  the  place  of 
Peace  Watch,  and  I  cannot  go  beyond  that. 

Mr.  Engel.  Well,  please  talk  a  little  bit  about  overall  compliance, 
in  terms  of  overall  compliance,  since  the  accords  were  signed  on 
September  15,  1993. 

Mr.  POLISAR.  All  right.  I  would  start  with  what  is  the  most  im- 
portant obligation,  what  I  call  meta-compliance,  what  attitude  is 
being  fostered  by  the  PLO  on  the  basic  questions  of  Israel's  legit- 
imacy and  the  cessation  of  the  armed  struggle. 

And  on  that,  I  think  we  would  have  to  give  the  PLO  relatively 
low  marks.  And  that  consists — and  the  reasons  for  that  is  the 
speeches  about  jihad,  the  speeches  comparing  the  Oslo  accords  to 
an  accord  which  was  abrogated  2  years  later  by  Muhammad,  the 
failure  to  change  the  Palestinian  Covenant. 

But  more  than  the  failure  to  change  the  covenant,  which  one 
could  argue  is  very  difficult  to  do  and  it  involves  other  people,  there 
have  not  been  any  pronouncements  by  Chairman  Arafat  to  the  ef- 
fect that  he  absolutely  wants  to  change  the  covenant  or  proposing 
what  those  changes  would  be  or  lobbying  toward  those  changes  or 
making  sure  that  his  rhetoric  conforms  to  the  covenant  as  it  should 
be  amended,  as  opposed  to  the  covenant  as  it  stands  right  now. 

Much  of  his  rhetoric  fits  better  in  the  existing  covenant  than  it 
would  in  the  covenant  that  he  is  committed  to  writing.  So  on  that, 
which  I  think  is  the  most  significant  issue,  the  effort  is  a  poor  ef- 
fort. 

You  know,  obviously,  there  are  operative  levels  as  well,  where  on 
some  things  the  marks  are  good.  The  Palestinians  have  set  up  a 
court  system  which  has  held  trials  of  36  individuals,  31  of  whom 
were  sentenced. 

Now,  none  of  the  individuals  sentenced  were  among  the  top  50 
terrorists  of  Hamas  or  Islamic  Jihad.  Instead,  they  were  the  politi- 
cal leaders,  they  were  the  recruiters,  they  were  writers  and  jour- 


65 

nalists.  But  nonetheless  the  trials  is  one  of  the  things  that  is  obli- 
gated by  the  accords,  and  they  have  taken  place. 

I  can  go  through  other  issues,  but  those  are  some  of  the  things 
that  I  think  are  particularly  significant. 

Mr.  Engel.  We  have  heard  recently,  the  past  couple  of  months, 
that  the  PLO  is  supposedly  cracking  down  on  terrorists,  rounding 
them  up.  Have  you  found  that?  Have  you  found  a  difference  in 
what  is  happening  in  the  past  couple  of  months? 

Or  is  the  pattern  still  holding  where  people  are  rounded  up  but 
then  they  are  released  and  no  one  is  really  put  on  trial,  no  one  is 
really  convicted,  it  is  not  really  being  sustained? 

Mr.  POLISAR.  The  last  conviction  by  a  Palestinian  court  in  Gaza 
was  May,  I  believe,  25th.  In  other  words,  all  of  the  trials  that  were 
held  were  from  April  10  through  May  25.  And  after  that,  there  was 
a  policy  of  no  more  trials.  People  were  generally  being  released  at 
that  point  rather  than  held  up. 

So  from  May  until  a  couple  of  weeks  ago  there  were  no  trials  at 
all.  Then  at  that  point  the  Palestinians  held  two  trials  in  Jericho 
principally,  it  seemed,  in  order  to  prevent  Israel's  extradition  re- 
quest for  those  individuals  from  going  through. 

Because  there  is  a  provision  of  the  accords  saying  that  if  the  Pal- 
estinians have  already  tried  somebody,  then  Israel  cannot  extradite 
that  person  or  cannot  request  the  extradition.  So  moments  after  re- 
ceiving Israel's  extradition  request,  the  Palestinians  held  15- 
minute  trials  for  a  couple  of  individuals  and  then  told  Israel  they 
are  already  serving  jail  time. 

But  the  court  system  was  essentially  stopped  as  of  the  end  of 
May.  So  if  you  would  have  asked  me  the  question  June  1st,  I  would 
have  said  there  has  been  a  significant  improvement.  If  you  ask  me 
the  question  now,  I  would  say  that  they  are  no  longer  using  that 
particular  means. 

Mr.  Engel.  I  want  to  ask  Mr.  Satloff  one  question. 

I  would  like  you  to  comment  on  Mr.  Polisar's  remarks  about  the 
covenant  because  people  will  say  that  it  is  impossible  for  Arafat  to 
change  the  covenant  because  he  needs  to  get  so  many  people  to- 
gether. 

Mr.  Polisar's  point  was  he  has  not  even  tried,  or  the  rhetoric  has 
not  even  indicated  that  he  would  like  to  change  the  covenant. 

And  then  I  would  also  like  to  ask  you:  What  would  the  affect  be 
if  the  United  States  were  to  pull  out  its  money  in  the  process? 
Would  it,  in  essence,  collapse  the  entire  peace  process? 

Mr.  Satloff.  Well,  first  about  the  covenant,  if  you  can  spare  me 
just  a  moment. 

The  difficulty  that  Mr.  Arafat  sees  in  amending  the  covenant  has 
to  do  with  the  structural  problem  inside  the  PLO  Charter  that  re- 
quires two-thirds  of  the  Palestine  National  Council  to  take  such  a 
step. 

The  Palestine  National  Council  is  predominantly  an  expatriate 
organization,  a  diaspora  group  with  the  majority  of  its  members 
living  outside  the  West  Bank  and  Gaza. 

Oslo  is  essentially  an  internal  deal.  It  was  to  empower  the  West 
Bankers  and  Gazans.  Arafat  essentially  cut  himself  off  from  the 
large  majority  of  membership  in  the  PNC. 


66 

If  the  PNC  were  to  be  convened  tomorrow,  I  suspect  that  you 
would  not  get  the  two-thirds  necessary  to  amend  the  charter.  And 
my  understanding  is  that  is  why  he  has  not  proceeded  down  that 
path.  I  might  not  like  it,  I  might  want  it  to  be  amended  tomorrow, 
but  I  do  not  think  he  has  the  votes;  and  I  suspect  that  is  why  he 
has  not  proceeded  that  way. 

My  understanding  is  that  a  new  formula  is  being  worked  out  to 
hopefully  do  this  after  Palestinian  elections  which  will  provide 
Arafat  with  the  first-ever  Palestinian  mandate  to  let  him  take  such 
a  substantive  change. 

So  I  understand  his  difficulties.  I  do  not  like  them,  but  there  is 
a  political  rationale  to  why  the  PNC  has  not  been  convened  so  far. 

As  to  your  second  question,  if  the  United  States  were  to  sever  its 
assistance  to  the  Palestinians  precisely  at  a  time  when  the  Israeli 
Government  and  the  Palestinian  leadership  were  to  take  one  step 
forward  in  the  peace  process,  via  the  second  stage  agreement,  I  be- 
lieve it  would  send  a  negative  signal  to  both  the  Israeli  people  and 
the  Palestinian  people  about  the  lack  of  confidence  that  the  Amer- 
ican Government  had  in  the  leadership  of  both  the  Israeli  Govern- 
ment and  the  Palestinians.  And  such  a  shock  of  lack  of  confidence 
would  have  ramifications  throughout  the  peace  process. 

Mr.  Engel.  Thank  you. 

Thank  you,  Mr.  Chairman. 

Mr.  Burton.  The  gentleman's  time  has  expired. 

Mr.  Moran. 

Mr.  MORAN.  I  did  not  hear  all  of  the  testimony,  Mr.  Chairman, 
so  I  will  pass.  But  I  will  have  some  questions  of  subsequent  wit- 
nesses, though. 

Mr.  Burton.  OK.  Thank  you. 

Mr.  Ackerman,  does  the  gentleman  from  New  York  have  any 
questions  or  comments? 

Mr.  Ackerman.  I  do  not  have  any  questions.  I  would  ask  to  in- 
clude my  statement  into  the  record. 

Mr.  Burton.  Without  objection. 

[The  information  appears  in  the  appendix:] 

Mr.  Burton.  Let  me  just  follow  up  on  that  because  I  have  a 
question  about  the  $500  million  that  we  are  proposing  to  give  to 
the  PLO  over  the  next  5  years. 

According  to  British  intelligence — and  the  gentleman  who  made 
the  statement  stands  by  his  comments  and  reports — the  PLO  has 
approximately  $8  billion  in  various  institutions  around  the  world. 

Now,  we  certainly  do  not  want  the  peace  process  to  collapse;  but 
at  the  same  time,  they  really  do  not  need  that  money.  And  your 
argument  is  that  that  money  is  part  of  the  glue  that  is  holding  the 
agreement  together  and  that  if  that  money  is  not  forthcoming,  the 
process  might  break  down. 

It  seems  to  me  that  it  is  in  everybody's  interest  for  this  deal  to 
work  out  regardless  of  the  money.  The  PLO  wants  a  homeland; 
they  want  the  agreement  to  fly;  they  want  permanence  where  they 
were. 

It  just  seems  to  me  that  the  argument  that  the  money  that  we 
are  supposed  to  give  them  is  absolutely  essential  for  the  peace 
process  to  go  forward  does  not  make  any  sense  to  me.  It  just  does 


67 

not  make  any  sense,  especially  at  a  time  when  we  have  severe  fis- 
cal problems  in  this  country. 

If  the  PLO  had  no  resources  and  if  this  was  the  one  essential 
that  had  to  be  maintained  to  make  sure  the  process  continued,  I 
would  say  fine.  But  I  just  do  not  see  that.  Can  you  explain  maybe 
to  my  satisfaction  the  reason  of  why  the  money  should  go  forward? 

Mr.  Satloff.  Well,  first  of  all,  Mr.  Chairman,  I  hold  no  portfolio 
on  behalf  of  the  U.S.  Government,  nor  do  I  have  any  insider  knowl- 
edge about  PLO  finances. 

My  assessment  of  the  situation  is  that  the  United  States  having 
made  a  commitment  and  having  put  a  dollar  figure  on  that  com- 
mitment has  made  a  commitment  not  just  to  Yasir  Arafat  but  a 
commitment  to  those  who  support  this  process,  Israelis  and  Pal- 
estinians alike. 

A  decision  after  the  fact  to  stop  or  to  sever  that  commitment 
would  have  ramifications,  not  just  to  the  PLO  but  throughout  the 
peace  process,  about  the  American  Government's  ability  and  will- 
ingness to  carry  through  on  its  commitments  in  that  process. 

It  would  send  signals  everywhere  from  Cairo  to  Amman  to  even 
potential  future  partners  like  those  in  Syria. 

It  is  perfectly  legitimate  to  look  at  PLO  finances  and  to  ask  ques- 
tions about  where  the  money  is  going  and  to  audit  and  all  that  sort 
of  thing  with  transparency  and  accountability. 

But  there  is  a  larger  political  context  here.  And  this  has  to  do 
with  the  American  role  in  the  peace  process  and  how  Israelis,  Pal- 
estinians, and  other  partners  in  that  process  perceive  the  American 
commitment. 

Mr.  Burton.  Well,  I  certainly  will  not  argue  the  point  other  than 
to  say  I  do  not  think  that  those  who  are  negotiating  for  the  United 
States  and  working  in  the  peace  process  were  aware  of  the  tremen- 
dous amount  of  assets  that  the  PLO  had  during  that  process;  and 
when  you  find  out  information  after  the  fact  like  that,  I  think  it 
does  have  a  bearing  and  should  be  taken  into  consideration.  But 
we  will  not  go  into  that. 

Let  me  just  ask  you,  you  were  talking  about  the  extradition,  I 
think,  a  few  minutes  ago;  and  there  is  some  question  about  wheth- 
er or  not  there  is  a  workable  extradition  agreement  and  whether 
or  not  the  PLO  is  working  with  the  authorities  in  Jerusalem  and 
Tel  Aviv. 

Has  Jericho  become  a  safe  haven  for  some  of  these  people  that 
are  alleged  terrorists  and  perpetrating  terrorist  attacks?  And  are 
they  not  being  allowed  to  be  extradited  for  trial  in  Israel? 

Mr.  Polisar.  OK.  The  Gaza-Jericho  Agreement  is  extremely 
clear  on  the  subject  of  extradition,  which  they  call  transfer  of  sus- 
pects since  it  is  not  dealing  with  two  sovereign  entities. 

If  one  side  gives  the  other  a  formal  request  backed  by  a  warrant 
from  a  court  and  backed  by  the  signature  of  the  attorney  general, 
there  is  no  opportunity  for  consideration;  the  arrest  and  transfer 
have  to  be  effected  immediately. 

There  have  so  far  been  seven  cases  in  which  Israel  has  put  in 
formal  requests  like  that  for  a  total  of  11  suspects  in  murders  and 
attempted  murders. 

In  those  cases  to  date,  the  Palestinians  have  responded  twice, 
once  to  say  that  under  their  interpretation  the  individuals  in  ques- 


68 

tion — who,  by  the  way,  were  serving  in  the  Palestinian  police  force 
at  the  time  and  still  do — those  individuals  should  not  be  extradited. 
In  the  other  case,  the  Palestinians  responded  by  saying  they  would 
like  to  extradite  but  the  individuals  in  question  are  in  Egypt  and 
not  Gaza. 

When  it  subsequently  turned  out  and  became  a  matter  of  the 
public  record  that  those  individuals  were,  in  fact,  in  Gaza,  the  Pal- 
estinian Authority  changed  its  answer  and  said  that  Israel  had  not 
filled  out  the  paperwork  correctly.  That  was  several  months  ago, 
and  they  still  have  not  told  Israel  what  flaw  there  is. 

In  all  of  the  other  requests,  the  Palestinians  have  not  yet  given 
any  answer,  and  they  have  not  yet  extradited. 

So,  on  the  simple  level,  they  are  0  for  11  on  this. 

Now,  there  is  a  second  category  called 

Mr.  Burton.  They  are  0  for  11? 

Mr.  Polisar.  All  of  the  11  people  whom  Israel  has  requested 
have  not  been  handed  over  to  date,  although  the  accords  are  clear 
that  those  people  should  be  handed  over. 

Mr.  Burton.  So,  in  essence,  what  you  are  saying  is,  it  appears 
as  though  there  is  a  violation  of  the  agreement? 

Mr.  Polisar.  On  this,  I  will  make  a  clear  statement:  There  is  a 
violation  of  the  agreement.  And  let  me  just  back  that  up  with  one 
other  thing. 

General  Nasser  Yusef,  who  heads  the  Palestinian  police  force, 
said,  as  a  matter  of  public  record  in  an  interview  with  our  organi- 
zation, Peace  Watch,  that  it  is  the  standing  policy  of  the  Palestin- 
ian Authority  not  to  hand  over  any  suspects  in  any  security-related 
cases.  And  that  was  backed  up  by  a  statement  from  their  lieuten- 
ant director  of  intelligence  and  seems  to  fit  the  policy  set  on  the 
political  level. 

Mr.  Burton.  Well,  I  do  not  want  to  belabor  this  discussion,  we 
have  other  panels,  but  I  would  just  like  to  say  that  the  gentleman 
who  proceeded  you,  when  I  asked  him  about  the  $500  million,  indi- 
cated that  we  had  to  live  up  to  the  peace  process  and  the  agree- 
ment, otherwise  we  would  be  looked  upon  as  somebody  who  is  not 
trustworthy. 

It  seems  to  me  that  what  you  are  saying  there  is  the  peace  proc- 
ess has  been  abrogated,  at  least  in  this  instance,  and  they  have  vio- 
lated the  agreement.  And  that  being  the  case,  especially  with  the 
tremendous  substantial  assets  that  they  have  around  the  world,  it 
would  seem  to  me,  since  we  did  not  have  those  facts  before,  that 
we  ought  to  use  that  as  possibly  a  lever  to  force  compliance  with 
every  aspect  of  the  peace  process.  And  if  they  do  not,  we  should  not 
give  them  that  money. 

Does  anybody  else  have  any  questions? 

I  see  the  ranking  democratic  has  arrived.  Mr.  Hamilton,  do  you 
have  any  comment?  I  think  everybody  else  has  spoken. 

Does  the  gentleman,  Mr.  Brownback,  have  any  questions  or  com- 
ments? 

Mr.  Sanford.  Sanford. 

Mr.  Burton.  Sanford.  Excuse  me.  I  am  sorry. 

Mr.  Sanford.  I  do  not  have  any  questions.  Thank  you. 

Mr.  Burton.  OK.  Thank  you. 


69 

There  being  no  further  questions  of  this  panel,  we  will  thank  you 
very  much  for  your  testifying.  And  we  will  have  the  next  panel 
come  forward. 

We  now  are  joined  by  Mr.  Neal  Sher,  Executive  Director  for  the 
American  Israel  Public  Affairs  Committee  here  in  Washington. 

Mr.  Sher,  thank  you  for  coming  today.  You  may  go  ahead  and 
proceed  with  your  opening  statement. 

Mr.  Hamilton.  Mr.  Chairman,  may  I  make  a  unanimous  consent 
request  to  have  testimony  from  the  Center  for  Israeli  Peace  and  Se- 
curity made  part  of  the  record? 

Mr.  Burton.  Without  objection. 

[The  material  appears  in  the  appendix.] 

STATEMENT  OF  NEAL  SHER,  EXECUTIVE  DIRECTOR, 
AMERICAN  ISRAEL  PUBLIC  AFFAIRS  COMMITTEE 

Mr.  SHER.  Thank  you,  Mr.  Chairman  and  members  of  this  distin- 
guished committee,  for  the  opportunity  to  testify  today  before  you. 

As  executive  director  of  AIPAC,  I  recognize  the  critical  role 
that 

Mr.  BURTON.  Excuse  me.  Would  you  care  to  introduce  the  lovely 
lady  next  to  you  there? 

Mr.  Sher.  Yes.  My  pleasure.  Ester  Kurz,  who  is  the  director  of 
our  legislative  policy. 

Mr.  Burton.  Welcome. 

Mr.  Sher.  We  recognize  that  this  committee  plays  a  vital  role 
every  year  in  ensuring  that  the  United  States-Israel  relationship 
remains  strong. 

We  believe  in  the  critical  importance  of  United  States  relations 
with  Israel.  And  we  recognize  the  prominent  role  that  foreign  aid 
plays  in  accomplishing  America's  foreign  policy  objectives,  not  only 
in  Israel  but  around  the  world.  And  in  this  regard,  I  want  to  ex- 
press AIPAC's  strong  support  for  a  viable  foreign  assistance  pro- 
gram. 

AIPAC,  a  domestic,  nonpartisan  membership  organization  of 
American  citizens,  works  on  a  daily  basis  with  its  members  to  nur- 
ture a  close  and  consistently  strong  partnership  between  our  coun- 
try and  Israel. 

On  our  executive  committee  sit  the  presidents  of  50  major  Amer- 
ican Jewish  organizations  representing  more  than  four  and  a  half 
million  active  members  throughout  the  United  States,  as  well  as 
leaders  of  the  country's  pro-Israel  community  from  all  50  states. 

AIPAC  is  the  designated  spokesman  on  Capitol  Hill  on  behalf  of 
the  organized  American  Jewish  community  on  issues  relating  to 
the  United  States-Israel  relationship. 

Mr.  Chairman  and  members,  we  meet  at  an  historic  moment.  Is- 
rael and  the  Palestinians  are  about  to  sign  a  landmark  agreement 
which  has  the  potential  of  transforming  relations  between  the  two 
parties  and  between  Israel  and  the  wider  Arab  world. 

A  broad  Arab-Israel  peace  would  promote  three  key  United 
States  foreign  policy  objectives:  greater  regional  stability,  contain- 
ment of  radical  forces  and  states,  and  secure  flow  of  Persian  Gulf 
oil. 

This  brings  enormous  political,  economic,  and  strategic  benefits 
both  to  the  United  States  and  to  Israel. 


70 

But  in  concluding  this  agreement,  we  have  to  understand  that  Is- 
rael is  taking  unprecedented  risks  for  peace,  predicated  on  support 
from  its  one  reliable  ally,  the  United  States  of  America. 

The  alliance  between  the  two  countries  serves  as  the  bedrock  of 
Israel's  security  and  the  guarantee  of  stability  in  the  region.  Israel 
is  able  to  take  the  risks  for  peace  only  when  she  is  confident  that 
the  United  States  stands  behind  her. 

United  States  support  is  vital  to  achieving  the  goals  of  the  agree- 
ment, to  minimizing  the  risks  that  Israel  is  taking,  and  to  making 
sure  that  Israel  is  not  harmed  in  the  event  that  things  do  not  go 
well. 

There  is  a  wide  range  of  opinion  in  the  pro-Israel  community,  as 
there  is  in  Israel  itself,  regarding  the  best  path  to  peace  between 
Israelis  and  Palestinians. 

But  there  clearly  is  a  consensus  that  the  critical  decisions  re- 
garding peace  and  security  must  be  made  by  the  democratically 
elected  Government  of  Israel  in  free  and  direct  negotiations  with 
its  Arab  counterparts. 

The  Government  of  Israel  has  arrived  at  such  a  critical  decision. 
It  is  about  to  sign  an  agreement  with  the  Palestinians  committing 
the  State  of  Israel  to  a  specific  course  of  action. 

And  I  am  particularly  pleased  to  be  here  today  because  the  U.S. 
Congress  has  a  vital  role  in  helping  ensure  the  success  of  the  im- 
pending agreement. 

First  and  foremost,  it  needs  to  support  the  peace  process  by 
maintaining  United  States  aid  to  Israel.  As  stated  in  a  May  4, 
1994,  letter  to  Prime  Minister  Rabin,  co-authored  by  Senators  Dole 
and  George  Mitchell,  which  92  Senators  signed,  and  I  quote:  "As 
you  work  for  peace  and  reconciliation,  please  know  that  we  will 
continue  to  do  our  best  to  provide  Israel  with  the  economic  and  de- 
fense assistance  it  needs,  because  we  believe  a  just  and  lasting 
peace  can  only  succeed  if  Israel  is  strong  and  secure." 

To  that  end,  let  me  take  this  opportunity  to  thank  the  members 
of  this  committee  for  supporting  the  $3  billion  in  aid  to  Israel  in 
the  fiscal  year  1996  Foreign  Aid  Authorization  bill,  H.R.  1561. 

Another  important  contribution  Congress  can  make  to  the  peace 
process  is  support  for  the  renewal  and  the  strengthening  of  the 
Middle  East  Peace  Facilitation  Act,  known  as  MEPFA,  as  con- 
tained in  the  Senate  version  of  H.R.  1868. 

MEPFA  has  already  made  an  important  contribution  to  the  peace 
process.  By  linking  aid  and  overall  relations  with  the  United  States 
to  PLO  compliance  with  its  commitments  to  renounce  terrorism 
and  violence  and  to  accept  Israel's  right  to  exist,  it  has  provided 
the  Palestinian  Authority,  the  PA,  with  an  incentive  to  comply  with 
the  PLO's  commitments. 

Since  MEPFA  was  first  enacted,  the  PLO's  record  of  compliance, 
while  still  far  from  adequate,  has  improved,  particularly  in  recent 
months. 

The  PA  has  reportedly  prevented  a  number  of  Islamic  terrorist 
acts,  including  suicide  attacks,  against  Israel.  And  there  have  been 
consistent  reports  of  high  levels  of  cooperation  between  Palestin- 
ians and  Israeli  security  forces. 

Wanted  terrorists  have  been  subjected  to  long  prison  terms  by 
the  PA. 


71 

Mr.  Burton.  Mr.  Sher,  could  we  have  you  conclude  relatively 
soon  so  we  could  get  to  the  questions  and  answers?  We  are  trying 
to  stick  as  close  as  we  can  to  the  5-minute  rule. 

Mr.  Sher.  OK.  I  will  chop  it  down  a  bit.  Thank  you,  Mr.  Chair- 
man. 

Mr.  Burton.  Thank  you. 

Mr.  SHER.  We  have  to  make  one  thing  very  clear.  We  understand 
that  much  more  has  to  be  done.  There  are  problems.  The  problems 
highlight,  in  our  view,  the  need  for  tougher  legislation  that  would 
provide  Congress  with  additional  leverage  to  enforce  PLO  compli- 
ance. 

Arafat  must  understand  that  the  U.S.  Congress  is  closely  watch- 
ing his  acts. 

The  new  MEPFA,  which  we  support  is,  indeed,  tougher  than  ex- 
isting legislation.  In  addition  to  certifying  that  the  PLO  continues 
to  comply  with  its  commitments  of  September  1993,  the  President 
would  also  have  to  certify  that  the  PLO  is  complying  with  many 
other  commitments,  particularly  those  under  the  Gaza-Jericho 
Agreement  of  May  1994,  which  include:  the  prevention  of  acts  of 
terrorism;  taking  legal  measures  against  terrorists;  abstaining  from 
and  preventing  acts  of  incitement;  prohibiting  the  possession,  man- 
ufacture, sale,  or  acquisition  of  weapons. 

Moreover,  the  bill  prohibits,  v/ithin  6  months,  any  aid  unless  the 
President  further  certifies  six  other  items,  including  disavowal  of 
the  covenant  calling  for  Israel's  destruction. 

In  addition,  the  bill  introduces  financial  accountability  by  requir- 
ing the  President  to  certify  that  the  U.S.  assistance  is  spent  only 
for  its  intended  purposes. 

Mr.  Chairman,  virtually  the  entire  organized  American  Jewish 
community  has  publicly  expressed  support  for  MEPFA  of  1995.  In 
an  August  2,  1995,  press  release,  the  Conference  of  Presidents  of 
major  American  Jewish  organizations  stated,  and  I  quote:  "There 
is  a  strong  consensus  among  our  50  national  member  agencies  to 
support  MEPFA  1995." 

We  at  AIPAC  are  part  of  this  overwhelming  consensus.  And  we 
take  note  as  well  that  both  the  Government  of  Israel  and  our  own 
Administration  are  also  supportive  of  MEPFA  1995. 

We  believe  that  adopting  it  will  enhance  the  peace  process,  pro- 
mote American  interests.  And  that  by  rejecting  the  bill  or  adopting 
proposals  that  would  have  the  effect  of  denying  any  aid  to  the  Pal- 
estinians would  cause  serious  harm. 

The  new  bill,  the  new  proposal  would  maximize  the  law's  effec- 
tiveness as  a  tool  to  ensure  PLO  compliance  with  its  commitments. 
An  enhanced  MEPFA  would  help  demonstrate  to  the  PA  its  need 
to  comply  with  its  commitments. 

Mr.  Chairman,  despite  its  problems,  the  peace  process  has  made 
dramatic  progress  since  that  unforgettable  day  2  years  ago  when 
Yitzhak  Rabin  and  Yasir  Arafat  shook  hands  on  the  White  House 
lawn. 

We  must  ensure  that  the  progress  we  have  witnessed  will  con- 
tinue so  that  one  day  Israelis  and  Palestinians  will  live  together  in 
peace  and  that  Israel  will  have  the  peace  and  security  it  so  des- 
perately longs  for  and  needs. 

Thank  you  very  much. 


72 

[The  prepared  statement  of  Mr.  Sher  appears  in  the  appendix.] 

Mr.  BURTON.  Thank  you  for  your  comments. 

First  of  all,  you  indicated  that  the  PLO  has  taken  steps  to  stop 
terrorist  attacks  against  Israeli  forces  and  positions.  What  docu- 
mentation do  you  have  for  that? 

Mr.  Sher.  Well,  there  have  been  several  reports  and,  frankly, 
also  from  meetings  and  conversations  we  have  had  in  Israel. 

But  the  main  point  that  I  would  like  to 

Mr.  BURTON.  No.  The  point  is  that  those  were  pretty  categorical 
statements  that  you  made,  and  I  just  wondered  if  you  had  any  doc- 
umentation where  the  PLO  could  show  that  they  took  steps  to  stop 
some  kind  of  a  terrorist  attack.  Because  there  have  been  a  number 
of  terrorist  attacks,  as  you 

Mr.  SHER.  Yes,  there  have  been  terrorist  attacks.  Of  course,  the 
ones  they  stopped  did  not  result  in  terrorist  attacks.  And  informa- 
tion we  have  received,  reports  we  have  been  given,  indicate  that 
they  have  made  improvements  in  this. 

And  the  point  that  I  would  like  to  make  here  is  that  by  Congress 
staying  engaged  through  MEPFA,  which  has  as  a  requirement  for 
the  continued  relationship  between  America  and  the  Palestinians 
that  they  continue  to  comply  with  this  commitment,  that  Amer- 
ica— this  Congress  has  a  role  in  keeping  their  feet  to  the  fire.  And 
it  is  a  very  useful  tool  and  vehicle  that  would  ultimately  help  the 
peace  process. 

Mr.  Burton.  We  intend  to  do  that,  I  think.  But  you  made  that 
statement  and  it  kind  of  puzzled  me. 

You  also  said  that  the  overwhelming  percentage  of  the  Jewish 
Americans  are  for  these  accords.  1  have  before  me  some  statistics. 
It  says  according  to  an  American  Jewish  Committee  survey,  71  to 
17,  the  U.S.  Jewish  constituency  does  not  believe  that  the  PLO  will 
comply  with  commitments  or  will  refrain  from  terrorism.  Seventy- 
one  percent  believe  they  will  not  comply. 

And  63  percent  to  30  percent  oppose  economic  aid  to  the  Pal- 
estinians. 

And  91  percent  do  not  believe  that  the  PLO  is  doing  enough  to 
prevent  terrorism. 

And  by  a  vote  of  56  to  37,  in  this  statistical  study,  they  maintain 
that  the  Arab's  goal  is  the  destruction  of  Israel. 

So  I  do  not  know  about  these  organizations  that  you  referred 
to 

Mr.  Sher.  Well 

Mr.  Burton.  Let  me  just  finish. 

Mr.  Sher.  Sure. 

Mr.  Burton  [continuing].  But  the  vast  majority  of  the  Jewish 
constituency  and  Jewish  Americans  do  not  agree  with  you. 

Let  me  just  ask  a  couple  of  questions  here. 

Mr.  SHER.  Mr.  Chairman,  first 

Mr.  BURTON.  Well,  let  me  just  ask  a  couple  of  other  questions 
here,  and  then  you  can  respond. 

Mr.  Sher.  OK. 

Mr.  BURTON.  It  is  my  understanding  that  Yasir  Arafat  and  his 
organization  transferred  to  the  Hamas  organization  a  fairly  large 
sum  of  money. 


73 

And  it  is  generally  believed  that  this  organization  has  been  at 
least  complicitous,  if  not  totally  responsible,  for  some  of  these  acts 
of  terrorism. 

And  I  do  not  understand  how  you  cannot  question,  at  least  se- 
verely, the  leader  of  the  signer  of  the  peace  agreement  when  he  evi- 
dently did  approve  of  this  large  sum  of  money  going  to  a  drug  ter- 
rorist organization. 

And  one  more  thing,  and  then  you  can  comment  on  all  three  of 
them. 

The  previous  panel  talked  about  the,  quote,  unquote,  extradition 
agreement — which  is  really  a  transfer  agreement  since  they  are  not 
sovereign  nations — and  the  PLO  is  0  for  11,  0  for  11  where  there 
have  been  people  who  were  allegedly  involved  directly  or  indirectly 
in  acts  of  terrorism  and  they  were  to  be  brought  before  the  courts 
of  justice  in  Israel;  and  Israel  has  made  a  formal  request  and  has 
had  the  warrants,  as  I  understand,  in  accordance  with  the  agree- 
ment sent  to  the  PLO  governing  agency  there  in  Jericho;  and  they 
are  0  for  11. 

So  it  seems  to  me  that  there  is  a  violation  of  the  agreement.  It 
seems  to  me  that  there  is  a  continued  support  of  terrorist  organiza- 
tions by  Mr.  Arafat.  And  at  the  same  time  that  all  of  this  is  going 
on,  which  is  an  abrogation  of  the  agreement  in  my  view,  we  are 
supposed  to  go  ahead  with  $500  million  in  assistance. 

And  also,  the  inconsistency  between  what  you  said  about  the 
total  support  of  the  Jewish  community  for  these  accords  when,  in 
fact,  the  polls  among  Jewish  Americans  do  not  seem  to  support 
that. 

If  you  could  cover  those  three  things,  I  would  really  appreciate 
it. 

Mr.  Sher.  I  would  be  very  happy  to. 

First,  I  think  one  thing  has  to  be  made  clear:  I  am  not  here  today 
as  a  cheerleader  for  Yasir  Arafat,  by  any  stretch  of  the  imagina- 
tion. And  nothing  I  say  should  be  construed  as  such. 

Are  there  problems?  Absolutely.  Everybody  recognizes  that.  Our 
organization  recognizes  it.  The  Jewish  community  as  a  whole  recog- 
nizes it.  And  frankly,  some  of  the  problems  to  which  you  have  al- 
luded, demonstrate  quite  clearly  why  a  stronger  and  enhanced 
MEPFA  is  so  important. 

It  gives  leverage  to  this  powerful  body,  to  our  powerful  govern- 
ment, over  Arafat  to  make  improvements  and  to  do  what  he  is  sup- 
posed to  do. 

And  the  American  Jewish  community,  overwhelmingly,  as  re- 
flected by  the  Conference  of  Presidents,  has  supported  a  stronger 
and  enhanced  MEPFA,  as  is  reflected  in  what  is  in  the  Senate  bill 
now,  H.R.  1868. 

And  they  understand  exactly  what  I  am  articulating  now.  And 
that  is  that  the  United  States  has  a  critical  role  to  play,  and  they 
can  have  an  impact  upon  Arafat's  behavior,  and  that  by  using  wise- 
ly this  leverage,  which  is  what  MEPFA  is  all  about,  we  can  do 
something  to  help  strengthen  Israel,  to  strengthen  the  peace  proc- 
ess, and  to  inure  to  the  benefit  of  people  in  the  region  and  in  the 
United  States. 

No  one  says  there  are  no  problems.  But  we  think  MEPFA  is  a 
very  valuable  tool  in  addressing  those  very  problems. 


74 

Mr.  Burton.  Well,  I  thank  you  for  your  comments.  I  have  strong 
reservations,  as  you  probably  realize. 

Mr.  Sher.  Yes. 

Mr.  Burton.  Mr.  Hamilton. 

Mr.  Hamilton.  Thank  you  very  much,  Mr.  Chairman. 

Mr.  Sher,  we  are  delighted  to  have  you.  I,  of  course,  was  inter- 
ested in  your  support  for  the  Middle  East  Peace  Facilitation  Act 
and  the  strengthening  of  it. 

Let  us  suppose  we  reject  it,  what  happens  in  your  judgment? 

Mr.  Sher.  Well,  without  it,  our  entire  relationship  with  the  PLO, 
including  the  possibility  of  aid,  is  terminated.  We  lose  the  available 
leverage  that  I  think  we  must  retain.  And  if  we  want  to  be  players, 
we  simply  have  to  engage  in  this  process. 

It  is  a  critical  part  of  the  process.  We  think  that  it  provides  the 
appropriate  measures  to  influence  the  problems  that  we  are  seeing 
there. 

Mr.  Hamilton.  As  you  know,  it  is  supposed  to  expire,  I  think,  in 
a  few  days 

Mr.  Sher.  Yes,  sir. 

Mr.  Hamilton  [continuing].  And  what  is  your  thought  with  re- 
gard to  the  length  of  time  on  it  for  renewal? 

Mr.  Sher.  Well,  the  current  bill,  which  is  on  the  Senate  side,  is 
an  18-month  extension. 

Mr.  Hamilton.  You  support  that? 

Mr.  Sher.  We  support  what  has  been  known  as  the  Helms-Pell 
bill,  yes,  sir. 

Mr.  Hamilton.  OK.  And  does  your  testimony,  when  you  talk 
about  strengthening  the  MEPFA,  spell  out  the  conditions  that  you 
favor  to  strengthen  it  at  the  bottom  of  page  two  of  your  testimony? 

Mr.  Sher.  Well,  we  believe  that  the  Helms-Pell  bill,  which  is 
1995,  indeed,  significantly  strengthens  the  original  1994  version. 

And  in  my  testimony,  sir,  we  articulate  some  of  the  areas  that 
it  addresses  which  demonstrate  that  it  is  a  significant  strengthen- 
ing. 

Mr.  Hamilton.  Now,  you  strongly  support  the  peace  process  as 
it  is  now  taking  place? 

Mr.  Sher.  Yes.  We  have  been  supportive,  and  we  are  supportive 
of  Israel  as  it  pursues  this  course. 

Mr.  Hamilton.  And  do  you  think  that  that  support  is  very  wide- 
spread in  the  American  Jewish  community? 

Mr.  Sher.  Yes,  sir. 

Mr.  Hamilton.  And  you  are  aware,  of  course,  that  there  are 
voices,  some  we  are  hearing  today,  strongly  opposed  to  that  peace 
process? 

Mr.  Sher.  That  is  right. 

You  know,  the  American  Jewish  Committee  poll,  to  which  there 
has  been  allusion  to  earlier — and  I  think  the  American  Jewish 
Committee  itself  will  be  testifying  after  I  finish — reflects  very  large 
and  overwhelming  support  by  the  community. 

And  I  think  that  should  be  not  lost  sight  of. 

And  the  peace  process  as  well. 

Mr.  Hamilton.  OK.  Well,  we  thank  you,  sir,  for  your  testimony. 
We  are  very  pleased  to  have  you. 

Mr.  Sher.  Thank  you. 


75 

Mr.  HAMILTON.  Thank  you,  Mr.  Chairman. 

Mr.  Burton.  Yes,  sir. 

Before  I  yield  to  the  next  member,  let  me  just  say  the  staff  gave 
me  some  information.  They  said  that  in  the  event  that  the  legisla- 
tion was  not  successful,  the  PLO  office  would  be  closed  and  U.S. 
dollars  to  the  World  Bank  amounting  to  about  $40  million  would 
stop. 

However,  it  would  not  stop  our  State  Department's  dialog  with 
the  PLO;  and  U.S.  dollars  going  to  NGO's  in  the  amount  of  ap- 
proximately $35  million  would  go  forward. 

So  it  would  not  be  a  total  cutoff. 

Mr.  Sher.  But  we  would  lose  that  very  important  leverage  that 
I  have  referenced. 

Mr.  BURTON.  Well,  I  think  that  is  a  matter  of 

Ms.  Kurz.  If  I  could  just  make  another  point,  Mr.  Burton? 

Mr.  Burton.  Yes. 

Ms.  Kurz.  In  terms  of  the  money  that  goes  into  the  World  Bank, 
that  is  money  which  is  donor  country  money  in  which  several  na- 
tions participate;  and  they  very  much  look  to  U.S.  leadership  in 
terms  of  their  own  contributions  to  the  Palestinians. 

If  we  were  to  withdraw  or  temporarily  even  pull  back  our  money 
from  that  multinational  effort,  my  guess  is  the  donor  countries 
would  as  well.  They  would  hold  back  their  funds.  And  as  a  result, 
much  more  than  the  $40  million  you  are  talking  about  would  be 
withheld. 

Mr.  Burton.  I  need  to  yield  to  my  colleague,  but  let  me  just  say 
that  I  think  that  most  people  would  agree  with  you  as  long  as  the 
PLO  is  holding  up  their  end  of  the  bargain. 

But  with  the  terrorist  attacks  and  the  noncompliance  as  far  as 
transferring  known  terrorists  or  alleged  terrorists  for  trial,  I  mean, 
they  are  violating  their  agreement;  and  I  think  that  that  causes 
some  real  consternation  among  people  who  are  voting  to  support 
the  position  that  you  want. 

I  would  be  happy  to  yield  to  my  colleague,  Mr.  Sanford,  who  does 
look  a  little  bit  like  Mr.  Brownback. 

Mr.  Sanford.  I  will  take  that  as  a  compliment,  Mr.  Chairman. 

I  want  to  follow  back  up  briefly  with  the  chairman's  thoughts,  in 
that  I  suppose  what  we  are  trying  to  measure  is  violations  of  com- 
pliance with  managing  the  peace  process. 

And  I  am  curious  to  know  is  there  a  line  in  the  sand,  so  to  speak, 
in  terms  of  noncompliance  beyond  which  you  would  say:  We  know 
longer  support  aid  to  the  PLO? 

Mr.  Sher.  Well,  compliance  is  a  process  that  is  ongoing.  And 
there  have  been  improvements.  I  do  not  think  there  is  any  ques- 
tion. And  I  think  that  the  United  States  has  played  a  role  in  the 
past  through  MEPFA  1994,  which  was  a  major  reason  and  a  con- 
tribution to  that. 

And,  frankly,  we  all  recognize  that  much  more  has  to  be  done. 
And  by  our  continued  involvement  and  leadership,  and  leader- 
ship— as  my  colleague  has  said,  it  is  not  just  U.S.  participation;  it 
is  leadership.  As  the  only  super  power  in  the  world,  it  is  very  sig- 
nificant that  we  take  the  prominent  leadership  role. 


76 

Mr.  Sanford.  I  would  grant  that.  But  my  question  relates  back 
to  earlier  testimony  that  suggested  that  there  had  been  too  much 
noncompliance. 

And  so  my  question  to  you  is:  Is  there  a  line  in  the  sand  in  terms 
of  noncompliance  beyond  which  you  say,  no,  we  would  not  support 
aid  to  the  PLO? 

Mr.  Sher.  Well,  I  mean,  we  are  clearly  looking  for  improvement 
and  significant  improvement. 

And  this  also  ties  into  the  fact  that  we  are  at  an  historic  junc- 
ture. And  at  this  point,  to  just  cutoff  that  entire  relationship  would 
make  it  virtually  impossible  for  it  to  continue.  It  would  have  a  dra- 
matic negative  impact. 

Mr.  Sanford.  I  yield  back. 

Mr.  Burton.  Gentleman  yields  back  the  balance  of  his  time. 

The  gentleman  from  Florida? 

No  questions. 

The  gentleman  from  New  York. 

Mr.  ENGEL.  Thank  you,  Mr.  Chairman. 

First  of  all,  Mr.  Sher,  I  want  to  compliment  you  on  an  excellent 
presentation,  particularly  your  mention  of  foreign  aid,  which  is 
something  that  we  have  discussed  and  debated  for  a  long  time  in 
this  committee  and  so  many  of  us  are  very  worried  and  concerned 
that  the  foreign  aid  pot  seems  to  be  shrinking;  and  we  worry  that 
although  the  foreign  aid  moneys  to  Israel  have  not  been,  if  the  cur- 
rent Congress  keeps  in  its  direction,  it  is  only  unfortunately  a  mat- 
ter of  time  until  foreign  aid  to  Israel  is  affected.  So  I  think  that 
foreign  aid  ought  to  be  strengthened,  not  cut  back. 

I  also  agree  with  you  on  the  strengthening  of  MEPFA.  I  think 
that  the  question  really  is:  How  do  we  strengthen  it?  And  that,  I 
think,  really  where  the  disagreements  come  in. 

I  think  that  you  said  that  we  need  to  have  additional  leverage 
on  Mr.  Arafat  and  that  the  U.S.  Congress  is  watching  his  actions. 
And  I  have,  from  day  one,  felt  that  that  is  very,  very  important, 
that  he  not  think  that  he  can  just  do  whatever  he  wants  and  people 
are  so  anxious  to  have  the  peace  process  continue  that  things  will 
continue  and  American  aid  will  flow  regardless  of  whether  or  not 
Mr.  Arafat  and  the  PLO  complies. 

And  so  I  think  that  those  points  were  very  good. 

I  also  want  to  comment  on  something  that  Mr.  Burton  said,  be- 
cause I  think  that  the  American  Jewish  Committee  poll,  which  I 
have  here,  really  kind  of  shows  the  American  Jewish  community  is 
really  very  torn  or  is  being  pulled  in  a  lot  of  different  directions. 

And  I  just  wanted  to  mention  this  because  I  think  it  more  accu- 
rately reflects  the  views. 

They  ask:  "Overall,  do  you  support  or  oppose  the  Israeli  Govern- 
ment's current  handling  of  the  peace  negotiations  with  the  Arabs?" 

And  68  percent  support,  15  percent  oppose. 

"More  specifically,  do  you  support  or  oppose  the  Israeli  Govern- 
ment's current  handling  of  the  peace  negotiations  with  the  Pal- 
estinians?" 

And  64  percent  support,  22  percent  oppose. 

However,  on  the  other  hand:  "Do  you  think  that  the  past  2  years 
of  negotiations  between  Israel  and  her  Arab  negotiating  partners 
increased  the  likelihood  of  another  war,  or  increased  the  likelihood 


77 

of  peace  with  the  Arabs?"  I  should  not  have  said  "on  the  other 
hand." 

And  18  percent  say  increase  the  likelihood  of  war,  and  66  percent 
say  increase  likelihood  of  peace. 

But,  on  the  other  hand,  the  question:  "Can  the  PLO  be  relied 
upon  to  honor  its  agreements  and  refrain  from  terrorist  activities 
against  Israel?"  17  percent  say  yes,  and  71  percent  say  no. 

"Do  you  think  that  Palestinians  are  interested,  or  are  not  inter- 
ested, in  a  true  and  lasting  peace  with  Israel?"  37  percent  say  they 
are  interested.  51  percent  say  they  are  not. 

And  then  when  you  ask:  "Is  the  PLO  doing  enough  or  not  doing 
enough  to  control  terrorist  activity  against  Israel  by  Hamas  and 
other  Palestinians  extremist  groups?"  only  5  percent  say  doing 
enough,  and  91  percent  not  doing  enough. 

I  could  continue,  but  I  just  wanted  to  read  those  because  it  just 
kind  of  shows  that  people  want  peace;  but  people  do  believe  that 
the  PLO  is  not  complying  and  really  doing  what  they  can  do. 

So  I  guess  I  have  more  of  a  statement  than  a  question.  If  you 
would  like  to  comment  on  anything  that  I  said. 

Mr.  Sher.  All  I  would  like  to  say  is  that  I  think  that  you  deserve 
to  be  complimented  and  commended  for  your  efforts  along  these 
lines.  And  we  at  AIPAC  thank  you  for  that. 

Mr.  Engel.  Thank  you. 

I  yield  back  the  balance  of  my  time. 

Mr.  BURTON.  The  gentleman  yields  back  the  balance  of  his  time. 

The  gentleman  from  Virginia,  Mr.  Moran. 

Mr.  MORAN.  Thank  you,  Mr.  Chairman. 

Let  me  ask  you  a  little  about  what  has  been  done  to  date.  Have 
you  seen  any  substantial  economic  development  in  the  Gaza  strip, 
for  example? 

Mr.  Sher.  I  think  there  is  no  question  there  has  been  an  im- 
provement of  some  economic  situations  in  the  Gaza. 

There  has  been  building.  There  have  been  economic  development 
which  can  only  benefit  the  lives  of  the  people  there. 

Mr.  MORAN.  I  understand  that  one  of  the  things  that  was  dis- 
cussed early  on  was  the  development  of  a  hotel,  a  Marriott  Hotel 
in  Gaza.  That  is  not  going  anywhere,  I  understand. 

Mr.  Sher.  I  think  it  is  contemplated.  I  do  not  know  the  exact  sta- 
tus of  it.  But  there  certainly  are  intentions  to  build  hotels  there. 

Mr.  MORAN.  Do  you  think  OPIC  has  contributed  as  much  as  they 
might  have  the  resources  to  do  to  the  development  of  the  Gaza 
strip? 

Mr.  Sher.  As  much  as  they  can? 

Mr.  Moran.  Well,  as  much  as  one  would  have  expected,  say  2 
years  ago? 

Ms.  Kurz.  Just  to  answer,  the  money  is  certainly  there.  There 
have  been  some  complaints  that  we  have  heard  about  bureaucratic 
delays  in  actually  having  the  guarantees  go  forward.  And  that  has 
been  a  subject  of  concern.  Obviously  time  is  of  the  essence,  and 
projects  take  time. 

But,  unfortunately,  the  economic  situation,  if  it  continues  to  dete- 
riorate, does  have  an  immediate  impact.  So  there  is  a  problem  of 
immediate  benefits  versus  the  longevity  of  the  these  projects  and 
how  long  they  take  to  actually  come  to  fruition. 


78 

So  there  has  been  some  concern  expressed  and  some  different 
avenues  pursued  as  to  how  to  get  quick  projects  on  the  ground  that 
can  show  immediate  benefit  to  the  people  in  the  area. 

Mr.  Moran.  Yeah.  I  do  not  know  that  there  has  been  a  lot  of 
that.  And  I  am  interested  in  people's  perspective  on  that,  whether 
sufficient  effort  has  been  made. 

Let  me  just  raise  one  issue,  and  you  can  handle  it  how  you 
choose. 

If  we  were  to  simply  pull  out  of  the  peace  process  in  terms  of  the 
U.S.  role  now,  as  some  of  the  groups  have  advocated  today,  do  you 
see  any  prospect  for  a  more  constructive  individual  or  entity  to  be 
able  to  negotiate  with  on  the  part  of  the  Palestinian  groups  any 
time  in  the  near  future? 

Mr.  Sher.  Well,  certainly  the  Israelis  are  negotiating  with  the 
people  they  think  they  have  to  negotiate  with.  And  that  is  a  very 
important  point  to  keep  in  mind. 

And  they  understand  the  difficulties,  they  understand  the  prob- 
lems, but  they  are  forging  ahead  because  they  think  it  is  in  their 
best  interests  in  the  long  run. 

Mr.  MORAN.  So  regardless  of  the  problems  we  read  about  in  all 
of  this  voluminous  data,  you  do  not  think  that  there  is  any  more 
constructive  or  better  opportunity  on  the  horizon  if  we  wanted  to 
pursue  peace  in  the  Middle  East  than  the  current  structure  of  ne- 
gotiations that  is  transpiring  now? 

Mr.  SHER.  I  do  not  think  we  have  seen  that. 

Mr.  Moran.  Thank  you. 

Thank  you,  Mr.  Chairman. 

Mr.  Burton.  The  gentleman  yields  back  the  balance  of  his  time. 

We  have  two  votes  on  the  floor.  We  will  recess  until  the  two 
votes  are  over.  We  have  one  more  member,  Mr.  Lantos,  who  would 
like  to  question  this  panel,  if  you  could  wait. 

And  then  as  soon  as  we  get  back  and  Mr.  Lantos  completes  his 
questioning,  we  will  go  to  the  next  panel  and  have  them  testify. 

We  appreciate  your  patience. 

We  will  stand  in  recess  until  the  votes  are  cast. 

[Recess.] 

Chairman  GlLMAN  [presiding].  The  committee  will  come  to  order. 

We  interrupted  the  hearing  in  order  to  vote.  We  were  in  the 
midst  of  the  testimony  by  Neal  Sher,  Executive  Director  for  the 
American-Israel  Public  Affairs  Committee. 

Mr.  Sher,  did  you  finish  your  testimony? 

Mr.  Sher.  Yes.  I  did  everything,  answered  some  questions.  And 
my  understanding  is  that  Congressman  Lantos  wanted  to  ask  some 
questions. 

Chairman  Gilman.  Mr.  Lantos. 

Mr.  Lantos.  Thank  you  very  much,  Mr.  Chairman. 

I  want  to  commend  Mr.  Sher  and  Ms.  Kurz  for  their  participa- 
tion. I  find  your  testimony,  Mr.  Sher,  very  convincing  and  ex- 
tremely realistic. 

Early  on  when  I  sat  at  the  witness  table,  I  indicated  that  I  have 
been  going  to  Israel  since  1956  with  great  regularity.  I  have  been 
deeply  involved  in  United  States-Israel  relations  for  decades. 


79 

I  must  say  that  the  breakthroughs  we  have  seen  during  the  last 
couple  of  years  with  all  the  blemishes  and  all  the  problems  and  all 
the  setbacks  and  all  the  tragedies  is  literally  mindboggling. 

And  I  find  that  even  in  private  dialogs  with  Arab  leaders  who 
have  not  yet  come  on  board,  like  during  my  very  lengthy  private 
meeting  with  President  Asad  of  Syria,  it  is  self-evident  that  the 
peace  process  has  had  a  major  metamorphosis  in  the  thinking  of 
even  the  most  recalcitrant  Arab  players  in  this  game. 

I  believe  that  Israel  shedding  Gaza  has  been  a  tremendous  boon 
to  that  country.  The  peace  treaty  with  Jordan  is  of  monumental 
significance.  I  had  the  pleasure  of  taking  the  first  congressional 
delegation  across  the  bridge  to  visit  Amman,  having  visited  Jerusa- 
lem. And  I  have  had  numerous  discussions  with  the  Jordanian 
leadership,  and  I  am  very  encouraged  by  their  whole  attitude  and 
approach  to  a  new  era. 

Earlier  in  the  year,  my  visits  in  Saudi  Arabia,  with  President 
Mubarak,  in  Oman,  and  elsewhere  have  convinced  me  that  this 
clearly  is  an  infinitely  preferable  course  to  follow  than  what  would 
be  the  breakdown  of  the  process. 

I  have  noted  that  many  of  my  colleagues  both  in  testimony  and 
in  questioning  from  here  have  dealt  with  the  desirability  of  the 
peace  process  from  the  Israeli  point  of  view,  and  I  fully  share  those 
sentiments. 

But  I  am  far  more  concerned  with  the  possibility  of  this  process 
coming  to  a  grinding  halt  from  the  point  of  view  of  U.S.  national 
interests.  This  country  has  invested  unbelievable  resources — eco- 
nomic, political,  military,  intellectual,  cultural — in  moving  toward 
peace. 

This  administration,  I  believe,  has  been  incredibly  supportive  of 
the  State  of  Israel  and  the  creation  of  a  somewhat  more  normal  cli- 
mate in  the  Middle  East. 

I  must  admit  that  I  am  a  bit  puzzled  by  those  who  are  focusing 
on  the  palpable  flaws  and  deficiencies  of  both  some  of  the  players 
and  many  of  the  developments. 

I  suspect  I  could  stay  here  until  midnight  and  cite  problems  with 
Yasir  Arafat.  It  is  very  easy  to  do  so.  And  I  have  done  that  for  dec- 
ades. The  fact  remains  that  until  I  am  shown  better  alternatives 
in  terms  of  the  ongoing  peace  process,  I  believe  it  would  be  the 
height  of  irresponsibility  for  the  United  States  not  to  continue 
along  this  path. 

I  would  also  say  that  I  find  a  yardstick  of  perfection  an  unrealis- 
tic one  in  the  Middle  East  or,  indeed,  elsewhere.  There  will  con- 
tinue to  be  outrages  and  problems  and  violations  and  tragedies, 
just  as  there  are  here  in  our  own  country. 

If  the  great  cities  of  the  United  States  are  incapable  of  providing 
a  physically  safe  situation  for  American  citizens,  I  think  it  is  the 
height  of  absurdity  to  assume  that  in  the  turbulent  Middle  East 
riskless,  painless,  tragediless  months  or  years  can  lie  ahead. 

And  I  merely  want  to  say  to  those  who  would  like  to  see  this 
process  halted  that  before  they  pursue  that  line  of  reasoning  they 
consider  the  alternatives,  because  the  alternatives,  under  any  set 
of  circumstances,  are  so  infinitely  less  favorable  than  this  halting, 
flawed,  painful,  bloody,  difficult,  tenuous,  peace  process,  that  I 
often  wonder  how  people  can  take  the  position  that  an  action  by 


80 

this  Congress,  which  would  bring  the  process  to  a  grinding  halt, 
could  benefit  either  our  friends  who  wish  to  have  a  civilized  and 
peaceful  and  democratic  life  in  the  region — not  just  in  Israel  but 
those  segments  of  the  Palestinians  and  those  segments  in  the 
neighboring  Arab  states  who  feel  this  way — but  I  also  wonder  what 
their  recommendation  is  with  respect  to  U.S.  foreign  policy  at  a 
time  when  such  a  powerful  isolationist  trend  is  sweeping  the  Con- 
gress and  the  country. 

This  clearly  is  the  most  reasonable — I  would  have  to  say  the  only 
reasonable  course  to  pursue. 

I  fully  favor  strengthening  the  Middle  East  Peace  Facilitation 
Act.  I  fully  favor  holding  Arafat's  feet  to  the  fire  at  every  step  of 
the  way.  I  fully  favor  insisting  that  every  single  facet  of  every 
agreement  he  has  signed  onto  or  will  sign  onto  he  will  abide  by. 

But  I  also  think  it  is  self-evident  that  a  flawed  process  which 
pushes  the  ball  forward  is  infinitely  more  desirable  from  the  point 
of  view  of  U.S.  national  interests  than  a  process  that  would  come 
to  a  grinding  halt. 

And  I  would  be  grateful  if  either  you  or  Ms.  Kurz  or  both  of  you 
would  comment  on  my  statement. 

Mr.  Sher.  Well,  we,  of  course,  as  I  have  stated  before,  believe 
that  it  is  imperative  that  the  U.S.  Congress  play  the  significant 
role  that  it  can  play  and  has  been  playing  in  this. 

And,  indeed,  this  is  the  course  that  the  peace  process  which  the 
duly  elected  Government  of  Israel  has  embarked  upon  is  one  which 
the  United  States  should  stand  with  Israel  on,  stand  behind  Israel 
so  that  the  risks  are  minimized  to  every  degree  possible. 

And  does  the  process  and  does  Arafat  have  problems?  Yes.  I 
think  we  have  made  this  very,  very  clear. 

And  I  think  that  is  all  the  more  reason  for  the  active  participa- 
tion of  this  body,  of  this  Congress,  in  doing  what  it  can  do  to  help 
secure  peace. 

Mr.  Lantos.  Ms.  Kurz. 

Ms.  Kurz.  I  just  want  to  commend  you  for  your  comments.  They 
were  as  always,  very  eloquent  and  to  the  point. 

It  is  easy  to  forget  the  moment  in  history  in  which  we  are  living 
because  we  all  get  caught  up  in  our  day-to-day  lives,  and  we  all  are 
very  busy  in  the  minutia  and  the  details  of  our  own  lives. 

But  the  kind  of  moment  that  we  are  witnessing  in  history  right 
now,  not  just  for  the  people  of  Israel,  but  for  the  world  is  amazing; 
I  do  not  think  most  of  us  can  appreciate  what  exactly  it  is  we  are 
witnessing. 

It  may  come  to  naught.  It  may  fall  apart  at  any  moment.  There 
are  enormous  threats.  There  are  many,  many  rejectionists  in  the 
region  who  want  to  bring  this  to  a  grinding  halt,  as  you  have  indi- 
cated. And  there  are  going  to  be  lots  of  problems  down  the  road. 

But  to  step  back  for  a  moment  and  look  at  the  big  picture  and 
what  we  are  talking  about  for  the  people  of  Israel  and  for  their  ul- 
timate security — and  for  those  of  us  who  have  family  and  friends 
who  have  been  killed  in  wars  in  Israel,  been  killed  in  terrorist  at- 
tacks— it  is  a  painful,  difficult  process.  But  as  you  say,  the  alter- 
natives are  far  worse.  And  I  think  it  is  incumbent  upon  us,  both 
for  American  interests  and  for  Israel's  interests,  to  do  everything 
that  we  can  to  make  sure  that  Israel's  Government,  which  is  taking 


these  risks  at  enormous  risks  to  itself,  is  supported  by  this  country, 
by  this  Congress,  that  has  been  so  tremendously  supportive  in  the 
past.  And  we  thank  you  for  that. 

Mr.  Lantos.  Thank  you  very  much. 

Thank  you,  Mr.  Chairman. 

Chairman  GiLMAN.  Thank  you,  Mr.  Lantos. 

Mr.  Berman. 

Mr.  Berman.  Thank  you,  Mr.  Chairman.  I  am  sorry  I  was  not 
here  to  listen  to  the  testimony.  I  have  had  a  chance  to  read  the 
statements. 

You  come  out  for  support  of  MEPFA  unequivocally.  You  point  out 
that  MEPFA  has  been  strengthened,  this  version  of  MEPFA  has 
been  strengthened  from  earlier  versions. 

You  want  it  passed  soon.  And  you  think  it  is  a  mistake  to  write 
it  in  a  fashion  that  would  compel  a  decision  to  eliminate  the  sus- 
pensions and  prohibitions  that  MEPFA  waives  in  existing  law. 

Mr.  Sher.  Correct. 

Mr.  Berman.  I  do  not  know  if  you  spoke  about  the  timeframe  for 
an  extension.  Some  people  want  to  do  this  for  another  45  days,  an- 
other 60  days. 

Do  you  have  any  thoughts  about  how  long  we  should  extend  this 
bill  for? 

Mr.  Sher.  Well,  MEPFA  1995,  that  is  H.R.  1868,  talks  about  an 
extension  with  the  new  tougher  provisions  for  18  months.  And 
hopefully  this  entire  package  can  be  concluded  by  the  fiscal  year 
and  go  into  effect. 

Ms.  Kurz.  If  I  could  add,  Mr.  Berman,  the  original  MEPFA  ex- 
pired on  June  30.  We  are  now  operating  on  the  second  of  two  45- 
day  extensions.  That  means  it  is  now  3  months  that  we  are  operat- 
ing under  current  law.  And  we  understand  the  reasons  for  it.  There 
is  no  Foreign  Aid  Authorization  bill. 

But  it  is  our  feeling  that  rather  than  operating  under  current 
law,  which  is  much  weaker,  which  does  not  include  any  of  the  pro- 
visions of  Gaza-Jericho,  which  does  not  include  much  tougher  lan- 
guage on  the  covenant,  which  does  not  include  the  numerous  provi- 
sions that  are  in  the  Helms-Pell  legislation,  ultimately  is  a  mis- 
take. And  to  go  for  another  short-term  extension,  the  way  to  do 
deal  with  this  is  to  deal  with  the  longer  term,  whether  it  is  18 
months  or  whatever  the  decision  is,  but  to  deal  with  this  com- 
prehensively and  to  take  action  now  rather  than  go  by  existing  law. 
We  need  to  toughen  up  that  law  so  that  we  do  not  continue  to  oper- 
ate for  another  3  months,  which  would  be  half  a  year,  half  the  life 
of  this  bill,  under  current  law. 

So  the  sooner  it  can  be  passed — it  is  now  in  the  Senate  Foreign 
Operations  Appropriations  bill  which  is  before  the  Senate  at  this 
moment.  We  expect  the  Senate  to  conclude  this  week  and  go  to  con- 
ference next  week.  And  we  are  anxious  to  see  it  passed  before  Octo- 
ber 1,  which  is  the  end  of  this  next  short-term  extension. 

Mr.  Berman.  I  appreciate  your  thoughts  on  that,  and  I  think 
they  are  important. 

Mr.  Chairman,  I  am  done  except  to  point  out  one  thing.  And  that 
is,  since  the  announcement  of  the  Oslo  Agreement  and  the  signing 
of  the  Declaration  of  Principles,  there  has  not — first  of  all,  the  laws 
that  have  been  suspended  and  waived  by  the  earlier  versions  of 


82 

MEPFA,  in  many  cases,  in  most  cases,  perhaps  in  all  cases,  came 
to  the  Congress  at  the  suggestion  of  the  organization  that  our  wit- 
nesses represent. 

Second,  I  do  not  know  of  any  organization,  since  September  1993, 
that  has  spent  more  time  dealing,  at  least  with  my  office,  in  terms 
of  problems,  violations,  concerns,  how  effectively  to  deal  with  them 
by  the  PLO. 

And  with  that,  I  yield  back  my  time. 

Chairman  GlLMAN.  I  thank  the  gentleman  for  his  comments. 

Just  one  question  to  Mr.  Sher. 

According  to  Peace  Watch,  the  PLO  has  held  50  diplomatic  meet- 
ings at  Orient  House  since  the  May  1994  agreement  was  signed. 

Despite  the  fact  that  the  agreement  states  that  the  Palestinian 
Authority's  offices  will  be  only  in  Gaza  or  Jericho,  29  countries 
have  sent  officials  to  meetings  in  Orient  House. 

Do  you  consider  these  kinds  of  meetings  any  violation  of  the  ac- 
cord? What  has  been  the  Israeli  response  to  that?  Does  the  United 
States  conduct  any  meetings  in  Orient  House? 

Mr.  SHER.  Not  to  my  knowledge.  No,  the  U.S.  Government,  to  my 
knowledge,  does  not  conduct  official  PA  business  in  Orient  House. 

And  this  is  an  issue  which,  in  fact,  the  Israeli  Government  has 
been  dealing  with.  It  has  been  dealt  with  in  the  Knesset,  and  they 
recognize  certain  problems  in  that  regard  as  well.  So,  you  know, 
this  is  something  that  has  not  gone  unnoticed. 

Ms.  KuRZ.  We  have  also,  Mr.  Chairman,  worked  very  hard  to  in- 
clude legislation  that  was  in  last  year's  appropriation's  bill  that 
specifically  prohibits  the  U.S.  Government  from  having  official 
dealings  on  issues  relating  to  Gaza-Jericho  in  Jerusalem. 

Chairman  GlLMAN.  What  is  the  status  of  that  legislation? 

Ms.  KuRZ.  That  legislation  is  contained  in  both  the  House  and 
Senate  Foreign  Operations  bills,  and  we  expect  it  to  pass  again  this 
year.  That  is  very  important  legislation  that  sends  the  message  to 
our  Government  that  we  should  not  be  conducting  any  of  these 
meetings  in  Jerusalem. 

Mr.  Sher.  This  is,  again,  the  United  States  doing  what  it  can  do 
in  preventing  U.S.  activities  there. 

Chairman  GlLMAN.  With  regard  to  MEPFA,  you  are  suggesting 
that  we  ought  to  adopt  the  Helms-Pell  proposal  which  was  never 
really  debated  and  has  an  18-month  provision  with  a  State  Depart- 
ment report  every  6  months. 

Do  you  not  think  by  adopting  that  measure  we  are  taking  away 
the  leverage  that  we  should  have  in  the  event  that  there  is  any 
problem? 

Mr.  Sher.  Because  of  the  18-month  timeframe? 

Chairman  Gilman.  Because  of  the  6  months  intervals. 

Mr.  Sher.  Well,  the  6-month  interval,  quite  frankly,  does  not 
seem  to  be  all  that  unreasonable.  It  calls  for  continuing  and  contin- 
ual monitoring  of  the  situation.  That  is  built  right  into  the  lan- 
guage. It  is  6  months  when  the  certification  has  to  take  place,  but 
the  monitoring  goes  on  continuously. 

Chairman  Gilman.  There  are  many  of  us  who  have  some  concern 
about  too  long  a  period  of  time.  We  recognize  a  necessity  for 
MEPFA,  recognize  that  it  can  be  helpful  to  the  peace  process;  but 


83 

I  think  we  should,  to  my  mind,  have  a  shorter  fuse  on  it  than  that 
lengthy  period  of  time. 

Well,  we  thank  the  panelists.  We  thank  Neal  Sher  and  Ester 
Kurz  for  joining  us. 

We  will  move  on  to  panel  No.  5.  I  will  call  Dr.  Mandell 
Ganchrow,  President,  Union  of  Orthodox  Jewish  Congregations  of 
America;  David  Harris,  Executive  Director,  American  Jewish  Com- 
mittee; Jim  Zogby,  President,  Arab  American  Institute;  Rand 
Fishbein,  Board  of  Advisors,  Center  for  Security  Policy;  Mr.  Morton 
Klein,  President,  Zionist  Organization  of  America;  Mr.  Richard 
Hellman,  President,  Christian  Israel  Public  Action  Campaign;  and 
Mr.  Seymour  Reich,  President,  American  Zionist  Movement. 

We  thank  our  panelists  for  being  patient  and  taking  the  time  to 
join  us  today.  We  regret  we  do  not  have  one  long  table.  We  will  try 
to  accommodate  you  as  best  we  can,  and  our  clerks  will  make  cer- 
tain there  are  enough  seats  at  the  table  for  the  panelists. 

Gentlemen,  again,  we  want  to  urge  you  to  be  please  be  as  brief 
as  possible.  We  have  a  long  calendar  here  and  a  lot  of  votes  coming 
up  that  may  interrupt  our  hearing. 

We  will  go  by  the  5-minute  rule.  Once  again,  if  you  want  to  sub- 
mit a  statement  in  full  for  the  record,  do  not  hesitate  to  ask  for 
that.  We  will,  without  objection,  put  it  into  the  record. 

If  you  care  to  summarize  your  statement,  we  would  welcome 
that.  But  feel  free  to  proceed  in  the  manner  best  suited  to  you.  We 
will  start  with  Dr.  Mandell  Ganchrow,  President,  Union  of  Ortho- 
dox Jewish  Congregations  of  America.  Dr.  Ganchrow. 

STATEMENT  OF  MANDELL  GANCHROW,  PRESIDENT,  UNION  OF 
ORTHODOX  JEWISH  CONGREGATIONS  OF  AMERICA,  ACCOM- 
PANIED BY  DAVID  A  HARRIS,  EXECUTP/E  DIRECTOR,  AMER- 
ICAN JEWISH  COMMITTEE;  JIM  ZOGBY,  PRESIDENT,  ARAB 
AMERICAN  INSTITUTE;  RAND  FISHBEIN,  BOARD  OF  ADVI- 
SORS CENTER  FOR  SECURITY  POLICY;  MORTON  KLEIN, 
PRESIDENT,  ZIONIST  ORGANIZATION  OF  AMERICA;  RICHARD 
HELLMAN,  PRESIDENT,  CHRISTIANS'  ISRAEL  PUBLIC  AC- 
TION CAMPAIGN;  AND  SEYMOUR  REICH,  PRESIDENT,  AMER- 
ICAN ZIONIST  MOVEMENT 

STATEMENT  OF  MR.  MANDELL  GANCHROW 

Mr.  Ganchrow.  Thank  you,  Mr.  Chairman. 

I  appreciate  the  opportunity  to  be  here  this  afternoon  to  testify. 
I  am  the  President  of  the  Union  of  Orthodox  Jewish  Congregations 
of  America,  the  largest  orthodox  synagogue  groups  in  the  United 
States  comprising  close  to  a  thousand  synagogues. 

I  am  here  today  representing  seven  mainstream  orthodox  organi- 
zations that  comprise  the  united  orthodox  community  in  the  United 
States,  including  Amit,  Emunah,  Young  Israel,  Poale,  Rabbinical 
Council  of  America,  Religious  Zionists,  and  the  Union. 

I  want  to  assure  the  members  of  this  committee  that  we  are  all 
mainstream  organizations  and  not  fringe  groups.  We  are  all  mem- 
bers of  the  Conference  of  Presidents  of  major  American  Jewish  or- 
ganizations and  of  AIPAC.  And  I  myself,  have  been  and  am,  for  the 
last  14  years,  a  member  of  the  executive  committee  of  AIPAC. 


84 

Chairman  Gilman.  Of  course,  you  are  excluding  Mr.  Zogby,  who 
is  not  a  president  of  any  Jewish  organization. 

And  also  Mr.  Hellman. 

Mr.  Hellman.  But  I  would  like  to  be  if  they  would  let  me  join. 

Chairman  Gilman.  Thank  you. 

Mr.  Ganchrow.  We  have  all  supported  the  search  for  peace,  Mr. 
Chairman.  We  stood  together  on  the  White  House  lawn.  We  stood 
together  on  the  Jordanian-Israeli  desert  in  the  search  for  peace. 

But  this  search  has  come  at  a  very  high  price  for  the  people  of 
Israel.  The  continued  call  for  jihad,  as  we  saw  on  tapes  before — and 
there  are  other  dozens  of  other  such  tapes — the  failure  to  return 
those  who  engage  in  terrorist  attacks  as  requested  by  Israel,  ac- 
cording to  the  Oslo  accords,  the  politically  inspired  activities  within 
Jerusalem,  not  only  in  Orient  House;  but  I  myself  saw  15  such  in- 
stitutions in  Jerusalem  within  the  last  few  weeks,  the  failure  to 
disarm  Hamas,  the  failure  to  interdict  smuggling  of  weaponry,  and 
the  continued  terrorist  attacks  all  demand  that  we,  the  American 
people  and  the  American  Congress,  place  the  tightest  and  most 
productive  restrictions  on  United  States  aid  to  the  Palestinian  Au- 
thority. 

And  it  is  no  wonder,  then,  Mr.  Chairman,  that  two-thirds  of  the 
American-Jewish  community  across  the  board,  as  was  mentioned 
before  by  Mr.  Burton,  that  two-thirds  oppose  any  American  aid  to 
the  Palestinians  at  this  time. 

Our  group  has  always  supported  this  peace  activity,  as  I  noted; 
and  we  are  supporting  Helms-Pell  as  a  beginning  step.  But  we  be- 
lieve that  there  are  so  many  loopholes  that  the  Palestinian  Author- 
ity, Mr.  Arafat,  can  continue  to  get  the  money  despite  being  in  non- 
compliance. And  we  have  joined  in  stressing  that  this  must  be 
tightened  up. 

We  recommended,  Mr.  Chairman,  that  all  money  that  is  appro- 
priated by  the  administration  and  by  the  Congress  be  placed  into 
an  escrow  account  for  6  months,  during  which  time  the  Palestin- 
ians and  Mr.  Arafat  can  demonstrate  their  compliance  with  the 
Oslo  Agreement. 

If  they  live  up  to  their  accords,  we  will  happily,  happily  second 
and  support  them  getting  their  money. 

And,  Mr.  Chairman,  the  proposals  that  I  am  about  to  mention 
and  the  conditions  are  all  in  accordance  with  the  AIPAC  policy 
statement  at  its  convention  in  1995,  on  page  4,  calling  for  AIPAC 
to  support  Spector-Shelby-Lowey  and  strengthening  of  MEPFA. 

And  so  we  feel  that  our  recommendations  are  totally  in  accord 
with  the  convention  where  1500  of  our  AIPAC  activists  gathered  to 
say  that  MEPFA  must  be  strengthened. 

We  believe  that  the  following,  Mr.  Chairman,  must  be  carried  out 
by  the  Palestinian  Authority  in  order  to  warrant  their  receiving  the 
aid.  Should  they  not  do  so,  it  would  be  a  cause — not  because  of  the 
Sense  of  Congress  as  the  current  Helms-Pell,  but  rather  because  it 
is  a  violation  of  U.S.  law. 

No.  1,  the  Palestinian  Charter  must  be  totally  renounced  and  re- 
pealed, not  effectively  superseded.  If  it  is  superseded,  it  could  come 
back  into  play.  We  believe  what  is  worse  than  zionism  is  racism. 

We  believe,  No.  2,  they  must  disarm  Hamas,  and  they  must  stop 
the  smuggling  of  new  arms  into  the  area. 


85 

No.  3,  they  must  return  the  terrorists  that  are  requested  by  the 
Israeli  Government. 

No.  4,  Mr.  Arafat  must  stop  the  call  for  jihad  and  the  inflam- 
matory talk  that  are  present  on  the  tapes  and  in  Arabic.  And  it  is 
going  on  even  as  we  talk  today.  In  the  last  few  weeks,  we  have  a 
tape  from  this  month. 

All  Palestinian  offices  in  Orient  House  in  Jerusalem  must  be 
closed,  because  such  activity  is  against  the  Oslo  accord. 

We  believe  Congress  should  investigate  allegations  of  misuse  of 
funds  set  for  housing  and  other  purposes  in  Gaza  and  Jericho  used 
by  the  Palestinian  Authority  in  Jerusalem  to  create  facts  on  the 
ground. 

We  believe  that  the  Congress  should  not  vote  on  MEPFA  until 
the  GAO  report  is  made  public  so  every  single  Member  of  Congress 
knows  if  they  have  $8  billion  in  the  bank.  And  if  they  do,  we  would 
not  support  American  aid  to  the  Palestinian  Authority. 

Finally,  Mr.  Chairman,  we  ask  that  a  very  important  provision 
be  added  to  MEPFA.  And  that  is,  that  if  Mr.  Arafat  or  any  Pal- 
estinian Authority  declares  a  Palestinian  State,  this  should  be 
cause  for  automatic  cutting  off  of  all  funds  from  the  United  States. 

A  Palestinian  State  would  be  contrary  to  the  interests  of  America 
and  would  destabilize  the  Middle  East. 

Mr.  Chairman,  we  support  peace.  But  it  cannot  be  one  at  Amer- 
ican taxpayers'  expense  if  we  support  appeasement. 

We  support  an  honorable  peace.  American  funds  play  a  vital  role 
in  providing  incentives  for  Middle  East  countries  to  live  up  to  their 
obligations.  Mr.  Arafat  has  a  record  of  murder,  deceit,  and  duplic- 
ity. 

Let  us  work  for  peace  by  making  sure  that  Israel's  security  is  en- 
sured and  American  foreign  policy  interests  are  safeguarded.  It 
could  only  be  done  with  complete  compliance  on  the  part  of  the  Au- 
thority. 

Mr.  Chairman,  let  us  send  a  message  to  Mr.  Arafat:  Mr.  Arafat, 
comply  with  your  obligations,  reassure  us  through  words  and 
deeds,  and  we  will  do  what  we  have  to  do. 

Thank  you,  Mr.  Chairman.  I  would  like  to  submit  the  entire 
statement  to  the  committee. 

[The  prepared  statement  of  Mr.  Ganchrow  appears  in  the  appen- 
dix.] 

Chairman  GlLMAN.  Thank  you,  Dr.  Ganchrow.  Your  statement 
will  be  made  part  of  the  record  without  objection. 

Mr.  Burton  [presiding].  Once  again,  the  Chairman  has  seen  fit 
to  yield  the  Chair  to  a  young,  good  looking  fellow  like  me. 

We  will  now  proceed  with  Mr.  David  Harris'  statement. 

Mr.  Harris. 

STATEMENT  OF  DAVID  A.  HARRIS,  EXECUTIVE  DIRECTOR, 
AMERICAN-JEWISH  COMMITTEE 

Mr.  HARRIS.  Mr.  Chairman,  thank  you  for  affording  the  Amer- 
ican-Jewish Committee  this  opportunity  to  present  our  perspectives 
on  the  current  process,  particularly  at  this  critical  stage  in  its  evo- 
lution. 


86 

And  I  might  point  out,  Mr.  Chairman,  that  I  will  be  excerpting 
from  our  prepared  statement  and  would  wish  that  the  entire  state- 
ment be  submitted  for  the  record. 

Mr.  Chairman,  it  is  the  belief  of  the  American-Jewish  Committee 
that  Israel  and  its  Arab  neighbors,  however  slowly,  however  un- 
evenly, are  indeed  moving  toward  a  new  era  in  the  Middle  East. 

The  Arab-Israeli  peace  negotiations,  which  began  in  Madrid  in 
October  1991,  do  hold  the  promise  of  thoroughly  and  constructively 
remaking  relations  between  Israel  and  the  Arab  world. 

Our  perspective  is  the  result  of  4  years  of  intensive  experience 
with  the  peace  process  from  Madrid  to  Moscow  and  some  47  years 
of  close  involvement  with  Israel. 

The  American-Jewish  Committee  has  monitored  the  peace  proc- 
ess from  its  inception  and  sought  to  advance  its  cause  here  and  in 
other  capitals. 

And,  Mr.  Chairman,  we  have  engaged  in  regular  and  detailed 
discussions  on  the  process  with  senior  officials  both  in  Washington 
and  Jerusalem  as  well  as  in  the  governments  of  Arab  states  from 
the  Magreb  to  the  Gulf. 

Our  analyses  and  our  discussions  with  the  principals  engaged  in 
the  process  here  and  in  the  region  lead  us  to  one  conclusion:  For 
all  of  its  difficulties,  Mr.  Chairman,  the  peace  process  set  in  motion 
4  years  ago  represents  Israel's  best  chance  to  depart  from  the  trou- 
bled course  of  modern  history  and  achieve  peace  with  its  neighbors. 

The  difficulties  on  that  road  to  peace  cannot  be  minimized.  The 
tragedies,  the  repeated  terrorist  attacks  cannot  be  forgotten.  Yet 
our  support  for  the  peace  process  and  our  trust  in  the  judgment  of 
the  duly  elected  Government  of  Israel  on  matters  pertaining  to  Is- 
rael's security  are  given  in  full  awareness  of  the  dangers  Israelis 
face,  indeed,  have  always  faced  in  a  region  and  among  people  still 
largely  hostile  to  their  existence. 

It  is  not  the  intention  of  the  framers  of  and  participants  in  the 
peace  process  to  simply  dismiss  the  dangers  and  redefine  the  hos- 
tility of  Israel's  foes.  Rather,  its  aim  is  to  fundamentally  alter  the 
nature  of  relations  between  Israel  and  its  neighbors  to  strengthen 
Israel's  present  and  future  security. 

Mr.  Chairman,  future  generations  of  both  Jews  and  Arabs  de- 
serve no  less  an  attempt. 

In  just  2  years  since  the  signing  of  the  DOP,  those  relations  have 
already  changed  to  Israel's  benefit.  Not  only  has  peace  been 
achieved  with  Jordan,  but  in  diplomatic  and  commercial  contacts 
from  North  Africa  to  the  gulf  have  been  established,  eroding  the 
economic  boycott  of  Israel  and  laying  the  groundwork  for  future  po- 
litical and  economic  cooperation  in  the  region. 

Moreover,  Israel's  withdrawal  from  Gaza  more  than  1  year  ago 
was  not  only  an  essential  element  in  establishing  a  new  relation- 
ship with  the  Palestinians,  but  it  was  and  remains  a  highly  popu- 
lar decisions  among  Israelis  themselves. 

Mr.  Chairman,  in  the  American-Jewish  Committee's  support  for 
the  Government  of  Israel  as  it  pursues  peace  with  security,  I  know 
that  a  sister  organization,  the  American-Jewish  Congress,  wishes 
to  associate  itself  with  my  remarks  today. 

As  we  all  know,  progress  on  the  Syrian  and  Lebanese  tracks  has 
been  particularly  difficulty  whereas  on  the  Palestinian  track  we  re- 


87 

main  cautiously  hopeful  that  the  intensive  negotiations  in  Taba 
this  week  will  shortly  yield  a  second  phase  agreement. 

We  hope  and  expect  that  when  concluded  this  critical  next  step 
in  Arab-Israeli  reconciliation  will  increase  the  Palestinian  stake  in 
forging  a  new  and  mutually  beneficial  coexistence  with  Israel. 

Mr.  Chairman,  the  American-Jewish  Committee  believes  that  the 
critical  role  played  by  the  United  States  as  facilitator,  as  supporter, 
and  as  honest  broker  for  peace  must  be  extended. 

We  call  upon  the  Congress,  Mr.  Chairman,  to  continue  to  provide 
the  President  with  the  resources  and  the  authority  he  requests  in 
the  Middle  East  Peace  Facilitation  Act  and  other  measures  that 
may  come  before  this  and  the  other  body. 

We  believe  that  these  efforts  by  the  United  States  must  be  fur- 
ther enhanced  by  the  critically  important  efforts  of  America's 
friends  and  allies  in  Europe,  Asia,  and  the  Middle  East. 

In  expressing  our  support  for  this  process,  Mr.  Chairman,  the 
American-Jewish  Committee  articulates  the  views  of  the  over- 
whelming majority  of  American-Jews,  we  believe. 

In  an  attitude  survey  that  we  sponsored  and  that  I  understand 
has  been  the  subject  of  some  discussion  here  today,  we  found  that 
68  percent  of  American-Jews,  more  than  four  in  five  who  expressed 
a  view,  support  the  Israeli  Government  in  its  current  handling  of 
peace  negotiations.  And  87  percent  of  the  respondents  endorse  a 
continuing  American  role  in  the  peace  process. 

Mr.  Burton.  Mr.  Harris,  if  I  might  interrupt.  We  have  a  pretty 
large  panel.  And  we  are  trying  to  restrict  the  statements  to  5  min- 
utes, so  if  you  could  summarize,  we  would  appreciate  that. 

Mr.  Harris.  Very  well,  sir. 

I  should  note  that  there  are  those  who  are  choosing  to  read  se- 
lected data  from  our  survey  and  employing  those  selected  data  to 
justify  their  own  views  on  the  peace  process  without  examining  the 
survey  in  its  complex  and  compelling  totality. 

In  the  final  analysis,  regardless  of  their  own  justified  fears  and 
concerns,  which  are  also  revealed  in  the  survey,  Mr.  Chairman, 
American  Jews  are  willing  to  set  aside  those  concerns  in  deference 
to  the  decisions  made  by  the  democratically  elected  Government  of 
Israel. 

Our  survey,  we  believe,  confirms  the  confidence  that  our  commu- 
nity feels  in  that  government,  and  its  confidence  as  well  in  Ameri- 
ca's partnership  with  Israel  in  pursuit  of  peace. 

We  look  to  your  committee,  Mr.  Chairman,  to  maintain  that  part- 
nership; and  we  call  on  it  to  continue  its  vital  support  of  the  Gov- 
ernment of  Israel  as  it  seeks  and  takes  risks  for  a  new  era  of  peace 
with  its  neighbors. 

Thank  you,  Mr.  Chairman. 

[The  prepared  statement  of  Mr.  Harris  appears  in  the  appendix.] 

Mr.  BURTON.  Thank  you,  Mr.  Harris. 

We  will  now  hear  from  Mr.  Zogby. 

STATEMENT  OF  JIM  ZOGBY,  PRESIDENT,  ARAB  AMERICAN 

INSTITUTE 

Mr.  Zogby.  Thank  you,  Mr.  Chairman. 

My  name  is  James  Zogby.  I  am  president  of  the  Arab  American 
Institute,  and  I  serve  as  well  with  a  former  colleague  of  yours,  Mel 


88 

Levine,  as  co-president  of  a  project  called  Builders  for  Peace,  pro- 
moting economic  development  in  the  West  Bank  and  Gaza  in  sup- 
port of  the  peace  process. 

Since  the  beginning  of  the  peace  process,  it  has  become  accepted 
as  axiomatic  that  for  the  process  to  succeed,  Palestinians  must  ex- 
perience the  benefits  of  peace. 

It  was  understood  that  merely  expanding  economic  opportunities 
would  not  be  sufficient  to  make  peace;  but  without  economic 
growth,  achieving  peace  would  be  impossible. 

Seen  in  this  context,  there  is  a  certain  tragedy  in  witnessing  the 
reality  of  Gaza  and  Jericho  today.  Where  there  was  once  great  opti- 
mism and  promise,  there  is  now  cynicism  and  despair. 

The  statistics  alone  are  staggering.  Unemployment  in  Gaza  today 
stands  at  over  60  percent,  a  dramatic  increase  above  1993.  Virtual 
reality  projections  from  international  bureaucrats  aside,  the  major 
job  creating  infrastructure  projects  that  were  to  have  started  have 
not  yet  begun;  and  open  sewage  remains  a  serious  health  hazard. 

And  as  a  result  of  the  prolonged  closures  of  Gaza's  borders  with 
Israel  and  the  fact  that  no  regular  access  or  egress  is  available  to 
Egypt  or  Jordan  or  the  outside  world,  commerce  has  not  expanded. 

Yes,  as  some  of  the  earlier  witnesses  testified,  there  is  building 
in  Gaza;  but  the  buildings,  like  the  young  men  in  Gaza,  remain 
waiting.  There  still  is  no  power,  no  phones,  no  sewage,  and  no 
water. 

While  2  years  ago  the  per  capita  GNP  of  Gaza  was  $800  a  per- 
son— in  contrast  with  $14,000  per  person  in  Israel  and  $1,600  per 
person  in  the  West  Bank — today  Gaza  is  actually  poorer  than  when 
peace  was  signed. 

Surely  something  is  very  wrong.  And  while  there  is  plenty  of 
blame  to  go  around,  I  do  not  believe  finger  pointing  at  the  Palestin- 
ian Authority  is  helpful  or  correct. 

It  was  simply  unwise  to  assume  that  the  Palestinian  National 
Authority  could  create  an  accountable  and  an  efficient  state  appa- 
ratus out  of  whole  cloth.  They  lacked  full  authority;  they  lacked 
control  over  their  own  resources;  they  inherited  neither  a  physical 
nor  an  administrative  infrastructure. 

It  is  a  wonder  that  they  have  accomplished  as  much  as  they 
have.  Remember,  they  were  under  occupation  for  27  years. 

Unlike  recent  transformations  in  South  Africa,  Russia,  or  East- 
ern Europe,  Palestinians  inherited  no  state  or  no  functioning  econ- 
omy that  provided  them  any  element  of  self-sufficiency. 

What  was  required  to  assist  them  was  a  FEMA-like  approach  to 
reconstruction.  And  what  they  got  instead  were  observers,  studies, 
pledges,  unfulfilled  promises  of  projects  and  blame. 

I  am  pleased  to  note  that  our  own  Agency  for  International  De- 
velopment has  recognized  both  the  reality  and  the  urgency  of  the 
crisis  in  Gaza  and  has  taken  steps  to  correct  by  reprogramming 
funds. 

But  the  United  States  cannot  do  the  job  alone.  Our  75  million 
sends  an  important  signal  of  commitment  to  Palestinian  society 
and  the  peace  process.  What  are  required  are  the  billions  of  dollars 
that  were  committed  but  have  not  yet  come. 


89 

Young  Palestinians  in  Gaza  and  the  West  Bank  want  nothing 
more  than  to  have  a  job,  live  a  meaningful  life,  raise  a  family,  pro- 
vide for  their  children,  and  see  their  grandchildren  prosper. 

Their  anger,  all  too  often  seen,  is  a  product  of  despair.  It  is  borne 
of  the  fear  and  frustration  that  they  have  no  future  and  that  they 
may  not  have  a  future. 

If  peace  is  to  survive,  we  must  attack  this  crisis  with  all  the  re- 
sources that  we  have  available  to  us.  Understand  that  building  a 
comprehensive  peace  in  the  Middle  East  is  like  constructing  a 
building  that  is  an  inverted  pyramid.  The  foundation,  the  point  on 
which  the  entire  building  rests,  the  ultimate  stability  of  the  process 
itself,  is  embedded  in  the  sands  of  Gaza  and  in  the  rocky  terrain 
of  the  West  Bank. 

But,  unfortunately,  no  sooner  did  the  process  begin  than  atten- 
tion turned  to  the  more  luxurious  and  promising  fourth,  fifth,  sixth, 
and  seventh  stories  of  the  building  in  Casablanca  or  Amman  or  in 
other  places,  while  the  foundation  in  Gaza  remained  unfinished. 
And  what  was  started  was  in  danger  of  collapsing. 

Shimon  Peres,  Israel's  Foreign  Minister  has  said  repeatedly  that 
investing  a  dollar  in  the  Palestinian  economy  is  an  investment  in 
security  of  Israel. 

And  from  the  Palestinian  view,  each  job  created  is  a  vote  for 
peace  and  the  leadership  that  made  the  peace  possible. 

If  we  do  not  do  more  and  do  it  quickly,  we  are  in  danger  of  fur- 
ther eroding  confidence  in  the  process  and  endangering  the  entire 
edifice  of  peace. 

I  urge  you  not  only  to  continue  United  States  assistance  to  the 
Palestinians,  but  to  remove  from  that  assistance  the  encumbrances 
you  place  on  it. 

No  sooner  had  the  euphoria  of  September  13th  passed  when 
many  in  this  body  began,  once  again,  to  use  the  harsh  language  of 
the  past  to  describe  the  Palestinian  leadership. 

That  rhetoric  sends  the  wrong  message.  It  is  neither  edifying  nor 
helpful.  It  says  to  the  Palestinians  they  continue  to  be  viewed  with 
distrust  and  enmity. 

To  impose  ever  more  severe  compliance  requirements  on  assist- 
ance to  Palestinians  without  similarly  conditioning  at  all  United 
States  assistance  to  Israel  compromises  our  role. 

If  this  body  is  to  make  a  contribution  to  peace,  it  ought  to  send 
a  message  of  hope  and  healing  to  Israelis  and  Palestinians  alike. 
Do  not  import  the  anger  and  the  fear  of  those  who  do  not  want  this 
process  to  succeed. 

Export,  instead,  our  American  commitment  to  a  new  reality  and 
to  a  new  relationship  where  Palestinian  rights  and  security  and  Is- 
raeli rights  and  security  are  mutually  recognized  and  mutually  re- 
inforced by  American  support  for  both  peoples. 

Thank  you. 

[The  prepared  statement  of  Mr.  Zogby  appears  in  the  appendix.] 

Mr.  Burton.  Thank  you,  sir.  I  appreciate  your  sticking  as  close 
to  the  5-minute  time  limit  as  possible  so  we  can  give  everybody  a 
chance  to  testify. 

We  will  now  hear  from  Mr.  Fishbein. 


90 

STATEMENT  OF  RAND  FISHBEIN,  BOARD  OF  ADVISORS 
CENTER  FOR  SECURITY  POLICY 

Mr.  Fishbein.  Mr.  Chairman,  I  would  like  to  ask  to  revise  and 
ask  extend  my  remarks  and  that  my  full  statement  be  included  in 
the  record  along  with  some  supplementary  material. 

Mr.  Burton.  Without  objection. 

Mr.  Fishbein.  Thank  you. 

Mr.  Chairman,  my  name  is  Rand  Fishbein.  I  am  here  represent- 
ing myself  and  the  Center  for  Security  Policy  where  I  serve  on  the 
board  of  advisors. 

Formerly,  I  served  as  the  Special  Assistant  for  National  Security 
Affairs  to  Senator  Daniel  K.  Inouye  and  as  a  Professional  Staff 
Member  of  both  the  Senate  Defense  Appropriations  and  Senate 
Foreign  Operations  Appropriations  Subcommittees. 

Mr.  Chairman,  I  wish  to  thank  you  for  the  opportunity  to  ad- 
dress the  committee  on  an  issue  of  critical  importance  to  millions 
of  Americans.  The  issue  concerns  the  decision  of  this  administra- 
tion, with  the  support  of  Congress,  to  provide  $500  million  in  as- 
sistance to  the  Palestine  Liberation  Organization. 

In  the  24  months  since  the  Declaration  of  Principles  was  signed 
on  the  White  House  lawn,  approximately  $100  million  in  United 
States  assistance  has  gone  to  support  PLO  activities  in  the  admin- 
istered territories  of  Gaza  and  Jericho.  This  has  occurred  without 
the  usual  accountability  demanded  of  other  recipients  of  U.S.  for- 
eign assistance  and  without  the  usual  scrutiny  of  Congress. 

Instead,  we  have  been  witness  to  a  grand  public  relations  cam- 
paign designed  to  convince  even  the  most  skeptical  observers  that 
one  of  the  most  notorious  terrorist  organizations  of  the  20th  cen- 
tury has  mutated  into  a  democratic  entity,  respectful  of  law  and 
order  and  fundamental  human  rights.  This,  of  course,  could  not  be 
further  from  the  truth. 

Even  the  chairman  of  this  committee,  Mr.  Gilman,  referred  to  a 
recent  State  Department  report  on  PLO  compliance  as  nothing 
more  than  a  whitewash.  A  growing  segment  of  the  American  pub- 
lic, if  not  a  majority,  is  inclined  to  agree  with  him.  As  hours  of  re- 
cently recorded  speeches  of  Yasir  Arafat  clearly  demonstrate,  he 
has  no  intention  of  abiding  by  a  peace  with  Israel  or  any  of  the 
commitments  he  has  made  to  our  Government.  He  and  his  fol- 
lowers are  bent  upon  using  the  Oslo  accords,  brokered  with  United 
States  assistance,  as  a  vehicle  for  waging  a  gradual  war  of  annihi- 
lation against  the  State  of  Israel. 

Incredibly,  the  President  and  many  Members  of  Congress  are 
prepared  to  underwrite  this  baffling  policy  by  supporting  an  exten- 
sion of  the  current  law,  the  Middle  East  Peace  Facilitation  Act,  or 
MEPFA,  which  would  place  virtually  no  conditionality  on  U.S.  as- 
sistance to  the  PLO.  Under  MEPFA,  the  PLO  is  held  to  no  clear 
standard  of  performance.  Instead,  it  relies  on  the  good  faith  inten- 
tions of  the  PLO.  The  strongest  compliance  provisions  of  MEPFA 
are  in  a  Sense  of  Congress  section  that  has  no  enforcement  author- 
ity. Moreover,  MEPFA  permits  U.S.  funds  to  be  channeled  through 
international  organizations  such  as  the  U.N.  and  the  World  Bank. 

For  years,  the  Congress  and  this  committee  have  received  harsh 
reports  critical  of  the  poor  financial  controls  and  widespread  project 
mismanagement  which  often  have  plagued  these  organizations.  To 


91 

make  matters  worse,  Yasir  Arafat  has  shown  no  inclination  to  mod- 
ify the  standard  PLO  practice  of  having  all  PLO  assets  secretly 
controlled  and  disbursed  by  him. 

Still,  the  United  States  is  prepared  to  support  an  approach  that 
reduces,  rather  than  enhances,  congressional  oversight  of  funds  to 
the  Palestinians. 

The  issue  here  is  not  one  of  the  opposition  to  the  peace  process 
or  even  dissatisfaction  with  Israeli  Government  efforts  to  find  a 
new  method  of  coexistence  with  the  Palestinians.  Rather,  the  ques- 
tion is  whether  the  United  States  will  insist  upon  its  own  stand- 
ards of  conduct  when  it  is  called  upon  to  render  assistance  to  both 
parties. 

I  believe  that  it  is  imperative  that  the  United  States  not  lose 
sight  of  the  need  to  hold  the  Palestinians  to  a  strict  level  of  both 
political  and  financial  accountability,  just  as  it  does  Israel,  if  the 
United  States  is  to  remain  a  credible  player  in  the  resolution  of 
this  and  other  conflicts. 

However,  time  and  again,  this  administration  is  prepared  to 
overlook  the  PLO's  wholesale  violations  of  the  Declaration  of  Prin- 
ciples in  a  headlong  rush  to  float  the  current  peace  process  on  a 
bubble  of  cash.  Already,  this  bubble  is  on  the  verge  of  bursting  as 
the  PLO  flagrantly  violates  most  of  the  solemn  commitments  it  has 
made,  not  only  to  Israel  but  to  our  President  and  our  Vice  Presi- 
dent as  well.  In  a  recent  Luntz  poll,  78  percent  of  all  Americans 
surveyed  stated  that  the  PLO  should  be,  "held  accountable  to  its 
commitments  and  comply  with  the  peace  accords  as  a  precondition 
for  receiving  the  rest  of  the  U.S.  funds,"  end  quote. 

Simply  put,  should  the  United  States  buy  peace  at  any  price? 
Should  we  continue  to  pay  for  the  privilege  of  Yasir  Arafat  remain- 
ing at  the  peace  table?  Or  should  we  insist  that  he  make  good  on 
his  obligation  to  halt  terrorism,  to  apprehend  and  extradite  PLO 
members  who  have  harmed  Americans?  And  should  he  now  account 
for  the  funds  now  streaming  into  his  coffers? 

We  are  all  for  peace.  Make  no  mistake  about  that.  But  without 
compliance,  there  can  be  no  peace. 

Mr.  Chairman,  this  committee  now  has  before  it,  the  opportunity 
to  right  some  of  the  wrongs  of  the  past.  Pending  before  both 
Houses  of  Congress  is  the  Middle  East  Peace  Compliance  Act  of 
1995,  known  as  H.R.  1960  in  the  House  and  S.  915  in  the  Senate. 

I  ask  that  you  act  now  and  report  this  important  piece  of  legisla- 
tion out  of  committee  with  a  strong  recommendation  that  it  be 
taken  up  for  immediate  consideration  on  the  House  floor.  MEPFA, 
the  current  law  allowing  aid  to  the  PLO,  must  be  allowed  to  lapse 
when  it  expires  on  October  1.  H.R.  1960  should  be  enacted  in  its 
place. 

H.R.  1960,  also  known  as  the  DeLay-Forbes-Saxton — and  I  hope, 
Burton — bill  would  deny  funds  to  the  PLO  and  the  Palestinian  Au- 
thority while  permitting  aid  to  go  to  the  Palestinian  humanitarian 
projects  once,  "substantial,  material  and  timely"  compliance  has 
been  achieved  by  the  PLO.  It  recognizes  that  there  is  no  real  dis- 
tinction between  the  PLO  and  the  PA,  both  of  which  are  controlled 
by  Arafat. 


92 

H.R.  1960  requires  that  all  funds  be  channeled  through  U.S. 
Government  agencies  and  entities  or  American  registered  private 
voluntary  organizations. 

H.R.  1960  is  a  prudent,  reasonable  bill.  Its  provisions  are 
grounded  in  precedents  currently  governing  the  allocation  of  U.S. 
foreign  assistance.  The  bill  strengthens  the  peace  process  and  en- 
sures comprehensive  financial  and  administrative  accountability 
over  all  U.S.  funds  flowing  to  territories  under  Palestinian  control. 

The  bill  also  would  require  that  the  PLO  provide  compensation 
to  U.S.  victims  of  PLO  terrorism  and  assist  U.S.  law  enforcement 
in  the  apprehension  and  extradition  of  those  responsible  for  such 
acts.  As  far  as  I  know,  there  is  no  statute  of  limitation  on  the  mur- 
der of  Americans. 

The  only  foundation  upon  which  a  true  and  lasting  peace  can  be 
built  is  one  in  which  the  negotiating  partners  comply  with  the  let- 
ter and  the  spirit  of  their  commitments.  The  DeLay-Forbes-Saxton 
bill  promotes  peace  by  providing  a  strong  monetary  incentive  for 
compliance.  Without  compliance,  there  can  be  no  peace  and  cer- 
tainly no  U.S.  funding. 

Mr.  Burton.  Excuse  me,  Mr.  Fishbein,  if  you  could  summarize. 
We  are  trying  to  stay  as  close  to  the  5-minute  limit  as  we  can. 

Mr.  Fishbein.  OK.  I  just  have  two  more  things. 

Mr.  Burton.  Thank  you. 

Mr.  Fishbein.  If  the  United  States  is  to  maintain  its  credibility 
in  fighting  worldwide  terrorism,  it  cannot  be  seen  to  reward  indi- 
viduals who  have  American  blood  on  their  hands.  Despite  its  allur- 
ing rhetoric,  the  PLO  has  proven  with  its  deeds  over  the  last  24 
months  that  they  are  unreformed  terrorists  and  continue  to  be  a 
menace  to  civil  society.  Arafat  himself  continues  to  praise  the  sui- 
cide bombers  of  Islamic  Jihad  as  martyrs  and  celebrates  the  spir- 
itual leader  of  Hamas,  Sheikh  Yassin,  as  a  prince. 

Mr.  Chairman,  everywhere  we  turn  today,  the  United  States  is 
demanding  that  rogue  states  and  peoples  comply  with  their  inter- 
national commitments.  In  Iraq,  we  insist  that  Saddam  Hussein 
comply  with  U.N.  resolutions.  In  Bosnia,  we  urge  the  Bosnian 
Serbs  to  heed  Security  Council  decisions.  In  North  Korea,  we  re- 
quire compliance  with  IAEA  rules  and  regulations. 

Only  with  the  PLO  do  we  suspend  our  judgment,  retreat  from  a 
moral  posture,  and  shrink  from  that  honorable  determination  that 
in  years  past  has  brought  respect  to  America. 

Mr.  Chairman,  members  of  the  committee,  it  is  not  too  late  to 
chart  a  course  that  will  bring  honor  to  the  United  States,  peace  to 
the  Middle  East,  and  restore  the  moral  authority  and  leadership  of 
this  illustrious  legislative  body  in  the  area  of  foreign  policy. 

Your  recommendation  that  H.R.  1960  be  brought  up  for  imme- 
diate consideration  on  the  House  floor  would  do  just  that. 

Thank  you. 

[The  prepared  statement  of  Mr.  Fishbein  appears  in  the  appen- 
dix.] 

Mr.  Burton.  Thank  you,  Mr.  Fishbein. 

We  will  now  hear  from  Mr.  Klein. 


93 

STATEMENT  OF  MORTON  KLEIN,  PRESIDENT,  ZIONIST 
ORGANIZATION  OF  AMERICA 

Mr.  Klein.  Thank  you,  Mr.  Chairman.  And  thank  you  for  the  op- 
portunity and  the  privilege  of  testifying  before  this  distinguished 
committee. 

My  name  is  Morton  Klein.  I  am  the  national  president  of  the  Zi- 
onist Organization  of  America.  We  are  the  oldest  pro-zionist  organi- 
zation in  the  country,  founded  in  1897.  We  have  over  50,000  mem- 
bers. 

We  want  and  yearn  for  peace  with  all  of  our  hearts.  I  happen  to 
be  a  child  of  Holocaust  survivors.  I  know  full  well  the  result  of  ter- 
ror and  hatred.  I  have  experienced  it  in  my  own  family. 

Until  recently  our  own  U.S.  laws  did  not  permit  a  dialog  with  the 
PLO,  let  alone  giving  Yasir  Arafat  and  the  PLO  $500  million  in  for- 
eign aid. 

This  was  because  Arafat  and  the  PLO  were  a  group  of  terrorists 
who  had  a  long  record  of  terror  and  murder,  including  the  murder 
of  over  a  dozen  Americans,  including  our  Ambassador  to  Sudan 
Cleo  Noel,  Leon  Klinghoffer,  and  Gail  Rubin,  the  niece  of  Senator 
Abraham  Ribicoff;  recently  Alisa  Flatow  was  murdered  by  Arabs, 
and  the  PLO  refused  to  cooperate  with  FBI  agents  in  investigating 
that  murder.  And  Joan  Devanny  was  murdered  several  weeks  ago 
by  Arabs.  And  the  Arab  PLO  has  refused  to  extradite  the  master- 
minds of  this  terrible  attack. 

Two  years  ago,  the  President  and  Congress  decided  to  waive  the 
laws  against  Arafat  and  the  PLO  believing  that  the  PLO  had  sin- 
cerely transformed  itself. 

It  is  now  2  years,  not  2  months,  since  the  signing  of  these  Oslo 
accords.  The  PLO  has  violated  virtually  every  single  aspect  of  these 
accords  in  both  spirit  and  deeds. 

They  are  required  to,  but  have  not,  prevent  terrorism.  There 
have  been  about  200  murders  of  Israelis  and  others  since  the  sign- 
ing of  the  accord,  a  doubling  of  the  murders  of  Israelis  in  this  2- 
year  period  compared  to  any  2-year  period  since  the  founding  of  the 
State  of  Israel.  They  have  not  disciplined  PLO  members  who  have 
committed  terrorist  attacks. 

There  have  been  virtually  no  trials  since  May  25  against  Arabs 
who  have  committed  attacks.  And  whenever  there  are  trials,  no 
Arab  has  been  charged  with  crimes  against  Israel,  only  crimes 
against  the  PLO  entity. 

Arafat  has  almost  never  condemned  attacks,  two  or  three  times 
in  English  in  one  sentence,  virtually  never  in  Arabic  as  far  as  we 
know.  He  has  not  changed  the  terrible  covenant  which  has  33 
clauses,  30  of  which  call  for  violence  against  Israel  or  the  destruc- 
tion of  Israel. 

They  have  not  confiscated  weapons  from  Hamas  and  other  terror- 
ists, and  they  have  not  renounced  sovereignty,  which  is  not  per- 
mitted in  the  accords. 

In  fact,  I  have  stationery  here  from  Yasir  Arafat  himself  which 
says  "State  of  Palestine"  in  the  upper  right-hand  corner,  which  is 
against  the  accords.  And  it  has  a  picture  of  all  of  Israel  as  Pal- 
estine and  their  own  emblem  in  the  center  of  this.  And  this  was 
dated  March  1,  1994,  well  after  the  accords  were  signed. 


94 

And  in  his  speeches,  he  continues  to  encourage  terrorism  and 
praise  terrorists.  The  very  night  he  signed  the  accords,  he  called 
this  the  phase  plan;  we  will  destroy  Israel  eventually  later.  He  said 
it  on  Jordanian  TV  the  night  he  signed  the  accords. 

He  calls  for  jihad  via  deaths.  He  praises  terrorists  as  heroes  and 
stars  regularly  in  these  tapes  that  I  have  right  here. 

And  he  recently,  only  last  month,  called  for  the  savage  war 
against  Israel  to  continue  until  the  last  Palestinian  boy  and  Pal- 
estinian girl — he  is  required  to  change  the  hearts  and  minds  of  the 
Palestinian  people;  and,  instead,  he  incites  terrorism  and  praises 
terrorists. 

Bill  Clinton  himself,  President  Clinton,  said  bitter  words  have 
bitter  consequences;  and  surely  these  bitter  words  of  Arafat  con- 
tinue to  encourage  the  continuing  murder  of  Israelis. 

And  it  is  not  just  the  PLO  leadership.  In  polls  among  the  Pal- 
estinian Arabs,  almost  half  of  them  support  continued  armed  strug- 
gle against  Israelis.  And  two-thirds  say  we  want  to  continue  this 
until  Israel  is  weak  enough  and  then  we  will  want  to  eliminate  Is- 
rael entirely. 

How  is  Yasir  Arafat  acting  with  respect  to  Hamas?  He  calls 
Sheikh  Yassin  his  brother,  the  head  of  Hamas,  and  calls  for  his  re- 
lease. He  calls  Abu  Marzook  his  brother  and  offers  him  safe  haven 
in  the  territories.  He  is  one  of  the  founders  of  Hamas. 

He  gives  significant  amounts  of  money  to  Hamas.  And  he  pub- 
licly says  how  it  is  important  for  Hamas'  attacks  to  continue  be- 
cause this  helps  strengthen  Israel's  continuing  in  this  peace  proc- 
ess. 

It  seems  to  me  in  light  of  the  fact  that  we  are  fighting  for  strong 
anti-terrorism  legislation,  what  message  are  we  sending  when  we 
send  $500  million  to  the  PLO  which  encourages  terrorism  and 
praises  terrorists? 

The  ZOA  is  against  any  U.S.  foreign  aid  to  be  given  to  the  PLO 
as  long  as  they  do  not  comply  with  the  accords,  which  means  now. 
We  think  there  should  be  a  period  of  at  least  6  months  where  aid 
is  not  given  to  see  if  they  start  to  comply  and  show  seriousness 
about  peace. 

We  commend  Congressman  Engel  and  Congressman  Forbes  on 
bills  which  move  in  that  direction. 

And  all  we  are  asking  is  that  this  money  be  used  as  leverage  to 
ensure  strict  compliance.  This  will  help  ensure  the  integrity  of  the 
peace  process  if  there  is  to  be  peace. 

What  we  are  saying  is  that  now  is  the  time  to  put  pressure,  not 
later  when  Arafat  has  more  territories  and  less  incentives  to  com- 
ply with  these  accords.  As  long  as  the  Arabs  keep  filling  coffins,  as 
long  as  the  PLO  speeches  are  filled  with  encouraging  terrorism  or 
praising  terrorists,  as  long  as  the  PLO  keeps  their  commitments 
unfulfilled,  U.S.  taxpayer  dollars  should  not  be  filling  PLO  coffers 
with  $500  million  in  taxpayers'  money. 

If  we  do  not  hold  Arafat's  feet  to  the  fire,  we  will  continue  to  get 
peace  agreements,  but  we  will  get  no  peace. 

Thank  you  very,  very  much. 

[The  prepared  statement  of  Mr.  Klein  appears  in  the  appendix.! 

Chairman  GlLMAN  [presiding].  Thank  you,  Mr.  Klein. 


95 

Mr.  Richard  Hellman,  President,  Christian  Israel  Public  Action 
Campaign. 

STATEMENT  OF  RICHARD  HELLMAN,  PRESIDENT, 
CHRISTIANS'  ISRAEL  PUBLIC  ACTION  CAMPAIGN 

Mr.  HELLMAN.  Thank  you,  Mr.  Chairman.  It  is  a  pleasure  to  be 
here  today. 

For  the  record,  I  think  that  it  is  a  shame  that  Mr.  Neal  Sher  and 
Ms.  Ester  Kurz  of  AIPAC  had  to  sit  alone.  I  would  like  the  record 
to  reflect  that,  if  requested,  I  would  have  sat  with  them,  because 
I  am  a  broad-minded,  liberal,  tolerant  fellow;  and  I  think  they  are 
good  friends. 

Chairman  Gilman.  Thank  you.  I  do  not  know  if  they  are  still  in 
the  audience,  but  I  am  sure  they  will  appreciate  that. 

Mr.  Hellman.  Yes,  Thank  you,  Mr.  Chairman. 

In  any  event,  we  are  the  other  Pro-Israel  lobby.  We  are  a  reg- 
istered lobby  that  represents  the  70  million  American  Christians 
and  many  Bible  believing  Jews  who  stand  up  for  Israel's  Biblical 
and  historic  rights  to  all  of  Eretz  Israel  (the  Biblical  land  of  Israel). 

Mr.  Chairman,  as  my  prepared  statement  and  other  materials 
that  I  have,  which  I  would  ask  to  be  inserted  in  the  record,  will 
detail  for  you  today,  the  Middle  East  peace  process  is  badly  flawed. 

The  recent  maneuvers  of  negotiators  have  been  marked  by  abject 
failure  in  terms  of  real  progress  toward  peace  and  security,  with 
the  notable  exception  of  the  peace  with  Jordan. 

In  fact,  the  reports  of  the  demise  of  the  peace  process  may  not 
be  exaggerated,  sad  as  this  fact  is. 

Thus,  I  urge  you  and  your  colleagues  in  the  leadership  and  mem- 
bership of  the  Congress  to  exercise  continued  and  strengthened 
oversight  and  exert  leadership  and  policy  strategy  and  formulation 
to  govern  the  negotiators. 

And  in  this  regard,  I  have  a  legal  memorandum  on  the  constitu- 
tional authority  of  the  Congress  as  a  coequal  foreign  policymaking 
body,  which  I  will  submit  for  the  record. 

[The  material  was  not  ready  at  the  time  of  printing.] 

Mr.  Hellman.  On  a  personal  note,  I  was  privileged  to  live  and 
work  in  Israel  with  my  wife  and  children  for  almost  7  years.  And 
in  that  respect,  I  would  like  to  take  great  exception  to  virtually  all 
of  the  testimony  of  Dr.  Zogby.  In  fact,  the  Palestinian  Arabs'  eco- 
nomic, financial,  environmental,  and  cultural  progress  was  nothing 
short  of  stratospheric  under  the  Israeli  stewardship. 

And  the  reason  why  they  were  in  economic  trouble  is  because  of 
their  riots  and  civil  disorder  all  during  the  Intifada  and  to  this 
present  day. 

To  give  credit  where  credit  is  due,  we  applaud  the  peace  process 
between  Israel  and  Jordan.  However,  while  Christian  and  Jewish 
members  of  CIPAC  nationwide  and  those  of  us  in  Washington  con- 
tinue to  pray  for  peace,  we  are  appalled  by  what,  soon,  sadly  may 
be  200  deaths,  plus  many  injuries,  and  much  destruction  caused  by 
a  torrent  of  terrorism  unleashed  upon  Israel  since  the  signing  of 
the  Oslo  accords. 

And  we  also  abhor  the  equally  devastating  Arab-on-Arab  violence 
and  abuse  of  rights  which  are  endemic  in  areas  abandoned  by  Is- 
rael, due  to  Chairman  Arafat's  secret  police  and  military  forces. 


96 

These  are  sad  truths,  but  they  are  truths  that  I  need  to  bring 
before  you  today. 

If  this  were  not  bad  enough,  when  we  witnessed  the  mild,  pro 
forma,  public  remonstrances  against  terror  by  Yasir  Arafat,  we 
think  it  is  most  obscene  of  him  to  make  these  repeated  comments 
to  Arab  and  Islamic  audience  which  actually  incite  terror,  and  to 
applaud  and  affirm  the  heroes  and  martyrs  who  perpetrate  the  in- 
discriminate, wanton,  death,  injury,  and  destruction  of  Israelis, 
Arabs,  and,  as  we  have  heard  today,  even  Americans,  by  bus  bomb- 
ings. 

And  so  today,  I  would  say  that  any  of  these  calls  for  jihad  or  holy 
war  point  out  that  Arafat  really  is  not  a  man  of  peace.  It  is  sad 
that  we  have  honored  him.  It  is  sad  that  we  have  given  him  foreign 
aid. 

In  this  respect,  at  this  point,  Mr.  Chairman,  I  would  like  to  asso- 
ciate our  organization  with  Rand  Fishbein  and  his  remarks  to 
which  I  do  not  believe  I  could  have  taken  any  exception.  I  think 
that  his  support  of  the  DeLay-Forbes-Saxton  bill  is  laudatory;  and 
we  can  endorse  that  with  minor,  if  any,  technical  amendments.  But 
I  think  that  this  is  an  excellent  approach  to  tightening  up  on  the 
funding  of  the  PLO. 

I  would  say,  as  we  said  in  a  rally  and  march  before  the  White 
House  the  last  week,  it  is  time  to  say:  "No  more  U.S.  dough  for  the 
PLO!  No  more  foreign  aid  for  Arafat!"  It  is  as  if,  after  the  Okla- 
homa City  bombing,  instead  of  going  after  the  perpetrators,  we 
were  trying  to  figure  out  how  to  give  them  a  piece  of  Michigan  to 
appease  them. 

I  think  it  is  shameful.  I  do  not  think  we  should  do  this  any 
longer. 

Last,  I  want  to  turn  to  Hafiz  al-Asad  and  the  Syrian  track. 

Although  Hafiz  al-Asad,  a  brutal  dictator,  had  the  temerity  and 
gall  to  insult  our  President  publicly  in  Damascus  not  so  long  ago, 
now  it  seems  that  a  well  meaning  but  perhaps  misguided  Secretary 
of  State  is  going  to  troop  to  Damascus  again  to  meet  with  Hafiz  al- 
Asad.  I  believe  it  is  a  shame  to  America.  I  believe  it  will  not  bring 
peace.  I  believe  it  will  endanger  Israel  and  Middle  East  peace,  pro- 
ducing danger  to  Israel's  legitimate  rights  and,  indeed,  to  its  na- 
tional security. 

And,  indeed,  we,  Mr.  Chairman,  you  and  I  and  every  American 
taxpayer,  are  going  to  be  asked  to  pay  the  bill.  We  are  going  to  be 
asked  to  put  billions  of  dollars  into  that  peace  process  to  com- 
pensate Israel  for  having  to  give  up  the  natural  security  of  the 
Golan  Heights  and  the  border  with  Lebanon. 

We  also  are  going  to  be  asked,  as  you  know  full  well,  from  the 
secret  plans  in  the  Pentagon,  the  State  Department,  and  the  CIA — 
to  put  troops  on  the  Golan  Heights. 

And  I  think  it  is  time  that  we  look  at  what  it  is  going  to  happen 
based  on  existing  plans  in  the  administration  and  the  Pentagon, 
State  Department,  other  offices.  There  are  plans.  And  I  would  like 
to  ask  that  we,  at  some  point,  Mr.  Chairman,  have  hearings  to  find 
out  why  we  have  not  seen  those  plans  for  deployment  of  U.S.  troops 
on  the  Golan  Heights  where  they  will  be  in  great  danger  for  the 
reasons  we  have  heard  today. 


97 

All  this  to  appease  an  Arab  dictator  and  help  him  obtain  terri- 
tory which  he  lost  in  a  war  of  aggression  in  1967,  failed  to  hold 
after  a  later  sneak  attack  on  Yom  Kippur,  1973,  and  to  which  he 
never  had  (and  we  have  the  historic  backup  on  this)  a  legitimate, 
legal,  or  historic  right  to  begin  with. 

And  our  State  Department  is  busy  trying  to  appease  him.  He  has 
been  promised  a  quick  and  easy  exit  from  his  prominent  place  on 
State's  lists  of  nations  that  sponsor  terrorism,  violate  human 
rights,  traffic  in  international  narcotics,  counterfeit  our  currency 
massively,  and  much  more. 

Even  by  historic  standards,  this  will  give  cynical,  realpolitik,  di- 
plomacy a  bad  name  if  the  Congress  lets  this  charade  of  misguided 
statecraft  continue  without  raising  a  loud  and  principled  cry  of  out- 
rage. 

And  anyone  who  thinks  Hafiz — al-Asad  just  wants  the  Golan  and 
that  this  then  will  become  a  peaceful  area  probably  would  have  be- 
lieved that  Hitler  would  be  satisfied  with  the  Sudetenland. 

Even  if  we  need  to  talk  to  unsavory  characters  to  make  peace, 
I  assure  you  that  no  smart  buyer  in  the  Middle  East  runs  after  a 
merchant  to  shower  him  with  concessions,  nor  should  we  run  after 
Asad. 

Last,  Mr.  Chairman,  I  think  it  is  time  that  we  move  our  embassy 
to  Jerusalem  immediately.  And  we  do  not  need  to  build  a  new 
building.  You  know  that  that  this  can  be  done,  and  the  State  De- 
partment can  be  compelled  to  do  so. 

We  should  put  no  further  aid  into  the  PLO.  But  we  could,  of 
course,  as  has  been  indicated,  put  it  into  projects  under  multilat- 
eral development  banks  (MDB's)  and  private  voluntary  organiza- 
tions (PVO's). 

We  should  insist  that  Syria  get  out  of  Lebanon  and  free  that 
country  from  the  illegal  Syrian  occupation  by  40,000  troops  and  se- 
curity officials. 

And  we  should  insist  that  any  peace  treaty  with  Syria  and  Israel 
provide  for  Lebanon's  liberation,  put  no  troops  on  the  Golan 
Heights  and  insist  that  Asad  really  prove  that  he  is  a  man  of  peace 
before  he  gets  off  the  list  that  I  mentioned. 

Last,  Mr.  Chairman,  I  would  like  to  wish  you  Shana  Tova,  a 
Happy  New  Year,  to  you  and  your  colleagues  and  to  all  of  Israel, 
a  new  year  of  peace,  prosperity,  and  hopefully  a  real  and  lasting 
peace,  not  a  false  peace,  and,  God  forbid,  not  any  return  to  the  hov- 
ering clouds  of  war. 

Thank  you,  Mr.  Chairman. 

[The  prepared  statement  of  Mr.  Hellman  appears  in  the  appen- 
dix.] 

Chairman  Gilman.  Thank  you,  Mr.  Hellman. 

I  know  that  all  of  the  panelists  join  in  a  desire  for  a  long-lasting 
peace. 

Mr.  Seymour  Reich,  President,  American  Zionist  Movement. 

STATEMENT  OF  SEYMOUR  REICH,  PRESIDENT,  AMERICAN 
ZIONIST  MOVEMENT 

Mr.  Reich.  Thank  you,  Mr.  Chairman. 


98 

I  am  the  president  of  the  American  Zionist  Movement,  which  is 
an  umbrella  organization  for  21  Zionist  American  groups  in  the 
United  States. 

And  I  am  pleased  to  be  here  to  support  the  adoption  of  the 
Helms-Pell  version  of  MEPFA. 

The  American  Zionist  Movement  adopted  a  resolution  to  that  af- 
fect at  its  convention  in  January  in  Florida  earlier  this  year. 

I  also  would  share  with  this  group  that  I  am  the  past  president 
of  B'nai  B'rith  International.  And  while  I  do  not  speak  for  B'nai 
B'rith  here,  I  am  also  pleased  to  indicate  that  B'nai  B'rith  likewise 
supports  this  legislation  that  we  hope  the  committee  will  adopt. 

Chairman  GlLMAN.  Mr.  Reich,  if  I  could  interrupt,  I  have  just 
been  called  to  a  leadership  meeting,  and  I  am  going  to  have  to  ex- 
cuse myself  from  the  remainder  of  the  hearing. 

I  just  want  to  take  this  opportunity  to  thank  our  panelists.  I 
know  you  are  all  busy  and  are  all  involved  in  very  critical  issues, 
and  I  cannot  tell  you  how  much  our  committee  appreciates  your 
talking  the  time  to  be  here  to  give  us  the  benefit  of  your  thinking. 

I  am  going  to  ask  Mr.  Burton,  if  he  would  be  kind  enough,  to 
take  the  chair  for  the  remainder  of  the  meeting. 

And,  again,  for  any  of  the  other  witnesses  who  are  in  the  audi- 
ence, we  thank  you  for  being  with  us  today.  I  think  it  has  been  a 
very  thorough  airing  of  some  of  the  issues  involved  which  will  be 
beneficial  to  our  committee. 

Thank  you,  Mr.  Reich. 

Mr.  Reich.  Thank  you,  Mr.  Chairman. 

I  was  saying  I  am  also  a  past  chairman  of  the  Conference  of 
Presidents  of  Major  American  Jewish  Organizations,  which  is  an 
umbrella  organization  of  50  American  Jewish  groups  in  the  United 
States. 

And  the  Conference  of  Presidents  has,  likewise,  supported  the 
adoption  of  this  MEPFA  legislation. 

But  more  than  that,  Mr.  Chairman,  we  believe  that  it  is  in  the 
interest  of  the  American  people,  the  American  taxpayer,  that  this 
legislation  is  adopted. 

To  show  continued  support  on  the  part  of  the  Jewish  community 
for  this  organization,  I  am  pleased  to  illustrate  to  this  committee 
that  in  Sunday's  New  York  Times,  this  past  Sunday,  on  the  op-ed 
page,  there  was  an  ad  placed  by  a  group  of  organizations  coordi- 
nated by  the  American  Zionist  Movement. 

The  headline  says:  "Prime  Minister  Rabin,  we  know  that  pursu- 
ing peace  is  risky.  Not  pursuing  it  is  unthinkable." 

But  more  than  that,  it  says: 

To  bring  us  closer  to  this  goal,  we  support  MEPFA,  the  Middle  East  Peace  Facili- 
tation Act,  United  States  legislation  which  enhances  Israel's  security  by  ensuring 
compliance  by  the  Palestinians  with  their  agreements  and  advancing  economic  de- 
velopments in  the  West  Bank  and  Gaza  to  show  Palestinians  that  peace  can  im- 
prove their  lives. 

Among  the  many  organizations  that  signed  this  ad  are  the  Amer- 
ican Jewish  Committee,  Mr.  David  Harris  to  my  left,  who  has  al- 
ready spoken  to  you;  the  American  Jewish  Congress;  the  Anti-Def- 
amation League;  B'nai  B'rith,  Hadassah;  the  National  Jewish  Com- 
munity Relations  Advisory  Council;  the  World  Jewish  Congress; 
and  many,  many  more. 


99 

Mr.  Chairman,  Israel  will  rely  on  its  own  security  for  its  own 
protection.  And  while  there  may  be  distrust  of  the  PLO  and  Chair- 
man Arafat  because  he  may  not  adhere  to  some  of  the  promises 
that  he  made  in  the  past,  Israel  is  in  the  process  of  negotiating  an 
agreement  with  them,  the  second  phase. 

And  I  think  it  is  essential  that  aside  from  agreements  there  be 
economic  enhancements  to  make  certain  that  the  Palestinians  have 
the  wherewithal,  the  ability  to  have  economic  benefits  from  this 
agreement. 

Peace  by  itself  is  not  enough.  Economic  benefits  enhance  peace. 
And  the  act  that  is  before  you  will  ensure  compliance  with  the 
many  provisions  in  this  legislation  which  have  been  expressed  be- 
fore, concerns  about  the  Palestinian  Authority  adhering  to  its 
agreement. 

Mr.  Chairman,  the  act  contains  compliance  provisions.  There  are 
provisions  on  the  part  of  the  State  Department,  the  President,  to 
certify  to  the  Congress  whether  the  act  is  being  complied  with.  And 
we  have  belief  that  the  Congress  can  rely  on  those  certifications. 

It  is  not  necessary  to  put  money  in  escrow.  It  is  not  necessary 
to  put  conditions  beyond  that  which  is  proposed  in  the  Helms-Pell 
bill,  which  is  a  tightening  of  the  legislation  before  you. 

Congressman  Engel  earlier  today  asked  a  question  of  a  panelist: 
If  the  United  States  pulls  its  money  out,  what  impact  will  that 
have  on  the  peace  process? 

My  own  answer  is,  it  will  have  a  severe  impact.  And  not  only  on 
the  process  between  Israel  and  the  Palestinians  but  on  our  allies, 
the  Japanese,  the  Germans,  who  have  likewise  offered  financial 
commitments  to  make  sure  that  peace  is  enhanced  and  peace  is  se- 
cure and  peace  is  everlasting. 

And  I  think  the  United  States  must,  as  the  leader  of  the  free 
world,  continue  to  set  an  example  with  regard  to  peace  in  the  Mid- 
dle East. 

Who  said  making  peace  is  easy?  But,  Mr.  Chairman,  and  this 
committee,  do  not  make  is  harder.  Your  enactment  of  the  legisla- 
tion, of  MEPFA,  as  embodied  in  the  Helms-Pell  bill  will  permit  you 
and  each  of  us  to  look  at  ourselves  in  the  mirror  some  day  in  the 
future  and  say,  we  gave  peace  a  chance;  we  supported  enactment 
of  this  legislation  which  facilitated  the  dialog,  which  facilitate  the 
agreements  and  will  hopefully  bring  everlasting  peace. 

There  will  be  obstacles.  There  will  be  dangers.  There  will  be 
problems. 

But  we  are  confident  in  the  democratically  elected  Government 
of  Israel  that  it  can  protect  itself,  and  it  can  negotiate  those  dif- 
ficulties with  the  Palestinians. 

So  we  hope,  Mr.  Chairman,  that  this  legislation  will  be  enacted. 

Mr.  Burton  [presiding].  I  thank  the  gentleman. 

I  thank  all  of  you  for  your  comments.  I  will  yield  to  my  col- 
leagues in  just  a  couple  of  minutes.  I  have  a  couple  of  concerns  that 
I  would  like  to  express. 

During  a  couple  of  the  panels  before  I  raised  a  couple  of  issues 
which  I  will  raise  with  you.  Yasir  Arafat  is  believed  to  be  commit- 
ted to  this  peace  accord.  However,  I  have  read  a  speech.  I  would 
like  to  read  you  just  one  part  of  it.  It  says: 


100 

The  Palestinian  people  are  prepared  to  sacrifice  their  last  boy  and  their  last  girl 
in  order  to  wave  the  Palestinian  flag.  The  soul  and  the  blood  we  shall  give  for  your 
sake,  Abu  Amar,  so  that  the  Palestinian  flag  will  wave  over  the  walls  of  Jerus  ilem, 
its  mosques  and  its  churches.  .  .  . 

It  is  a  very  lengthy  speech. 

I  am  sure  that  causes  a  great  concern  to  a  lot  of  people  in  Israel 
who  have  different  views  and  objectives.  And  this  does  not  sound 
like  a  conciliatory  speech.  I  would  like  to  read  the  whole  thing  to 
you,  but  I  would  not  want  to  take  the  time  to  do  that. 

In  addition  to  that,  I  brought  up  a  while  ago  that  Hamas  and 
Hezbollah,  it  is  believed  to  have  been  involved  in  a  number  of  these 
terrorist  attacks. 

On  September  1,  1995,  it  was  reported  that  he  gave  $20,000  or 
more  to  a  Hamas  youth  organization  which  they  believe  may  have 
been  involved  in  some  of  these  tragedies. 

One  of  the  things  that  is  of  concern  to  me  is  support  that  we  give 
in  the  way  of  aid  for  building  up  the  infrastructure  of  the  new  Pal- 
estinian State  at  a  time  when  these  kinds  of  comments  are  being 
made. 

If  the  Helms-Pell  bill  is  not  passed,  yes,  there  would  be  no  sup- 
port for  a  PLO  office;  and,  yes,  there  would  be  no  fund  for  the 
World  Bank  for  $40  million;  but  there  would  be  a  dialog  with  our 
State  Department  between  them  and  the  PLO;  and  NGO's  would 
still  get  $35  million. 

So  I  guess  my  question  would  be — probably  to  Mr.  Zogby  first — 
is  there  would  be  money  that  would  go  forth  to  assist  in  some  of 
the  problems  that  the  PLO  faces  in  the  new  Palestinian  State. 
There  would  not  be  the  amount  of  money  that  we  have  talked 
about  in  the  past.  But  there  are  $8  billion,  $8,000  million  dollars, 
in  financial  institutions  around  the  world  that  is  controlled  by  the 
PLO,  according  to  British  intelligence.  And  we  have  done  some 
checking;  and  the  person  that  wrote  that  report  says  they  stand  by 
the  report  that  that  money  is  there. 

Now,  it  seems  to  me,  as  I  said  before,  with  us  having  the  finan- 
cial difficulties  we  are  having  in  this  country,  even  though  we  are 
committed  to  the  peace  process,  and  we  want  to  work  with  both 
sides,  why  should  we  send  our  money  over  there,  especially  in  view 
of  the  fact  that  some  of  these  statements  or  documents — this 
speech  I  was  reading  by  Yasir  Arafat  was  made  in  September,  just 
earlier  this  month. 

Why  should  we  send  that  money  over  there  when  they  have  the 
money  to  rebuild  the  entire  area  if  they  choose  to  do  so  with  re- 
sources that  they  have,  and  at  the  same  time  we  still  would  be 
helping  through  PVO's. 

So  I  would  just  like  to  ask  you  the  question:  Can  you  give  me 
a  reason  why  you  think  we  ought  to  go  ahead  and  send  the  money 
over  under  the  circumstances  that  we  currently  have? 

And  should  not  we  insist  that  Yasir  Arafat  temper  his  rhetoric 
a  little  bit? 

I  mean  this  kind  of  rhetoric  is  inflammatory,  to  say  the  least.  It 
scares  the  dickens  out  of  the  people  in  this  country;  but  I  am  sure 
it  scares  a  heck  of  a  lot  more  in  Israel. 


101 

I  have  been  to  Israel.  I  know  how  small  the  country  is.  The 
threat  of  a  war  to  once  again  be  started  to  place  the  Palestinian 
flag  over  Jerusalem,  I  mean,  I  am  sure  is  of  great  concern. 

So  anyhow  if  you  would  start  off  by  answering  some  of  my  con- 
cerns, I  would  appreciate  it. 

Mr.  Zogby.  Mr.  Congressman,  I  have  not  been  to  testify  before 
this  committee  for  almost  13  years  now. 

Mr.  Burton.  Yes,  sir. 

Mr.  Zogby.  And  one  of  the  reasons  why  is  because  of  the  enor- 
mous frustration  that  those  of  us  in  the  Arab  American  community 
feel  in  attempting  to  deal  with  the  huge  amount  of  misperception, 
with  the  difference  in  perspective,  and  with  the  lack  of  appreciation 
for  the  reality  faced  by  Palestinians  living  under  occupation  who 
are  now  struggling  for  some  normalized  life  with  Israel. 

I  found  it  all  too  frustrating.  And  I  guess  I  have  to  tell  you  today, 
I  still  find  it  frustrating.  There  are  so  many  answers  I  can  give  to 
the  questions  that  you  ask.  And  I  am  not  sure  you  have  the  time 
to  hear  them  all. 

Mr.  Burton.  Do  the  best  you  can. 

Mr.  Zogby.  Let  me  try  with  a  few. 

I  have  to  tell  you  what  an  Arab-American  thinks  when  he  hears 
the  question  asked  about  PLO  accountability  or  compliance — let  us 
make  it  clear.  There  is  not  $500  million.  There  is  $375  million.  The 
other  $125  million  is  the  funny  money  of  OPIC,  none  of  which  has 
been  used.  And  some  of  us  fear  that  OPIC  may  not  be  underwriting 
any  projects  for  the  5-year  period.  So  it  is  only  $75  million  a  year 
and  all  of  it  is  accountable.  And,  in  fact,  none  of  it  goes  directly 
to  the  coffers  of  the  Palestinian  Authority  or  the  PLO.  As  dis- 
respectful as  we  feel  that  is,  it  does  not. 

It  is  administered  by  private  contractors  here  who  are  sometimes 
called  Beltway  Bandits  in  the  States  who  bid  on  these  projects, 
from  AID  officials  they  are  the  ones  who  get  the  contracts  and  ad- 
minister them.  According  to  the  projections  of  independent  observ- 
ers, only  about  20  cents  on  the  dollar  actually  hits  the  ground  in 
the  West  Bank  and  Gaza. 

The  money,  according  to  AID,  is  fully  accountable.  They  have  a 
total  and  complete  accounting  for  the  money.  The  money  that  has 
gone  to  UNDP  and  other  international  agencies  has  similarly  been 
fully  accounted  for.  There  is  no  problem  with  accountability. 

And  in  recent  discussions  I  had  under  the  auspices  of  Builders 
for  Peace  with  both  the  head  of  the  World  Bank  Mission  and  the 
head  of  the  United  Nations,  as  well  as  with  our  own  AID  head  in 
Tel  Aviv,  it  was  made  very  clear  that  they  have  no  evidence  of  cor- 
ruption or  of  a  failure  on  the  Palestinian  side  to  account  for  money. 
They  do  not  get  the  money. 

And  I  would  say  from  an  Arab-American  perspective,  there  is  no 
accountability,  as  we  know,  for  the  $3  billion  a  year  in  aid  that 
goes  to  Israel.  And  we  are  not  here  asking  for  that.  We  are  not  ask- 
ing for  a  full  GAO  or  AID  accounting  or  administering  of  that 
funds  in  the  same  way  that  it  goes  to  the  Palestinians. 

But  understand  that  there  is  a  problem — when  Palestinians  see 
all  of  this  being  done  over  their  $75  million,  which  they  do  not  get, 
and  nothing  is  being  said  about  the  money  for  Israel.  There  is  a 
question  of  fairness  and  perspective  here. 


102_J 

On  the  question  of  the  Hamas  youth  organization,  understand 
every  entity  that  receives  money  and  operates  in  the  West  Bank 
and  Gaza  is  licensed  by  the  Israeli  Civil  Administration  or  had 
been  licensed  by  the  Israeli  Civil  Administration,  including  groups 
that  have  an  affiliation  with  Hamas. 

In  fact,  if  you  read  the  debate  in  Israel  today,  most  of  the 
Hamas-related  entities  that  exist  were  encouraged  to  exist  under 
previous  Israeli  Government  administrations  because  they  viewed 
the  Islamic  institutions  as  an  independent  alternative  to  the  PLO 
because  they  thought  these  groups  would  distract  people  from  the 
nationalist  struggle. 

All  of  those  groups,  in  other  words,  operate  with  the  full  knowl- 
edge of  the  Israeli  Civil  Administration  and  have  been  licensed  by 
them. 

Where  a  group  is  affiliated  with  Hamas — and  there  is  a  very 
wide  ranging  set  of  definitions  that  could  be  given  to  that — there 
is  no  such  thing  as  a  Hamas  youth  group.  What  there  will  be  is 
an  orphanage  or  a  school  or  a  mosque  or  a  hospital,  in  this  case, 
a  youth  organization,  that  has  an  affiliation.  In  other  words,  it 
sympathizes  with  or  allies  itself  to.  Just  like  in  Israel  there  are 
groups  that  will  ally  themselves  with  this  or  that  faction  or  this  or 
that  party,  although  they  are  not  under  a  party  discipline  as  such. 

In  the  case  you  are  talking  about,  $20,000,  I  understand,  money 
was  going  for  a  youth  project.  In  the  past,  American  PVO's  have 
contributed  to  some  of  those  entities.  The  Israeli  Government  itself 
has  contributed  to  some  of  those  entities.  And  now  the  Palestinian 
Authority  similarly  continues  the  practice  of  giving  money  for  oper- 
ating of  programs,  legitimate  programs,  to  some  of  those  same  enti- 
ties. It  does  not  go  to  support  violence.  It  does  not  go  to  support 
activity  against  the  peace  process. 

In  fact,  even  the  witnesses  here  who  complain  about  Palestinian 
Authority  performance  on  the  question  of  extradition  or  whatever, 
do  not  complain  about  the  issue  of  control  of  anti-authority,  anti- 
Palestinian  Authority  activity.  They  do  not  allow  it. 

And  finally  on  the  question  of  Arafat's  speeches,  understand,  un- 
derstand— and  I  cannot  impress  upon  you  and  other  members  of 
the  committee  enough,  you  need  to  spend  some  time  in  Gaza.  You 
need  to  spend  some  time  in  east  Jerusalem  with  Palestinians.  You 
need  to  go  to  Hebron  and  sit  for  just  an  afternoon  in  the  market- 
place in  the  center  of  the  town  and  look  at  the  stars  of  David  and 
the  death  to  Arabs  and  the  Goldstein  lives  slogans  written  all  over 
the  walls,  literally  all  over  the  walls,  lining  entire  blocks  of  what 
was  the  teaming  market  of  Hebron. 

Understand  the  despair,  the  anger,  the  frustration,  and  the  fact 
that  even  until  this  day  the  Palestinian  Authority  has  no  control 
over  resources,  water,  land,  access,  and  egress  to  the  tiny — what 
one  of  our  own  American  officials  called  little  prison  of  the  Gaza 
strip,  no  way  in,  no  way  out. 

Try  to  go  through  the  check  points;  and  to  understand  the  anger 
and  the  frustration  that  Palestinians  encounter  when  they  deal 
with  the  humiliation  of  that  is  to  understand  that,  at  times,  yes, 
Arafat  gives  speeches  that  have  an  emotional  content  that  say 
things  that  make  you  or  I  maybe  feel  uncomfortable. 


103 

I  do  not  find  in  his  speeches  either  an  incitement  against  the 
peace  process,  against  the  commitment  he  made  to  make  that 
peace  process  work.  When  he  uses  the  term  "jihad,"  he  means 
something  very  different  than  you  may  understand  it  to  mean. 

And  understand  that  the  man  has,  in  the  2  years,  faced  tremen- 
dous threats  from  those  who  do  not  approve  of  the  fact  that  he  rec- 
ognized the  State  of  Israel  and  committed  to  live  in  peace  with  that 
State  of  Israel. 

Mr.  Burton.  I  appreciate  your  comment.  I  am  going  to  yield  to 
my  colleagues  just  1  second. 

Mr.  Fishbein.  Mr.  Chairman,  could  I  just  make  a  request? 

Mr.  Burton.  Well,  the  problem  is  I  have  used  up  my  5  minutes. 
I  will  come  back  and  let  you  respond. 

Mr.  Fishbein.  Well,  I  do  not  want  to  respond.  I  just  simply  want 
to  make  a  request  that  you  include  the  comments  of  Mr.  Arafat 
that  you  have  referred  to  in  the  records  so  that  the  public  has  an 
opportunity  to  study  them. 

Mr.  Burton.  Without  objection,  they  will  be  put  in  the  record. 

Mr.  Fishbein.  Thank  you. 

Mr.  Burton.  But  let  me  just  say  one  more  thing,  and  then  I  will 
yield  to  my  colleagues  from  New  York. 

And  that  is,  Muhammad  Dakhlan,  he  is  the  chief  of  the  PNA's 
general  security,  one  of  the  parts  of  the  agreement  was  that  there 
would  be  a  mechanism  for  people  who  were  indicted  by  one  govern- 
ment entity  to  be  extradited — that  is  not  a  good  term — but  trans- 
ferred for  trial  by  the  other. 

I  want  to  read  to  you  a  statement  that  was  made  by  the  chief 
of  the  PNA's  general  security  real  quickly.  And  this  is  after  the 
agreement  was  signed.  And  the  agreement  was  that  there  would  be 
this  transfer. 

He  said: 

We  reached  the  decision  and  it  was  made  at  the  highest  possible  level — so  I  pre- 
sume he  means  Arafat — of  course  on  the  basis  of  Arafat's  opinion  that  we  will  not 
extradite  to  Israel  members  of  our  people,  including  wanted  members  of  Hamas.  We 
are  not  willing  that  in  our  history  books  it  will  be  written  that  we  surrendered  Pal- 
estinians to  Israel.  If  we  hand  over  members  of  our  people  to  Israel,  we  will  hurt 
the  interests  of  the  Palestinian  Authority  at  the  inner-Palestinian  sector  and  in  the 
Arab  world  and  the  Muslim  world.  Even  if  there  is  a  clause  in  the  agreement  and 
Yoel  Singer  of  Israel's  Foreign  Ministry  can  specifically  point  to  it,  we  will  not  extra- 
dite members  of  our  people  to  Israel.  It  is  incumbent  upon  us  to  arrest  those  wanted 
and  bring  them  to  justice  because  we  are  the  government. 

The  problem  is  there  are  11  cases  right  now  where  this  agree- 
ment has  been  violated. 

I  am  going  to  have  to  yield  to  my  colleagues,  so  we  will  come 
back  to  you  so  you  can  respond  to  that. 

And  while  we  all  want  the  peace  process  to  go  forward — and  I 
understand  your  concern  about  not  wanting  to  testify  for  13  years 
because  you  feel  this  glacial  effect.  I  think  there  is  a  lot  of  us  that 
genuinely  want  to  see  fairness,  equity,  and  see  this  thing  worked 
out  and  see  the  peace  process  work. 

But  after  having  said  that,  when  we  hear  somebody  who  has 
been  a  terrorist  in  the  past,  Mr.  Arafat,  who  has  allegedly  changed 
his  colors  and  now  wants  to  see  peace  and  wants  to  see  a  Palestin- 
ian State  work  and  the  peace  process  to  work,  when  we  hear  him 
make  these  kinds  of  speeches  and  we  see  in  writing  his  chief  of 


104 

general  security  make  the  statement  that,  yeah,  we  signed  an 
agreement,  but  Arafat  and  I  are  not  going  to  honor  it,  that  really 
causes  consternation,  not  because  we  are  trying  to  take  sides  with 
the  Israelis  or  with  the  Palestinians  but  because  the  agreement 
was  signed,  they  shook  hands  at  the  White  House,  the  President 
put  his  arms  around  both  of  them;  and  now  all  of  a  sudden  we  see 
these  violations. 

So  please  be  patient.  We  will  let  you  answer  in  just  a  moment. 

I  will  now  yield  to  my  colleague,  the  gentleman  from  New  York. 

Mr.  ACKERMAN.  I  am  afraid  there  are  two  of  us  from  New  York. 

Mr.  BURTON.  The  good-looking  colleague,  Mr.  Ackerman. 

Mr.  Engel.  Oh. 

Mr.  Burton.  They  are  both  good  looking.  Cancel  that  last  re- 
mark. 

Mr.  ENGEL.  That  is  all  right,  Mr.  Burton,  you  will  pay. 

Mr.  ACKERMAN.  There  is  a  price  for  everything,  Mr.  Engel. 

I  want  to  thank  this  very,  very  distinguished  and  articulate 
panel.  I  have  been  trying  to  catch  up  on  reading  some  of  the  state- 
ments of  those  that  I  was  not  able  to  listen  to. 

After  all  the  dialog  and  after  we  all  make  our  political  speeches 
from  whatever  vantage  points  we  enjoy,  those  of  us  who  are  on  this 
side  of  the  room  usually  have  to  cast  a  yes  or  no  vote  on  legislation 
or  directions.  And  we  just  have  to  say  yes  or  no,  and  we  can  make 
speeches  and  doctor  it  up  any  way  we  want  afterward. 

I  am  going  to  ask  a  question  of  the  entire  panel,  and  the  question 
is  this:  If  you  were  voting — and  I  will  call  the  roll — if  you  were  vot- 
ing as  to  whether  or  not  we  should  continue  the  peace  process,  in 
one  word,  would  your  vote  be  yes  or  no? 

Mr.  Reich. 

Mr.  Reich.  Yes. 

Mr.  Ackerman.  Mr.  Harris. 

Mr.  Harris.  Yes. 

Mr.  Ackerman.  Mr.  Klein. 

Mr.  Klein.  Well,  I 

Mr.  Ackerman.  It  is  a  yes  or  no  vote.  I  know  it  is  difficult;  but, 
you  know,  the  bottom  line  is  we  have  to  do  that  in  the  end. 

Mr.  Klein.  Well,  Ezer  Weizman  is  calling  for  it  to  be  suspended. 
And 

Mr.  Ackerman.  I  am  not  going  to  call  his  name. 

Mr.  Klein.  I  think  the  President  of  Israel 

Mr.  Ackerman.  I  am  not  going  to  call  the  President's  name. 

Mr.  Klein.  Pardon  me? 

Mr.  Ackerman.  I  am  going  to  call  Mr.  Klein's  name  for  a  yes  or 
no. 

Mr.  KLEIN.  Well,  I  do  not  know  how  you  answer  that  question 
with 


Mr.  Ackerman.  OK.  Mr.  Klein  passes. 

Mr.  Klein.  OK. 

Mr.  Ackerman.  Dr.  Ganchrow. 

Mr.  GANCHROW.  I  believe  we  should  slow  it  down  until  we  satisfy 
the  arrangements  for  a  proper  peace. 

Over  the  long  run,  100  percent. 

Mr.  Ackerman.  If  you  had  to  vote  right  now  to  continue  the 
peace  process  or  not  to  continue  it 


105 

Mr.  Ganchrow.  I  could  not  vote  on  that  because  it  is  not  worded 
in  a  way  that  I  could 

Mr.  Ackerman.  Dr.  Ganchrow  passes. 

Mr.  Hellman. 

Mr.  Hellman.  If  I  may  observe,  Mr.  Ackerman,  this  is  some 
what  like,  a  PLO  trial  in  Jericho:  It  is  short  and  not  sweet,  there 
is  no  time  for  discussion,  and  the  result  appears  foreordained.  It 
does  not  take 

Mr.  Ackerman.  That  is  what  happens  under  the  new  majority. 
I  cannot  help  it. 

Mr.  Hellman.  But  it  does  not  take  place  at  midnight.  Although 
I  stayed  up  all  night  to  get  ready  because  you  only  gave  8  hours 
for  preparation.  So  we  may  be  better  off  in  some  other  places. 

Mr.  Ackerman.  I  could  appreciate  the  obiter  dictum,  but 

Mr.  Hellman.  I  would  say  that  the  peace  process  must 

Mr.  Ackerman.  Yeah,  listen,  every 

Mr.  Hellman.  This  is  a  Hobson's  choice,  Nothing 

Mr.  Ackerman.  OK.  Mr.  Hellman,  if  I  might? 

Mr.  Hellman.  If  it  is  this  peace  process  or  nothing,  I  would  say 
"yes." 

Mr.  Ackerman.  Mr.  Hellman. 

Mr.  Hellman.  Yes.  Even  if  it  is  this  peace  process 

Mr.  Ackerman.  Mr.  Hellman,  we  all  appreciate  the  enthusiasm 
with  which  you  responded. 

Mr.  Hellman.  It  is  better  "to  jaw  and  jaw  than  to  war  and  war" 
as  FDR  said. 

Mr.  Dornan.  Churchill. 

Mr.  Hellman.  You  are  a  better  historian,  President  Dornan.  I 
stand  corrected. 

Mr.  Ackerman.  I  believe  everybody  would  say  yes  to  a  peace 
process.  I  am  talking  whether  or  not  to  continue  along  the  path  of 
this  peace  process. 

And  your  answer  is  yes? 

Mr.  Zogby. 

Mr.  Zogby.  Yes. 

Mr.  Ackerman.  Mr.  Fishbein. 

Mr.  Fishbein.  Yes,  but  only  under  strong  compliance  standards. 

Mr.  Ackerman.  Thank  you  very  much. 

There  seems  to  be  a  great  deal  of  concern  about  dealing  with  Mr. 
Arafat.  And  I  am  sure  almost  everybody  has  some  reservations — 
or  very,  very,  very  grave  reservations.  If  we  were  not  dealing  with 
Mr.  Arafat,  with  whom  should  we  be  dealing? 

Mr.  Fishbein. 

Mr.  Fishbein.  Well,  I  do  not  think  that  an  individual  who  has 
demonstrated  a  total  lack  of 

Mr.  Ackerman.  That  is  why  I  ruled  him  out.  Who  should  we  be 
dealing  with? 

Mr.  Fishbein.  Well,  I  think  the  Palestinians  have  not  yet  had 
the  opportunity  to  make  that  choice.  Arafat  has  been  imposed  upon 
the  Palestinian  people. 

I  think  the  Palestinians  should  choose  an  individual  who,  frank- 
ly, has  disassociated  himself  from  terrorist  acts. 

But  there  has  been  no  vote  that  has  been  taken  in  Gaza.  There 
has  been  no  vote  that  has  been  taken  in  Jericho. 


106 

Mr.  Ackerman.  You  have  no  individual  to  suggest  that  we 
should 

Mr.  Fishbein.  Not  at  this  point,  no. 

Mr.  Ackerman.  Mr.  Zogby. 

Mr.  Zogby.  Um 

Mr.  Ackerman.  You  probably  will  disagree  with  the  premise,  but 
that  is  OK. 

Mr.  Zogby.  I  do.  And  I,  therefore,  suggest  that  one  deals  with  the 
leadership  Israel  has  chosen  to  deal  with  and  who  the  Palestinian 
people  have  affirmed  in  repeated  international  and  local  fora  as 
their  leader. 

We  will  have  an  election  soon,  hopefully,  in  the  West  Bank  and 
Gaza.  I  am  confident  that  Arafat  will  win.  There  are  imperfections 
to  the  man,  no  doubt  about  it. 

But  understand  that  from  the  Palestinian  perspective,  they 
would  look  at  Mr.  Rabin  and  his  past  record  and  his  current  com- 
pliance record  with  the  same  mistrust. 

These  are  enemies  who  have  chosen  a  very  brave  thing,  and  that 
is  to  make  peace  with  each  other.  And  I  think  we  have  to  be  re- 
spectful of  that  and  encourage  both  to  continue  on  the  path  that 
they  have  chosen  themselves  and  with  their  people. 

So  I  do  not  agree  with  the  premise  of  the  question.  I  think  he 
is  doing  as  well  as  can  be  expected  under  the  circumstances. 

Mr.  Ackerman.  Let  me  ask  you 

Mr.  Burton.  I  would  ask  you,  Mr.  Ackerman,  to  wrap  up  so  we 
can  get  onto  Mr.  Engel.  Go  ahead. 

Mr.  Ackerman.  OK,  Mr.  Chairman. 

If  I  might  ask  you,  you  have  made  the  suggestion  that  some  of 
us  should  spend  time  visiting  in  Gaza  talking  to  people.  I  did  have 
the  opportunity  to  do  that  recently. 

Also,  before  doing  that,  I  met  in  Jerusalem  with  Hanan  Ashwari 
who  had  some  rather  critical  things  to  say  about  Mr.  Arafat.  With- 
out my  repeating  them  all,  I  am  sure  you  have  seen  and  read  much 
of  that. 

How  do  you  respond  to  that  criticism?  Is  it  accurate?  Is  it  objec- 
tive? 

Mr.  ZOGBY.  Oh,  I  think  there  are  very  serious  problems  that  the 
man  has  in  his  dealings  within  the  Palestinian  community. 

A  part  of  the  new  paradigm  that  should  have  been  developed 
after  September  13  is  not:  Can  Israelis  trust  Arafat,  but  do  Pal- 
estinians trust  Arafat? 

He  is  the  person  that  they  need  to  work  out  a  relationship  with. 
And,  in  fact,  there  is 

Mr.  ACKERMAN.  Is  there  an  answer  to  that  question? 

Mr.  ZOGBY.  There  is  a  widespread — yes,  I  think  that  there  is. 
And  I  think  there  is  a  widespread  debate  within  the  Palestinian 
community.  And  there  has  been  a  change 

Mr.  Ackerman.  As  to  whether  or  not  they  trust  Arafat. 

Mr.  Zogby.  Yes,  I  think  that  there  are  some  who  do  not,  and 
there  are  some  who  do.  And  there  is  a  new  working  relationship. 
The  election  of  a  National  Council  in  the  territories.  The  election 
of  an  executive  committee  of  that.  And  the  empowering  of  min- 
istries to  be  responsible  to  that  consultative  body,  that  elective 


107 

body  I  think  will  improve  the  performance  of  the  Palestinian  Au- 
thority. 

There  is  a  tremendous  amount  of  internal  Palestinian  discussion 
about  how  to,  in  effect,  rein  in  his  arbitrary  decisionmaking. 

Understand  there  would  not  have  been  a  signature  in  Oslo,  there 
would  not  have  been  a  peace  agreement,  had  he  not  been  arbitrary 
in  his  decisionmaking. 

It  never  would  have  passed  the  National  Council  in  Tunis.  And 
I  doubt  seriously  whether  the  Palestinian  diaspora  would  have 
agreed  either. 

He  made  a  courageous  decision  unilaterally.  And  Hanan  dis- 
agrees with  him  for  having  made  peace  with  Israel.  That  is  the 
principal  point  to  understand.  The  opposition  of  that  secular  vari- 
ety, the  elites  in  the  West  Bank  and  Gaza  who  are  opposed  to 
Arafat,  are  in  large  measure  opposed  to  him  because  he  made  an 
agreement. 

They  did  not  think  it  was  a  good  agreement,  and  they  did  not 
think  an  agreement  should  be  made  at  all. 

Our  own  Government  disagrees  with  that,  Mr.  Ackerman;  and 
the  Israeli  Government  disagrees  with  it.  And  I  think  the  majority 
of  Palestinians  disagree  with  that  assessment  and  are  glad  that  he 
made  peace.  They  just  want  this  peace  to  work,  and  they  want  the 
fruits  of  peace,  economic  and  justicewise  to  be  delivered  unto  them. 

Mr.  Ackerman.  If  you  would,  Mr.  Chairman,  I  just  do  not  want 
to  misunderstand  what  Mr.  Zogby  is  saying? 

Mr.  Burton.  Well,  if  your  colleague,  Mr.  Engel,  does  not  mind, 
we  will  let  you  go  on  for  a  little  bit. 

Mr.  Ackerman.  Oh,  I  just  want  to  make  sure  that  the  Chairman 
does  not  mind  as  well. 

Mr.  BURTON.  Well,  I  just  want  to  make  sure  that  everybody  gets 
their  time.  Mr.  Dornan  would  like  to  have  a  little  time  as  well. 

Mr.  Ackerman.  Eliot,  would  you  mind  if  I  went  on  for  another 
minute  or  so? 

Mr.  Engel.  Not  at  all. 

Mr.  Ackerman.  What  you  are  suggesting  is  that  most  Palestin- 
ians agree  with  Mr.  Arafat's  decision  to  embark  upon  a  peace  proc- 
ess, but  there  is  widespread  mistrust  for  him? 

Mr.  Zogby.  No,  I  did  not  say  mistrust.  I  said  there  is  widespread 
discussion  about  the  behavior  and  the  performance  of  the  Palestin- 
ian Authority. 

And  I  believe  that  many  of  the  issues  that  are  currently  being 
discussed,  No.  1,  have  already  produced  some  change  in  behavior 
and  performance. 

But,  second,  with  the  election  of  the  National  Council  and  with 
the  election  of  the  Executive  Committee  and  the  making  of  the  var- 
ious Palestinian  ministries  responsible  to  that  elective  body,  I  think 
will  do  a  lot  to  improve  behavior  and  will  increase  Palestinian  con- 
fidence. 

Mr.  Ackerman.  But  does  the  Palestinian  community  trust  Mr. 
Arafat? 

Mr.  Zogby.  I  think  that  they  do  for  the  most  part,  yes.  As  much 
as  any  people  trust  their  elected  leadership.  I  mean,  I  do  not  know 
if  we  would  want  to  have  every  Member  of  this  body  or  our  execu- 
tive branch  here 


108 

Mr.  Ackerman.  Well,  you  now  have  changed  the  premise  to 
elected  leadership,  and  there  is  a  difference  I  think. 

Mr.  ZOGBY.  Yes.  He  will  be  elected  though.  Make  no  bones  about 
it.  And  I  think  his  polling  data  will  probably  come  out  as  good  as 
almost  anybody's  here. 

Mr.  Ackerman.  My  opponent's  pollster  said  the  same  thing. 

Mr.  ZOGBY.  Pardon? 

You  know,  there  is  a  problem  of  cynicism  in  society  today.  You 
are  experiencing  it,  no  doubt,  in  your  district  and  many  others  are 
as  well.  And  the  President  of  this  country  is.  And  I  think  that  we 
are  doing  the  best  as  we  can  as  people  in  this  society  to  deal  with 
it.  They  are  trying  the  same  over  there. 

What  they  need  is  to  be  given  a  bit  of  a  break.  And  they  have 
not  really  been  given  that  break. 

Mr.  Ackerman.  Thank  you,  Mr.  Chairman. 

Mr.  BURTON.  Let  me  just  say  before  we  go  to  Mr.  Engel  that  all 
of  my  constituents  love  and  trust  me. 

Mr.  Ackerman.  That  is  because  you  tell  them  they  are  all  good 
looking,  Mr.  Burton. 

Mr.  Engel.  Let  me  just  say  that  in  the  time  that  I  have  listened 
to  the  testimony,  in  my  mind  I  have  changed  my  thoughts  in  terms 
of  what  I  would  say  about  10  times  because  there  is  too  much  to 
say,  and  there  is  too  much  pulling  and  tugging  in  different  direc- 
tions that  it  is  very,  very  difficulty  to  really  ask  questions  on  a  lim- 
ited amount  of  time.  But  I  do  want  to  commend  all  of  you,  every 
one  of  you,  for  coming  here  and  articulating  your  positions.  I  think 
it  serves  to  really  push  the  whole  process  forward. 

Let  me  share  a  frustration  that  I  have  that  those  of  you  to  whom 
I  have  spoken  know. 

I  believe  very  much  in  the  peace  process.  I  think  there  is  no  al- 
ternative to  the  peace  process,  and  I  think  a  breakdown  in  the 
peace  process  really  would  be  unthinkable  because  I  think  a  break- 
down in  the  peace  process  would  mean  the  end  of  the  possibility 
of  peace  in  the  immediate  future. 

On  the  other  hand,  I  do  feel  very  strongly  that  when  you  sign 
commitments,  you  ought  to,  to  every  extent  possible,  adhere  to 
those  commitments. 

And  while  I  understand  the  frustrations  on  both  sides  and  the 
disappointments  on  both  sides  and  the  feelings  of  betrayal  on  both 
sides,  I  am  a  little  bit  taken  aback. 

I  believe  that  leaders  ought  to  lead.  And  if  we  all  followed  public 
opinion  polls,  we  could  probably  do  very  well  in  our  districts,  but 
I  think  our  people  elect  us  to  be  leaders. 

And  it  frankly  disturbs  me  when  I  see  those  videos  and  see  some 
of  the  rhetoric  of  Mr.  Arafat.  It  seems  to  me  that  he  ought  to  be 
leading  his  people  in  the  direction  of  peace. 

I  understand  that  he  is  a  politician  and,  like  the  rest  of  us,  and 
needs  to  say  some  things  for  public  consumption.  We  all  do  that 
from  time  to  time.  But  one  would  also  hope  that  he  would  be  push- 
ing his  people's  public  opinion  in  the  direction  of  peace  if,  indeed, 
that  is  what  he  believes. 

Now,  my  frustration,  frankly,  on  this  committee  is  that  I  have  in- 
troduced H.R.  1930,  which  we  call  the  Middle  East  Peace  Compli- 
ance and  PLO  Accountability  Act  of  1995.  I  believe  very  strongly 


109 

that  we  need  to  set  very  realistic  thresholds.  And  I  think  that  my 
approach,  frankly,  which  has  20  bipartisan  cosponsors  in  this 
House,  is  a  good  centrist  bill  which  sets  realistic  thresholds  to 
which  Mr.  Arafat  can  comply,  and  then  U.S.  aid  will  continue  to 
flow. 

If  he  does  not  comply,  well,  then  I  think  it  is  his  own  fault  if  the 
aid  stops  because  clearly  my  bill  makes  the  threshold  reasonable. 
There  is  no  hidden  agenda  there  to  try  to  cut  off  money  or  anything 
else.  I  think  there  is  a  reasonable  threshold. 

We  impose  a  dollar-for-dollar  deduction  for  misspent  funds, 
which  is  not  in  the  Helms-Pell,  MEPFA  bill.  We  permit  funding 
only  through  multilateral  institutions  which  are  transparent  and 
open  to  outside  audits. 

We  talk  about  past  PLO  terrorism  because  I  think  in  order  to 
have  something  for  the  future,  one  needs  to  take  into  account  what 
happened  in  the  past.  And  we  hold  the  PLO  to  its  own  commit- 
ments, including  the  post-MEPFA  Gaza-Jericho  agreement  of 
1994.  And  there  are  other  things. 

My  frustration  has  been  that  this  committee  has  not  marked  up 
any  bill.  And,  indeed,  we  seem  to  be  marching  down  the  line  of 
Helms-Pell,  which  has  originated  in  the  Senate. 

And  while  there  was  a  lot  of  Helms-Pell  to  which  I  agree  and 
think  that  perhaps  is  a  good  basis  from  which  to  start,  I  think 
there  are  other  things  that  many  of  us,  myself  included,  would  like 
to  add  to  that  legislation;  and  I  do  not  believe  the  way  things  seem 
to  be  going  now  that  we  are  really  going  to  have  much  opportunity 
to  do  that.  I  think  it  is  going  to  be  pretty  much  a  fait  accompli 
when  it  comes  over  here.  And  I  am  very  saddened  by  it.  Because 
I  think  that  we  have  a  lot  of  talent  on  this  committee  on  both  sides 
of  the  aisle,  and  I  think  that  this  committee  should  be  really 
crafting  legislation.  And  I  hoped  that  my  bill  would  be  the  basis  of 
such  legislation,  but  it  does  not  seem  likely. 

I  think  the  disagreement  that  many  of  you  have,  frankly,  is 
where  to  put  the  threshold.  I  do  not  think — and  Mr.  Berman  said 
it  earlier  this  morning  after  I  testified — I  do  not  think  that  it  is 
wrong  or  obstructionist  to  point  out  when  people  are  not  complying 
or  when  people  are  making  statements  that  are  not  helpful  to  the 
process.  I  do  not  think  that  ought  to  be  swept  under  the  rug.  I 
think  that  has  to  be  brought  out.  I  think  that  has  to  be  part  of  the 
equation. 

On  the  other  hand,  we  do  not  want  to  use  that  as  an  excuse  to 
blow  up  the  process.  And  there  is  the  dilemma.  There  is  the  di- 
lemma that  all  of  us  are  feeling. 

So  I  do  not  know  if  I 

Mr.  Burton.  Mr.  Engel. 

Mr.  ENGEL.  I  am  going  to  end,  Mr.  Chairman. 

I  do  not  know  if  I  have  a  specific  question  other  than  to  just 
thank  each  of  you  for  contributing  to  the  process;  but  one  of  the 
things  that  I  do  know  is  that  I  do  not  think  that  there  can  be  auto- 
matic extensions.  I  think  that  we  need  to  have  a  compliance,  some 
threshold  in  there  to  make  sure  that  everyone's  feet  are  held  to  the 
fire. 


110 

And  if  any  of  you  would  like  to  comment  on  what  I  have  said, 
I  would  be  grateful.  If  not,  again,  thank  you  for  coming  and  partici- 
pating. 

Mr.  Harris.  Just  for  a  moment,  Mr.  Engel,  with  respect  to  your 
saying  that  you  think  we  all  are  only  interested  in  where  to  set  the 
threshold,  I  thought  that  I  had  said  clearly  that  I  said  I  believe 
that  we  should  cut  off  aid  to  the  PLO.  It  is  time  and  past  time. 

And  that  any  humanitarian  or  economic  development  assistance 
should  go  through  third  parties  where  there  is  proper  accountabil- 
ity. 

Mr.  Engel.  Well,  I  thought  you  also  said  in  response  to  Mr.  Ack- 
erman's  question  that  you  said,  yes,  you  wanted  the  process  to  con- 
tinue, you  wanted  a  vote  for  a  continuation  of  the  aid. 

Mr.  Harris.  Well,  he  gave  us  a  Hobson's  choice;  and  I  believe  a 
peace  process  and  negotiations  is  better  than  none.  But  this  is  not 
a  very  high  threshold  for  this  peace  process. 

It  has  produced  some  successes.  Early  on  they  picked  the  low 
hanging  fruit  off  of  the  tree;  and  then  when  they  got  to  the  tough 
going,  the  tough  shredding,  it  has  fallen  on  the  rocks  of  Mr.  Ara- 
fat's, I  believe,  willful,  non-compliance,  and  co-option  by  continued 
terrorist  elements  and  also  on  Asad's  reluctance  to  come  to  the 
table  unless  he  gets  a  deal  like  Sadat  of  Egypt  got. 

So  I  do  not  think  the  peace  process  is  going  anywhere.  It  is  mori- 
bund on  the  way  to  being  dead,  and  we  may  be  witnessing  the  fu- 
neral here  on  Capitol  Hill. 

But  I  do  say  we  should  continue  to  negotiate,  but  I  would  say, 
in  closing,  that  there  are  threats  not  only  to  Jewish  interests  but 
to  christian  interests.  The  ministers  of  the  Palestinian  Authority 
have  threatened  anybody  but  Moslems.  They  said  that  we  cannot 
worship  at  holy  sites  like  Hebron  and  Bethlehem  and  so  forth  un- 
less we  are  Moslems. 

Mr.  Burton.  You  have  to  excuse  me.  We  are  going  to  miss  a  vote 
here. 

Excuse  me,  Mr.  Engel.  Mr.  Dornan  has  been  waiting  for  a  long 
time  since  he  is  not  a  member  of  the  committee. 

So,  Mr.  Dornan,  let  me  yield  to  you  very  briefly  so  you  can  make 
a  comment. 

Mr.  ACKERMAN.  Point  of  information,  Mr.  Chairman. 

Will  we  be  able  to  come  back  and  continue? 

Mr.  Burton.  If  the  panel  does  not  mind,  we  could  come  back  and 
continue  this  dialog  for  another  15  minutes  or  so. 

Does  the  panel  mind  if  we  come  back? 

OK.  Mr.  Dornan,  why  do  not  you  go  ahead  and  vote  and  when 
you  come  back,  we  will  resume. 

Mr.  Dornan.  Mr.  Chairman,  let  us  go  vote  then.  I  thought  out 
of  courtesy  we  all  were  going  to  wrap  it  up,  and  I  was  going  to  ask 
two  questions  for  the  record. 

Mr.  Burton.  Are  you  willing  to  come  back,  then,  too? 

Mr.  Dornan.  I  will  come  back. 

Mr.  Burton.  OK.  Then  the  committee  will  stand  in  recess.  We 
will  be  back  here  in  about  10  minutes. 

[Recess.] 

Mr.  Burton.  The  committee  will  be  in  order. 


Ill 

While  we  are  waiting  for  our  colleagues  to  return,  I  would  like 
to  enter  into  the  record  without  objection  a  letter  that  Chairman 
Gilman  received  from  mothers  of  children  who  were  murdered  by 
terrorist  activities  in  Israel. 

I  will  not  read  the  whole  letter,  but  the  reason  for  the  letter  is 
to  try  to  make  sure  that  those  who  committed  these  atrocities  are 
brought  to  justice.  And  that  is  one  of  the  concerns  they  have  is  that 
many  of  those  people  who  are  alleged  to  have  been  involved  in 
these  terrorist  activities  have  not  been  returned  to  Israel  by  the 
Palestinian  authorities  for  trial.  And  it  appears  as  though  they  will 
not. 

So  without  objection,  I  will  enter  this  into  the  record;  and,  hope- 
fully one  day  we  will  be  able  to  see  that  they  get  some  justice  for 
the  loss  of  their  loved  ones. 

So  I  will  put  that  into  the  record. 

[The  information  follows:] x 

September  19,  1995. 
Hon.  Congressman  Benjamin  Gilman, 
Chairman,  the  House  Foreign  Relations  Committee,  Washington,  D.C. 

Dear  Congressman,  We  are  the  mothers,  grieving  for  our  precious  children,  of 
blessed  memory,  who  were  brutally  murdered  by  merciless  terrorists  as  they  inno- 
cently hiked  the  countryside  of  the  land  of  Israel.  We,  as  mothers,  have  never  been 
active  politically.  For  year  we  tirelessly  and  lovingly  dedicated  ourselves  to  raising 
our  children.  In  one  day  our  dreams  were  shattered  when  we  received  the  bitter 
news  that  unconscionable  murderers,  with  their  knives  in  hand,  savagely  butchered 
our  beloved  offspring. 

We  turn  to  you  at  this  critical  hour  as  you  chair  the  deliberations  regarding  the 
granting  of  financial  aid  to  the  Palestinian  Authority.  We  beseech  your  assistance 
regarding  one  specific  issue — the  extradition  of  the  murderers  who  were  appre- 
hended by  the  Palestinian  Authority  and  are  currently  being  held  in  Jericho. 

According  to  the  agreement  signed  with  Mr.  Arafat,  the  State  of  Israel  has  the 
right  to  obtain  the  transfer  of  murderers  of  its  citizens  in  order  to  be  tried  in  the 
courts  of  the  State  of  Israel. 

The  State  of  Israel  has  turned  to  the  Palestinian  Authority  and  requested  the  ex- 
tradition of  the  murderers.  However,  the  Palestinian  Authority  has  refused  to  com- 
ply and  transfer  the  killers  of  our  children  to  the  Israeli  authorities. 

We  are  terribly  pained,  anguished  and  distraught  by  the  Palestinian  Authority's 
outright  refusal  to  comply.  We  have  turned  to  the  Prime  Minister,  to  Cabinet  Min- 
isters, and  to  members  of  the  Knesset  with  our  plea  for  compliance  and  justice.  Yes- 
terday we  met  with  the  President  of  Israel,  Mr.  Ezer  Weitzman,  who  unequivocally 
stated  to  us  his  support  of  halting  the  peace  talks  as  long  as  the  Palestinian  Author- 
ity refuses  to  comply  and  extradite  the  murderers  to  the  State  of  Israel. 

We  look  upon  this  issue  of  the  extradition  of  the  savage  murderers  of  our  children 
as  not  simply  a  political  issue,  but  rather  as  a  moral  issue  of  the  highest  order. 

The  United  States  of  America  has  been  courageously  battling  terrorism  for  many 
years.  In  view  of  this  honorable  policy,  it  behooves  this  great  country  to  insure  the 
extradition  of  terrorists  as  a  primary  condition  for  the  continuation  of  aid  to  the  Pal- 
estinian Authority.  Compliance  with  this  matter  by  the  Palestinian  Authority  will 
be  a  true  test  of  the  sincerity  of  the  PLO,  heretofore  a  terrorist  organization,  now 
professing  to  be  a  peace  seeking  organization. 

We  respectfully  request  the  opportunity  to  appear  before  this  most  important  com- 
mittee which  you  chair.  As  mothers  attempting  to  cope  with  the  incessant  pain  of 
our  losses,  we  wish  to  have  a  dialogue  with  you  and  the  committee  members.  It 
would  be  scandalously  immoral  to  provide  the  PLO  with  funds  as  long  as  they  con- 
tinue to  refuse  to  allow  the  State  of  Israel  the  right  to  bring  the  terrorists  to  justice. 

Dear  Congressman,  your  intervention  is  our  only  hope.  Oui  children  cannot  re- 
turn to  us.  We  dare  not  compromise  their  honor. 

We  would  like  to  extend  to  you  and  to  your  family  our  best  wishes  for  a  happy 
and  healthy  New  Year. 
Sincerely, 

Yehudit  Shachor. 


1  Text  of  this  letter  also  submitted  by  Congressman  Peter  King. 


112 

BlLHA  BACHRACH. 
RlFKA  FORER. 

Batya  Bachar. 

Mr.  Burton.  Gary,  did  you  have  any  more  comments  that  you 
would  like  to  make?  I  will  yield  to  you  for  5  minutes  while  we  are 
waiting  on  Mr.  Dornan,  if  you  would  like. 

Mr.  ACKERMAN.  Thank  you  very  much,  Mr.  Chairman. 

One  of  the  great  difficulties  in  most  kinds  of  peace  processes  is 
that  there  is  usually  a  party  who  is  not  faring  well  economically, 
sometimes  devoid  of  hope  and  often  in  the  midst  of  poverty. 

Many  claim  that  the  situation  on  the  ground  is  due,  in  part,  to 
the  fact  that  the  Palestinian  community  is  not  faring  well.  And  if 
things  were  better  economically,  if  there  were  more  employment,  if 
people  were  more  productive,  if  people  were  more  engaged  in  the 
legitimate  pursuit  of  economic  advantages  that  that  would,  in  it- 
self, be  responsible  in  some  measure  for  defocusing  from  strife  in 
this  case  with  Israel  and  the  Israeli  authorities. 

I  do  not  know  if  you  agree  with  that  in  total  or  in  part.  I  do  not 
attribute  all  the  problems  to  that.  But  certainly  I  think  many 
would  say  if  the  economic  conditions  on  the  ground  improved  for 
Palestinians,  it  would  be  helpful  in  advancing  the  process  to  some 
extent  and  bring  things  a  little  bit  further. 

How  would  you  respond  to  that?  And  if  you  agree  with  it  in  any 
way,  how  do  you  do  that? 

Dr.  Ganchrow. 

Mr.  Ganchrow.  Well,  first  of  all,  as  far  as  your  first  point  that 
terrorism  and  fundamentalism  comes  strictly  from  economic 
causes,  we  have  seen  that  in  Japan,  that  that  is  not  exactly  so.  So 
I  do  not  think  there  is  a  direct  ratio  and  relationship. 

Mr.  Ackerman.  No,  no,  no.  Let  me  just  hone  the  premise  a  little 
bit.  That  is  not  what  I  intended  to  convey. 

What  I  am  trying  to  say  is  that  very  often  in  a  great  many  places 
in  the  world,  possibly  in  this  place  as  well,  that  where  people  are 
devoid  of  hope,  that  that  is  soil  that  allows  for  the  fomentation  of 
social  disruption  and  allows  the  seeds  of  fundamentalism  to  take 
root.  Because  if  people  cannot  put  bread  on  the  table  and  have  no 
prospect  of  doing  so,  then  those  who  would  sell  them  pie  in  the  sky 
and  do  not  have  to  produce  in  this  life,  do  not  have  to  show  any- 
thing as  far  as  what  their  promises  and  motivations  and  call  for 
actions  are,  have  a  greater  chance  of  selling  their  wares. 

Mr.  Ganchrow.  I  think  over  the  long  run,  if  we  insist  on  full 
compliance,  the  economic  picture  for  the  Gaza  and  Jericho  and 
other  areas  will  improve  primarily  because  other  countries  will  re- 
alize that  there  is  actually  going  to  be  peace  and  they  are  going  to 
certainly  want  to  invest  economically. 

In  addition,  the  Israeli  people  are  going  to  realize  that  the  Pal- 
estinians mean  business  because  they  have  made  these  steps  of 
compliance,  and  they  are  going  to  reach  out  for  peace. 

So  over  the  long  run,  it  is  in  the  long-term  interest  of  the  Pal- 
estinian people  that  there  be  full  compliance  and  full  carrying  out 
of  Oslo. 

Mr.  Klein.  May  I  respond  to  that? 

Mr.  Hellman.  Mr.  Chairman? 

Mr.  Klein.  Mr.  Chairman? 


113 

Mr.  Hellman.  I  think  that  what  has  happened 

Mr.  Ackerman.  Maybe  each  of  you  briefly. 

Mr.  Hellman,  Mr.  Zogby,  Mr.  Klein,  Mr.  Harris. 

Mr.  Hellman.  Yes,  if  I  may  comment,  I  studied  the  situation,  re- 
garding the  quality  of  life  for  the  Palestinian  Arabs  in  the  terri- 
tories, that  is,  in  Gaza  and  in  the  West  Bank — Judea  and  Sama- 
ria— and  in  Jerusalem,  on  two  occasions,  for  the  United  Nations, 
under  the  auspices  of  the  U.N.  Environment  Program;  and  each 
time  my  reports  were  accepted  by  their  Governing  Council,  which 
was  hardly  a  pro-Israel  body. 

And  each  time  I  found  that  under  Israel's  stewardship,  the  Pal- 
estinian Arabs  had  risen  economically  from,  in  the  case  of  Gaza, 
the  status  of  Bangladesh  in  1967.  They  rose  to  the  higher  reaches 
of  the  developing  world  economically.  So  it  is  a  canard  that  the 
problem  here  is  economics. 

In  addition,  what  I  found,  which  was  particularly  galling  not  only 
to  the  United  Nations,  delegates  of  58  countries,  who  had  to  accept 
or  reject  my  report,  but  also  possibly  problematic  for  Israel,  was 
that,  somehow,  Israel  had  done  better  in  terms  of  environmental 
factors  considered,  on  an  objective  basis  for  the  Palestinian  Arabs 
of  Judea,  Samaria,  Gaza,  et  cetera  than  they  had  done  within  their 
own  pre- 1967  boundaries. 

And  so  I  think  that  is  it  not  an  economic  question  first — or  even 
foremost.  The  war  in  Bosnia  occurred  in  a  place  where  there  was 
a  European  standard  of  living  and  so  I  do  not  think  that  economic 
development  is  what  is  needed. 

I  agree  with  Dr.  Ganchrow  that  if  there  were  security,  if  there 
were  peace,  if  Yasir  Arafat  was  using  his  reported  29,000  para- 
military troops  to  enforce  security  instead  of  to  create  an  army  to 
conquer  Israel,  there  would  be  peace.  And  in  would  come  economic 
development. 

Earlier  in  the  day,  someone  asked  about  the  proposed  hotel  in 
Gaza.  I  think  that  you  need  to  look  at  the  hearing  record  that  Sen- 
ator Hank  Brown  wrote  in  the  Senate  Middle  East  Subommittee. 
As  I  recall — and  I  do  not  have  that  transcript  before  me — but  I  be- 
lieve that  Senator  Hank  Brown,  chairman  of  the  Middle  East  Sub- 
committee was  extremely  disappointed  in  the  ability  of  the  Pal- 
estinian Arab  leadership  even  to  mobilize  funds  which  he  had  espe- 
cially found  for  them  from  U.S.  AID  authorities. 

Mr.  Zogby.  This  is  bizarre,  Mr.  Chairman. 

Mr.  Hellman.  Excuse  me.  Do  not  interrupt  me,  please. 

And  also  there  is  a  problem — a  very  real  human  rights  problem, 
not  just  for  the  Palestinian  Arabs;  and  the  security  police  are  ar- 
resting Palestinian  Arabs  and  interrogating  them.  There  is  a  viola- 
tion of  human  rights  and 

Mr.  Ackerman.  Just  briefly.  Because  we  do  have  a  lot  of- 


Mr.  Hellman.  And  Christians  and  Jews  cannot  go  to  the  holy 
sites  of  Judea,  Samaria,  much  less  Gaza,  and  tour  guides  will  not 
take  you  even  to  parts  of  Jerusalem,  today. 

And  the  United  States  State  Department  issued  an  advisory 
warning  against  riding  buses  in  Israel. 

Mr.  Ackerman.  Mr.  Hellman. 

Mr.  Hellman.  The  problem  is  security,  not  economic  develop- 
ment, Mr.  Congressman. 


114 

Mr.  Ackerman.  I  appreciate  your  statement.  It  was  not  nec- 
essarily responsive  to  my  question,  which  was  basically:  Is  not  the 
soil  of  poverty  more  fertile  for  the  spread  of  fundamentalism  or 

Mr.  Hellman.  No! 

Mr.  Ackerman.  And  I  am  not  talking  about  religious  Islam? 

Mr.  Hellman.  And  I  am  saying  no. 

Mr.  ZOGBY.  May  I? 

Mr.  Klein.  I  thought  I  was  next,  if  I  may? 

Mr.  Ackerman.  Yes,  Mr.  Klein.  And  then  Mr.  Zogby. 

Mr.  Klein.  Prof.  Amos  Perlmutter,  who  teaches  right  here  at 
American  University — we  are  in  Washington,  right — is  editor  of  the 
Journal  of  Strategic  Studies  recently  wrote  an  article  just  on  this 
issue  where  he  said  the  real  source  of  conflict  in  Gaza  is  not  pov- 
erty or  the  horrible  economy.  He  says  the  real  problem  is  the  rise 
of  a  radical  nationalist  and  decidedly  rejectionist  movement  dedi- 
cated to  the  destruction  of  peace  and  eventual  formation  of  com- 
plete Palestine  in  Israel. 

Other  Arab  journalists  recently  wrote  that  it  is  nonsense  to  claim 
that  Islamic  terrorism  in  Israel  is  the  product  of  the  poverty,  back- 
wardness, and  ignorance. 

He  points  out  that  there  is  a  much  larger  percentage  of  people 
among  university  students  that  are  members  of  Hamas  than 
among  the  population  as  a  whole.  And  we  have  seen  this  in  past 
history. 

Germany  in  the  1920's,  Woodrow  Wilson  and  others  believed  that 
if  Germany  could  be  reintegrated  into  the  European  economy,  that 
would  resolve  the  problem  of  Germany's  threats  against  other  na- 
tions. 

And,  of  course,  they  were  reintegrated.  They  became  strong  eco- 
nomically. And  yet,  as  Donald  Kagan  points  out  in  his  book,  "On 
the  Origins  of  War,"  hatred,  envy,  honor,  and  other  issues  were 
very  important;  and  that  is  why  the  Germans  continued  and  made 
war,  not  the  issues  of  economics. 

The  basis  of  the  Arab  war  against  the  Jews  is  not  economics  and 
economics  will  not  resolve  it. 

Mr.  Ackerman.  Mr.  Zogby. 

Mr.  Zogby.  A  minor  point  first,  Mr.  Ackerman.  I  was  not  only 
present  to  testify  at  Mr.  Brown's  hearings,  but  I  helped  organize 
those  hearings,  myself  and  Mel  Levine,  as  cochairs  of  Builders  for 
Peace. 

Senator  Brown's  anger  was  directed  at  the  agencies  of  U.S.  Gov- 
ernment for  not  supporting  a  Palestinian  American  investor  who 
had  mobilized  American,  Palestinian,  and  other  international  sup- 
port for  a  hotel  but  simply  needed  the  underwriting  of  an  agency 
of  the  U.S.  Government  to  do  so.  His  anger  was  not  directed  at  Pal- 
estinians. 

Second,  there  is  present  in  this  discussion  a  disturbing  mean 
spiritedness  and  almost  a  dehumanization  of  Arabs  and  Palestin- 
ians. They  are  being  viewed  as  objects.  There  is  lost  in  this  discus- 
sion the  sense  of 

Mr.  Ackerman.  Just  for  point  of  clarification,  are  you  referring 
to  the  panel  or  are  you  referring  to 


115 

Mr.  ZOGBY.  I  am  referring  to  some  of  the  comments  that  the 
panel  has  made,  not  yours.  I  think  your  question  is  an  excellent 
one. 

And,  actually,  if  had  not  heard  some  of  what  I  heard,  I  would 
have  been  able  to  very  easily  give  an  answer  that  I  think  might 
have  surprised  some  members  of  the  panel.  And  that  is  that  one 
needs  to  look  at  the  connection  between  violence  and,  in  this  case, 
developing  the  Palestinian  economy,  creating,  as  our  President, 
noted  when  he  ran  in  1992,  opportunity  and  hope,  that  helps  com- 
bat despair.  There  is  a  way  of  understanding  this  on  a  number  of 
levels. 

First  of  all,  the  level  of  those  who  order  the  bombings.  Those  who 
order  the  bombings  are  not  dissuaded  by  economic  development. 
They  have  a  political  agenda.  They  manipulate  the  symbols  of  reli- 
gion and  distort  the  purposes  of  religion  for  the  purpose  of  carrying 
out  a  war  against  the  leadership  that  made  peace  on  the  Palestin- 
ian and  Israeli  side;  and  they  have  no  political  alternative  to  offer. 
They  are  enemies  of  peace,  plain  and  simple. 

Those,  on  the  second  level,  who  actually  carry  the  bombs  are 
greatly  disturbed  young  people  who  I  feel  have,  in  fact,  bought  a 
bill  of  goods,  pie  in  the  sky,  as  you  have  referred  to  it,  the  promise 
of  the  rewards  in  the  hereafter  because  they  see  no  opportunity  or 
hope  in  their  present  lives. 

Even  in  that  case,  economic  development  may  not  help  them  be- 
cause in  some  cases  their  lives  are  so  broken  and  distorted  that 
they  are  willing  to  commit  suicide.  Understand,  they  kill  them- 
selves as  well  as  innocent  Jews. 

On  the  third  level,  which  is  in  some  ways  the  deeper  problem, 
and  that  is  the  tens  of  thousands  of  young  men  in  Gaza,  for  exam- 
ple, who  will  celebrate  when  the  bomb  goes  off. 

I  can  only  remember  2  days  after  the  signing  in  Oslo,  Nabil 
Sha'ath,  who  was  Minister  of  Economic  Development  in  the  Pal- 
estinian Authority,  was  on  a  TV  show  that  I  have  here  in  Washing- 
ton. And  I  asked  him  the  question  about  violence  and  what  he 
would  do. 

And  he  said,  of  course,  they  would  punish  the  perpetrators.  But 
he  made  this  point.  He  said  to  me:  "If  this  process  works,  and  I 
believe  that  it  will  work,  a  year  from  now  our  young  men  will  have 
jobs.  Our  farmers  will  have  their  land  back.  We  will  have  water. 
We  will  have  economic  development.  And  we  will  be  rebuilding  the 
structure  of  our  society  that  has  been  in  disrepair  for  decades  and 
decades." 

"When  the  bomb  goes  off,  thousands  of  young  people,"  he  said, 
"will  turn  against  the  bomber  because  the  bomber  threatens  to 
take  from  them  everything  that  they  won." 

What  disturbs  Nabil  and  me  and  many  others  who  support  peace 
today  is  the  opposite  occurs  because  the  fruits  of  peace  have  not 
been  realized  by  those  thousands  and  thousands  of  young  men; 
and,  therefore,  they  have  not  seen  progress.  They  have,  in  fact, 
higher  unemployment  today  than  before.  The  GDP  of  Gaza  has 
gone  down  almost  20  percent  since  peace  was  signed. 

And  if  you  simply  look  at  the  map,  the  land  did  not  return.  What 
returned  was  Gaza  City  and  some  of  the  refugee  camps;  but  most 


116 

of  the  fertile  land  is  still  in  the  hands  of  the  Israeli  settlers  and 
water  as  well. 

We  can  talk  compliance  two  ways.  I  am  not  asking  for  compli- 
ance reports  against  the  Government  of  Israel.  I  think  it  would  be 
an  interesting  exercise,  but  I  am  not  sure  any  of  us  wants  to  put 
our  administration  or  Congress  through  it. 

However,  the  fact  is  that  water  has  not  been  evenly  distributed 
in  Gaza,  even  though  the  percentage  of  population  in  Gaza  is 
850,000  Palestinians  to  a  few  thousand  Israeli  settlers. 

Land  has  not  been  returned  either.  And  access  and  egress  so  that 
people  can  import  and  export  has  not  taken  place.  There  is  not 
even  egress  regularized  through  Egypt. 

There  are  real  difficulties  here.  Economic  development  can  make 
a  difference.  It  will  do  one  thing.  It  will  increase  the  legitimacy  of 
the  Palestinian  Authority,  increase  popular  support  for  the  peace 
process  and  isolate  the  people  who  have  a  political  agenda  to  throw 
bombs.  But  it  will  not  stop  the  actual  bomb.  It  will  isolate  those 
who  do  it,  and  it  will  increase  the  legitimacy  of  the  authorities  so 
that  the  compliance  you  want  will  become  easier  because  they  will 
have  greater  popular  support  and  legitimacy  to  do  those  things. 

Mr.  Burton.  Let  me  interrupt,  Gary  to  allow  our  colleague,  who 
has  been  waiting  so  patiently,  a  Presidential  candidate  from  the 
great  State  of  California,  Congressman  Dornan. 

Mr.  Dornan.  Thank  you,  Mr.  Chairman. 

Gentlemen,  when  one  of  the  hard-working  staffers  of  this  com- 
mittee, that  I  spent  a  decade  on,  brought  me  all  this  material,  she 
said  there  will  be  a  pop  quiz  this  evening.  And  all  of  you  poured 
out  so  much  effort  and  work  into  our  statements,  and  this  is  the 
nature  of  things  around  here  and  why  I  am  glad  we  went  an  extra 
period  of  testimony  after  the  last  vote. 

There  is  so  much  here  that  if  we  put  it  all  together  we  could 
have  yet  another  excellent  studious  book  on  the  Middle  East. 

Now  I  have  just  come  back  from  Slovenia,  Croatia,  Albania,  Mac- 
edonia, and  a  couple  of  air  bases  in  Italy. 

I  made  about  16  trips  to  Israel  at  every  level  of  conflict,  and 
about  8  in  Northern  Ireland  as  a  correspondent  when  you  had  more 
freedom  than  as  a  Congressman  just  to  be  by  yourself  and  go  off. 

And  I  can  remember  going  to  Israel — and  some  of  you  may  know 
these  names,  they  are  just  filed  in  the  back  of  my  head.  I  have  not 
seen  them  since.  God  Ranan  was  my  contact  in  the  foreign  min- 
istry. He  would  wake  me  up  every  morning:  Good  morning,  Bob. 
This  is  God. 

And  since  I  was  suffering  jet  lag,  it  always  got  my  attention.  He 
set  me  up  with  a  person  described  in  the  British  manner  as  a  Sen- 
ior Arabist.  And  his  name  was  Israel  Stockman.  I  do  not  know  if 
he  is  still  alive,  but  he  had  many  friends  in  Nablus  and  Ramallah. 
We  visited  every  city  up  and  down  the  West  Bank,  lunch,  dinner, 
spoke  with  a  whole  series  of  mayors.  This  was  1972. 

I  went  back  in  1977  with  the  chairman  of  this  committee  with 
a  few  intervening  trips  in  between.  A  senior  Member,  chairman  of 
Asian  and  Pacific  Affairs,  Lester  Wolfe.  We  met  with  four  mayors, 
including  the  mayors  of  Bethlehem,  Ramallah,  and  Nablus.  Two  of 
them  were  murdered  within  a  few  years.  One  of  them  lost  both  of 
his  legs  and  lived.  And  I  have  just  watched  this  thing  fester. 


117 

At  the  end  of  the  1972  trip,  I  went  to  Israel  Pentagon's  down- 
town Tel  Aviv,  and  they  said:  Well,  what  do  you  think  Mr.  Journal- 
ist? I  said:  Give  up  Gaza  and  give  it  up  as  far  as  you  possibly  can. 
Help  build  them  a  little  seaport  and  Mayberry-type  from  D-day  and 
help  establish  Gaza  U. 

Do  you  know  how  many  people  were  in  Gaza  then? 

Two  hundred  thousand. 

Who  has  got  the  current  figure?  How  many  people  in  Gaza 
today? 

Mr.  Zogby.  Eight  hundred  thousand. 

Mr.  Dornan.  Eight  hundred  thousand.  In  23  years,  it  quadrupled 
in  size. 

The  people  in  the  Israeli  Defense  Ministry  agreed  with  me.  They 
said,  yes,  we  should  give  this  to  them.  It  has  access  to  the  sea.  It 
is  a  tiny  State.  I  used  Luxembourg,  Andora,  Liechtenstein,  Monaco 
and  San  Marino  as  an  example. 

I  said  you  are  not  as  big  as  Luxembourg,  but  it  will  be  bigger 
than  Liechtenstein.  Do  it. 

Now  we  have  done  it  way  too  late,  and  the  problems  in  Gaza  are 
a  reaction,  an  angry  reaction  to  the  difficulty  of  trying  to  work  out 
this  confederation  on  the  West  Bank. 

Now,  this  is  my  first  question — because  I  do  not  think  this  is 
going  to  help — and  darn  it,  there  go  the  bells  again.  I  understand 
that  Arafat — and  I  have  never  understood  a  man  who  has  as  much 
trouble  keeping  his  beard  cut  to  about  an  8-day  growth,  to  look 
scruffy  instead  of  letting  it  come  out  like  a  decent  rabbi,  monk,  or 
Arab  leader  like  Anthony  Quinn  in  "Lawrence  of  Arabia."  Let  it 
grow.  But  do  not  try  to  look  scruffy.  I  have  never  been  a  fan  of  his 
imagine  or  his  life,  of  course. 

But  he  wants  to  appoint  Abu  Firas,  48,  responsible  for  the  terror- 
ist attack,  in  the  capital's  Jaffa  Road  in  1970's  and  was  involved 
in  the  Munich  Olympic's  massacre  in  1972.  I  was  there  2  weeks  be- 
fore the  massacre  in  Munich  on  my  way  to  Israel.  I  was  in  Israel 
when  the  massacre  took  place.  Talk  about  a  pall  of  sorrow  coming 
over  a  tiny  country. 

Then  Prime  Minister  Golda  Meir — I  am  quoting  from  6  days  ago, 
front  page  article,  Jerusalem  Post,  by  Uri  Dan  and  Dennis 
Eisenberg,  the  authors  of  "The  Mossad,  the  Secrets  of  the  Israeli 
Secret  Service."  Pretty  sharp  guys.  I  have  the  book.  I  have  not  had 
a  chance  to  really  do  anything  but  skim-read  it. 

They  said  that  Golda  Meir  ordered  Abu  Firas  and  the  rest  of  the 
PLO  terrorists  involved  in  the  massacre  to  be  hunted  down  and 
killed. 

I  understood  that  that  was  called  Operation  Gideon  and  that 
they  got  everyone.  But,  no,  it  appears  that  only  three  were  released 
by  the  West  Germans.  But  Abu  Firas  must  have  been  a  backup 
guy.  He  has  had  at  least  one  attempt  on  his  life  before  he  sought 
shelter  in  Tunisia,  and  now  Arafat  wants  to  make  him  his  chief 
law  man  in  Ramallah. 

And  what  is  happening  to  the  other  largest  city,  Nablus?  There, 
quoting  the  Post: 

The  second  thug  with  the  blood  of  both  Jews  and  Arabs  on  his  hands  is  Mahmoud 
Al-Aloul,  based  in  Tunisia  for  many  years.  He  was  the  overall  commander  of  all 
PLO  terrorists  attacks  in  Sumaria.  Arafat  now  wants  him  to  be  the  boss  of  all  police 


118 

and  security  affairs  in  Nablus.  And  he  expects  him  to  adopt  the  ruthless  style  of 
Jabriel  Rajube,  Arafat's  security  chief  now,  for  Judea  and  Sumaria. 

What  can  we  expect  except  continued  horror  if  all  of  these  resur- 
rected first  degree  mass  murderers  are  being  brought  back  to  be 
the  chiefs  of  police? 

Out  of  fairness,  if  you  would  comment,  sir,  from  the  Alliance. 
And  then  anybody  else  can  take  a  shot  at  it. 

Do  you  believe  the  Jerusalem  Post  has  good  intelligence  here, 
that  these  are  the  principal  desires  of  Yasir  Arafat  to  have  these 
people  become  the  marshals  in  Dodge  City  here?  What  is  this? 

Go  ahead,  sir. 

Mr.  Zogby.  It  is  the  Arab-American  Institute,  Mr.  Congressman. 

And,  no,  I  do  not  necessarily  believe  the  story. 

Mr.  DORNAN.  Does  anybody  else  think  that  this  may  be  just  bad 
reporting  by  the  Post? 

Mr.  HELLMAN.  No,  I  think  this  really  is  happening.  I  believe  it 
is  happening.  And  it  is  sad.  There  is  no  elected  government.  There 
is  no  democracy. 

And  in  this  respect,  I  think  everyone  here  would  say  there  should 
be  elections  and  the  sooner  the  better,  free  and  fair  elections  so 
that  the  Palestinian-Arabs  can  choose  a  real  government,  come  to 
a  constitution  or  the  like,  for  their  autonomous  area.  And  I  think 
that  would  be  the  answer. 

But  in  the  meanwhile,  it  seems  like  there  are  all  kinds  of  fac- 
tions, including  these  security  risks  and  perpetrators  of  terror  from 
the  past  who  come  back,  and  Yasir  Arafat  and  others  are  building 
power  bases.  And  they  are  using  for  their  power  base  the  people 
whom  they  have  known  and  with  whom  they  have  worked  over  the 
years. 

Mr.  Zogby.  Those  that  Israel  has  specifically  objected  to,  Mr. 
Congressman 

Mr.  Ganchrow.  I  think  it  is  going  to  be  good  for  the  economy 
because  they  can  have  a  convention  of  mass  murders. 

Mr.  Zogby.  This  is  disgraceful  rhetoric.  I  really  think  it  is  dis- 
graceful rhetoric,  and  it  is  not  contributing  one  bit  either  to  under- 
standing in  this  body,  understanding  to  the  American  people;  and 
it  is  not  contributing  to  the  peace  of  Israel. 

And  I  think  it  is  really  a  shame  that  it  goes  on. 

Mr.  Dornan.  I  have  always  had  great 

Mr.  BURTON.  I  think  it  is  time  for  everybody  to  answer  the  ques- 
tions directly.  But  I  hope  that 

Mr.  Zogby.  And  try  to  be  respectful. 

Mr.  Burton.  Yes;  we  do  not  get  into  that. 

Mr.  Dornan.  I  have  always  had  great  respect  for  the  Arab-Amer- 
ican Alliance.  I  always  found  them  to  be  truly  dedicated  to  peace. 
And  if  you  say  that  you  do  not  believe  these  stories,  I  know  that 
is  your  best  judgment.  And  I  hope  you  are  right  because  it  is  not 
going  to  solve  anything  to  bring  in  people  except  courageous — even 
if  it  has  to  be  younger  men  who  are  dedicated  to 

Mr.  Zogby.  Mr.  Congressman,  if  every  story  that  was  written 
about  you  was  without  an  effort  on  your  part 

Mr.  Dornan.  I  would  be  a  monster. 

Mr.  Zogby  [continuing].  To  be  able  to  respond,  you  would  be  in 
trouble.  And  we  all  would  be  in  trouble. 


119 

The  fact  is  that  a  newspaper  story  neither  is  sufficient  for  accu- 
sation or  conviction.  Nor  should  one  judge  the  entire  process  based 
on  Uri  Dan's  reporting.  Uri  Dan  has  a  long  record  of  this  kind  of 
stuff.  And  the  fact  is  that  you  have  to  look  at  the  facts  and  seek 
to  find  both  sides  of  the  story. 

I  cannot  comment  because  I  do  not  know  it.  But  Uri  Dan  is  noto- 
rious for  this. 

Mr.  Hellman.  Mr.  Dornan,  I  think  the  problem  is  that  there  is 
no  democracy  and  no  respect  for  human  rights.  And  without  any 
disrespect  to  my  fellow  panelist,  Jim  Zogby,  something  was  said 
that  there  is  a  hateful  atmosphere  or  you  said  something  about  the 
atmosphere  being  wrong.  I  do  not  believe  that  anybody  on  this 
panel,  much  less  any  of  the  members  of  this  committee  harbor  anti- 
Arab  or  anti-Arab-American  or  anti-Palestinian-Arab  prejudices. 

The  point  is  that  the  Palestinian-Arabs  are  the  ones  who  are  suf- 
fering under  these  security  people  who  have  been  brought  in  from 
military  organizations  and  from  terrorist  and  security  organiza- 
tions of  the  past. 

It  is  not  just  of  the  Jews  who  have  their  rights  affected  and  it 
is  not  just  the  Christians  who  cannot  travel  freely.  I  mean  for  ex- 
ample, we  used  to  go  to  Hebron.  We  do  not  do  that  any  more.  Be- 
fore that  we  used  to  go  Nablus,  Sheckrem  to  Jacob's  well.  We  do 
not  go  there  any  more,  although  it  is  mentioned  often  in  the  Old 
and  the  New  Testament. 

Today  we  even  bypass  Jericho,  a  lovely  town.  I  am  not  saying 
that  it  is  because  of  Arafat  or  whatever,  but  it  is  because  the  proc- 
ess is  faulty,  flawed,  and  not  working. 

I  think  there  is  a  security  vacuum  and  gap  where  nobody  is  pro- 
tecting the  people  adequately,  not  protecting  the  Jews,  and  not  the 
Christians.  There  is  a  report  that  I  could  provide  for  the  record  of 
someone  who  converted  to  Christianity — I  do  not  know  if  his  faith 
was  relevant  or  not — from  Islam.  And  then  he  was  persecuted  in 
some  way.  These  kinds  of  things  are  happening.  Due  to  an  inter- 
national outcry,  he  was  released,  and  he  is  on  the  way  to  Canada. 

But  there  also  is  persecution  of  Arabs  who  are  charged  with 
being  "collaborators,"  a  collaborator  being  either  someone  who  ac- 
tively  

Mr.  Dornan.  But  that  is  why  all  these  mayors  were  killed  years 
ago  because 

Mr.  Hellman.  Yes,  they  were  either  collaborators- 


Mr.  ZOGBY.  No,  that  is  not  why  the  mayors  were  killed.  They 
were  victims  of  car  bombings  by  extremist  right-wing  Jews.  And 
the  Jews  were  arrested  for  it. 

Mr.  Hellman.  I  am  just  saying  there  need  to  be  some  effective 
security  measures. 

Mr.  Dornan.  Wait  1  second.  Jim  made  a  point  that  I  did  not 

Mr.  Zogby.  Mr.  Congressman,  those  mayors  were  friends  of 
mine.  And  they  were  killed  by 

Mr.  Dornan.  By  Jewish  terrorists? 

Mr.  Zogby.  Yes. 

Mr.  Dornan.  And  there  were  trials? 

Mr.  Zogby.  Jews  were  arrested  for  it.  They  were  not  killed — 
Fahd  Qawasme  was  not  killed  for  being  a  collaborator.  He  was,  in 
fact,  the  only  one  of  the  mayors  who  was  killed  by  Palestinians. 


120 

And  we  condemned  that  group  and  we  still — none  of  us  in  the 
Arab-American  community  will  deal  with  that  group  because  of 
that  heinous  killing. 

Mr.  Dornan.  Right.  Let  me 

Mr.  Zogby.  But  the  other  mayors  who  you  are  pointing  to  who 
are  killed  were  killed  by  car  bombings  right  wing  extremists  in  Is- 
rael, and  the  Israeli  Government  arrested  and  punished  the  people 
who  did  it. 

Mr.  Dornan.  The  bells  are  going  to  go  off  any  time  for  a  second 
vote,  and  Gary  Ackerman  wants  to  do  a  final  question. 

Let  me  ask  something — and  it  may  have  already  been  asked,  be- 
cause the  chairman  is  doing  great  work  on  this,  and  I  do  not  know 
if  we  had  a  roundrobin  on  the  panel  on  this  or  not — but  British  in- 
telligence supposedly  has  ferreted  out — and  they  will  not  give  us 
the  intelligence  is  what  I  am  hearing,  outside  of  my  committee  re- 
sponsibilities; I  have  not  checked  this  out  in  the  Intelligence  Com- 
mittee— but  they  are  not  telling  us  where  they  got  the  information, 
but  that  the  PLO  has  $7  or  $8  billion  in  bank  accounts  around  the 
world. 

Has  this  been  discussed?  Did  you  bring  this  up,  Mr.  Burton? 

Mr.  Hellman.  Mr.  Chairman. 

Mr.  Burton.  I 

Mr.  Hellman.  Yes,  it  was  asked.  We  asked  Chairman  Gilman  to 
make  that  study.  And,  thankfully,  he  did.  And  our  reports  from 
other  witnesses  and  other  sources  are  that  Yasir  Arafat  and  the 
PLO  have  at  least  $8  to  $10  billion  as  estimated  by  the  British  Na- 
tional Criminal  Intelligence  Service  and  one  $1.5  to  $2  billion  an- 
nual cash-flow.  And  we  still  do  not  have  any  of  the  answers. 

You  were  not  here  this  morning,  but  there  was  a  funny  colloquy 
between  Mr.  Keiley  from  the  GAO  and  the  chairman  which  basi- 
cally came  down  to  the  fact  that  the  CIA  clamped  a  secret  classi- 
fication on  this  and,  therefore 

Mr.  Ackerman.  Excuse  me.  I  need  to  interrupt. 

Mr.  HELLMAN.  Even  the  letter  saying  why  it  is  secret  is  secret. 

Mr.  DORNAN.  I  will  yield  back  the  balance  of  my  time,  Mr.  Chair- 
man. 

Mr.  Burton.  Well,  I  was  just  going  to  say,  we  have  5  minutes 
left  on  this  vote.  So,  Gary,  if  you  have  something  to  say,  you  need 
to  say  it  pretty  quickly. 

Mr.  Dornan.  Oh,  that  was  the  second  bell. 

Mr.  ACKERMAN.  I  want  to  thank  the  panel.  I  just  would  like  very 
much,  Mr.  Chairman,  because  we  have  some  rather  strong  person- 
alities on  this  panel,  some  of  whom  have  gotten  generous  shares 
of  time.  Mr.  Harris  has  not  had  the  opportunity  to  say  one  word 
here,  waiting  very,  very  patiently.  And  every  time  he  is  about  to 
speak,  somebody  else  jumps  in  and  takes  6  minutes  to  answer  a 
question,  which  is  important.  But  I  think  I  would  like  to  hear 
something  from  Mr.  Harris. 

Mr.  Harris.  Thank  you,  Mr.  Ackerman. 

Mr.  Ackerman.  And  I  would  also  Mr. — I  guess  both  ends  of  the 
spectrum  and  both  ends  of  the  table  said  very  little  also. 

Mr.  Dornan.  Can  we  come  back? 

Mr.  Burton.  If  you  will  let  me  interrupt,  we  have  less  than  5 
minutes. 


121 

If  you  gentlemen  are  willing  to  come  back  again  for  the  summa- 
tion, that  is  fine  with  me.  But  the  panel  has  been  imposed  upon 
for  some  time  now. 

Mr.  Ackerman.  Well,  would  you  folks  be  willing  to  return? 

Mr.  FlSHBElN.  Mr.  Chairman,  I  would  just  like  to  suggest  that 
we  have  additional  sessions  like  this.  I  think  this  has  been  a  very 
useful  hearing. 

And  it  is  unfortunate  that  this  is  the  first  one  in  2  years  to  ad- 
dress this  issue.  I  think  the  panelists  here,  if  I  am  not  mistaken, 
would  probably  like  to  come  back  another  day  to  go  through  some 
of  these  issues.  They  are  very  complex  issues.  And  I  think  it  is 
worth  the  committee's  time  to  do  this  on  another  occasion  as  well. 

Mr.  Ackerman.  Can  we  hear  from  Mr.  Harris? 

Mr.  Harris.  Thank  you. 

Mr.  Ackerman.  Does  the  panel  want  to  return?  Or  did  you  want 
to — I  think  people  have  flights. 

Mr.  Harris.  My  statement  will  be  less  than  30  seconds,  Mr. 
Chairman. 

Mr.  Burton.  OK,  Mr.  Harris. 

Mr.  Harris.  But  I  did  not  want  the  record  to  show  that  there 
was  a  penalty  for  politeness. 

Mr.  HELLMAN.  I  will  return  if  you  have  a  panel. 

Mr.  Harris.  Mr.  Chairman,  I  would  just  like  to  make  a  conclud- 
ing remark,  and  that  is  to  represent,  again,  the  views  of  the  Amer- 
ican Jewish  Committee  in  all  of  this. 

Perhaps,  unlike  some  here  today,  we  trust  the  Israeli  democratic 
process  and  we  trust  the  Israeli  Government.  There  is  a  lot  of  sec- 
ond guessing  here  going  on  about  the  Israeli  Government's  strat- 
egy. 

I  do  not  question  the  right  of  people  to  second  guess;  but  I  do 
believe  that  in  the  final  analysis,  Israel  has  shown  itself  fully  ma- 
ture and  capable  of  reaching  its  own  decisions  pertaining  to  its  se- 
curity. 

I  trust  the  Israeli  Government,  therefore,  to  pursue  what  it  con- 
siders the  best  path  for  peace.  And  I  trust  the  Israeli  Government 
to  pursue  what  it  believes  to  be  the  best  path  to  its  own  security. 

There  is  a  race  against  time  both  in  the  peace  process  and  in  the 
Arab  world  as  well:  In  the  Arab  world,  between  the  so-called  mod- 
erates and  the  so-called  fundamentalists. 

This  country,  the  United  States,  has  a  stake  in  seeking  to  ensure 
that  the  moderates  win.  And  the  moderates,  together  with  the 
peace  process,  represent  our  best  hope. 

Therefore,  while  we  do  not  get  to  choose  the  enemy  with  whom 
we  negotiate,  Mr.  Chairman,  I  believe  in  the  final  analysis,  this  is 
the  enemy,  and  flawed  though  he  may  be,  we  have  an  historic  op- 
portunity here  to  pursue  the  peace  process  as  best  we  can. 

And  I  urge,  therefore,  that  this  committee  continue  to  do  all  that 
it  can  to  support  that  peace  process  and  support  Israel's  ability  to 
defend  and  secure  itself  both  for  the  pursuit  of  peace  and  the  pur- 
suit of  its  own  security. 

Thank  you,  Mr.  Chairman. 

Mr.  BURTON.  I  will  urge  the  Chairman  to  have  further  hearings 
like  this. 


122 

I  thank  you  all  for  being  here.  You  did  a  great  job,  and  I  am 
sorry  we  have  to  rush. 
[Whereupon,  at  3:32  p.m.,  the  committee  was  adjourned.] 


APPENDIX 


THE  HONORABLE  DAN  BURTON 
COMMITTEE  ON  INTERNATIONAL 
RELATIONS 
SEPTEMBER  20,  1995 


INTERNATIONAL  RELATIONS  COMMITTEE 
HEARING  ON  THE  MIDDLE  EAST  PEACE  PROCESS 


THANK  YOU  VERY  MUCH  MR.  CHAIRMAN.  I  COMMEND  YOU  FOR  CALLING  THIS 
HEARING  ON  A  MATTER  OF  VITAL  IMPORTANCE  TO  UNITED  STATES  INTERESTS, 
IN  SUCH  A  TIMELY  FASHION. 

I  THINK  IT  IS  QUITE  SAFE  TO  SAY  THAT  ALL  OF  US  DESIRE  TO  SEE  A  REAL 
PEACE  IN  THE  MIDDLE  EAST.  THE  PEOPLE  OF  THAT  LONG-SUFFERING  REGION 
DESERVE  IT,  AND  THE  WHOLE  WORLD  WOULD  BENEFIT  GREATLY  FROM  IT. 

THE  QUESTION  IS:  WHAT  IS  THE  NATURE  OF  PEACE,  AND  IS  THIS  CURRENT 
PROCESS  CONTRIBUTING  TO  IT.  WE  MUST  BE  WARY  OF  POLITICAL 
IMPERATIVES,  WHETHER  IN  ISRAEL  OR  THE  UNITED  STATES,  INTERJECTING 
THEMSELVES  AND  TAKING  US  ALONG  THE  WRONG  PATH,  IN  THE  NAME  OF 
PEACE. 

WE  ARE  ABOUT  TO  WITNESS  THE  SIGNING  OF  THE  SECOND  ROUND  OF 
AGREEMENTS  BETWEEN  ISRAEL  AND  THE  PALESTINIANS.  IT  IS  WORTH  ASKING 
OURSELVES:  "HOW  WELL  HAVE  THE  AGREEMENTS  WORKED  THUS  FAR?"  I  AM 
AFRAID  THAT  THE  ANSWER  WOULD  NOT  BE  A  VERY  ENCOURAGING  ONE. 

ONE  OF  THE  MAIN  OBJECTIVES  OF  THE  OSLO  AGREEMENT  WAS  THE  REDUCTION 
OF  TERRORISM.  IN  FACT  TERRORISM  AGAINST  ISRAELIS  HAS  INCREASED 
SIGNIFICANTLY.  IN  THE  TWO  YEARS  SINCE  THE  OSLO  AGREEMENT  WAS 
SIGNED  WITH  THE  PLO,  THERE  HAS  BEEN  A  73%  INCREASE  IN  THE  NUMBER  OF 
ISRAELIS  KILLED  BY  PALESTINIAN  TERRORISTS. 

THERE  ARE  SERIOUS  DOUBTS  ABOUT  WHETHER  THE  PLO  IS  ACTING  IN  GOOD 
FAITH  AND  REALLY  COMPLYING  WITH  THE  COMMITMENTS  IT  MADE  IN  THE  OSLO 
AGREEMENT.  IN  FACT,  PEACE  WATCH,  AND  OTHER  INDEPENDENT  ANALYSTS 
DOCUMENT  A  SYSTEMATIC  PATTERN  OF  PLO  NON-COMPLIANCE  WITH  THE  OSLO 
AGREEMENT  AND  OTHER  COMMITMENTS. 

THIS  BRINGS  ME  TO  THE  CRUCIAL  ROLE  BEING  PLAYED  BY  THE  UNITED 
STATES.  IN  THE  EUPHORIA  OF  THE  DAYS  AFTER  THE  OSLO  AGREEMENT  WAS 
SIGNED,  PRESIDENT  CLINTON  ASKED  THE  CONGRESS  FOR  AUTHORITY  TO  GIVE 
$500  MILLION  IN  ASSISTANCE  TO  THE  PALESTINIAN  AUTHORITY,  WHICH  IS 
IN  ESSENCE,  THE  PLO.  THIS  AUTHORITY  WAS  GRANTED  IN  THE  FORM  OF  THE 
MIDDLE  EAST  PEACE  FACILITATION  ACT.  I  MIGHT  ADD  THAT  THIS  ACT  WAS 
PASSED  BEFORE  THE  ELECTION  OF  THE  REPUBLICAN  MAJORITY. 

I  WOULD  VENTURE  TO  GUESS  THAT  VERY  FEW  AMERICANS  ARE  AWARE  THAT  THE 
ADMINISTRATION  IS  GIVING  $500  MILLION  TO  THE  PLO,  AN  ORGANIZATION 
WITH  A  DUBIOUS  TRACK  RECORD  TO  BEGIN  WITH.  IF  WE  ARE  INDEED 
EMBARKED  ON  A  NEW  ROAD  LEADING  TO  A  NEW  TOMORROW,  WE  SHOULD  EXPECT 

(123) 


124 


THE  PLO  TO  BEHAVE  VERY  DIFFERENTLY  FROM  THE  WAY  THEY  ARE  INDEED 
BEHAVING . 

IF  TERRORISM  WAS  A  THING  OF  THE  PAST,  WHY  IS  THE  PLO  NOT  DOING  MORE 
TO  COMBAT  TERRORISM,  TO  RENOUNCE  TERRORISM,  AND  TO  EDUCATE  ITS 
PEOPLE  IN  THE  LANGUAGE  OF  PEACE?  JUST  A  FEW  WEEKS  AGO,  YASSER 
ARAFAT  WAS  CAUGHT  ON  VIDEOTAPE  EXTOLLING  THE  VIRTUES  OF  A  NOTORIOUS 
TERRORIST  WHO  PERPETRATED  THE  INFAMOUS  COASTAL  BUS  MASSACRE  OF 
1978. 

FURTHERMORE,  THERE  IS  STRONG  REASON  TO  SUSPECT  THAT  THE  PLO  HAS 
CONSIDERABLE  ASSETS  OF  ITS  OWN  STASHED  AWAY.  ACCORDING  TO  BRITISH 
INTELLIGENCE,  THE  AMOUNT  MAY  BE  AS  HIGH  AS  $7  BILLION  OR  MORE. 
LASTLY,  RELIABLE  REPORTS  HAVE  SURFACED  THAT  INDICATE  THAT  THE  PLO 
IS  ALREADY  MISUSING  DONOR  FUNDS  AND  ENGAGING  IN  FRAUD. 

FOR  THESE  THREE  REASONS:  LACK  OF  COMPLIANCE  WITH  THE  ACCORDS,  THE 
LIKELY  POSSESSION  OF  CONSIDERABLE  ASSETS,  AND  THE  LACK  OF 
ACCOUNTABILITY,  IT  IS  HIGHLY  INAPPROPRIATE,  INDEED  OUTRAGEOUS,  FOR 
AMERICAN  TAXPAYERS  TO  BE  FUNDING  THE  PLO.  SUCH  FUNDING  SHOULD  BE 
STOPPED  IMMEDIATELY  UNTIL  THESE  ISSUES  CAN  BE  PROPERLY  ADDRESSED. 
IT  IS  NO  LESS  THAN  OUR  SOLEMN  DUTY  TO  THE  AMERICAN  PEOPLE  TO  SEE  TO 
IT  THAT  THIS  IS  DONE. 

PEACE  CAN  ONLY  BE  ACHIEVED  BY  EXPECTING  ALL  THE  PARTIES  TO  AN 
ACCORD  TO  ABIDE  WITH  THE  LETTER  AND  THE  SPIRIT  OF  THEIR  COMMITMENTS 
AND  BY  REFRAINING  THE  SORT  OF  SELF-DELUSION  THAT  HAS  CHARACTERIZED 
THE  ADMINISTRATION'S  APPROACH  TO  ARAB  INTENTIONS  TOWARDS  ISRAEL. 

I  CANNOT  CONCLUDE  MY  REMARKS,  MR.  CHAIRMAN,  WITHOUT  MAKING 
REFERENCE  TO  ONE  MORE  ISSUE  THAT  IS  VERY  TROUBLING  TO  MANY  OF  US: 
THE  POSSIBILITY  THAT  U.S.  TROOPS  MAY  BE  DISPATCHED  TO  THE  GOLAN 
HEIGHTS . 

LET  ME  SAY,  FIRST  OF  ALL,  THAT  THIS  MEMBER  OF  CONGRESS  SEES  VERY 
LITTLE  EVIDENCE  THAT  ANYTHING  IS  REALLY  NEW  IN  DAMASCUS.  SYRIA  IS 
STILL  A  REPRESSIVE  POLICE  STATE  ENGAGED  IN  HORRIFIC  VIOLATIONS  OF 
HUMAN  RIGHTS  AGAINST  ITS  OWN  PEOPLE.  HAFEZ  AL-ASAD  IS  STILL 
HEAVILY  INVOLVED  IN  NARCOTICS  TRAFFICKING  AS  WELL  AS  TERRORISM. 
HAMAS,  HIZBULLAH,  AND  ISLAMIC  JIHAD  ARE  ONLY  A  FEW  OF  THE  TERRORIST 
GROUPS  RECEIVING  AID,  COMFORT,  AND  SAFE  HAVEN  FROM  SYRIA. 

THE  NOTION  THAT  U.S.  TROOPS  MAY  BE  PUT  IN  HARMS  WAY  IN  ANY 
AGREEMENT  OVER  THE  GOLAN  HEIGHTS,  IS,  TO  PUT  IT  MILDLY,  VERY 
TROUBLING. 

ALLOW  ME  TO  JUST  QUOTE  THE  CONCLUSION  OF  A  STUDY  COMMISSIONED  BY 
THE  CENTER  FOR  SECURITY  POLICY  BY  11  DISTINGUISHED  DEFENSE  EXPERTS, 
INCLUDING  6  FORMER  MEMBERS  OF  THE  JOINT  CHIEFS  OF  STAFF:  "THERE  IS 
NO  MISSION  OR  RATIONALE  FOR  A  U.S.  PEACEKEEPING  FORCE  ON  THE  GOLAN 
THAT  WOULD  JUSTIFY  THE  RESULTING  COSTS  AND  RISKS.  INDEED,  THE  NET 
EFFECT  COULD  BE  NEGATIVE  FOR  ISRAEL'S  SECURITY  AND  REGIONAL 
STABILITY,  WHILE  THE  CONSEQUENCES  COULD  INCLUDE  THE  LOSS  OF  U.S. 
LIVES  AND,  POSSIBLY,  A  CREDIBILITY- DAMAGING  RETREAT  OF  THE  U.S. 


125 


FORCES  UNDER  TERRORIST  FIRE.  IN  ANY  EVENT,  SUCH  A  DEPLOYMENT  WOULD 
INCREASE  THE  DANGER  OF  DIRECT  U.S.  INVOLVEMENT  IN  A  FUTURE  MIDDLE 
EAST  WAR  AND  UNDERMINE  ISRAEL'S  STANDING  WITH  THE  U.S.  PUBLIC  AS  A 
SELF-RELIANT  ALLY. 

IF  ISRAEL  WITHDRAWS  ON  OR  FROM  THE  GOLAN,  IT  WILL  BE  REQUIRED  TO 
ADOPT  MEASURES  TO  COMPENSATE  TO  THE  EXTENT  POSSIBLE  FOR  THE 
MILITARY  RISKS  INHERENT  IN  RELINQUISHING  THE  TERRITORY.  IT  WILL 
HAVE  TO  CONSIDER:  INVESTMENT  IN  MORE  SURVEILLANCE  ASSETS;  HIGHER 
SUSTAINED  READINESS  FOR  AIR  AND  OTHER  FORCES;  A  LARGER  STANDING 
ARMY;  AND  MEANS  AND  METHODS  TO  INCREASE  THE  SPEED  OF  MILITARY 
MOBILIZATION.  ALL  SUCH  MEASURES  ENTAIL  LARGE  COSTS --POLITICAL  AND 
SOCIETAL  AS  WELL  AS  FINANCIAL.  A  U.S.  FORCE  DEPLOYMENT  TO  THE 
GOLAN  WOULD  NOT  SIGNIFICANTLY  REDUCE  THOSE  COSTS.  INDEED,  ONE  OF 
THE  DANGERS  OF  SUCH  A  DEPLOYMENT  IS  THAT  IT  MAY  CREATE  A  FALSE 
SENSE  OF  SECURITY  IN  ISRAEL  AND  DISCOURAGE  THE  INVESTMENTS 
NECESSARY  TO  ADDRESS  SUCH  RISKS.  THIS  WOULD  NOT  SERVE  U.S. 
INTERESTS,  MUCH  LESS  ISRAEL'S." 

MR.  CHAIRMAN,  IT  DOES  NOT  SERVE  THE  CAUSE  OF  PEACE  TO  IGNORE 
REALITY,  AS  INCONVENIENT  AS  IT  MAY  BE.  TRUE  PEACE  IN  THE  MIDDLE 
EAST  CAN  ONLY  BE  ACHIEVED  IF  ALL  THESE  FACTS  ARE  FACED  SOBERLY,  AND 
HONESTLY . 

THANK  YOU  FOR  THE  OPPORTUNITY  TO  TESTIFY. 


11  in  ,-. 


126 


REP.  MICHAEL  P.  FORBES 

TESTIMONY  BEFORE  THE  INTERNATIONAL  RELATIONS  COMMITTEE 

ON  THE  MIDDLE  EAST  PEACE  PROCESS 

SEPTEMBER  20,  1995 


Mr  Chairman, 

Thank  you  very  much  for  allowing  me  this  opportunity  to  address  the  committee  today. 
As  many  of  you  know,  I  have  had  an  intense  interest  in  the  Middle  East  for  many  years  and  am  a 
staunch  supporter  of  our  ally  Israel. 

Mr.  Chairman,  L  like  most  Americans,  was  delighted  two  years  ago  when  the  Oslo 
Accords  were  signed  and  a  chance  for  a  lasting  peace  was  finally  within  sight.  The  long  struggle 
for  peace  in  this  troubled  yet  crucially  important  region  had  finally  reached  a  breakthrough.  And 
despite  a  lifetime  of  mistrust  of  the  PLO  and  a  revulsion  toward  their  terrorist  tactics,  I  originally 
supported  the  Clinton  administration's  promise  of  U.S.  assistance  to  the  Palestinians    There  was 
no  question  that  the  Palestinians  faced  severe  socioeconomic  problems,  and  anything  we  could 
do  to  help  solve  those  problems  and  thereby  promote  stability  in  the  region  seemed  to  be  a 
worthwhile  gamble. 

But  Mr.  Chairman,  most  of  us  were  under  the  impression  that  the  PLO  would  have  to 
meet  at  least  a  minimum  standard  of  behavior  before  the  aid  would  start  flowing.  Unfortunately, 
that  does  not  seem  to  be  the  case.  It  would  seem  to  me  that  that  minimum  standard  should  be  the 
Oslo  Accords  themselves,  in  which  the  PLO  made  a  number  of  pledges,  none  of  which  has  been 
met.  It  is  an  open  secret  that  the  PLO  is  systematically  violating  the  accords,  Mr.  Chairman,  yet 
US  taxpayer  money  continues  to  flow,  much  of  it  directly  to  Arafat  and  his  cronies. 


127 


I  cant  explain  this  to  my  constituents,  nor  can  I  bear  to  watch  an  unrepentant  enemy  of 
Israel  be  built  up  with  our  money,  posing  a  potential  future  threat  to  our  ally    Thus,  I  have 
introduced  HR  1960,  The  Middle  East  Peace  Compliance  Act,  which  has  also  been  introduced  as 
S  915  by  Senator  D'Amato.  HR  1960  would  suspend  all  aid  to  the  Palestinians  until  they 
complied  with  the  provisions  of  the  Oslo  Accords.    Among  other  items,  this  would  require  that 
PLO:  amend  its  charter  to  delete  the  provisions  calling  for  the  destruction  of  Israel;  ban  terrorist 
organizations  such  as  Hamas  and  Islamic  Jihad,  prosecute  terrorists  and  cease  support  for  armed 
struggle  against  Israel 

Further,  HR  1960  would  stipulate  that,  even  after  certification  that  the  PLO  were  in  full 
compliance  with  the  Oslo  Accords,  aid  would  only  be  channelled  through  American  government 
agencies  and  NGOs.  No  money  could  be  channelled  through  the  PLO,  the  Palestinian  Authority 
or  any  of  its  affiliates    Our  experience  with  govemment-to-government  aid  around  the  world  has 
been  a  sorry  one,  and  the  evidence  that  the  PLO  has  diverted  and  misused  our  funds  is  quite 
strong.  On  that  topic,  I  would  like  to  submit  for  the  record  an  August  14  article  from  Insight 
magazine  which  documents  these  diversions  of  U.S.  aid,  citing  internal  PLO  documents  and 
British  intelligence  reports. 

While  some  people  might  dispute  these  accusations,  Mr.  Chairman,  what  is  indisputable 
is  that  the  PLO  has  kept  virtually  none  of  the  promises  it  made  in  the  Oslo  Accords.  To  my 
mind,  it  is  nothing  short  of  scandalous  that  U.S.  taxpayer  money  continues  to  flow  to  Arafat  and 
his  anti-Israel  allies  under  these  circumstances.  The  administration  insists  on  sweeping  all  of 
this  under  the  rug,  most  blatantly  by  classifying  the  recent  GAO  report  that  reportedly  confirms 
our  worst  fears  about  PLO  behavior    Therefore,  Mr.  Chairman,  it  devolves  to  us  in  Congress  to 
stand  up  on  behalf  of  the  American  taxpayer  and  our  Israeli  friends.  Enough  is  enough.  The 


128 


PLO  must  live  by  some  rules  if  it  wants  to  join  the  international  community  and  receive 
American  tax  dollars 

I  respectfully  request,  Mr.  Chairman,  that  the  committee  give  HR  1960  its  every 
consideration.  Thank  you  for  the  time  today. 


129 


JIM  SAXTON 


NATIONAL  SECUHTY  COMMfTTOE 


MILITARY  PROCUREMENT 
MILITARY  INSTALLATIONS 


JOINT  ECONOMIC  COMMITTEE 


H  Js>.  $ous.e  of  &epresentattbes 

laiastiing^on.  &£  20515 


REPUBLICAN  POLICY  COMMITTEE 


Prepared  Statement  of  Congressman  Jim  Saxton  (R-NJ) 

Hearings  on  Middle  East  Peace  Process.  September  20.  1995 

House  Committee  on  International  Relations 

Mr.  Chairman,  members  of  the  Committee.  I  welcome  this  opportunity  to  address  this 
Committee  on  issues  which  1  believe  are  critical  to  achieving  true  and  lasting  peace  in  the 
Middle  East. 

I  believe  that  the  U.S.  has  a  national  security  interest  in  the  promotion  of  peace  and  stability 
in  the  Middle  East.    A  secure,  lasting  and  verifiable  peace  benefits  the  United  States,  the 
Palestinians,  and  the  closest  U.S.  ally  in  the  region.  Israel. 

I  believe  that  requiring  strict  adherence  by  all  parties  to  the  peace  agreements  they  signed,  and 
subsequent  pledges  made  to  the  President  and  Vice-President,  is  in  our  national  interest.    I 
believe  it  is  a  mistake  to  look  the  other  way  as  the  Palestinians  fa:!  to  comply  with  their 
agreemenis.    Without  substantial  oversight  and  enforcement  of  these  agreements  by  this 
Commi.tce  and  indeed  the  entire  Congress,  we  jeopardize  the  Peaci  Process. 

I  do  not  have  to  tell  this  Committee  that  there  is  substantial  emotion  on  both  sides  of  this 
issue.    There  are  radical  forces  on  both  sides.  Israeli  and  Palestinian,  which  hurt  the  chances 
of  achieving  peace.    I  have  come  to  this  Committee  not  to  state  the  emotional  argument  for 
either  side  but  rather,  to  present  the  facts  in  such  a  way  that  the  Committee  can  make  an 
informed  judgment  about  whether  we  need  certain  changes  made  in  our  current  strategy. 

I  view  the  peace  negotiations  this  way:    The  Peace  Process  was  set  up  to  be  negotiations 
between  the  PLO  and  Israel,  with  the  U.S.  acting  as  mediator,  guarantor  and  facilitator.   As 
with  any  negotiation,  there  is  be  something  to  be  gained  and  something  to  be  lost  tor  each 
party.    In  the  case  of  Israel.  I  believe  they  want  true  and  lasting  peace,  and  of  course  Israel 
has  a  longstanding  relationship  with  the  United  States,  who  equally  wants  peace  and  stability 
in  the  region.    In  the  case  of  the  Palestinians,  they  have  made  certain  commitments  to  Israel 
and  the  U.S.  in  exchange  for  receiving  foreign  aid  and  gaining  peace  and  autonomy.    In  the 
case  of  aid  to  the  Palestinians,  we  intended  to  use  the  promise  of  aid  to  ensure  that  these 
commitments  are  met.    Unfortunately,  in  my  view,  while  Israel  has  made  a  substantial  effort 
to  abide  by  the  peace  accords,  the  Palestinian  side  has  had  serious  problems.    Some  of  their 
commitments  have  not  been  met.  while  others  have  been  purposely  breached.    As  facilitator  of 
the  peace  process,  the  United  States  and.  in  particular,  the  U.S.  Congress,  has  a  special  duty 
to  ensure  that  these  conditions  are  met.    Otherwise,  we  risk  the  appearance  of  complicity  with 
these  violations,  which  may  ultimately  lead  to  failure  of  the  peace  process.    We  have  a  duty 

^**JUA3«G  □     '« RW**  *T    SUITE  101  [-)     T  HAOLEV 


THIS  STATIONERY  miNTED  ON  PAPER  MADE  Of  RECYCLED  FHEA3 


130 


to  ensure  compliance  tor  Israel's  behalf,  on  behalf  of  U.S.  taxpayers,  and  on  behalf  of  those 
Palestinians  who  want  true  and  lasting  peace  in  the  region. 

Mr.  Chairman.  I  am  here  as  a  Member  of  Congress,  to  discuss  what  we  as  Americans  need  to 
consider  before  we  send  upwards  of  $500  million  in  American  aid  to  the  PLO.    I  am  here  to 
present  the  facts,  and  allow  \ou  to  make  a  considered  judgment  as  to  the  advisability  of 
providing  more  aid  to  Mr.  Arafat  without  enforcing  strict  compliance  requirements.    I  hope 
these  hearings  shed  some  light  on  PLO  compliance  with  their  commitments,  and  I  hope  that 
we  can  agree  on  a  strategy  for  re-directing  the  PLO  towards  compliance  and  away  from  the 
current  trend  I  see  developing. 

I  do  not  think  there  is  anyone  who  will  argue  with  the  fact  that  the  PLO  has  had  a  poor 
record  of  compliance  with  their  commitments.    Some  blame  this  on  Arafat's  poor  managerial 
experience.    Others  say  that  the  "trend'"  has  been  positive,  or  say  that  Arafat  is  getting  better 
at  complying.    1  think  the  evidence  is  considerable  that  Arafat  believes  that  he  can  violate  the 
peace  accords  at  will,  without  reprucussions  from  either  the  Israelis  or  the  Americans.    I 
believe  he  is  engaged  in  a  strategy  of  playing  one  against  the  other. 

Arafat  consistently  tests  the  limits  of  his  ability  to  violate  the  agreements  without  incurring 
any  penalty.    It  is  basically  the  strategy  of  "good-cop"  "bad-cop.''  with  Arafat  in  the  position 
of  "good  cop'"  while  his  Ministers  and  associates  and  fundamentalist  groups  such  as  Hamas 
pljying  the  "bad  cop"  role.    Arafat  has  convinced  some  that,  only  through  supporting  him  arid 
the  ;>LO.  can  we  win  over  these  'had  cop"  elements.    I  believe  it  is  a  mistake  to  allow 
ourselves  to  be  taken  in  by  this  argument  and.  instead,  we  should  send  a  tough  ultimatum  to 
Arafa'  to  get  serious  about  peace.    Unfortunately,  from  what  1  have  seen,  there  is  little 
evidence  to  support  the  notion  that  Arafat  is  presently  determined  to  achieve  a  lasting  peace 
with  Israel. 

I  believe  that  the  present  law  allows  far  too  many  loopholes  which  Arafat  has  been  able  to 
exploit,  and  for  that  reason  and  the  reasons  that  follow.  1.  along  with  Congressmen  Michael 
Forbes  and  Dan  Burton,  have  requested  that  the  Speaker  place  a  hold  on  any  further  extension 
of  MEPFA.  and  that  he  strikes  any  amendment  dealing  with  MEPFA  either  on  the  floor  or  in 
Conference.    Further,  I  would  like  to  formally  request  that  this  Committee  consider  the 
Forbes.  Saxton.  DeLay  Bill.  H.R.  1960.  or  the  Engel.  Saxton.  DeLay  Bill.  H.R.  1930.  which  I 
have  also  cosponsored.  and  recommend  their  immediate  consideration  by  the  full  House. 

Today  I  would  like  to  address  the  following  issues: 

QUESTION  #1:  What  has  happened  with  the  aid  we  have  already  sent  to  the 

Palestinian  Authority? 

In  late  July,  I  introduced  into  the  record  certain  documents  I  had  come  to  possess  which  detail 
the  misuse  of  foreign  aid  money  by  PECDAR.  the  organization  set  up  to  distribute  foreign  aid 
to  the  Palestinians.    Many  ask  why  this  issue  is  so  important.    Well,  beyond  the  obvious  fact 
that  American  taxpayers  have  a  right  to  know  where  their  foreign  aid  money  is  going,  there  is 
the  issue  of  why  we  gave  this  aid  money  in  the  first  place. 


131 


We  gave  this  money  (o  assist  the  Palestinians  rebuild  their  economy.    Without  it.  we  were 
told,  radical  elements  such  as  Hamas  and  Islamic  Jihad  would  take  advantage  of  local  poverty 
to  build  suppon.  thus  pushing  the  more  moderate  PLO  out  of  the  picture.    This  aid  money 
was  never  intended  to  be  used  for  bribes  for  loyalists  to  Yasser  Arafat.    Nor  was  it  intended 
to  promote  Arafat's  long-term  agenda  of  regaining  control  of  Jerusalem  as  the  "Capital  of 
Palestine.'"   In  fact,  were  he  to  use  the  money  in  this  manner,  not  only  would  it  not  help  the 
Palestinian  people  deserving  of  assistance,  it  would  make  the  success  of  the  peace  process  far 
less  likely. 

If  we.  as  Congress,  have  been  deceived  by  a  recipient  of  foreign  aid.  this  puts  at  risk  all 
foreign  aid  projects,  even  those  most  worthy.    If  the  documents  I  am  introducing  are  accurate, 
and  I  believe  they  are.  somebody  has  been  asleep  at  the  wheel  and  we  need  to  reevaluate  our 
entire  mechanism  for  distributing  aid  to  the  Palestinians.    In  this  regard.  I  will  be  submitting 
for  the  record  a  series  of  documents  showing  that  PECDAR  (The  Palestinian  Economic 
Council  for  Development  and  Reconstruction)  diverted  aid  away  from  the  rebuilding  programs 
for  which  the  money  was  intended,  into  pet  projects  such  as  buying  apartments  for  Arafat 
loyalists,  sending  money  to  Arafat's  mother-in-law  to  build  a  propaganda  center  in  Jerusalem, 
and  other  such  unintended  projects.    It  is  hoped  that  we  can  examine  the  issue  of  the 
distribution  of  aid  to  the  Palestinians  far  more  closely,  discover  who  or  what  agency  is 
responsible  for  diverting  this  aid.  and  that  we  can  build  much  tougher  enforcement 
mechanisms  into  our  current  law.    Without  it.  we  risk  the  continued  poverty  of  the  Palestinian 
people  and  their  increasing  turn  to  more  radical  elements  Aithin  their  society. 

QUESTION  #2:  Has  the  PLO  lived  up  to  their  commitments  thus  far. 

The  PLO  has  made  certain  commitments,  outlined  in  the  September.  1993 
Declaration  of  Principles,  the  Cairo  Agreement  on  the  Gaza  Strip  and  Jericho 
of  May.  1994.  and  subsequent  agreements.    Although  there  are  numerable 
instances  of  non-compliance.  I  would  like  to  focus  on  those  of  greatest  concern 
to  me  personally  —  the  issue  of  terrorism.    One  of  the  primary  conditions  of 
our  opening  a  dialogue  and  granting  aid  to  the  Palestinians  has  been  Arafat's 
express  renunciation  of  terrorism. 

I  believe  that  if  you  ask  the  Israeli  people  what  they  consider  the  greatest  threat 
to  the  peace  process,  they  will  tell  you  it  is  the  increasing  threat  of  terrorism, 
and  the  fact  that  Arafat  has  thus  far  been  unable  or  unwilling  to  confront  the 
issue  head-on.    They  will  tell  you  that  Jericho  and  Gaza  have  become  safe- 
havens  for  terrorists,  and  that,  with  the  expected  return  of  many  more  areas  to 
Palestinian  control,  these  areas  will  become  safe  havens  as  well.   They  will  tell 
you  their  great  disappointment  that,  thus  far.  Arafat  has  refused  to  turn  over 
suspected  terrorists  to  Israel  (as  he  is  required  to  do  under  the  accords)  but 
rather,  has  either  set  them  free  or  sentenced  them  to  minimal  terms  of 
imprisonment.    Finally,  they  will  tell  you  that  Arafat  has  done  nothing 
personally  to  stop  terrorism  through  his  speeches  or  interviews.    Instead,  he  has 
consistently  preached  violence  against  Israelis,  made  martyrs  out  of  terrorists 
and  proclaimed  them  to  be  heroes,  and  called  for  "jihad"  or  holy  war.    He  has 


PV 


132 


made  alliances  with  Hamas  and  Islamic  Jihad.    And  he  has  thus  tar  refused  to 
disarm  the  militant  groups  in  Gaza  or  Jericho,  as  required  by  the  accords. 

I  can  tell  you  trom  experience  that  the  Israeli  people  are  frightened,  and  these  are  not 
people  uho  get  frightened  easily.    And  their  tear  spans  both  political  parties.    They  will  tell 
>ou  that,  at  least  with  war.  they  know  who  the  enemy  is  and  where  to  find  them.    In  the  case 
of  terrorism,  attacks  can  happen  anytime,  anywhere.    On  busses,  in  schools,  on  the  streets  of 
Jerusalem.    And  fighting  terrorism,  like  any  war.  takes  full-time  commitment,  a  strong 
intelligence  community,  and  even  then,  you  miss  a  few.    In  the  situation  of  Gaza  and  Jericho. 
and  soon,  more  areas  coming  under  Palestinian  control,  unless  Arafat  is  truly  committed  to 
stopping  terror,  it  is  not  going  to  happen  on  its  own. 

Simply  put.  if  Arafat  cannot  be  relied  upon  to  take  this  issue  seriously,  the  Peace  Accords  will 
most  certainly  fail. 

I  believe,  as  Americans,  we  have  an  interest  in  this  as  well.    Many  Americans  visit  Israel 
every  >ear.  and.  unfortunately,  two  Americans  have  fallen  victim  to  terrorist  acts  in  Israel 
over  the  last  few  months.   One  of  these  victims.  Alyssia  Flatow.  happens  to  be  from  my  home 
state  of  New  Jersey. 

In  an  effort  to  make  this  committee  aware  of  the  extent  of  the  PLO*s  failure  to  adequately 
address  this  issue.  I  will  be  introducing  several  instances  where  1  believe  the  PLO  has  failed 
to  live  up  to  their  commitment  to  fight  terror.    As  I  stated  before.  I  believe  that  Congress  has 
the  greatest  leverage  over  Arafat  and  the  PLO  in  enforcing  compliance.    In  many  ways,  even 
more  leverage  that  the  Israelis  themselves.    If  we  fail  to  exercise  this  leverage  to  the  greatest 
possible  extent,  we  risk  losing  all  that  has  been  gained  thus  far.    Thus.  I  am  submitting  the 
following: 

A.  The  repeated  failure  to  extradite  suspected  terrorists  back  to 
Israel  to  stand  trial,  including  Abdel-Majid  Dudein.  the  suspected 
killer  of  Joan  Devanney.  an  American  schoolteacher  from 
Connecticut.    The  PLO  had  agreed  to  transfer  suspected  terrorists 
back  to  Israel  in  the  peace  accords  (Annex  3.  Article  2.  clause 
7).  but.  to  date,  have  ignored  all  extradition  requests.    By 
ignoring  such  requests,  the  PLO  has.  in  effect,  made  Jericho  and 
Gaza  into  "safe  havens"  for  suspected  terrorists. 

B.  A  statement  from  Muhammad  Dakhlan.  Chief  of  the  Palestinian 
National  Authorities  General  Security  Service,  stating  that  "even  if  there 
is  a  clause  in  the  Agreement,  we  will  not  extradite  members  of  our 
people  to  Israel." 

C.  The  expressed  wishes  of  Mr.  Arafat  to  name  two  well-renowned 
terrorist  leaders  to  head  up  the  Palestinian  Authority's  new 
security  teams  in  Ramallah  and  Nablus. 


133 


I  am  certain  you  will  hear  from  those  on  the  other  side  of  this  issue  who  will  make  various 
excuses  for  Mr.  Arafat.    Or.  they  will  stress  the  positive,  emphasizing  the  steps  which  Arafat 
has  taken  to  stop  terrorism.    In  my  view,  there  is  no  such  thing  as  being  only  "  a  little  bit  of  a 
terrorist."  just  like  you  cannot  be  ""  a  little  bit  pregnant."    You  either  renounce  it  completely 
or  you  don't.    And  in  my  view.  Arafat  hasn't. 

AID 

But  first.  I  would  like  to  get  back  to  the  issue  of  what  has  happened  to  the  aid  we  have 
already  sent  to  Mr.  Arafat's  Palestinian  National  Authority.    Some  members  of  this  Congress 
believe  that  interfering  in  any  way  with  the  flow  of  money  to  the  PLO  is  "taking  sides"  and  is 
thus  destructive  to  the  Peace  Process.    They  are  under  the  impression  that  the  money  we  have 
sent  is  being  used  to  build  schools,  repair  infrastructure,  and  provide  for  security.    Some  are 
afraid  that  interfering  in  any  way  with  the  flow  of  aid  will  bring  the  Peace  Process  to  a 
screeching  halt. 

Unfortunately,  these  documents  show  that,  not  only  is  our  aid  money  being  used  improperly, 
it  is  being  used  directly  contrary  to  our  national  interests  and  the  interests  of  peace. 

Our  policy  with  respect  to  aid  should  be  as  it  was  with  our  disarmament  agreements  with  the 
Soviet  Union  -  trust,  but  verify.    With  respect  to  verification,  the  facts  speak  for  themselves. 

PECDAR  was  established  on  November  4.  1993  as  an  independent  body  entrusted  with 
distributing  foreign  aid.    Arafat  and  the  PLO  were  to  have  no  role  in  the  administration  of 
PECDAR.    PECDAR  is  supposed  to  be  supervised  by  the  World  Bank.    However,  in  July. 
1 994.  PECDAR  distributed  an  internal  chart  showing  it  as  being  directly  subordina'e  to  the 
PLO. 

The  PECDAR  documents  I  am  introducing  consist  of  a  series  of  letters  between  the  Secretary 
of  the  Treasury  of  the  PLO  and  the  PNA  to  PECDAR.  directing  that  PECDAR  divert  aid 
money  to  specific  projects  not  authorized  by  the  Peace  Agreements.    Further  correspondence 
shows  that  PECDAR  complied  with  the  PLO  requests  and  Arafats  instructions  were  followed 
and  the  money  transferred.    A  total  of  14  sets  of  letters,  totaling  some  tens  of  millions  of 
dollars,  were  diverted  through  this  scheme. 

Some  examples  of  these  projects  are: 

1 .  A  directive  to  funnel  $20  million  to  clandestine  political  activities  inside 
Israel  to  strengthen  pro-PLO  forces,  including  Members  of  Knesset  and 
organizations  as  the  beginning  of  a  PLO  presence  among  Israeli  Arabs.    Such 
political  activity  is  aimed  to  push  the  Israeli  Arabs  toward  "the  establishment  of 
the  Palestinian  State  that  includes  Jerusalem.   Among  the  tasks  include 
financing  political  parties,  social  organizations  and  charities  to  push  for 
Palestinian  statehood. 

2.  A  directive  to  arrange  clandestine  funding  to  acquire  land  in  Jerusalem. 
The  letter  further  stresses  the  clandestine  nature  of  the  transfer,  "so  as  not  to 


134 


[be  utilized  against  us)  by  the  American  Administration...'' 

3.  A  directive  on  behalf  ot'  Arafat  to  arrange  clandestine  funding  for 
apartments  in  Jerusalem  to  be  given  to  loyalists.    Twelve  million  is  allocated 
for  this  project. 

4.  A  directive  to  arrange  clandestine  funding  for  Raymonda  Tawil.  Arafat's 
mother-in-law.  and  Ibrihim  Qarin  to  open  a  Palestinian  publicity  center  in 
Jerusalem. 

5-12.  Various  other  directives  which  attempt  to  have  Arafat  and  the  PLO  gain 
personal  control  over  the  local  economy. 

What  these  documents  show  is  that  we  cannot  trust  our  current  system  of  distributing  aid.  and 
we  need  to  take  certain  substantial  steps  to  ensure  compliance. 


TERRORISM 

With  respect  to  the  issue  of  terrorism,  it  would  be  difficult  to  argue  that  Arafat  has  made  any 
serious  attempt  to  combat  acts  of  terrorism  emanating  from  the  areas  he  controls.    Arafat's 
continued  call  for  jihad"  among  his  followers.  Lis  refusal  to  transfer  suspected  terrorists  back 
to  Israel  to  stand  trial,  his  repeated  attempts  to  subvert  Israel's  attempts  to  locate  and  try 
terrorists,  and  his  naming  of  known  terrorists  to  head  up  his  security  forces  belie  his  claims  of 
compliance. 

Throughout  the  last  two  years.  Arafat  has  consistently  called  for  jihad,  or  holy  war.  against 
Israel.    Some  have  argued  that,  by  referring  to  "jihad"  Arafat  does  not  mean  military  struggle, 
but  rather,  spiritual  struggle.    But  I  prefer  to  view  these  speeches  in  a  more  skeptical  light. 
Why  should  we  accept  the  argument  that  Arafat  does  not  mean  "jihad"  when  he  says  "jihad?" 
And.  in  the  context  these  speeches  are  made.  Arafat  can  only  be  intending  one  thing  -  he 
wants  the  Palestinian  people  to  continue  to  fight,  to  continue  to  commit  terrorist  acts,  and  to 
continue  their  military  strategy  to  achieve  their  goals. 

On  June  18.  1995.  Arafat,  in  a  speech  to  the  Islamic  Woman's  Association  in  Gaza,  praises 
Abir  Wahidi.  who  murdered  Zvi  Klein  in  1991  and  Dalai  Maghribi.  who  participated  in  the 
1978  bus  attack  on  the  coastal  road.  Referring  to  Ms.  Wahidi.  he  states  that  "we  will  not 
forget  how  she  led  the  attack  with  her  machine  gun.  and  that  she  is  the  military  commander 
of  the  central  region."  With  regard  to  Ms.  Maghribi.  he  calls  her  "the  star  from  among  the 
heroes"  and  says  that  "this  is  the  woman  that  we  are  proud  of  and  take  pride." 

In  January  of  this  year.  Arafat  in  a  speech  to  Palestinian  laborers  in  Gaza,  directed  his 
listeners  as  follows:   "all  of  us  are  willing  to  be  martyrs  along  the  way. ..let  no  one  think  they 
can  scare  us  with  weapons,  for  we  have  mightier  weapons  -  the  weapons  of  faith,  the  weapon 
of  martyrdom,  the  weapon  of  jihad." 


135 


As  recently  as  August  6.  1 995.  Arafat  stated  that,  "the  Palestinian  people  are  prepared  to 
sacrifice  the  last  boy  and  the  last  girl  so  that  the  Palestinian  flag  will  be  flown  over  the  walls 
and  churches  and  mosques  of  Jerusalem." 

I  have  only  provided  a  small  sampling  of  the  kind  of  rhetoric  Arafat  consistently  uses  to 
denigrate  the  very  own  Peace  Agreements  which  bear  his  signature.    In  addition  to  the  above. 
Arafat  has  repeatedly  praised  Hamas  leader  Sheikh  Ahmed  Yassin  and  Mousa  Abu  Marzook 
as  "brothers."  compared  the  Oslo  agreement  with  the  pact  the  Prophet  Mohammed  made  with 
the  tribe  of  Koreish  (i.e.  a  temporary  pact  for  convenience),  referred  to  the  PLO  "phased 
plan"  (for  Israel's  destruction),  and  repeated  his  calls  for  armed,  bloody,  and  violent  struggle. 
It  is  worthy  to  note  that,  in  addition  to  conveying  what  are.  perhaps.  Arafat's  true  intentions, 
these  speeches  are  a  direct  violation  of  the  Cairo  Agreement.  Article  XII(l). 

EXTRADITION  OF  TERRORISTS 

Perhaps  the  most  disturbing  violation  of  the  peace  accords  is  Arafat's  ongoing  refusal  to 
transfer  terror  suspects  to  Israel  for  trial.    Under  the  Gaza-Jericho  Agreement.  Article  11(7)  of 
Annex  111.  both  sides  are  obligated  to  arrest  and  transfer  suspects  requested  by  the  other  side 
if  a  formal  request  is  submitted.    As  of  June  29.  1995.  Israel  has  submitted  six  formal 
requests  to  the  Palestinian  Authority  to  transfer  a  total  of  ten  suspects  in  terror  attacks  against 
Israelis,  and  the  Palestinian  Authority  refuses  to  turn  any  of  these  men  over. 

A  statement  made  in  early  September.  1995.  ay  Muhammad  Dakhlan.  the  Chief  of  the  PNA's 
General  Security  Service  in  Gaza,  and  the  man  lesponsible  for  the  PNA's  "struggle"  against 
terrorism,  explains  why  Israel  has  had  such  a  difficult  time  extraditing  terrorists: 

"We  reached  a  decision,  and  it  was  made  at  the  highest  possible  level  —  of 
course  on  the  basis  of  Arafat's  opinion  —  that  we  will  not  extradite  to  Israel 
members  of  our  people,  including  wanted  members  of  Hamas." 

He  stated  further,  "even  if  there  is  a  clause  in  the  Agreement  [committing  the 
PNA  to  extradite  wanted  terrorists)  ...  we  will  not  extradite  members  of  our 
people  to  Israel."  (Source:  Interview  with  Yediot  Aharonot.  September  8.  1995) 

A  recent  event  in  Israel  shows  the  nature  of  the  PLO's  "Tight"  against  terrorism.   On 
September  14.  1995.  the  Palestinian  Authority  announced  that  Ibrihim  Naffar.  a  Hamas 
member,  was  killed  while  handling  explosives  in  his  Gaza  apartment.    Naffar.  the 
announcement  said,  escaped  from  custody  after  being  arrested  earlier  in  August  along  with 
two  accomplices. 

Naffar.  it  seems,  was  involved  in  a  dramatic  eight-day  hunt  last  August,  touted  as  an  example 
of  the  new  Israeli-PA  cooperation  in  the  fight  against  terrorism.   After  his  widely  publicized 
arrest,  along  with  two  other  suspected  terrorists,  it  was  revealed  that  the  three  had  surrendered 
only  after  making  a  deal:  Nasser  would  spend  only  a  short  time  in  jail,  and  his  accomplices 
would  be  released  immediately.   This  "deal"  thus  allowed  two  terrorists  free  immediately, 
while  Naffar,  after  spending  a  short  time  in  jail,  went  back  to  his  apartment  to  continue 
making  bombs. 


136 


Some  of  us  remember  the  horror  of  another  American  killed  by  a  terrorist  bomb  in  early 
August  of  this  year.    Her  name  was  Joan  Devanney.  a  school  teacher  from  Woodbridge. 
Connecticut.    Last  month.  Abdel-Majid  Dudein.  who  was  suspected  of  helping  plan  the  bus 
bombing  received  12  years  in  prison  on  a  charge  ot  '"undermining  Palestinian  Security." 
Remember,  this  is  a  man  who  helped  kill  5  people,  and  injure  dozens  ot  others.    He  was 
sentenced,  in  what  has  become  routine  lor  the  Palestinian  Authorities,  in  a  15  minute  trial. 
While  wt  all  appreciate  a  speedy  trial,  the  only  reason  his  trial  was  so  speedy  was  to  prevent 
Israeli  Authorities  from  gaining  his  transfer,  because  another  provision  of  the  agreements  state 
that  the  Palestinian  Authority  may  delay  the  transfer  to  the  requesting  side  for  the  duration  of 
the  imprisonment.    Thus,  he  was  tried  and  imprisoned  with  the  express  purpose  of  frustrating 
Israeli  attempts  at  trying  him  for  the  crime  he  was  guilty  of  -  murder.    I  might  also  note  that 
U.S.  authorities,  who  are  authorized  under  U.S.  law  to  investigate  terrorist  acts  against 
Americans  overseas,  are  similarly  frustrated. 

This  same  scenario  occurred  with  respect  to  the  murder  of  Alyssia  Flatow.  a  student  from  my 
home  state  of  New  Jersey.    When  FBI  investigators  went  to  Israel  to  investigate  her  murder. 
they  were  refused  permission  to  do  so  by  the  Palestinian  authorities.    Thus,  while  the  U.S. 
maintains  sanctions  against  Libya  for  its  failure  to  allow  U.S.  officials  to  question  the  two 
suspects  in  the  Pan  Am  bombing,  we  are  forced  to  remain  silent  while  the  suspected 
murderers  of  Joan  Devanney  and  Alyssia  Flatow  are  withheld  from  our  investigators. 

Evidence  of  Arafat's  complicity  with  acts  of  terror  are  further  demonstiated  by  the  following: 
In  May.  1995   in  a  report  by  Peace  Watch,  this  independent  monitoring  group  reported  that 
the  Palestinian  Authority  has  agreed  to  release  all  Hamas  and  Islamic  Jihad  members  it  is 
currently  holding,  including  those  tried  and  convicted  by  the  State  Securitv  Court  in  Gaza.    In 
negotiations  with  Hamas  and  Islamic  Jihad,  the  Palestinian  Authorities  agreed  to  halt  all  trials 
and  arrests  of  the  groups'  members  if  they  agree  to  cease  terrorist  attacks  emanating  from 
Gaza  and  Jericho.    Peace  Watch  estimated  that  some  100  Hamas  and  Islamic  Jihad  members 
remain  in  custody.    What  this  agreement,  in  effect,  will  do.  will  allow  Hamas  and  Islamic 
Jihad  to  operate  freely  and  without  fear  of  retribution  in  areas  under  Palestinian  control.    One 
can  only  picture  the  damage  these  100  terrorists  are  capable  of  once  allowed  to  return  to  the 
streets. 

In  another  Peace  Watch  report,  this  one  dated  June  21.  1995.  they  determined  that,  one  month 
after  the  deadline  for  individuals  to  turn  in  their  weapons,  register  them,  or  face  arrest,  little 
had  been  done  in  the  way  of  compliance.    Peace  Watch  found  that,  since  the  deadline  in 
April.  1995.  only  a  few  dozen  weapons  have  been  confiscated.    By  the  PLO's  own  accounts, 
upwards  of  25.000  weapons  remain  in  the  hands  of  potential  terrorists. 

Finally,  I  believe  the  following  example  shows  clearly  that  Arafat  continues  to  retain  strong 
ties  to  his  former  associates  in  the  terrorist  world,  and  cannot  be  trusted  to  confront  terrorism. 

A  report  in  the  Jerusalem  Post  of  September  14.  1995  states  that  Arafat  has  recently 
demanded  to  be  allowed  to  appoint  two  known  PLO  killers  as  security  chiefs  in  Nablus  and 
Ramailah-  towns  the  Israeli  government  is  passing  over  to  Palestinian  control.    The  first  is 
Abu  Firas.  who  was  responsible  for  a  terrorist  attack  in  Jerusalem's  Jaffa  Road  in  the  1970s, 


137 


as  well  as  involved  in  the  Munich  massacre  of  1972.    The  second  is  Mahmoud  Al-Aloul.  who 
was  the  Tunisian-based  commander  of  all  PLO  terrorist  attacks  in  the  West  Bank. 

How  these  two  men  are  expected  to  confront  terrorism  is  beyond  my  comprehension,  but 
nevertheless,  these  two  men  will  be   expected  to  disarm  terrorists,  and  prevent  terrorist  attacks 
emanating  from  areas  they  control. 

In  closing.  I  would  like  to  thank  the  Committee  for  holding  these  hearings.    The  Chairman 
and  its  members  should  be  applauded  for  taking  this  decisive  step  in  the  right  direction. 
As  I  and  my  staff  have  looked  at  the  facts  of  this  matter.  1  believe  that  it  is  reasonable  to 
conclude  that  compliance  by  the  PLO  is  at  best  spotty,  and  is  at  worst,  an  indication  of  an 
intentional  manipulation  of  the  Peace  Process.   Arafat  and  the  Palestinian  Authority  have 
misused  foreign  aid.  have  diverted  it  to  unauthorized  projects,  have  actively  supported 
terrorists  and  terrorist  actions,  and  have  an  abysmal  record  of  even  attempting  to  comply  with 
their  agreements.  Arafat  has  proven  his  ability  to  exploit  every  loophole  he  can  find,  and  even 
without  loopholes  he  is  clearly  willing  to  face  what  he  believes  is  minimal  risk  to  his  actions. 
Therefore,  to  extend  another  1/2  Billion  dollars  to  the  PLO.  given  our  own  domestic  concerns, 
and  without  what  I  view  to  be  the  strictest  compliance  requirements  we  can  put  into  law. 
would  not  be  good  stewardship. 

However.  1  am  willing  to  give  Mr.  Arafat  one  more  small,  limited  chance,  in  the  hope  that 
perhaps,  with  strict  compliance  measures  in  place,  we  will  see  a  change  in  heart.    Maybe,  just 
maybe.  Anfat  will  come  to  see  us  as  serious  contenders  in  the  peace  process.    Given  what  1 
know,  however.  I  cannot  say  I  am  hopeful.    But  I  know  it  is  our  only  hope  for  true  peace  in 
the  region. 

I  thank  the  Chairman  for  allowing  me  to  present  these  facts  before  the  Committee,  and  I  urge 
this  Committee  to  take  every  step,  including  reporting  out  H.R.  I960,  to  ensure  we  meet  our 
duty  to  advance  the  peace  process,  to  see  a  secure  peace  in  the  region,  and  to  meet  our 
commitment  to  our  constituents. 


138 


Statement  of  Peter  Deutsch 

Before  The  International  Relations  Committee 

September  20,  1995 

Mr.  Chairman,  I  want  to  congratulate  you  for  holding  these 
hearings  on  the  Peace  Process  and  thank  you  for  allowing  me  to 
testify.   There  can  be  no  doubt  that  the  extension  of  MEPFA  and 
the  lack  of  Palestinian  compliance  with  the  Oslo  Accords  are  very 
relevant  problems  in  both  the  United  States  and  Israel. 

Since  the  beginning  of  the  peace  negotiations,  the  United 
States  has  played  an  integral  role  in  the  peace  process.   This 
country  and  this  Congress  are  truly  partners  in  these  peace 
agreements  with  both  Israel  and  the  Palestinians. 

The  Palestinian  record  of  compliance  with  the  Oslo  Peace 
Accords  up  to  this  point  has  been  abysmal.   Clearly,  the  PA  has 
failed  to  live  up  its  commitment  to  extradite  terrorists  to 
Israel.   Almost  without  exception,  the  PA  has  refused  to  comply 
with  the  Israeli  government's  requests  for  extradition  for  a 
suspects.   The  extradition  of  terrorists  who  seek  to  injure 
innocent  civilians  is  at  the  very  heart  of  the  Oslo  Agreements 
and  yet  they  refuse  to  comply. 

Another  example  of  the  Palestinian's  blatant  disregard  of 
the  Peace  Accords  is  their  operation  of  PA  institutions  in 
Jerusalem.   No  less  than  seven  institutions,  connected  to  the 
Palestinian  Authority  operated  in  Jerusalem  during  all  or  part  of 
that  time.   Even  though  this  action  is  clearly  prohibited,  the  PA 
continues  to  operate  organizations  in  Jerusalem  without  recourse. 

Finally,  and  most  troubling,  Yassir  Arafat  continues  to 
demagogue  and  call  for  the  destruction  of  Israel.   As  recently  as 
June  15  of  this  year,  Arafat  said,  "We  are  all  seekers  of 
martyrdom  in  the  path  towards  Jerusalem. . .  the  oath  is  firm  to 
continue  this  long  jihad,  this  arduous  jihad  in  the  path  of 
martyrdom,  the  path  of  sacrifice."   This  comment  was  spoken  at  Al 
Azhar  University,  three  days  before  Arafat  gave  another  speech 
praising  the  terrorist  who  masterminded  the  1978  hijacking  of  bus 
of  civilians. 

Mr.  Chairman,  I  support  process  for  peace  and  I  support  the 
renewal  of  MEPFA.  However,  we  must  closely  examine  the 
Palestinian  record  of  compliance  in  the  upcoming  months.   We  must 
make  it  clear  to  the  PA  that  our  government's  support  of  his 
organization  is  based  upon  their  fulfilling  their  obligations  to 
the  Oslo  Agreement.   We  must  send  a  clear  signal  that  the  U.S. 
Congress  will  not  continue  to  extend  MEPFA  if  the  Palestinians 
continue  to  refuse  to  comply  with  the  Peace  Accords. 


139 


STATEMENT  OF  REP.  ELIOT  L.  ENGEL 

HEARING  OF  THE  COMMITTEE  ON  INTERNATIONAL  RELATIONS 

ON  THE 

MIDDLE  EAST  PEACE  PROCESS 

SEPTEMBER  20,  1995 

Mr.  Chairman,  I  would  like  to  thank  you  for  holding  this 
hearing  today.   As  the  author  of  one  of  three  major  bills  to 
replace  the  expiring  Middle  East  Peace  Facilitation  Act  and  co- 
chair  of  the  congressional  Peace  Accord  Monitoring  group,  I  am 
profoundly  interested  in  the  Middle  East  peace  process  and  am 
glad  that  the  Committee  is  taking  the  time  to  consider  the  issue 
at  this  crucial  time. 

Two  years  and  one  week  ago  today,  the  world  witnessed  an 
historic  event.   The  leaders  of  two  peoples  who  had  been  at  war 
for  almost  half  a  century  joined  hands  at  the  White  House  with 
President  Clinton  in  a  symbolic  culmination  of  months  of  secret 
negotiations. 

I  recall  this  day  as  though  it  was  only  yesterday.   I 
remember  sitting  on  the  White  House  lawn  feeling  tremendous  joy 
in  the  hope  that  I  was  observing  the  end  of  decades  of  war  and 
terror . 

Today,  I  look  back  with  the  awareness  that  much  of  the 
initial  excitement  —  a  sense  of  hope  which  surrounded  the 
signing  of  the  Declaration  of  Principles  —  has  dissipated 
considerably.   Terror  has  returned  as  those  trying  to  destroy  the 
peace  process  strive  to  turn  public  opinion  against  it  with  acts 
of  random  violence. 

Let  me  be  absolutely  clear:   I  fully  support  the  Middle  East 

1 


140 


peace  process.   I  have  no  greater  desire  than  to  see  the  conflict 
between  Israel  and  the  Arab  world  consigned  permanently  to  the 
pages  of  history.   Moreover,  I  am  proud  that  the  United  States 
has  offered  its  ample  resources  —  diplomatic,  technical,  and 
financial  —  to  help  move  the  negotiations  along.   In  short,  we 
must  do  everything  possible  to  help  the  negotiations  succeed. 

Nevertheless,  our  support  cannot  not  unconditional.   I 
firmly  believe  that  the  parties  must  live  up  to  their  sides  of 
the  bargain  and  that  we  must  always  be  mindful  of  the  sordid 
history  of  the  PLO  —  a  track  record  of  some  of  the  most  heinous 
acts  of  terror  committed  during  the  1970s  and  1980s. 

Prior  to  signing  the  Declaration  of  Principles,  Israeli 
Prime  Minister  Yitzhak  Rabin  and  PLO  Chairman  Yasir  Arafat 
exchanged  several  commitments  —  solemn  bilateral  duties  to 
underpin  the  peace  process.   In  exchange  for  Israel's  recognition 
of  the  PLO,  Yassir  Arafat  committed  his  organization  to: 

*  Recognize  Israel's  right  to  exist  in  peace  and  security; 

*  Accept  U.N.  Security  Council  Resolutions  242  and  338; 

*  Renounce  the  use  of  terrorism  and  violence; 

*  Assume  responsibility  over  all  PLO  elements  in  order  to 
prevent  and  punish  acts  of  terrorism  or  violence; 

*  Call  upon  Palestinians  to  oppose  violence  and  terrorism; 

*  Submit  to  the  Palestine  National  Council  changes  to  the 
Palestinian  National  Covenant  eliminating  calls  for  Israel's 
destruction;  and 

*  Implement  in  good  faith  the  Declaration  of  Principles. 

With  the  signing  of  the  Gaza-Jericho  Agreement  in  Cairo  last 
year,  Israel  and  the  PLO  made  specific  several  of  the  security- 
related  commitments  undertaken  on  the  White  House  lawn.   In 
particular,  it  is  now  clear  that  the  PLO  must  transfer  suspects 
requested  by  Israeli  authorities,  confiscate  illegal  weapons, 

2 


141 


exclude  terrorists  from  security  services,  and  avoid  the  type  of 
vitriolic  rhetoric  which  only  tends  to  incite  violence. 

The  PLO's  record  in  complying  with  its  commitments  is  mixed, 
at  best.   On  the  positive  side,  Yasir  Arafat  has  recognized 
Israel  and  accepted  Security  Council  Resolutions  242  and  338. 
Many  news  reports  also  indicate  that  it  has  finally  begun  to 
crack  down  on  terrorists. 

Nevertheless,  it  has  demonstrated  significant  disregard  for 
many  of  the  other  the  obligations  to  which  it  has  committed 
itself.   Terrorism  has  been  rhetorically  denounced,  yet 
individual  acts  of  terror  have  gone  uncondemned.   And,  even  when 
Yasir  Arafat  speaks  out  in  English,  eguivalent  words  in  Arabic  — 
to  those  who  most  need  to  hear  —  go  unspoken. 

And  this  is  not  all.   The  following  items  represent  some  of 
the  more  significant  violations  of  very  specific  legal 
obligations  contained  in  the  peace  accords: 

*  Sections  of  the  PLO  Covenant  calling  for  Israel's 
destruction  have  yet  to  be  removed; 

*  Calls  for  Jihad  by  Yasir  Arafat  continue; 

*  The  ban  on  unlicensed  weapons  goes  unenforced; 

*  Suspected  terrorists  have  not  been  transferred 
yto  Israel;  and 

*  The  Palestinian  Authority  continues  to  locate  its 
institutions  in  Jerusalem. 

Mr.  Chairman,  no  nation  has  been  more  engaged  in  the  effort 

to  move  the  peace  process  forward  than  the  United  States.   Not 

only  was  the  historic  document  signed  on  the  lawn  of  the  White 

House,  but  no  other  nation  pledged  $500  million  over  5  years  in 

an  attempt  to  end  the  historic  conflict  —  not  even  the  wealthy 

Arab  states  of  the  Persian  Gulf  who  have  the  most  to  gain  by  the 

3 


142 


end  of  hostilities.   I  am  proud  of  our  involvement. 

But,  the  PLO  should  be  clear  that  American  generosity  is  not 
unlimited.   America  must  hold  Yasir  Arafat's  feet  to  the  fire  and 
demand  that  he  and  the  Palestinian  Authority  live  up  to  their 
obligations.   Yasir  Arafat  and  the  PLO  must  learn:   Peace  is  the 
only  course. 

The  bottom  line  for  me  is  this:   If  Arafat  and  the  PLO 
comply  with  their  commitments,  then  U.S.  money  should  continue  to 
flow.   If  they  don't,  then  they  will  be  to  blame  for  the 
destruction  of  peace.   The  Agreements,  themselves,  set  realistic 
thresholds  to  which  both  sides  must  comply  —  thresholds  which 
can  be  met  by  the  Palestinians  if  they  want  to  meet  them. 
Therefore,  whether  U.S.  dollars  continue  to  flow  depends  on  their 
actions. 

Current  law,  the  expiring  Middle  East  Peace  Facilitation  Act 
has  been  a  useful  tool.   It  established  the  principle  of  linkage 
between  PLO  commitments  compliance  and  the  provision  of  U.S.  aid. 
But,  circumstances  have  changed  and  the  U.S.  legal  framework  must 
adjust  with  them. 

I  have,  therefore,  introduced,  H.R.  1930,  the  "Middle  East 
Peace  Compliance  and  PLO  Accountability  Act  of  1995"  to  tighten 
the  conditions  to  which  the  U.S.  holds  the  Palestinians.   To 
date,  this  bill  has  garnered  20  bipartisan  cosponsors,  including 
my  good  friends  Jim  Saxton  and  Peter  Deutsch.   I  ask  unanimous 
consent  that  the  text  of  H.R.  1930  be  printed  in  the  record  at 
the  conclusion  of  my  testimony.   In  particular,  this  bill: 


143 


*  Holds  the  PLO  to  its  own  commitments,  including  the  post- 
MEPFA  Gaza  Jericho  Agreement  of  1994. 

*  Imposes  a  dollar-f or-dollar  deduction  for  misspent  funds  — 
a  provision  not  incorporated  in  the  Senate's  Helms-Pell 
MEPFA  bill. 

*  Permits  funding  only  through  multilateral  institutions  which 
are  transparent  and  open  to  outside  audits. 

*  Begins  the  process  of  accounting  for  past  PLO  terrorism. 

Mr.  Chairman,  without  today's  session,  the  International 
Relations  Committee  would  have  held  not  one  hearing  this  year 
focusing  on  negotiations  between  Israel  and  the  PLO.   I  commend 
the  Chairman  for  the  opportunity  to  delve  into  these  important 
issues. 

However,  we  are  all  aware  that  only  10  days  from  now,  the 
Middle  East  Peace  Facilitation  Act  expires.   We  cannot  continue 
the  terribly  flawed  process  of  passing  45-day  extensions  of  this 
law.   Congress  must  not  micro-manage  U.S.  foreign  policy  by 
enacting  short-term,  stop-gap  measures.   It  is  Congress' 
constitutional  role  to  carefully  consider  legislation  which  sets 
general  policy  for  the  executive  branch.   While  hearings  are 
valuable,  this  constitutional  requirement  mandates  that  our 
Committee  schedule  a  mark-up  to  write  legislation  to  replace  the 
expiring  MEPFA.   I  hope  that  my  bill,  H.R.  1930,  will  serve  as 
the  underlying  mark-up  vehicle. 

Once  again,  Mr.  Chairman,  I  support  the  peace  process  and 
want  nothing  more  than  to  see  it  succeed.   But  I  must  reiterate 
my  bottom  line:   If  Arafat  and  the  PLO  comply  with  their 
commitments,  then  I  will  support  continued  U.S.  aid.   If  they 
don't,  then  the  failure  of  the  peace  process  will  rest  on  their 
doorstep. 

5 


144 


TESTIMONY  BEFORE  THE  INTERNATIONAL  RELATIONS  COMMITTEE 

THE  MIDDLE  EAST  PEACE  PROCESS 

SEPTEMBER  20,  1995 

THE  HONORABLE  TOM  DeLAY 


Mr.  Chairman,  members  of  the  Committee,  colleagues,  and  friends,  it  is  a 
privilege  to  come  before  you  today  to  address  a  subject  of  vital  importance  to  American 
national  interest  and  to  me  personally.  I  recently  returned  from  a  visit  to  Israel  where  I 
was  struck  by  the  intensity  that  surrounds  the  debate  over  the  Middle  East  peace 
process.  While  I  have  impressions  and  opinions  about  a  number  of  different  issues 
related  to  the  peace  process,  the  one  I  would  like  to  focus  on  today  is  the  failure  of  the 
Palestine  Liberation  Organization  (PLO)  to  live  up  to  the  solemn  commitments  to  which 
it  agreed  when  it  signed  the  Declaration  of  Principles  (DoP)  with  Israel  on  the  White 
House  lawn  on  January  13,  1993. 

It  has  now  been  over  two  years  since  that  historic  day,  a  day  on  which  the  PLO 
and  its  leader,  Yasir  Arafat,  agreed  to  be  held  accountable  for  its  actions  by  the 
international  community  in  exchange  for  territorial  and  administrative  concessions  by 
the  government  of  Israel. 

As  witness  to  the  accord,  the  United  States  pledged  its  political,  financial  and 
moral  support  to  the  peace  effort,  making  clear  that  it  expected  the  PLO  to  transform 
itself  from  a  terrorist  organization  to  a  lawful  administrative  entity  to  be  known  as  the 
Palestinian  Authority  (PA).  The  U.S.  pledged  the  sum  of  $500  million  over  five  years 
to  the  PLO  to  assist  the  Palestinians  living  in  areas  controlled  by  the  PA  with  their 
development  efforts. 

What  we  have  seen  over  the  last  two  years  has  been  a  grave  disappointment.  Not 
only  has  the  PLO  been  in  stark  violation  of  its  commitments  under  the  DoP,  but  it  has 
failed  to  live  up  to  most  of  its  pledges  to  the  President  and  the  Vice-President. 

The  PLO  has  failed  to  prevent  terrorism  emanating  from  the  territory  it  controls 
and  has  shown  little  inclination  to  prosecute  known  terrorists  or  to  extradite  those 
individuals  allegedly  responsible  for  criminal  acts  inside  Israel. 

As  recent  video  tapes  of  Yasir  Arafat  clearly  demonstrate,  he  continues  to  exhort 
his  people  to  violence  against  Israel  and  advocates  a  Jihad  (or  holy  war)  to  regain 
Jerusalem.  In  fact,  since  the  most  recent  bus  bombing  in  Jerusalem,  all  Arafat  has  done 
in  response  is  to  issue  a  statement  condemning  those  who  committed  this  heinous  act.  It 
is  the  Israeli  government  that  has  acted  to  round  up  the  guilty  parties  and  punish  them. 

Even  as  we  speak,  Arafat  is  building  up  a  para-military  force  in  Gaza  nearly 
three  times  what  was  permitted  under  the  DoP,  replete  with  automatic  weapons,  a 
modern  security  apparatus  and  reportedly,  shoulder  fired  surface-to-air  missiles. 


145 


Mr.  Chairman,  as  a  representative  of  the  American  people  and  a  strong  supporter 
of  Israel,  I  cannot  sit  by  and  hope  that  the  PLO  will  suddenly  decide  to  abide  by  the 
commitments  it  made  two  years  ago.  I  feel  it  is  my  duty  to  cry  foul  when  I  believe  the 
American  people  are  being  had  and  our  national  interest  is  at  stake.  What  we  have  seen 
over  the  last  two  years  is  simply  unacceptable. 

The  Administration  has  mounted  a  full  court  press  to  persuade  Congress  and  the 
world  community  that  the  PLO  remains  committed  to  the  peace  agreement  even  when 
their  violations  are  numerous.  As  a  result,  the  PLO  has  learned  that  there  are  no 
sanctions  for  violating  their  agreements.  Indeed,  they  can  feel  free  to  plot  and  strategize 
the  elimination  of  Israel  with  no  fear  of  financial,  not  to  mention  political, 
repercussions. 

Mr.  Chairman,  this  is  why  I  have  agreed  to  cosponsor  H.R.  1960,  the  Middle 
East  Peace  Compliance  Act  of  1995,  a  bill  introduced  by  the  distinguished 
representative  from  New  York,  Michael  Forbes.  The  identical  bill  has  been  introduced 
in  the  Senate  as  S.915  by  Senator  D'Amato. 

In  essence,  the  bill  says  that  should  the  PLO  demonstrate  "substantial,  material 
and  timely"  compliance  with  its  commitments  under  the  DoP  as  well  as  with  certain 
requirements  under  U.S.  law,  then  the  President  is  authorized  to  transfer  funds  to 
Palestinian  institutions  and  activities  directly,  and  not  through  the  PLO  or  the  PA.  The 
reason  for  this  is  to  ensure  that  the  funds  reach  the  people  for  whom  it  is  intended. 

Further,  the  PLO  would  be  required  to  assist  U.S.  law  enforcement  agencies  in 
the  apprehension  and  prosecution  of  any  member  of  that  organization  responsible  for 
the  killing  of  an  American  citizen.  This  is  only  just.  The  American  taxpayer  should  not 
be  asked  to  bankroll  any  individual  with  American  blood  on  their  hands. 

I  understand  the  Administration  is  supporting  an  amendment  to  the  Senate  FY 
1996  Foreign  Operations  Appropriations  Act  which  would  authorize  the  President  to 
fund  the  PLO  unconstrained  by  real  congressional  oversight  for  an  astonishing  18 
months  ~  a  period  lasting  through  the  next  election  with  little  outside  scrutiny  of  this 
most  contentious  policy. 

Strikingly,  most  of  the  requirements  placed  on  the  PLO  are  contained  in  a  non- 
binding  "Sense  of  Congress"  section  of  the  bill  which  is  completely  unenforceable. 
Additionally,  the  requirements  wouldn't  even  kick  in  for  the  first  six  months! 


146 


I  have  serious  concerns  about  such  an  amendment  being  attached  to  the  Foreign 
Operations  Appropriations  bill.  Rather,  it  is  vital  that  this  issue  be  considered  before 
the  whole  House  so  that  public  debate  can  take  place.  Mr.  Chairman,  in  this  vein,  I 
would  like  to  formally  request  that  this  Committee  hold  hearings  on  H.R.  1960,  conduct 
a  markup,  and  report  the  bill  out  for  consideration  by  the  full  House  of  Representatives. 
Open  debate  on  this  issue  is  long  overdue. 

Let  there  be  no  mistake  about  my  position.  I  support  peace  as  fervently  as  any 
man  or  woman  in  this  chamber.  What  I  object  to  is  the  process  for  obtaining  peace 
which  requires  that  we  turn  our  backs  on  our  core  national  values  and  our  responsibility 
as  guardians  of  the  public  purse. 

It  is  the  duty  of  the  Congress,  indeed  this  committee,  to  demand  accountability 
of  the  PLO,  not  only  for  the  money  we  have  provided  it,  but  also  for  the  estimated  $10- 
$12  billion  which  it  has  reportedly  stashed  away  in  bank  accounts  around  the  world. 
Popular  reports  suggest  that  a  recent  General  Accounting  Office  investigation  into  PLO 
finances  merely  confirms  our  worst  suspicions  about  the  PLO's  cash-rich  posture. 
Unfortunately,  as  you  may  know,  the  CIA  has  classified  this  report. 

I  call  upon  the  Administration  to  come  clean  with  the  American  public  and 
immediately  declassify  this  report.  It's  long  overdue. 

This  is  not,  I  repeat  not,  an  issue  of  whether  the  United  States  will  continue  to 
support  the  Israeli  people  in  their  quest  for  peace.  Nor  is  it  a  question  of  our  obligation 
to  assist  in  whatever  way  we  can  in  the  attainment  of  peace  and  security  in  the  region. 

Quite  to  the  contrary,  it  is  a  question  of  the  responsibility  of  this  Congress  to 
ensure  that  our  national  resources  are  used  to  further  our  national  interests.  There  can 
be  no  lasting  peace  without  accountability.  If  the  PLO  is  not  a  true  partner  in  peace  it 
does  not  deserve  the  goodwill  of  the  American  people. 

In  conclusion,  Mr.  Chairman,  I  have  a  deep  and  abiding  faith  in  the  strength  and 
endurance  of  both  Israeli  and  American  democracy.  I  believe  that  the  relationship  our 
two  countries  share  is  as  strong  and  inviolate  as  any  in  the  history  of  the  world.  We 
would  not  be  doing  our  duty  as  friend  and  ally  if  we  did  not  raise  these  very  pressing 
concerns. 

Only  the  people  of  Israel  have  the  right  to  determine  the  course  of  their  own 
future.  It  is  our  job  to  see  to  it  that  when  the  history  of  this  extraordinary  period  is 
written,  we,  the  people  of  the  United  States,  have  not  set  aside  our  values,  or  standards, 
or  our  requirements  under  law  to  support  a  myth,  not  a  fact. 

Thank  you. 


147 


HOUSE  OF  REPRESENTATIVES 
WASHINGTON.  DC  20515 

(202)  225-2601  SUBCOMMITTEE  ON  ASIAAND  THE  PACIFIC 

218  14  NORTHERN  BOULEVARD  (^flfp    H.    JkUCntltlll 


BAYSIDE.  NY  11361 

(718)423-2154 
229  MAIN  STREET 


Congress  of  tfje  Untteo  States 


HUNTINGTON    NY  11743  ^Hl    JBlfffrift      #)p)n     f)nrb  SUBCOMMITTEE  ON  CAPITAL  MARKETS 

(516)423-2154  DIIJ   01811111,  JzEUJ    «?UrB  SECURITIES  AND  GOVERNMENT 

SPONSORED  ENTERPRISES 
DEMOCRATIC  STEERING  COMMITTEE 
STATEMENT    FOR   THE    RECORD 
HIRC    HEARING   ON   THE   MIDEAST    PEACE    PROCESS 
SEPTEMBER    20,     1995 

GARY  L.  ACKERMAN  (D-NY) 

Thank  you  Mr.  Chairman.   I  would  like  to  commend  you  for  holding 
this  very  vital  hearing  on  the  peace  process.   It  is  imperative  that  we 
hear  as  many  voices  as  possible,  particularly  at  this  crucial  stage  in 
the  process.   We  need  to  make  extremely  important  decisions  relating  to 
its  survival,  and  you  have  done  a  superior  job  in  gathering  people  whose 
views  run  the  gamut.   I  certainly  want  to  welcome  our  many  distinguished 
panels,  and  thank  them  for  taking  the  time  to  express  their  thoughts  to 
us . 

This  is  undeniably  a  very  emotional  issue  for  all  sides  involved. 
In  fact,  the  contention  surrounding  the  subject  of  "peace  in  the  Middle 
East,"  has  very  nearly  split  the  American  Jewish  community  wide  open. 
However,  a  very  important  part  of  this  process  is  dialogue,  and  that  is 
precisely  what  we  are  here  for  today. 

However,  I  think  it  necessary  to  make  a  general  plea  to  all  those 
involved.   While  we  are  debating  and  sharing  and  hashing  out,  I  think  we 
need  to  be  careful  not  to  let  our  debate  overshadow  the  actual  issue  of 
peace- - "peace  in  our  time,"  so  to  speak.   In  other  words,  the  current 
climate  in  relations  between  Israel,  her  neighbors  and  the  Palestinians, 
presents  our  best  chance  to  hammer  out  a  comprehensive  and  lasting 
peace.   We  absolutely  can  not  let  that  opportunity  slip  from  our  grasp. 
At  the  same  time,  I  sympathize  with  the  many  concerns  that  people  have, 
and  understand  the  need  for  caution  in  some  respects.   But  I  think  the 
bottom  line  is  this:  do  these  people,  Arabs  and  Jews  alike,  deserve 
peace?  And  I  think  the  answer  is,  yes,  they  absolutely  do. 

For  the  last  few  years  the  world  has  been  sort  of  sailing  in 
uncharted  waters.   New  countries  have  sprouted  up  where  none  had  been 
before,  and  other  nations  have  changed  their  economies  and  governments 
practically  overnight.   The  sum  of  all  this  change  has  been  conflict  and 
upheaval  in  many  parts  of  the  world.   And  although  those  images  have 
been  synonymous  with  the  Mideast  for  many  years,  this  region  has  a 
genuine  opportunity  to  finally  buck  that  trend  and  begin  anew. 

We  are  standing  at  a  critical  juncture  where,  if  we  turn  our  backs 
on  it  now,  we  may  never  again  experience  an  opportunity  of  this 
magnitude.   I  believe  therefore  that  it  is  our  responsibility  as 
Americans,  no  matter  our  background- -simply  as  humans- -to  help  fulfill 
this  opportunity.  Otherwise,  I  daresay  we  will  carry  this  burden  all  of 
our  lives. 


148 


United  Stales  General  Accounting  Office 


GAO 


Testimony 

Before  the  Committee  on  International  Relations 
House  of  Representatives 


For  Release 
on  Delivery 
Expected  at 
10:00  a.m.  EDT 
Wednesday 
September  20.  1995 


FOREIGN  AFFAIRS 

Scope  of  Our  Review  of 
Palestine  Liberation 
Organization  Finances 


Statement  of  Joseph  E.  Kelley,  Director-in-Charge, 
International  Affairs  Issues,  National  Security  and  International 
Affairs  Division 


GAO/T-NSIAD-95-227 


149 


Mr.  Chairman  and  Members  of  the  Committee: 

I  am  here  today  to  discuss  the  audit  work  that  supports  our 
recently  issued  classified  report  on  the  Palestine  Liberation 
Organization's  (PLO)  finances.   I  will  also  discuss  the  principal 
cooperation  issues  we  dealt  with  on  this  assignment.   Finally,  I 
will  discuss  our  efforts  to  have  this  report  declassified  in 
response  to  requests  from  the  Chairman  and  several  other  Members  of 
Congress.   Before  turning  to  these  topics,  let  me  briefly  provide 
some  background  information  on  why  we  did  this  job  and  what  the 
audit  objectives  on  this  assignment  were. 

AUDIT  OBJECTIVES 

In  a  letter  dated  May  31,  1994,  you  requested  that  we  review  the 
PLCs  finances  in  connection  with  the  decision  by  the  United  States 
to  help  fund  long-term  development  projects  in  the  West  Bank  and 
Gaza  Strip.   These  funds  were  pledged  after  the  government  of 
Israel  and  the  PLO  signed  the  Declaration  of  Principles  on 
September  13,  1993. 

Based  on  discussions  with  Committee  staff  members,  we  agreed  to  (1) 
assess  the  PLO's  ability  to  help  finance  the  operations  of  the 
Palestinian  Authority  (the  organization  established  to  implement 
self-rule),  (2)  ascertain  whether  the  international  donors 
effectively  analyzed  the  need  to  help  fund  the  Palestinian 
Authority's  operating  and  start-up  expenses,  and  (3)  determine 


150 


whether  appropriate  controls  have  been  implemented  to  ensure  that 
donor  funds  will  be  adequately  accounted  for. 

AUDIT  WORK  PERFORMED 

The  starting  point  for  our  review  was  an  attempt  to  obtain 
financial  information  directly  from  the  PLO .   The  PLO  told  us  to 
provide  written  questions  on  the  information  we  required  and  then 
declined  to  respond  to  them.   The  PLO  also  chose  not  to  respond  to 
our  written  request  for  meetings  with  PLO  and  Palestinian  Authority 
officials  in  the  self-rule  territories.   However,  in  the  Gaza 
Strip,  we  were  able  to  meet  with  a  senior  Palestinian  Authority 
official . 

In  Washington,  D.C.,  we  interviewed  Palestinian  affairs  experts  and 
program  officials  from  the  State  Department,  U.S.  Agency  for 
International  Development,  Overseas  Private  Investment  Corporation, 
the  Department  of  Treasury  (Office  of  Foreign  Assets  Control  and 
the  Financial  Crimes  Enforcement  Network) ,  Drug  Enforcement 
Administration,  and  the  World  Bank.   We  also  conducted  fieldwork  in 
London,  Tel  Aviv,  and  Jerusalem  and  interviewed  officials  from  the 
State  Department,  U.S.  Agency  for  International  Development,  Drug 
Enforcement  Administration,  World  Bank,  United  Nations  Relief  and 
Works  Agency,  nongovernmental  organizations,  and  private  industry 
in  these  locations.   We  also  met  with  a  number  of  private 
researchers  who  have  studied  and  written  about  the  PLO's  finances. 


151 


We  reviewed  relevant  State  Department  cable  traffic  from  January 
1990  through  February  1995.   We  also  conducted  a  detailed  search  of 
public  articles  and  books  on  the  PLO.   We  developed  a  list  of 
potential  PLO  agents  and  operatives  using  a  number  of 
sources.   We  gave  this  list  to  Treasury's  Financial  Crimes 
Enforcement  Network,  which  searched  its  databases  to  identify  the 
personal  or  corporate  assets  of  these  individuals .   In 
collaboration  with  Treasury's  Financial  Crimes  Enforcement  Network, 
we  attempted  to  verify  media  reports  of  specific  assets  alleged  to 
be  held  or  controlled  by  the  PLO. 

We  developed  a  data  collection  instrument  to  collect  a  wide  variety 
of  financial  and  operational  data  on  the  PLO.   We  analyzed 
responses  to  this  data  collection  instrument  from  U.S.  embassies  in 
13  Middle  Eastern  States  and  5  European  countries.   We  also 
received  information  from  U.S.  embassies  in  one  Latin  American 
country  and  three  African  countries  addressing  public  allegations 
that  the  PLO  owned  duty-free  shops  in  these  locations. 

We  met  with  U.S.  intelligence  experts  from  (1)  State's  Intelligence 
and  Research  Bureau,  (2)  the  Central  Intelligence  Agency  (CIA),  (3) 
the  Defense  Intelligence  Agency,  and  (4)  the  National  Security 
Agency.  British  intelligence  officials  declined  our  request  for 
meetings  on  the  basis  that  they  had  no  useful  information  to  share. 
However,  we  were  able  to  interview  a  senior  official  from  Britain's 
National  Criminal  Intelligence  Service  to  discuss  a  February  1994 


152 


estimate  that  the  PLO  had  $8  billion  to  $10  billion  in  assets  and 
an  annual  income  of  $1.5  billion  to  $2  billion.   Citing  the 
confidential  nature  of  his  sources,  the  author  of  this  statement 
declined  to  provide  us  with  any  data  or  documentation  to  support 
this  claim. 

COOPERATION  ISSUES 

As  detailed  above,  we  met  with  or  attempted  to  meet  with  officials 
from  a  wide  range  of  federal  agencies.   In  general,  we  received 
good  cooperation  from  these  agencies.   We  did  encounter  some 
limited  access  to  records  and  cooperation  problems  at  the  State 
Department,  CIA,  and  the  Federal  Bureau  of  Investigation  (FBI). 
With  regards  to  the  State  Department  and  CIA,  the  problems  we 
experienced  did  not  materially  affect  our  final  report  message  or 
conclusions.   We  do  not  know  whether  the  FBI  had  any  valuable 
information  to  share  with  GAO  since  the  Bureau  informed  us  that  its 
review  of  our  questions  determined  that  either  the  information  was 
not  available  or  could  not  be  discussed  due  to  its  sensitive 
nature . 

At  the  State  Department,  we  encountered  a  few  problems  gaining 
access  to  pertinent  records  or  getting  State's  cooperation  with  our 
review.   Most  of  these  issues  were  resolved  by  working  with  members 
of  your  staff  and  the  State  Department.   We  encountered  the 
following  difficulties: 


153 


State  initially  withheld  several  cables  we  requested, 
saying  that  they  were  "deliberative  in  nature"  because  they 
represented  personal  opinions,  options  analyses,  and  pre- 
policy  dialogue.   A  number  of  these  cables  were  later 
released  to  us  after  your  staff  intervened  with  State 
officials . 

State  was  unwilling  to  contact  host  government  officials  on 
our  behalf  to  administer  a  data  collection  instrument  we 
developed  to  obtain  a  wide  variety  of  information  on  the 
PLCs  finances.   State  cited  (1)  the  sensitive  nature  of 
such  contacts  and  (2)  the  possibility  that  host  officials 
might  misinterpret  State's  involvement  in  our  study  as  a 
weakening  in  U.S.  resolve  to  fully  support  the  peace  accord 
between  the  PLO  and  Israel.   As  an  alternative,  State 
agreed  that  embassy  staff  could  review  pertinent  files  to 
see  whether  any  of  the  data  we  requested  could  be  obtained 
from  internal  records . 

Officials  from  State's  Intelligence  and  Research  Bureau 
told  us  that  one  of  their  analysts  had  prepared  a  critique 
of  an  intelligence  estimate  of  the  PLO's  assets,  but  could 
not  confirm  whether  the  critique  was  in  writing  or  not. 
According  to  the  analyst  who  prepared  the  critique,  a 
written  memorandum  about  the  critique  had  been  prepared  and 
forwarded  to  the  Special  Middle  East  Coordinator.   The 


154 


Coordinator  said  he  "vaguely"  remembered  reading  the 
memorandum  and  referred  us  to  his  staff  to  obtain  a  copy. 
His  staff,  however,  was  unable  to  locate  a  copy  of  the 
memorandum  or  confirm  its  existence. 

Initially,  CIA  officials  were  unwilling  to  cooperate  with  us  or 
share  available  intelligence  data  about  the  PLO.   As  you  know, 
Agency  officials  provided  us  with  two  background  briefings  on  the 
PLO  only  after  you  asked  the  CIA  to  cooperate  fully  with  us  on  our 
review.   CIA  declined  to  facilitate  contacts  with  foreign 
governments . 

The  State  Department  in  April  1995  agreed  to  relay  questions  we  had 
on  PLO  finances  to  the  Israeli  government  through  the  U.S.  embassy 
in  Tel  Aviv.   A  State  Department  official  confirmed  that  the 
embassy  had  passed  our  questions  to  the  Israelis,  but  that  a 
response  had  not  yet  been  received. 

EFFORTS  TO  DECLASSIFY  THE  REPORT 

In  a  letter  dated  July  17,  1995,  Chairman  Gilman  requested  that  we 
take  the  necessary  steps  to  have  our  classified  report  on  the  PLCs 
finances  declassified  to  facilitate  increasing  public  discussion  of 
the  topic.   This  request  was  followed  by  a  letter  on  July  19,  1995, 
from  Representative  Jim  Saxton,  who  also  called  for  our  report  to 
be  declassified.   On  July  25,  1995,  we  received  a  third  letter 


155 


signed  by  Representative  Saxton  and  five  other  Members  of  Congress 
calling  for  our  report  to  be  declasssif ied. 

I  should  point  out  that  GAO  generates  classified  information 
derivatively- -that  is,  the  information  we  use  in  GAO-produced 
documents  carries  the  classification  of  the  originating  source. 
GAO  does  not  have  the  authority  to  declassify  or  downgrade 
classified  information;  this  authority  is  vested  solely  with 
authorized  executive  branch  officials.   When  there  is  a  perceived 
need  to  downgrade  or  declassify  information,  the  originating 
agency's  concurrence  must  be  obtained. 

In  letters  dated  July  25  and  July  28,  1995,  we  informed  the  CIA  and 
State  Department,  respectively,  that  the  Chairman  had  asked  that 
our  report  on  the  PLO's  finances  be  declassified  for  the  reasons 
cited  in  the  Chairman's  letter.   We  asked  both  the  CIA  and  State  to 
consider  the  Chairman's  request  with  respect  to  the  classified  data 
they  provided  to  us . 


156 

In  a  letter  to  GAO  dated  September  5,  1995,  the  CIA  responded  that 
with  certain  minor  exceptions,  none  of  the  CIA  material  used  in  our 
report  could  be  declassified.   The  State  Department  has  not  yet 
responded  to  our  declassification  request. 


Mr.  Chairman,  this  concludes  my  testimony. 


(711159) 


157 


Testimony  Presented  to  the 

International  Relations  Committee  of  the 

House  of  Representatives 


Submitted  by  Daniel  Polisar 
Director  of  Peace  Watch 


Hearings  on  the  Middle  East  Peace  Process 
September  20, 1995 


158 


I  am  Daniel  Polisar,  the  director  of  Peace  Watch,  a  non-partisan 
monitoring  prganization  based  in  Jerusalem.  Peace  Watch  examines  and 
reports  on  the  compliance  of  all  parties  with  accords  signed  between  Israel 
and  its  Arab  neighbors — to  date,  Egypt,  the  PLO,  and  Jordan.  Our  board  of 
directors  includes  Israelis  from  the  full  range  of  the  political  spectrum,  left  to 
right,  who  are  united  by  a  belief  that  scrupulous  mutual  compliance  is  an 
essential  ingredient  to  the  success  of  the  peace  process. 

In  my  testimony,  I  would  like  to  focus  on  some  of  our  key  findings 
concerning  compliance  with  the  Israel-PLO  accords,  starting  with  the 
Declaration  of  Principles  (DOP),  signed  here  in  Washington  on  September  13, 
1993.  Though  this  testimony  is  meant  to  survey  the  whole  two-year  period, 
the  emphasis  is  on  the  16  months  which  have  elapsed  since  mid-May  1994, 
when  the  PLO  received  control  over  the  Gaza  Strip  and  the  Jericho  Area.  At 
that  time,  the  obligations  on  both  sides  became  more  numerous,  complex, 
and  difficult — and  consequently  compliance  became  that  much  more 
important. 

A  starting  point  for  this  discussion  has  to  be  a  working  understanding 
of  what  compliance  is  and  how  one  measures  and  reports  on  it.  For  us  at 
Peace  Watch,  there  is  only  one  way  to  look  at  compliance:  How  does  each 
side's  behavior  compare  to  the  commitments  they  took  upon  themselves  in 
the  signed,  legal  agreements?  This  point  is  worth  mentioning  because  there  is 
a  tendency,  for  example  in  State  Department  reports  on  PLO  compliance,  to 
focus  on  improvement  in  compliance  rather  than  compliance  itself.  In  the 
State  Department's  June  1,  1995  report,  for  example,  there  are  few  attempts  to 
compare  behavior  to  specific  obligations.  Rather,  the  approach  seemed  to  be  to 
note  the  areas  in  which  the  PLO's  behavior  could  be  seen  as  generally  better 
than  during  the  prior,  six-month  period.  This  approach  does  yield  some 
interesting  and  important  findings  about  trends,  but  a  mapping  of  changes 
without  reference  to  a  fixed,  objective  standard,  grounded  in  the  accords, 
cannot  be  said  to  give  one  a  grasp  on  .ompliance. 

A  second  mistake  in  reporting  on  compliance,  which  is  likewise  found 
in  the  State  Department's  report,  is  the  substitution  of  the  parties' 
assessments  of  one  another  for  an  actual  analysis  of  the  relationship  between 
obligations  and  behavior.  This  mistake  can  lead  one  to  be  overly  harsh,  or 
overly  lenient.  There  have  been,  for  example,  a  number  of  cases  in  which 
Israeli  Government  leaders  have  demanded  more  of  the  PLO  than  the  accords 
dictated — handing  over  for  trial  in  Israel  individuals  whom  Israel  had  not  yet 
requested  formally,  for  example.  Likewise,  there  have  been  cases  in  which 
Israeli  leaders  have  held  the  PLO  to  standards  below  what  the  accords  spell 
out — on  human  rights,  for  example,  which  according  to  the  Gaza-Jericho 
accords  must  be  fully  maintained  in  accordance  with  international  norms.  If 
we  want  to  take  our  monitoring  of  compliance  seriously  as  third  parties — 


159 


Peace  Watch  or  the  U.S.  Congress — we  have  to  look  at  how  behavior  squares 
with  obligation,  rather  than  at  what  the  sides  think  of  one  another's  actions. 

It  is  not  our  mandate  at  Peace  Watch  to  give  out  overall  marks  for  each 
side's  compliance,  or  to  judge  who  has  passed  and  who  has  failed.  We  prefer 
to  look  at  compliance  category  by  category,  to  point  out  what  has  gone  right, 
so  accomplishments  can  be  noted,  and  to  identify  problems  which  need  to  be 
corrected.  In  what  follows,  I  want  to  look  at  several  areas  which  are 
particularly  worthy  of  attention. 

I  want  to  begin  with  a  brief  survey  of  Israel's  record,  though  I  assume 
that  this  committee  is  more  interested  in  PLO  compliance,  inasmuch  as  there 
is  legislation  on  the  books  setting  standards  for  the  PLO's  behavior.  Fairness 
dictates  that  we  look  at  both  sides;  it  is  also  necessary  to  put  PLO  compliance 
in  its  proper  context  by  first  examining  what  Israel  has  and  has  not  done. 

Israel  and  the  PLO  signed  the  detailed  accords  creating  a  Palestinian 
Authority  (PA)  and  giving  it  wide-ranging  powers  in  the  Gaza  Strip  and  the 
Jericho  Area  on  May  4,  1994.  Israel  complied  with  its  most  significant 
obligation  in  these  accords,  which  was  to  turn  over  control  of  these  areas  to 
the  PA.  With  a  few  exceptions,  Israel  has  kept  its  troops  out  of  those  places 
where  the  accords  forbid  them  to  reenter,  and  has  likewise  honored  the 
divisions  of  authority  between  the  two  sides  in  civil  matters. 

Israel's  problematic  behavior  has  been  principally  in  two  areas.  One  has 
been  in  the  economic  sphere.  At  various  times  Israel  has  limited  exports  from 
Gaza,  especially  of  agricultural  products,  in  contradiction  to  what  the  two 
sides  had  agreed  in  their  economic  protocols.  Israel  has  also,  for  security 
reasons,  barred  or  limited  Palestinians  from  Gaza  and  the  West  Bank  who 
sought  to  work  in  Israel.  While  the  accords  give  Israel  the  right  to  use 
temporary  closures  for  security  purposes,  Israel's  constant  use  of  this 
measure,  including  as  part  of  a  stated  policy  of  "separation,"  has  probably 
exceeded  what  is  legitimate  within  the  framework  of  the  accords. 

The  second  problem  with  Israeli  compliance  was  that,  during  a  period 
of  several  months  in  late  1994  and  early  1995,  Israel  deliberately  slowed  the 
pace  of  negotiations  on  redeployment  in  the  West  Bank,  despite  the  fact  that 
the  two  sides  were  already  well  beyond  the  deadlines  set  by  the  DOP.  Israel's 
position  was  politically  understandable,  in  that  fatal  terror  attacks  against  its 
civilians  had  set  a  post-1967  record,  and  were  causing  grave  concerns  as  to 
what  would  happen  if  additional  territories  were  placed  under  Palestinian 
control.  Legally,  however,  Israel  could  not  unilaterally  suspend  the  obligation 
to  complete  negotiations  as  quickly  as  possible,  unless  it  first  declared 
formally  that  prior  breaches  of  the  accords  by  the  PLO  had  made  the 
agreement  no  longer  valid — which  it  chose  not  to  do.  In  any  case,  since  at 
least  May  of  1995,  Israel  has  been  negotiating  in  a  good-faith  effort  to 
implement  the  Declaration  of  Principles'  timetable,  so  this  area  is  not 
currently  a  concern  in  terms  of  compliance. 


160 


Moving  to  the  Palestinian  side,  I  want  to  start  by  examining  something 
which  we  at  Peace  Watch  call  "political  education."  I  am  referring  here  to  the 
message  which  is  transmitted  by  the  leadership  of  the  PLO  and  the  PA 
concerning  three  of  the  cornerstones  on  which  the  accords  are  built:  the 
recognition  of  Israel;  the  cessation  of  the  armed  struggle;  and  the  sanctity  of 
the  accords  themselves. 

The  message  that  the  leaders  project  is  significant  from  a  compliance 
perspective,  not  only  because  the  Declaration  of  Principles  and  the  Gaza- 
Jericho  accords  explcitly  mandate  promotion  of  tolerance,  public  calls  for  an 
end  to  the  armed  struggle,  and  a  concerted  effort  to  bring  Palestinians  towards 
a  recognition  of  Israel.  A  strong  message  from  the  leadership  on  these  issues 
is  significant  because  it  shapes  Palestinian  public  opinion  on  all  other  aspects 
of  compliance.  If  the  belief  spreads  that  the  armed  struggle  must  be  ended, 
then  provisions  of  the  accords  dealing  with  trials  and  extradition  of  terrorists 
are  more  likely  to  be  observed.  If  the  accord  itself  comes  to  be  viewed  as 
inviolable,  then  even  those  of  its  provisions  which  are  politically  inexpedient 
will  be  honored. 

On  this  latter  point,  there  have  been  a  few  statements  by  Yasser  Arafat 
and  other  Palestinian  leaders  regarding  the  importance  of  keeping  accords.  On 
March  21,  1995,  after  an  explosive-laden  truck  was  interdicted  en  route  to  a 
suicide-bombing  attack  in  Beersheva,  Arafat  said  that,  "The  Moslem  tradition 
obligates  the  honoring  of  agreements.  The  PLO  signed  agreements  and  it  will 
honor  them."  At  the  same  time,  however,  he  has  on  a  number  of  different 
occasions,  including  in  the  last  few  months,  compared  the  accords  with  Israel 
to  agreements  signed  by  the  Prophet  Muhammad  with  the  tribe  of  Kuraish, 
which  Muhammad  abrogated  in  order  to  conquer  that  tribe  two  years  later, 
when  doing  so  became  expedient.  Such  statements  about  future  abrogation  do 
not  merely  counterbalance  the  positive  remarks  about  keeping  to  accords. 
They  negate  them  entirely,  because  the  implication  is  that  the  pledged 
allegiance  to  the  accords  is  part  of  the  same  tactic  as  the  initial  signing, 
whereas  the  real  strategy  is  to  observe  the  accords  only  while  doing  so 
remains  advantageous. 

The  statements  about  abrogation  also  send  the  signal  that  the 
recognition  of  Israel  and  the  cessation  of  the  armed  struggle  are  temporary,  a 
message  which  is  reinforced  by  Chairman  Arafat's  repeated  calls  for  Jihad. 
Anyone  who  reads  Chairman  Arafat's  speeches  will  see  that  the  Jihad  to 
which  he  has  referred  to  on  several  occasions,  including  this  past  summer,  is 
not  a  "peaceful"  jihad,  as  he  once  suggested.  In  June,  for  example,  he  said: 
"The  commitment  stands  and  the  oath  is  firm  to  continue  this  long  and 
arduous  Jihad  in  the  path  of  martyrdom,  the  path  of  sacrifices...."  The 
reference  to  martyrdom  makes  it  clear  that  the  Jihad  is  violent  in  nature, 
which  is  in  keeping  with  the  traditional  use  of  the  term. 


161 


Further  praise  by  Arafat  for  the  armed  struggle  can  be  found  in  a  speech 
he  gave  before  an  Islamic  women's  group  in  Gaza  in  mid-June.  He  could 
have  spoken  about  any  topics  he  chose,  inasmuch  as  there  was  no  particular 
occasion  being  observed.  He  opted  to  devote  part  of  his  remarks  to  praising 
Dalai  Magribi,  who  was  one  of  the  perpetrators  of  the  Coastal  Road  Massacre, 
in  which  37  Israeli  civilians  were  murdered  and  more  than  80  injured.  He 
said  about  her: 

"Dalai  Magribi,  the  commander,  the  star  from  among  the 
heroes  who  carried  out  the  landing  operation  on  the  coast. 
She  was  the  commander  of  the  squad  that  pioneered  the  first 
Palestinian  republic  on  that  bus!  On  that  bus!  This  is  the 
Palestinian  woman,  with  all  its  meanings  and  implications. 
The  woman  that  we  are  proud  of  and  take  pride  in  and 
compete  with  her  glory  with  other  nations  and  people  of  the 
world." 

The  Israel-PLO  accords  never  said  that  Arafat  or  other  PLO  leaders  had  to 
repent  for  past  acts  of  terror,  so  on  its  surface  there  is  no  legal  violation  in 
celebrating  Magribi  as  a  woman  whose  action  was  appropriate,  and  heroic,  in 
its  time.  But  by  describing  Magribi  as  the.  Palestinian  woman,  with  whose 
glory  the  Palestinian  nation  competes  with  the  world,  he  is  going  beyond 
historical  reflection  and  into  the  establishment  of  what  can  only  be 
interpreted  as  a  model  for  today. 

It  should  be  stressed  that  the  message  from  Chairman  Arafat  and  other 
PLO  leaders  concerning  the  armed  struggle  is  not  exclusively  positive.  Arafat 
has  repeatedly  uttered  his  support  for  what  he  terms  "the  peace  of  the  brave." 
Sufyan  Abu  Zayidah,  the  head  of  the  Israel  desk  in  the  PA,  said  in  January 
1995  that: 

"We  also  tell  Fatah  members  who'  have  reservations  about 
the  process  that  violence  will  get  us  nowhere.  We  tell  them 
that  it  only  exacerbates  hatred  between  our  two  peoples.  We 
opted  for  the  way  of  peace  and  must  stick  to  it.  There  is  no 
other  choice.  We  constantly  say  the  same  things  to  Hamas 
and  the  Islamic  Jihad.  We  really  want  to  stop  the  cycle  of 
hatred  and  bloodshed." 

More  significantly,  perhaps,  at  every  impasse  in  the  talks  Chairman 
Arafat  has  continued  the  dialogue  with  Israel,  which  sends  the  message  that 
negotiation  rather  than  armed  struggle  is  the  appropriate  means  to  resolving 
conflicts. 


162 


One  aspect  of  political  education  on  which  the  PLO  and  PA  have  mixed 
records  is  in  condemning  specific  incidents  of  terror.  Prior  to  1995,  most 
attacks  against  Israelis  went  without  any  public  condemnation  by  the 
Palestinian  leadership.  Particularly  noticeable  in  his  silence  was  Chairman 
Arafat,  whose  few  condemnations  were  stated  through  another  party,  and 
clearly  as  the  result  of  pressure.  In  the  last  several  months,  however,  a 
number  of  PLO  and  PA  officials  have  begun  consistently  condemning  terror 
attacks  in  which  Israelis  were  killed.  After  the  August  1995  suicide  attack  on  a 
bus  in  Jerusalem,  in  which  five  Israelis  were  killed,  Chairman  Arafat  stated  to 
reporters  in  Gaza:  "I  condemn  the  attack  totally.  Under  any  circumstances  we 
are  against  attacking  innocent  civilians.  I  hope  this  attack  will  not  affect  the 
peace  process."  The  next  day,  speaking  in  Arabic  at  a  press  conference  with 
visiting  German  Planning  Minister  Karl-Dieter  Springer,  Arafat  added:  "Once 
again  I  condemn  this  attack,  and  join  in  the  troubles  of  the  families,  whose 
loved  ones  died."  West  Bank  Palestinian  Preventive  Security  Service  Head 
Jibril  Rajoub,  a  figure  respected  by  many  Intifada  veterans,  stated  on  Israeli 
Television  after  this  same  attack:  "We  condemn  this  incident.  We  will  make 
all  the  efforts  necessary  to  stopt  the  bloodshed." 

Even  the  recent  condemnations,  however,  are  lacking  in  that  they 
often  criticize  the  attacks  purely  on  pragmatic  grounds,  the  implication  being 
that  were  circumstances  to  change,  the  attacks  would  not  be  reprehensible.  In 
response  to  the  suicide  bomb  attack  on  Dan  Bus  20  in  Ramat  Gan  on  July  24, 
1995,  for  example,  PA  Minister  of  Planning  and  International  Cooperation 
Nabil  Shaath  stated:  "We  don't  have  in  our  hands  any  details  regarding  this 
attack,  but  we  condemn  anything  that  would  delay  the  peace  process.  This 
action  was  planned  to  delay  the  PA's  entry  to  the  West  Bank  and  delay  the 
release  of  our  detainees  and  prisoners." 

The  failure  of  the  PLO  to  amend  the  Palestinian  Covenant  must  be 
viewed  as  part  of  the  overall  effort  at  political  education.  In  his  letter  of 
September  9,  1993  recognizing  Israel  and  renouncing  the  armed  struggle, 
Chairman  Arafat  wrote: 

"(T)he  PLO  affirms  that  those  articles  of  the  Palestinian 
Covenant  which  deny  Israel's  right  to  exist,  and  the 
provisions  of  the  Covenant  which  are  inconsistent  with  the 
commitments  of  this  letter  are  now  inoperative  and  no 
longer  valid.  Consequently,  the  PLO  undertakes  to  submit  to 
the  Palestinian  National  Council  for  formal  approval  the 
necessary  changes  in  regard  to  the  Palestinian  Covenant." 

More  than  two  years  since  that  commitment  was  made,  the  PNC  has  not  been 
convened,  and  the  Covenant  has  not  been  amended.  Those  who  wish  to 
defend  the  PLO  on  this  score  point  out  that  no  deadline  was  set  for  convening 


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the  PNC,  and  that  Chairman  Arafat  lacks  the  necessary  2/3  majority  of  that 
body  to  ensure  passage  of  the  amendments.  They  claim,  therefore,  that  it 
would  have  been  counterproductive  for  him  to  fulfill  his  technical  obligation 
to  convene  the  PNC  if  by  so  doing  he  would  have  formalized  its  refusal  to 
back  his  peace  initiatives  with  Israel,  thus  undermining  his  ability  to 
continuing  adhering  to  the  accords. 

What  is  truly  problematic,  however,  is  not  the  failure  to  convene  the 
PNC,  but  rather  a  lack  of  what  Peace  Watch  terms  "maximum  partial 
compliance" — the  taking  of  steps  short  of  a  PNC  convention  which  would 
have  made  it  clear  that  Arafat  and  the  PLO  leadership  remain  committed  to 
changing  the  Covenant.  First,  they  should  have  been  careful  to  make  sure 
that  all  of  their  public  rhetoric  conformed  to  the  Covenant  as  it  was  to  be 
amended,  and  not  to  the  original.  As  pointed  out  above,  there  have  been  a 
number  of  statements,  particularly  as  regards  the  armed  struggle,  that  sound 
fully  consistent  with  the  original  Covenant. 

Second,  Arafat  and  other  top  PLO  leaders  should  have  gone  on  the 
record  saying  that  they  were  personally  in  favor  of  changing  the  Covenant, 
and  detailing  the  changes  they  would  make  and  their  reasons  for  doing  so.  In 
American  politics,  as  a  parallel,  it  is  common  for  a  candidate  for  high  office,  if 
his  party  platform  contains  elements  which  he  personally  opposes,  to  issue 
position  papers  spelling  out  his  own  views.  A  similar  means  has  been 
available  to  the  PLO  leadership  for  the  past  two  years,  but  they  have  not 
availed  themselves  of  it.  And  third,  the  PLO  leadership  could  have 
conducted  a  campaign,  both  public  and  private,  to  persuade  the  Palestinian 
population  and  its  representatives  in  the  PNC  to  back  the  anticipated  changes 
in  the  covenant.  Although  in  the  summer  of  1994,  sources  close  to  Arafat 
claimed  that  the  Chairman  was  going  to  embark  on  such  a  tour,  there  has 
been  neither  a  public  campaign  nor  lobbying  of  PNC  delegates. 

In  analyzing  the  overall  performance  of  the  Palestinian  leadership  in 
political  education,  Peace  Watch's  judgment  is  that  the  message  has  been 
mixed,  but  has  fallen  well  below  the  standard  set  by  the  accords.  The 
agreements  with  Israel  both  demand  and  depend  upon  a  radical  reorientation 
of  Palestinian  attitudes.  Such  a  reorientation  must  come  from  above,  and  it 
cannot  be  effected  if  the  message  is  mixed.  Praising  peace  nine  times  and  then 
calling  for  Jihad  once  is  not  90%  compliance,  because  such  a  mix  is  useless  in 
changing  longstanding  views.  It  must  be  made  absolutely  clear  to  any 
Palestinian  still  harboring  positive  sentiments  about  the  armed  struggle — and 
extensive  polling  data  shows  that  such  individuals  are  generally  in  the 
majority — that  he  has  no  support  for  his  views  from  his  own  leadership.  - 

These  meta-compliance  issues  have  a  profound  impact  in  the  fight 
against  terror.  So,  too,  do  the  concrete,  operative  obligations  to  fight  terror, 
meaning  the  specific  actions  taken  by  the  Palestinian  police  and  court  system. 
It  is  these  latter  steps  which  are  often,  though  erroneously,  viewed  as  th_£ 


164 


litmus  test  for  assessing  overall  PLO  and  PA  compliance.  In  any  event,  these 
operative  obligations  are  quite  extensive,  in  large  part  because  of  the  broad 
language  of  Article  XVIII  of  the  Gaza-Jericho  Agreement  of  May  4,  1994, 
which  states  that: 

"Both  sides  shall  take  all  measures  necessary  in  order  to 
prevent  acts  of  terrorism,  crime  and  hostilities  directed 
agains..  each  other,  against  individuals  failling  under  the 
other's  authority  and  against  their  property,  and  shall  take 
legal  measures  against  offenders.  In  addition,  the  Palestinian 
side  shall  take  all  measures  necessary  to  prevent  such  hostile 
acts  directed  against  the  Settlements,  the  infrastructure 
serving  them  and  the  Military  Installation  Area...." 

This  article  is  all-encompassing,  since  it  demands  that  the  PLO  and  the 
Palestinian  Authority  (as  well  as  Israel)  take  any  and  every  action  needed  to 
combat  terrorism.  If  a  particular  action  is  likely  to  be  effective  in  preventing 
terrorism,  then  Article  XVIII  mandates  that  it  be  carried  out,  even  if  there  are 
no  specific  references  to  this  obligation.  So,  for  example,  there  is  no  provision 
in  the  accords  which  mandates  that  the  PA  shut  down  training  camps  used  by 
terrorists,  but  the  obligation  to  do  so  nonetheless  exists,  since  it  is  clear  that 
such  a  step  is  part  of  any  serious  campaign  to  end  terror. 

In  addition,  the  Gaza-Jericho  accords  detail  a  number  of  specific  steps, 
including  prevention  of  incitement,  disarming  of  militias,  conducting  of  "hot 
pursuit"  after  terror  attacks,  and  extradition  to  Israel  of  certain  suspects  in 
serious  crimes. 

These  operative  steps,  both  those  which  are  spelled  out  separately  in 
the  accords  and  those  which  are  derivative  from  Article  XVIII,  can  be  grouped 
into:  preemption,  the  prevention  of  acts  of  terror  before  they  occur;  and 
punishment,  the  response  to  terror  after  the  fact. 

The  four  key  areas  in  preemption  are  restriction  of  access  to  weapons; 
prevention  of  recruiting,  planning  and  training;  the  thwarting  of  actual, 
planned  attacks;  and  the  use  of  negotiation  to  persuade  terror  groups  not  to 
launch  attacks.  The  actual  records  of  compliance  will  now  be  viewed  in  each 
of  these  areas  in  turn. 

As  regards  restriction  of  access  to  weapons,  the  Gaza-Jericho  accords 
define  three  concrete  obligations.  First,  the  PA  must  disarm  all  armed 
militias.  Second,  it  must  confiscate  all  weapons  other  than  pistols,  including 
explosives  of  various  types.  And  third,  it  must  register  all  pistols,  in 
accordance  with  guidelines  that  were  to  be  established  jointly  with  Israel. 

The  backdrop  for  examining  compliance  on  weapons-control  issues  is 
the  situation  today  in  Gaza,  16  months  after  the  PA  has  taken  control. 
According   to   informed   sources   in   the   Palestinian   police   and   Israeli 


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intelligence,  there  are  today  between  2,500  and  3,000  guns  held  by  individuals 
outside  of  the  Palestinian  police  force,  most  of  which  are  in  the  hands  of  the 
five  active  militias:  Hamas,  Islamic  Jihad,  the  Popular  Front  for  the  Liberation 
of  Palestine  (PFLP),  the  Democratic  Front  for  the  Liberation  of  Palestine 
(DFLP),  and  Fatah.  Indeed,  Yasser  Arafat  claimed  in  March  of  this  year  that 
there  are  26,000  guns  in  Gaza,  and  PA  Minister  of  Information  Yasser  Abd 
Rabbo  said  that  some  estimates  place  the  figure  as  high  as  40,000. 

Smuggling  of  weapons  into  Gaza  has  been  a  widespread  phenomenon, 
though  it  is  difficult  to  obtain  reliable  estimates  of  the  pace  of  such  smuggling. 
What  is  clear  is  that  there  are  far  more  guns  in  the  hands  of  these  armed 
militias  today  than  there  were  when  the  PA  took  over.  Given  that  these 
organizations'  activists  number  in  the  hundreds,  the  implication  of  even  the 
conservative  figure  of  2,500  is  that  any  activists'  cell  of  a  few  people  interested 
in  launching  an  attack  on  an  Israeli  target  has  access  to  several  weapons  with 
which  to  do  so.  In  addition,  there  has  been  a  massive  influx  of  bombs  and 
explosives  of  various  types,  via  imports  and  local  manufacturing. 

To  date,  according  to  estimates  made  by  high-ranking  officers  in  the 
Palestinian  police  force,  the  PA  has  registered  between  400  and  800  weapons. 
Since  these  records  are  not  public,  it  is  difficult  to  confirm  that  these  figures 
are  accurate,  and  Israeli  intelligence  sources  tend  to  put  the  figure  lower. 
What  is  beyond  dispute  is  that  among  the  weapons  that  have  been  licensed 
are  sub-machine-guns,  a  clear  violation  of  the  accords. 

More  important  than  licensing  is  confiscation,  which  if  carried  out  on  a 
wide  scale  could  make  it  more  difficult  for  would-be  terrorists  to  carry  out 
their  attacks.  To  date,  the  number  of  weapons  confiscated  is  in  the  dozens  at 
most.  The  policy  of  the  Palestinian  Authority,  as  told  to  Peace  Watch  by  high- 
ranking  police  officials,  and  confirmed  by  leaders  of  Hamas  and  Islamic  Jihad, 
is  to  refrain  from  disarming  any  of  the  five  active  militias.  The  Palestinian 
Authority's  Minister  of  Justice,  Freih  Abu  Middein,  stated  this  policy  publicly 
in  May  of  1995.  Today,  Hamas,  Islamic  Jihad,  the  Popular  Front  for  the 
Liberation  of  Palestine,  the  Democratic  Front  for  the  Liberation  of  Palestine, 
and  Fatah  all  remain  armed,  and  unhindered.  There  have  been  some  efforts 
to  restrict  the  public  display  and  use  of  guns  at  sports  matches  and  funerals, 
but  even  these  have  been  only  partially  effective. 

Recruitment,  planning,  and  training  go  on  in  Gaza  virtually 
unchallenged  by  the  PA.  Almost  all  of  the  major  acts  of  terrorism  in  the  last 
year — the  kidnaping-murder  of  Nachshon  Waxman,  and  the  suicide- 
bombings  at  Dizengoff  Center  in  Tel  Aviv,  at  Beit  Lid,  and  at  Kfar  Darom,  for 
example — have  been  planned  in  Gaza.  Training  facilities  are  known  to 
operate  with  the  knowledge  of  the  Palestinian  police,  though  Peace  Watch 
has  been  unable  to  obtain  reliable  information  on  how  widespread  training 
activities  are.  Many  mosques  openly  serve  as  grounds  for  recruitment  of 


166 


activists   to   Hamas   and    Islamic   Jihad,    though   there   have   been   some 
limitations  on  these  activities  in  the  last  few  months. 

As  for  the  prevention  of  planned  attacks,  Palestinian  officials  and 
especially  Yasser  Arafat  have  claimed  credit  for  preemption  in  at  least  a  dozen 
cases.  Given  the  nature  of  such  claims,  it  is  difficult  to  confirm  or  disconfirm, 
especially  since  PA  officials  have  generally  been  unwilling  to  give  details. 
Peace  Watch  was  able  to  examine  three  of  the  claims  in  depth,  however,  and 
the  results  of  the  investigations  demonstrates  that  there  is,  at  a  minimum, 
substantial  gaps  between  the  claims  and  the  reality. 

A  February  14,  1995  claim  to  have  destroyed  200  kilograms  of 
explosives  turns  out  to  have  been  an  error,  since  the  substance  in  question 
was  in  fact  pesticides  belonging  to  a  Mr.  Majdi  Abu  Ralal,  the  owner  of  the 
field  in  Khan  Yunis  where  the  "discovery"  was  made.  An  attempt  to  commit 
a  suicide-bombing  using  a  bus  wired  with  explosives,  supposedly  preempted 
near  Jericho  in  early  February,  was,  according  to  Peace  Watch  sources,  a 
fabrication.  There  was  no  bus,  no  bomber,  and  no  explosives. 

In  one  other  case,  in  Gaza,  in  which  Chairman  Arafat  claimed  that  the 
Palestinian  police  stopped  a  planned  suicide-bombing  attack,  there  was  some 
measure  of  truth  to  the  report.  A  father  had  come  to  the  police  complaining 
that  his  son  was  being  pressured  at  the  mosque  at  which  he  prayed  to  agree  to 
become  a  suicide  bomber.  The  Palestinian  police  arrested  the  recruiters,  and 
thus  stopped  them  from  turning  the  complainant's  son  into  a  potential 
suicide  bomber.  This  success  is  noteworthy,  though  it  is  not  what  it  was 
advertised  to  be — the  preemption  of  a  specific,  planned  attack.  All  in  all,  there 
is  no  doubt  that  there  have  been  some  Palestinian  police  successes  in 
preemption,  but  it  is  not  possible  to  estimate  how  widespread  they  have  been. 

A  fourth  strategy  of  preemption,  negotiation  with  the  parties  likely  to 
use  violence,  has  been  tried  at  times  by  the  Palestinian  Authority.  From  mid- 
April  to  late  July  of  1995,  perhaps  due  in  part  to  a  tacit  understanding  between 
the  PA  and  the  Islamic  terrorist  organizations,  there  was  a  99-day  stretch  in 
which  no  Israelis  were  killed  in  terror  attacks.  Nonetheless,  there  were 
numerous  non-fatal  attacks  during  that  period.  Hamas  and  Islamic  Jihad 
claimed  that  the  hiatus  was  their  independent  initiative,  based  on  their 
calculations  of  the  interests  of  the  Palestinians  generally,  as  well  as  their 
organizations  specifically.  Some  of  the  credit  for  the  99-day  hiatus  goes  to 
Israeli  security  forces,  who  poured  what  by  many  accounts  were 
unprecedented  resources  into  preventing  attacks  in  this  period.  And  finally, 
once  the  hiatus  ended,  the  suicide  bombings  and  other  attacks  resumed  at 
their  previous  intensity.  Given  all  these  factors,  it  is  difficult  to  assess  how 
much  weight  to  give  to  the  PA's  attempts  at  negotiation. 

On  the  punishment  side  of  the  ledger,  there  are  three  areas  that  must 
be  examined.  The  first  of  these  is  arrests  and  incarceration  of  individuals 


167 


involved  in  terrorist  activities;  the  second  is  trials  of  individuals  suspected  of 
particular  crimes;  and  the  third  is  the  transfer  of  suspects  for  trial  in  Israel. 

First  of  all,  it  can  be  stated  categorically  that  from  mid-May  of  1994  until 
after  the  suicide-bombing  attack  on  Beit  Lid  in  January  of  1995,  there  was  no 
use  of  any  of  these  means  of  punishment.  The  only  steps  that  were  taken 
during  that  period  were  mass  arrests,  followed  by  mass  releases,  in  what 
became  known  as  "revolving  door  justice."  In  the  wake  of  major  terror 
attacks,  such  as  the  kidnaping-murder  of  Nachshon  Waxman  and  the  suicide- 
bombing  in  Dizengoff  Center  of  Tel  Aviv,  the  PA  would  round  up  several 
dozen  individuals  affiliated  with  whatever  group  had  taken  credit.  Care  was 
generally  taken  to  avoid  arresting  the  members  of  the  military  wing;  jails 
were  instead  filled  with  the  political  activists  from  these  groups.  Most  of 
those  arrested  were  released  within  a  matter  of  hours,  and  the  remainder 
within  a  couple  of  weeks. 

During  the  three-month  period  from  the  mid-January  attack  in  Beit  Lid 
to  the  April  suicide-bombing  at  the  Kefar  Darom  settlement  in  the  Gaza  Strip 
(which  claimed  8  lives,  including  American  Alisa  Flatow)  the  PA's  policy 
underwent  a  change.  For  the  first  time,  a  few  dozen  of  the  individuals 
arrested  remained  in  prison  for  a  period  of  months.  The  people  thus 
incarcerated  were  not  for  the  most  part  the  suspects  in  planning  or  carrying 
out  the  raids,  so  it  was  still  the  case  that  perpetration  of  terror  went 
unpunished.  Nonetheless,  the  policy  represented  a  clear  change  in  that  it 
demonstrated  a  willingness  to  make  use  of  some  form  of  punishment. 

Shortly  after  the  bombing  in  Kefar  Darom,  the  PA  began  using  its 
military  court  system,  which  had  been  established  two  months  earlier  but  had 
remained  inactive.  These  courts  meted  out  sentences  after  trials  that  often 
lasted  as  little  as  15  minutes,  and  which  were  routinely  held  in  the  middle  of 
the  night  without  the  presence  of  a  defense  attorney  or  the  family  members  of 
the  accused. 

During  the  period  from  April  10,  1995  to  May  26,  1995,  the  military 
courts  in  Gaza  held  trials  for  36  individuals,  and  handed  out  sentences  to  31 
of  them.  The  crimes  ranged  from  selling  food  which  had  spoiled,  to  writing 
articles  critical  of  the  Palestinian  Authority,  to  selling  weapons  illegally,  to 
preparing  recruits  to  Islamic  organizations  to  become  suicide  bombers.  The 
sentences  handed  down  ranged  from  a  few  months  in  jail  to  life 
imprisonment,  though  most  sentences  were  for  less  than  a  year.  After  May 
26th,  no  more  trials  were  held  in  Gaza.  (Two  trials  were  held  in  Jericho  in  late 
August  and  early  September,  though  this  was  done  in  order  to  take  advantage 
of  a  provision  in  the  accords  enabling  the  PA  to  refuse  to  hand  over  for  trial 
in  Israel  someone  who  is  serving  out  a  sentence  given  by  a  Palestinian  court.) 

As  with  the  previous  patterns  of  "revolving  door"  arrests  and  longer- 
term  arrests,  the  people  sentenced  were  not  among  the  "heavyweights"  of  any 
of  the  terror  groups.  They  were  principally  preachers,  journalists,  and  low- 


10 


168 


level  recruiters,  as  opposed  to  the  individuals  involved  in  planning  or 
carrying  out  attacks.  Nonetheless,  the  existence  of  the  trials  and  sentencing 
meant  that  the  PA  was  willing  to  use  a  weapon  beyond  what  many  observers 
anticipated,  and  probably  served  in  some  respects  as  a  deterrent. 

In  the  third  area  of  punishment,  the  transfer  of  suspects  for  trial  in 
Israel,  the  PA  has  maintained  a  consistent  policy  of  refusal.  It  should  be  noted, 
in  this  context,  that  in  Annex  III  of  the  Gaza-Jericho  accords,  which  deals  with 
legal  matters,  Article  II  (7)  sets  out  in  unambiguous  terms  that:  "Where  an 
individual  suspected  of,  charged  with  or  convicted  of  an  offense  that  falls 
within  Israeli  criminal  jurisdiction  is  present  in  the  Territory  (of  the  PA), 
Israel  may  request  the  Palestinian  Authority  to  arrest  and  transfer  the 
individual  to  Israel,"  and  that  "Both  sides,  upon  receipt  of  a  request  in 
accordance  with  this  Article,  shall  effect  the  arrest  and  transfer  requested." 
Thus,  as  long  as  Israel  submits  a  proper  request  backed  up  by  an  Israeli  court 
and  the  Attorney-General's  office,  the  PA  is  obligated,  without  exercising  its 
own  judgment  about  the  merits  of  the  case,  to  hand  over  the  person  who  has 
been  requested. 

This  clear  obligation  notwithstanding,  the  PA  has  not  turned  over  any 
of  the  11  suspects  in  cases  of  murder  or  attempted  murder,  for  whom  Israel 
has  submitted  formal  requests.  In  the  case  of  two  of  the  suspects,  the  PA 
justified  its  refusal  on  the  grounds  that  the  murder  was  committed  before  the 
accords  were  signed  between  Israel  and  the  PLO,  and  hence  Israel  was  out  of 
bounds  in  making  the  request.  This  interpretation,  it  should  be  noted,  does 
not  correspond  with  the  plain  meaning  of  the  text  of  the  agreement,  which 
draws  no  distinction  between  crimes  committed  before  or  after  the  date  of 
signing.  The  PA  refused  to  hand  over  two  other  individuals,  first  on  the 
grounds  that  they  were  in  Egypt  and  not  Gaza;  when  it  became  publicly 
known  that  they  were  in  fact  in  Gaza,  the  PA  then  claimed  that  Israel  had  not 
filled  out  the  paperwork  properly.  In  the  case  of  the  other  seven  suspects,  the 
PA  has  not  answered  the  requests,  and  has  not  handed  over  the  individuals. 

In  addition  to  its  formal  requests,  Israel  has  also  made  informal 
requests  for  another  dozen  or  so  suspects  in  terror  attacks.  These  informal 
requests,  which  are  accompanied  by  substantial  evidence  but  lack  the  full 
documentation  of  the  formal  requests,  are  not  binding.  The  PA,  to  date,  has 
also  denied  all  of  these  requests,  though  in  several  cases  involving  criminal 
acts,  the  PA  has  acceded  to  informal  Israeli  requests. 

The  PA's  pattern  of  refusal  is  not  happenstance,  but  is  rather  the 
consequence  of  an  explicit  policy.  Lieutenant  Colenel  Rashid  Abu  Shbak, 
Deputy  Commander  of  the  Palestinian  Intelligence  Service  in  Gaza,  told  Peace 
Watch  in  June  of  1995  that:  "No  wanted  suspects  will  be  handed  over  to 
Israel,  because  there  now  exists  a  new  situation  of  peace  in  which  one  should 
not  look  backwards."  General  Nasser  Yussuf,  the  head  of  the  Palestinian 
police,  confirmed  this  policy  a  few  days  later  when  he  said  that,  "The  PA's 


1  1 


169 


policy  is  not  to  carry  out  any  transfers  of  security-related  suspects."  This 
explicit  policy,  as  well  as  the  particular  refusals  that  it  has  engendered, 
constitute  clear  violations  of  the  accords. 

In  closing  this  testimony,  I  want  to  cite  one  further  issue  of  compliance, 
this  one  related  to  Jerusalem,  and  not  to  terror.  The  DOP  of  September  13, 
1993  set  aside  certain  issues,  including  Jerusalem,  which  were  to  be  negotiated 
as  part  of  the  final-status  talks  slated  to  start  by  May  4,  1996.  In  part  as  a  means 
to  prevent  the  establishment  of  facts  which  would  prejudice  the  final  status  of 
Jerusalem,  the  Gaza-Jericho  accords  also  specified  that:  "The  offices  of  the 
Palestinian  Authority  shall  be  located  in  the  Gaza  Strip  and  the  Jericho  Area 
pending  the  inauguration  of  the  Council  to  be  elected  pursuant  to  the 
Declaration  of  Principles."  This  prohibition,  while  applying  to  the  placement 
of  offices  anywhere  outside  of  Gaza  and  Jericho,  was  meant  in  particular  to 
keep  PA  governmental  offices  out  of  Jerusalem. 

Despite  the  existence  of  this  clear  prohibition,  the  PA  has  located  no 
fewer  than  11  of  its  principal  offices  in  Jerusalem:  the  Palestinian  Ministry  of 
Religious  Affairs,  the  Palestinian  Energy  Center,  the  Palestinian  Bureau  of 
Statistics,  the  Office  of  the  Mufti  of  Jerusalem,  the  Palestinian  Economic 
Council  for  Development  and  Reconstruction  (PECDAR),  the  Palestinian 
Broadcasting  Corporation,  the  Orient  House,  the  Palestinian  Health  Council, 
the  Palestinian  Housing  Council,  the  Institute  for  the  Palestinian  Wounded, 
and  the  Palestinian  Municipality  of  Jerusalem. 

What  is  more  startling  than  the  total  number  of  institutions  is  the 
openness  with  which  many  of  the  institutions  in  question  point  to  their  links 
to  the  PA.  The  Palestinian  Minister  of  Religious  Affairs,  whose  office  is 
located  in  Jerusalem's  Old  City,  told  Peace  Watch  that  he  receives  his  budget 
and  his  orders  from  the  PA.  His  business  card  reads:  "Hassan  Fatin  Tahboub, 
Minister  of  the  Wakf  and  Religious  Affairs,  State  of  Palestine,  Jerusalem." 
PECDAR's  office  distributes  an  organizational  flow  chart  which  shows  that  it 
is  directly  subordinate  to  the  Palestinian  Authority,  which  in  turn  is  directly 
subordinate  to  the  PLO. 

As  in  the  case  of  the  refusal  to  transfer  suspects,  the  issue  of  PA 
institutions  features  a  clear  obligation  which  goes  in  one  direction,  and  an 
equally  clear  pattern  of  behavior  which  goes  precisely  the  opposite  way.  It  is 
worth  noting  that  in  both  cases,  the  Government  of  Israel  has  protested  the 
Palestinian  behavior  both  publicly  and  in  direct,  face-to-face  talks.  From  a 
compliance  perspective,  such  cases  are  particularly  troubling,  since  they 
indicate  a  clear  willingness  to  flout  the  accords. 

There  are  hundreds  of  additional  obligations,  large  and  small,  in  the 
accords  signed  to  date  by  Israel  and  the  PLO.  The  limits  of  time  and  space 
preclude  me  from  going  through  them  one  by  one.  I  hope  that  the  analysis 
presented  of  several  of  the  most  significant  obligations  is  of  value  to  this 
committee  in  its  work  of  overseeing  the  Middle  East  peace  process. 


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170 


TESTIMONY  BY  ROBERT  SATLOFF 

TO  THE  HOUSE  INTERNATIONAL  RELATIONS  COMMITTEE 

SEPTEMBER  20,  1995 


Mr.  Chairman,  three  days  ago,  I  returned  from  an  extended  visit  to  the  region,  during  which 
time  I  led  a  fifty-member  delegation  from  The  Washington  Institute  that  met  with  senior  leaders 
in  Turkey,  Jordan,  Israel  and  the  Palestinian  Authority.  This  included  sessions  with  Turkish 
President  Demirel  and  Prime  Minister  Ciller;  Jordanian  Crown  Prince  Hassan  and  that  country's 
military  leadership;  Israeli  Prime  Minister  Rabin,  Foreign  Minister  Peres,  Chief  of  Staff  General 
Shahak  and  leaders  of  the  Likud  opposition;  and  Palestinian  Authority  Minister  Dr.  Nabil  Shaath. 
A  particular  highlight  of  the  trip  was  the  convening  in  Amman  of  The  Washington  Institute's 
annual  policy  conference.  This  year,  our  theme  was  Building  on  Peace,  with  two  hundred  Arab, 
Israeli  and  American  officials,  diplomats,  scholars  and  businessmen  taking  stock  of  the  Jordan-Israel 
peace  one  year  on  and  discussing  ways  to  capitalize  on  that  achievement  to  build  wider  regional 
security  and  economic  growth. 

With  this  intensive  experience  fresh  in  my  mind,  I  would  like  to  offer  the  Committee 
informed  assessments  on  such  issues  as  the  prospects  for  the  Oslo  II  second-stage  agreement  for 
Palestinian  self-government;  the  stability  of  the  Jordan-Israel  peace  treaty;  the  impasse  in  Syria- 
Israel  negotiations;  and  the  challenge  to  the  peace  process  posed  by  radical  extremists.  I  also  have 
several  suggestions  regarding  U.S.  policy  toward  the  peace  process  that  may  be  of  value  to  the 
Committee. 

First,  in  a  process  replete  with  critical  moments,  we  are  entering  one  of  its  most  critical  - 
Gaza-Jericho  was  a  signal  achievement;  however,  it  was  only  the  first  phase  of  an  interim 
arrangement;  despite  great  misgivings  about  the  record  of  Oslo,  both  Israel  and  its  Palestinian 
partner  have  decided  to  press  on  to  a  second-stage  agreement;  this  will  include  Israeli  redeployment 
out  of  populated  areas  in  the  West  Bank,  elections  for  a  Palestinian  Council,  and  the  extension  of 
Palestinian  self-government  throughout  the  West  Bank.  This  is  a  complex  and  complicated 
agreement;  it  envisions  three  zones  of  withdrawal  and  differing  rules  for  security  governing  these 
zones.  Implementing  this  agreement  will  be  exponentially  more  difficult  than  implementing  Gaza- 
Jericho.  Nevertheless,  and  despite  the  continuance  of  terrorism  by  radical  elements  opposed  to  the 
peace  process,  Israel  believes  its  best  interests  lie  in  advancing  to  the  next  stage  of  the  process  so 
as  to  ensure  that  Gaza-Jericho  does  not  wither  on  the  vine,  as  many  Arab  friends  of  the 
Palestinians  seem  willing  to  permit.  While  there  is  great  anxiety  among  the  Israeli  public  and  within 
the  Israeli  army  about  implementing  the  next  phase,  significant  majorities  continue  to  support  the 
government's  pursuit  of  the  peace  process. 

Second,  the  Palestinian  Authority  has  had  a  few  good  months  -  Palestinian  capital  is 
reportedly  beginning  to  arrive  in  Gaza,  $600  million  since  the  new  year;  cooperation  between  the 
Israeli  and  PLO  security  forces  has  improved  significantly.  Nevertheless,  there  is  still  much  room 
for  improvement,  both  in  terms  of  promoting  free  market  investment  and,  especially,  in  terms  of 
taking  preventive  and  preemptive  measures  to  combat  terrorism.  In  my  view,  the  key  for  the  next 


171 


phase  will  be  whether  the  PA  adopts  the  Gaza  model  in  the  West  Bank  or  the  Jericho  model  —  the 
former  being  a  laisser-faire  attitude  toward  radical  groups  and  their  possession  of  weapons,  the 
latter  being  an  activist  approach  to  security.  Replicating  the  Gaza  model  will  be  a  recipe  for 
disaster;  an  activist  approach  may  prove  successful. 

Third,  Jordan-Israel  peace  is  perhaps  the  most  hopeful  element  in  the  new  Arab-Israel 
equation  but  it  needs  support  lest  it  grows  sterile.  The  key  theme  of  our  conference  in  Amman  was 
that  this  peace  is  much  more  complex  than  a  personal  agreement  between  King  Hussein  and  Prime 
Minister  Rabin;  that  personal  connection  may  carry  the  day  for  a  period  of  time,  but  for  peace  to 
survive  its  creators,  it  must  be  bolstered  by  tangible  changes  in  the  lives  of  the  people  that  are 
affected  by  it  —  especially  the  Jordanians.  The  success  or  failure  of  the  Jordan-Israel  peace  should 
not  be  left  hostage  to  the  success  or  failure  of  the  Israel-Palestinian  relationship;  to  ensure  that, 
it  is  necessary  to  find  low-cost  ways  to  assist  the  Jordanians  and  to  convince  Jordan  to  turn  its 
economic  sights  from  Iraq  in  the  east  to  the  West  Bank,  Israel  and  the  Mediterranean  in  the  west. 

Fourth,  despite  all  the  talk  about  Syria's  strategic  choice  for  peace,  it  is  not  yet  clear  whether 
Syria  is  part  of  the  problem  or  part  of  the  solution.  Syria  today  is  the  only  peace  process  principal 
that  continues  to  entertain  the  use  of  terrorism  as  policy  and  that  is  engaged  in  terrorism  against 
the  process  it  purports  to  support.  Today,  living  in  Damascus  or  the  Syrian-controlled  Bekaa  Valley, 
are  anti-peace  process  terrorists  and  anti-Turkish  terrorists;  Syria  is  taking  direct  steps  to 
undermine  reconciliation  among  the  Iraqi  Kurds;  and  it  is  flouting  procedural  agreements  to  renew 
the  peace  talks  with  Israel.  I  can  find  little  evidence  that  repeated  U.S.  entreaties  and  demarches 
to  Syria  have  brought  any  results. 


U.S.  POLICY  -- 

©  The  peace  process  is  very  much  in  U.S.  interests.  With  the  absence  of  the  Soviet  Union,  the 
rationale  has  shifted  but  has  not  diminished;  it  used  to  have  a  defensive  rationale  —  keeping  the 
Soviets  out  —  but  is  now  more  positive  and  forward-leaning  to  create  a  strategic  consensus  among 
moderate,  pro- West  elements  —  Arabs,  Israelis  and  Turks  —  to  combat  the  twin  threats  of  Iraq's 
secular  radicalism  and  Iran's  religious  militancy.  Success  will  require  American  leadership  to  deter 
the  region's  radicals,  especially  Iraq  and  Iran.  This  is  where  the  process  begins.  Without  it,  the 
process  withers. 

<D  Work  with  the  peacemakers.  The  partnership  between  Israel  and  Washington  is  an  essential 
ingredient  in  Israel's  ability  to  take  risks  for  peace.  With  the  Palestinians,  the  U.S.  has  a  unique 
role  to  play  in  helping  to  shore  up  the  pro-peace  elements  in  the  Palestinian  community,  while  at 
the  same  time  insisting  on  full  efforts  to  achieve  compliance  with  contractual  obligations.  With 
Jordan,  the  U.S.  should  not  be  penny-wise  and  pound-foolish;  all  the  makings  of  a  warm  peace  are 
present,  let's  nurture  them.  With  Egypt,  great  attention  should  be  paid  -  this  is  the  most  important 
relationship  the  U.S.  has  in  the  Arab  world;  as  Egypt  works  through  the  implications  of  no  longer 
being  the  sole  Arab  state  at  peace  with  Israel,  it  is  vital  for  us  to  work  now  to  develop  new 
dimensions  to  the  strategic  relationship  between  our  two  countries. 


172 


®  With  Syria,  let's  step  back  a  moment.  America  has  proved  its  urgency  for  progress  via  the  great 
efforts  undertaken  by  Secretary  Christopher  to  broker  a  Syria-Israel  deal.  The  Israelis  have  also 
gone  to  great  lengths  to  accommodate  Syrian  demands,  however,  there  is  no  comparable  urgency 
from  the  Syrians.  While  America  should  stand  ready  to  take  significant  steps  to  help  achieve  peace, 
it  need  not  exert  greater  efforts  than  the  principals  themselves.  In  the  absence  of  those  efforts  from 
Damascus,  America  has  a  long  list  of  outstanding  bilateral  issues  which  have  lain  largely  dormant 
over  the  past  two  years  --  terrorism,  proliferation,  Lebanon,  narcotics,  counterfeiting,  and  human 
rights.  With  Secretary  Christopher  meeting  Foreign  Minister  Sharaa  next  week  in  New  York,  now 
is  the  time  to  move  the  agenda  of  U.S. -Syrian  relations  to  issues  of  immediate  American  interest. 

A  concluding  note  -  as  an  historian,  let  me  urge  all  of  us  to  take  the  long  view.  Though 
great  progress  has  been  achieved,  there  is  still  very  far  to  go.  We  are  still  in  an  early  phase  - 
getting  leaders  to  make  peace  and;  it  will  take  years  before  those  strategic  decisions  filter  down  to 
the  people.  This  process  has  years,  perhaps  decades,  before  the  conflict  between  Arabs  and  Israelis 
is  over;  we  are  far  from  that  point  today.  We  must  keep  this  time  factor  in  mind.  Success  in  the 
peace  process  is  not  just  one  shuttle  mission  or  one  signing  ceremony  away. 

Like  the  stock  market,  the  peace  process  is  on  an  upward  slope  but  it  is  not  immune  from 
great  shocks.  Successes  are  not  irreversible;  achievements  are  not  irrevocable.  The  process  can 
falter;  it  can  stop;  it  can  succumb  to  terrorists;  nothing  is  inevitable;  nothing  is  truly  impossible.  We 
must  take  nothing  for  granted  nor  can  we  assume  that  yesterday's  problems  will  not  reappear  again 
tomorrow.  For  America,  the  key  to  securing  its  interests  is  to  remain  engaged  at  every  step,  actively 
supporting  the  peacemakers  and  actively  deterring  the  enemies  of  peace. 


173 


TESTIMONY  OF 

NEAL  M.  SHER,  EXECUTIVE  DIRECTOR 

AMERICAN  ISRAEL  PUBLIC  AFFAIRS  COMMITTEE  (AIPAC) 

BEFORE  THE 

HOUSE  INTERNATIONAL  RELATIONS  COMMITTEE 

SEPTEMBER  20,  1995 


Thank  you,  Chairman  Gilman  and  members  of  this  distinguished  Committee, 
for  the  opportunity  to  testify  before  you.  As  Executive  Director  of  AIPAC,  I 
recognize  the  critical  role  this  Committee  plays  every  year  in  ensuring  that  the  U.S.- 
Israel  relationship  remains  strong.  Appearing  with  me  is  Ester  Kurz,  AIPAC  s 
Director  for  Legislative  Strategy  and  Policy.  AIPAC  believes  in  the  critical  importance 
of  U.S.  relations  with  Israel,  and  recognizes  the  prominent  role  that  foreign  aid  plays 
in  accomplishing  America's  foreign  policy  objectives  —  not  only  in  Israel  but  around 
the  world.  In  this  regard,  I  want  to  express  AIPAC  s  strong  support  for  a  viable 
foreign  assistance  program. 

AIPAC,  a  domestic,  non-partisan  membership  organization  of  American  citizens, 
works  on  a  daily  basis  with  its  members  to  nurture  a  close  and  consistently  strong 
partnership  between  our  country  and  Israel.  On  our  Executive  Committee  sit  the 
presidents  of  the  50  major  American  Jewish  organizations,  representing  more  than 
four-and-a-half  million  active  members  throughout  the  United  States,  as  well  as  leaders 
of  the  country's  pro-Israel  community  from  all  50  states.  AIPAC  is  the  designated 
spokesman  on  Capitol  Hill  on  behalf  of  the  organized  American  Jewish  community 
on  issues  relating  to  the  U.S.-Israel  relationship. 

Mr.  Chairman,  we  meet  at  an  historic  moment.  Israel  and  the  Palestinians  are 
about  to  sign  a  landmark  agreement,  which  has  the  potential  of  transforming  relations 
between  the  two  parties  and  between  Israel  and  the  wider  Arab  world.  A  broad  Arab- 
Israel  peace  would  promote  three  key  U.S.  foreign-policy  objectives:  greater  regional 
stability,  containment  of  radical  forces  and  states,  and  secure  flow  of  Persian  Gulf  oil. 
These  bring  enormous  political,  economic,  and  strategic  benefits  both  to  the  United 
States  and  Israel. 

But  in  concluding  this  agreement,  Israel  is  taking  unprecedented  risks  for  peace, 
predicated  on  support  from  its  one  reliable  ally,  the  United  States  of  America.  The 
alliance  between  the  two  countries  serves  as  the  bedrock  of  Israel's  security  and  the 
guarantee  of  stability  in  the  region.  Israel  is  able  to  take  risks  for  peace  only  when 
it  is  confident  that  the  United  States  stands  behind  it.  U.S.  support  is  vital  to 
achieving  the  goals  of  the  agreement;  to  minimizing  the  risks  that  Israel  is  taking;  and 
to  making  sure  that  Israel  is  not  harmed  in  the  event  that  things  don't  go  well. 

There  is  a  wide  range  of  opinion  in  the  pro-Israel  community,  as  there  is  in 
Israel,  regarding  which  is  the  best  path  to  peace  between  Israelis  and  Palestinians.  But 


174 


there  is  a  consensus  that  the  critical  decisions  regarding  peace  and  security  must  be 
made  by  the  democratically  elected  Government  of  Israel  in  free  and  direct 
negotiations  with  its  Arab  counterparts. 

The  Government  of  Israel  has  arrived  at  such  a  critical  decision.  It  is  about  to 
sign  an  agreement  with  the  Palestinians  committing  the  State  of  Israel  to  a  specific 
course  of  action. 

The  United  States  Congress  has  a  vital  role  to  play  in  helping  ensure  the 
success  of  the  impending  agreement.  First  and  foremost,  it  needs  to  support  the  peace 
process  by  maintaining  U.S.  aid  to  Israel.  As  stated  in  a  May  4,  1994  letter  to  Prime 
Minister  Rabin  coauthored  by  Senators  Robert  Dole  and  George  Mitchell,  which 
ninety-two  senators  signed:  "As  you  work  for  peace  and  reconciliation,  please  know 
that  we  will  continue  to  do  our  best  to  provide  Israel  with  the  economic  and  defense 
assistance  it  needs,  because  we  believe  a  just  and  lasting  peace  can  only  succeed  if 
Israel  is  strong  and  secure."  To  that  end,  let  me  take  this  opportunity  to  thank  the 
members  of  this  Committee  for  supporting  $3  billion  in  aid  to  Israel  in  the  FY  96 
Foreign  Aid  Authorization  Bill,  HR  1561. 

Another  important  contribution  Congress  can  make  to  the  peace  process  is 
support  for  the  renewal  and  strengthening  of  the  Middle  East  Peace  Facilitation  Act 
(MEPFA)  as  contained  in  the  Senate  version  of  HR  1 868.  MEPFA  has  already  made 
an  important  contribution  to  the  peace  process.  By  linking  aid  and  overall  relations 
with  the  United  States  to  PLO  compliance  with  its  commitments  to  renounce  terrorism 
and  violence  and  accept  Israel's  right  to  exist,  it  has  provided  the  Palestinian  Authority 
(PA)  with  an  incentive  to  comply  with  the  PLO's  commitments. 

Since  MEPFA  was  first  enacted,  the  PLO's  record  of  compliance  ~  while  still 
far  from  adequate  —  has  improved,  particularly  in  recent  months.  The  PA  has 
reportedly  prevented  a  number  of  Islamic  terrorist  acts  —including  suicide  attacks  ~ 
against  Israel.  There  have  been  consistent  reports  of  high  levels  of  cooperation 
between  Palestinian  and  Israeli  security  forces.  And  wanted  terrorists  have  been 
subjected  to  long  prison  terms  by  the  PA. 

But,  clearly,  much  more  needs  to  be  done.  PLO  Chairman  Yasir  Arafat's  has 
delivered  speeches  -  captured  on  tape  --  in  which  he  has  called  for  jihad  and  praised 
Palestinian  terrorists  of  the  1970s.  We  have  strongly  condemned  these  outrageous 
statements,  which  must  stop.  Other  shortcomings  include  failure  to  transfer  wanted 
terrorists  to  Israel  and  to  amend  the  Covenant.  These  problems  highlight  the  need  for 
tougher  legislation  that  would  provide  Congress  with  additional  leverage  to  enforce 
PLO  compliance.  Arafat  must  understand  that  the  U.S.  Congress  is  closely  watching. 

The  new  MEPFA  is,  indeed,  tougher  than  existing  legislation.  In  addition  to 
certifying  that  the  PLO  continues  to  comply  with  its  commitments  of  September  1993, 
the  President  would  also  certify  that  the  PLO  is  complying  with  its  many 
commitments  under  the  Gaza- Jericho  Agreement  of  May  1994,  including  prevention 


175 


of  acts  of  terrorism  and  taking  legal  measures  against  terrorists;  abstaining  from  and 
preventing  acts  of  incitement;  and  prohibiting  the  possession,  manufacture,  sale,  or 
acquisition  of  weapons.  Furthermore,  the  bill  prohibits  any  aid  after  six  months  unless 
the  President  further  certifies  six  other  items,  including  disavowal  of  the  Covenant 
articles  calling  for  Israel's  destruction.  The  bill  also  introduces  financial 
accountability  by  requiring  the  President  to  certify  that  U.S.  assistance  is  spent  for  its 
intended  purposes. 

Mr.  Chairman,  virtually  the  entire  organized  American  Jewish  community  has 
publicly  expressed  support  for  MEPFA  1995.  In  an  August  2,  1995  press  release,  the 
Conference  of  Presidents  of  Major  American  Jewish  Organizations  stated:  "There  is 
a  strong  consensus  among  our  50  national  member  agencies  to  support  [MEPFA 
1995]."  We  at  AIPAC  are  part  of  this  overwhelming  consensus.  We  have  taken  note 
as  well  that  both  the  Government  of  Israel  and  our  own  Administration  are  also 
supportive  of  MEPFA  1995.  We  believe  that  adopting  MEPFA  1995  will  enhance  the 
peace  process  and  promote  American  interests;  rejecting  the  bill  —  or  adopting 
proposals  that  would  have  the  effect  of  denying  any  aid  to  the  Palestinians  —  would 
cause  serious  harm. 

The  new,  strengthened  MEPFA  would  maximize  the  law's  effectiveness  as  a 
tool  to  ensure  PLO  compliance  with  its  commitments.  An  enhanced  MEPFA  would 
help  demonstrate  to  the  PA  its  need  to  comply  with  its  commitments;  were  MEPFA 
to  be  repealed,  or  effectively  gutted  through  the  attachment  of  unrealizable  or 
irrelevant  requirements,  a  major  incentive  for  PLO  compliance  would  be  lost.  We  are 
therefore  opposed  to  legislation  that  would  in  effect  cut  off  funding  to  the  PA 
regardless  of  any  improvements  in  its  performance.  Congress  should  renew  and 
strengthen  MEPFA  and  keep  the  pressure  on  the  PLO  to  comply  with  its 
commitments. 

Mr.  Chairman,  despite  its  problems,  the  peace  process  has  made  dramatic 
progress  since  that  unforgettable  day  two  years  ago  when  Yitzhak  Rabin  and  Yasir 
Arafat  shook  hands  on  the  White  House  lawn.  We  must  ensure  that  the  progress  we 
have  witnessed  will  continue,  so  that  one  day  Israelis  and  Palestinians  will  live 
together  in  peace  and  that  Israel  will  have  the  peace  and  security  it  so  desperately 
longs  for  and  needs. 


176 


*■  UMOHOF 

i!  OrthodoxUwonf1 

>*OI    O  <V«wo 

f<UN*»iM*  »»»    SEVENTH    t»(NUC    ■    NEW   YQBK.    NT    10001    •    « >  1  g  >    SI3«000    -    F » K    (11?)    564-905B 

May   1995  n.0 


MftNoeu.  t.  Ganchrow.  M.O 


HAHDELL  I.  OAKCHROW,  M.D. 


Handel  1  I.  Canehrow,  H.D.  is  President  of  the  Union  of 
Orthodox  Jewish  Congregations  of  America  and  was  the 
driving  force  behind  the  creation  of  the  Institute  for 
Public  Affairs,  which  acts  as  the  orthodox  Jewish 
community's  voice  in  matters  of  public  policy.   In  the 
past.  Dr.  Oanchrow  served  as  the  Chairman  of  the  I. P. A.  and 
created  the  Washington,  D.C.  Summer  Internship  Program  for 
college  students.   This  program  gives  young  Orthodox  men 
and  women  the  opportunity  to  become  future  community 
leaders  as  they  gain  experience  and  exposure  as  interns  for 
members  of  Congress  and  the  Administration. 

Dr.  Ganchrow  has  baen  extremely  active  in  communal  and 
religious  affairs.   He  is  the  founding  President  of  the 
Hudson  Valley  Political  Action  Committee,  constituting 
1,600  families  in  Rockland  County,  which  has  become  the 
largest  pro-Israel  political  action  committee  in  the  United 
States,  as  well  as  the  100th  largest  PAC  in  the  country. 
Ha  has  been  active  in  the  medical  division  of  Israel  Bonds, 
has  served  as  the  president  of  both  the  Community  Synagogue 
in  Monsey  and  of  the  Adolph  Schreiber  Hebrew  Academy  of 
Rockland  County  and  is  a  member  of  the  Executive  Committee 
of  the  American  Israel  Public  Affairs  Committee  (AIPAC) . 
In  July  1992  Hendy  was  appointed  to  the  board  of  the 
Women's  College  of  Touro  College. 

Dr.  Ganchrow  is  a  graduate  of  Teshiva  University  (1958)  and 
Chicago  Medical  School  (1962).   Upon  completion  of  his 
residency,  he  served  in  Vietnam  as  a  combat  Surgeon.   He 
received  an  Army  Accommodation  Medal,  a  Jewish  Welfare 
Board  Medal  for  serving  as  an  active  Jewish  chaplain.    He 
was  promoted  to  the  rank  of  Major  in  Vietnam. 

Following  his  discharge  from  the  army,  he  moved  to  Rockland 
County,  NT  where  he  established  a  private  practice 
specializing  in  Colon  and  Rectal  Surgery.   Dr.  Ganchrow 
serves  as  an  Associate  Clinical  Professor  of  Surgery  at  the 
New  York  Medical  College,  has  written  numerous  medical 
papers,  and  is  a  former  Chief  of  Surgery  at  Good  Samaritan 
Hospital.   In  addition,  he  acts  as  the  Police  Surgeon  for 
the  town  of  Ramapo.   Dr.  Ganchrow  is  also  a  member  of  the 
Rockland  County  Sheriff's  Bureau.   In  1992,  he  was  awarded 
the  Bernard  Revel  Award  as  outstanding  alumnus  of  Teshiva 
University  for  community  service. 


177 


WRITTEN  TESTIMONY  OF 


MANDELL  I.  GANCHROW,  M.D. 


PRESIDENT 


UNION  OF  ORTHODOX  JEWISH  CONGREGATIONS  OF  AMERICA 


HOUSE  COMMITTEE  ON  INTERNATIONAL  RELATIONS 


WEDNESDAY,  SEPTEMBER  20, 1995 


178 


Mr.  Chairman,  Members  of  the  Committee,  I  wish  to  express  my  sincerest 
appreciation  to  you  for  allowing  me  to  testify  on  the  Middle  East  peace  process, 

farticularly  the  Palestinian  track  and  the  reauthorization  of  the  Middle  East  Peace 
acilitation  Act  My  name  is  Dr.  Mendy  Ganchrow.  I  am  the  President  of  the 
Union  of  Orthodox  Jewish  Congregations.  Today,  I  represent  seven  Orthodox 
organizations:  Amit  Women,  Emunah  of  America,  National  Council  of  Young 
Israel,  Poalc  Agudath  Israel.  Rabbinical  Council  of  America,  Religious  Zionists  of 
America  and  the  Union  of  Orthodox  Jewish  Congregations  of  America,  all  national 
mainstream  Orthodox  Jewish  organizations. 

We  are  all  members  of  the  Conference  of  Presidents  of  Major  American  Jewish 
Organizations,  as  well  as  active  members  of  AEPAC.  We  have  all  supported  the 
search  for  Middle  East  peace.  We  stood  together  on  the  White  House  lawn  a  little 
over  two  years  ago  in  support  of  the  search  for  peace.  We  stood  together  in  the 
Jordanian-Israeli  desert  m  support  of  the  search  for  peace.  Yet,  this  search  has 
come  at  a  cost  so  dear  to  the  people  of  Israel.  The  continued  call  for  jihad  in  Arabic 
by  Mr.  Arafat,  the  poor  performance  of  the  Palestinian  Authority,  including  its 
failure  to  return  those  who  engage  in  terrorist  attacks  as  requested  by  the  Israeli 
authorities  in  accordance  with  the  Oslo  Accord,  the  politically  sponsored  activities 
of  the  Palestinian  Authority  in  Jerusalem  and  Orient  House  in  contradiction  to  the 
Oslo  Accord,  the  failure  to  disarm  Hamas  in  the  self-rule  areas,  and  the  continued 
increase  in  horrendous  terrorist  attacks  against  innocent  Jews  all  require  and 
demand  that  we  place  the  tightest  and  most  productive  restrictions  on  U.S.  aid  to 
the  Palestinians. 

A  newly  published  American  Jewish  Committee  study  indicates  that  two-thirds  of 
American  Jews  are  opposed  to  any  American  aid  to  tne  Palestinians.  This  despite 
the  fact  that  the  overwhelming  majority  support  the  peace  process. 

The  majority  of  our  organizations  joined  the  Conference  of  Presidents  of  Major 
American  Jewish  Organizations  in  supporting  Helms-Pell,  which  strengthens  the 
Middle  East  Peace  Facilitation  Act  However,  we  believe  that  there  are  some  major 
loopholes  which  weaken  this  Act  and  that  require  strengthening  by  Congress.  We 
joined  the  Conference  of  Presidents  in  stressing  the  need  for  stronger  language  and 
additional  safeguards  to  guarantee  that  the  bill's  intentions  are  carried  out  to  the 
fullest. 

We  recommend  that  all  the  money  that  has  been  appropriated  by  the 
Administration  be  placed  into  an  escrow  account  for  a  period  of  six  months,  during 
which  the  Palestinians  and  Mr.  Arafat  can  demonstrate  their  compliance  with  the 
Oslo  agreement.  If  they  live  up  to  the  accords,  then  the  aid  will  be  made  available. 

Our  testimony  is  in  the  spirit  of  the  resolutions  adopted  at  the  AlPAC  Annual  Policy 
Conference  of  199S  that  call  for  total  compliance  on  the  part  of  Mr.  Arafat  before 
receiving  U.S.  funds.  I  quote  the  ATP  AC  Policy  Statement  of  1995  that  "continues  to 
support  the  Spector-Shelbv-T  flg^y  Amendment  which  ties  U.S.  funding  to  the 
Palestinians  toPLO  compliance  with  its  commitments.  AlPAC  will  be  working  with 
Congress  to  renew  and  greatly  strengthen  the  Middle  East  Peace  Facilitation  Act  in 
order  to  maximize  its  effectiveness  as  atool  in  pressing  for  PLO  compliance  with  its 
commitments  to  renounce  and  condemn  terrorism,  recognize  Israel  and  negotiate 
differences  peacefully,  prevent  terrorism  and  prosecute  terrorists,  prevent 
incitement  to  violence,  bar  unauthorized  forces,  extradite  terrorists  to  Israel  ensure 
that  the  Palestinian  police  cooperate  with  Israel's  security  forces,  and  amend  the 
Palestinian  covenant." 


179 


We  must  make  the  PLO  accountable.  In  order  to  facilitate  that,  we  suggest  that  all 
funds  for  the  PLO  and  the  Palestinian  Authority  should  be  placed  in  escrow  for  six 
months  while  the  U.S.  government  determines  that  they  are  in  compliance  with  their 
obligations.  Each  of  the  following  should  take  place  in  order  for  the  money  to  be 
appropriated.  The  failure  to  carry  out  these  obligations  would  be  cause  for 
withholding  aid,  by  law,  not  by  "sense  of  Congress"  as  contained  in  the  Helms-Pell 
reauthorization  of  MEPFA. 

1-  The  PLO  Charter,  which  is  replete  with  calls  for  the  destruction  of  Israel,  must  be 
renounced  and  repealed  by  the  Palestinian  Authority  in  its  entirety.  Declaring  that 
it  is  superseded  by  events  on  the  ground  is  not  sufficient.  We  equate  this  charter 
with  the  Zionism  is  Racism  resolution  which  was  repealed  at  the  insistence  of  the 
Congress  of  the  United  States  and  the  citizens  of  this  country,  even  though  it  was 
insinuated  that  the  resolution  was  irrelevant. 

2-  The  failure  to  disarm  Hamas,  the  presence  of  huge  numbers  of  weapons  held  by 
individuals  in  the  area  controlled  by  the  Palestinian  Authority  and  the  failure  to  stop 
new  smuggling  of  arms  into  these  areas  cannot  be  tolerated.  This  should  not  be 
considereda  violation  of  the  "sense  of  Congress,"  as  stated  in  the  bill,  but  should  be 
considered  a  legal  cause  for  American  aid  to  be  terminated. 

3-  The  Palestinian  Authority  must  carry  out  the  mandate  of  the  Oslo  Accord  that 
those  who  engage  in  terrorist  attacks  must  be  turned  over  when  requested  by  Israel. 
To  date,  not  a  single  terrorist  has  been  returned. 

4-  Mr.  Arafat  and  the  members  of  his  cabinet  must  stop  their  inflammatory 
language  including  calls  for  jihad,  the  destruction  of  Israel,  the  killing  of  Jews  and 
the  glorification  of  those  who  have  killed  Jews.  Recent  tapes  of  these  statements  by 
Arafat  are  available  to  every  member  of  Congress.  Arafat  cannot  continue  this 
incendiary  rhetoric  and  still  receive  U.S.  aid. 

5-  All  Palestinian  offices  in  Jerusalem,  especially  Orient  House,  which  are  there  in 
contravention  of  the  Oslo  Accord,  should  be  closed.  All  political  activity  should 
take  place  in  Jericho  and  Gaza  as  stated  in  the  agreement. 

6-  This  Act  should  only  be  reauthorized  for  a  maximum  of  12  months  or  less  in 
order  to  provide  full  opportunity  to  evaluate  compliance. 

7-  We  believe  that  the  Congress  of  the  United  States  should  investigate  allegations 
of  misuse  of  funds  intended  for  housing  and  other  purposes  in  Gaza  and  Jericho  by 
the  Palestinian  Authority,  and  which  instead  may  have  been  illegally  diverted  to  buy 
houses  and  property  within  Jerusalem  in  order  to  create  facts  on  the  ground. 

8-  We  believe  that  the  GAO  report  which  was  commissioned  to  investigate  the 
extent  of  PLO  assets  should  be  made  public  so  that  every  Member  of  Congress  can 
have  this  information  prior  to  voting  on  a  MEPFA  reauthorization.  If  it  is  found 
that  the  PLO  has  substantial  assets,  we  would  strongly  oppose  any  further  financial 
assistance  by  the  United  States  to  the  Palestinian  Authority. 

All  of  the  aforementioned  should  be  legal  grounds  for  termination  of  U.S.  funds, 
rather  than  being  considered  merely  a  violation  of  "a  sense  of  the  Congress." 


180 


Finally,  we  ask  that  Congress  include  a  provision  in  MEPFA  that  any  attempt  by 
Yassir  Arafat  or  any  official  of  the  Palestinian  Authority  to  declare  a  Palestinian 
state  be  automatic  cause  for  cutting  off  all  funds  from  all  sources.  A  Palestinian 
state  would  be  contrary  to  the  interests  of  America  and  would  destabilize  the 
Middle  East  region. 

Mr.  Chairman,  we  support  the  efforts  for  peace,  but  peace  can  not  be  won  if 
American  taxpayer  dollars  continue  to  support  appeasement,  terrorism,  and  calls 
for  jihad,  as  well  as  the  undermining  of  attempts  at  stability  in  this  volatile  area 

Mr.  Chq»""*"t  we  support  an  honorable  and  enduring  peace.  American  funds  play 
a  vital  role  in  providing  the  incentive  for  Middle  East  parties  to  live  up  to  their 
obligations.  Mr.  Ararat  has  a  record  of  murder,  deceit,  duplicity  and  non- 
compliance. Let  us  work  for  peace  by  making  sure  that  Israel's  security  is  ensured. 
Let  us  ensure  that  American  policy  interests  are  safeguarded.  This  can  only  be 
accomplished  with  complete  compliance  on  the  part  of  the  Palestinian  Authority. 
Let  us  send  a  message  to  Mr.  Arafat  Comply  with  your  obligations  and  reassure  us 
through  both  words  and  your  deeds  that  you  are  truly  pursuing  peace  and  we  will  do 
our  part 

Mr.  Chairman,  I  thank  you  for  your  courtesy  and  your  time. 


W 


4< 


181 


American  Jewish  Committee 
Biographical  Sketch 


DAVID  A.  HARRIS 
EXECUTIVE  DIRECTOR 


David  A.  Karris  is  the  Executive  Director  of  the  American  Jewish  Committee.  Prior 
toassuraing  his  current  post,  he  served  in  Washington  as  AJC's  Director  of  Government  and 
Internationa)  Affairs. 

He  was  educated  at  the  University  of  Pennsylvania,  the  London  School  of  Economics  and 
Oxford  University.  He  ilso  studied  in  France  and  taught  in  the  Soviet  Union,  and  Is  fluent  In 
several  languages. 

Mr.  Harris  has  t  'avelled  extensively  to  Africa,  Asia,  the  Middle  East,  Europe,  and  Latin 
America  on  behalf  of  Jevish  Interests  -  monitoring  the  condition  of  Jewish  communities,  combatting 
anti-Semitism,  enhancing  understanding  between  Jews  and  other  groups. 

He  was  the  National  Coordinator  of  the  historic  Freedom  Sunday  for  Sovjet  Jewry  rally  in 
Washington.  D.C.,  in  Df  cerobcr  1987  that  brought  250,000  pcojple  to  the  nation's  capital.  In  June 
1990,  he  was  named  by  he  State  Department  as  a  Public  Member  of  the  U.S.  delegation  to  the 
Conference  on  Security  and  Cooperation  in  Europe. 

His  more  than  ]  00  published  writings  on  East-West  relations  and  the  Middle  East  have 
appeared  in  leading  mag  azines  and  newspapers,  and  he  is  the  author  of  three  books:  The  Jokes  of 
Oppression'  (Jason  Arinson),  "Entering  A  New  Culture'  (Liberty),  and  The  Jewish  World" 
(Liberty),  the  latter  two  in  English  and  Russian. 

Mr.  Harris,  receitly  named  by  Lifestyles  magazine  as  one  of  18  North  American  Jews  "who 
will  serve  as  the  leaders  as  we  approach  the  21st  Century,"  earlier  was  cited  by  the  Jewish  Monthly 
as  one  of  the  "rising  stars"  in  American  Jewish  life. 

Mr.  Harris  is  muried  to  Giulietta  Boukhobza.  They  have  three  sons. 


182 


"PERSPECTIVES  ON  THE  MIDDLE  EAST  PEACE  PROCESS" 

TESTIMONY  OF 

DAVJJ)  A.  HARRIS 

EXECUTIVE  DUIECTOR 

THE  AMERICAN  JEWISH  COMMITTEE 

BEFORE  THE 
COMMITTEE  ON  INTERNATIONAL  RELATIONS 
UNITED  STATES  HOUSE  OF  REPRESENTATIVES 

WEDNESDAY,  SEPTEMBER  20, 1995 


Mr.  Chairman,  thank  you  for  affording  the  American  Jewish  Committee  this 
opportunity  to  present  our  perspectives  on  the  Middle  East  peace  process  at  this  critical 
stage  in  its  evolution,  as  well  as  to  outline  the  findings  of  our  most  recent  survey  of 
American  Jewish  attitudes  about  Israel  and  the  peace  process.   Before  proceeding  with  my 
testimony,  Mr.  Chairman,  I  also  wish  to  thank  you  on  behalf  of  the  American  Jewish 
Committee  for  the  keen  understanding  you  have  always  demonstrated  of  the  importance  of 
the  mutually  beneficial  relationship  between  the  United  States  and  Israel,  and  for  your 
leadership  in  support  of  Israel  as  it  seeks  to  open  a  new  era  of  peaceful,  cooperative 
relations  between  Arabs  and  Jews  across  the  Middle  East. 

Indeed,  Mr.  Chairman,  it  is  the  belief  of  the  members  and  officers  of  the  American 
Jewish  Committee  that  Israel  and  its  Arab  neighbors  are  moving  toward  a  new  era  in  the 
Middle  East.   The  Arab-Israeli  peace  negotiations  —  which  began  in  Madrid  in  October 
1991,  passed  a  significant  milestone  with  the  signing  of  the  Israel-PLO  Declaration  of 
Principles  in  September  1993,  and  achieved  dramatic  success  in  the  Israel-Jordan  peace 
treaty  signed  last  October  —  hold  the  promise  of  thoroughly  and  constructively  remaking 
relations  between  Israel  and  the  Arab  world. 

Our  perspective  is  the  result  of  four  years  of  intensive  experience  with  the  peace 
process,  and  some  47  years  of  close  involvement  with  Israel.  The  American  Jewish 
Committee,  dedicated  to  the  protection  of  Jewish  communities  in  Israel  and  around  the 
world  and  the  first  American  Jewish  organization  to  establish  a  permanent  office  in  Israel, 
has  monitored  the  peace  process  from  its  inception  and  sought  to  advance  its  cause  here 
and  in  other  capitals;  AJC  attended  the  Madrid  conference  and  the  January  1992  Moscow 
opening  of  the  multilateral  peace  talks  as  an  observer,  and  we  have  engaged  in  regular  and 
detailed  discussions  on  the  process  with  senior  officials  of  the  U.S.  and  Israeli 
Governments,  and  with  the  Governments  of  Arab  states  across  the  Middle  East  and  North 
Africa.   Further,  our  confidence  in  this  process  has  led  us  to  change  the  scope  of  our 
Jerusalem  office  from  Israel  alone,  to  Israel  and  the  entire  Middle  East. 

Our  analyses  and  our  discussions  with  the  principals  engaged  in  the  process  here 
and  in  the  region  lead  us  to  one  conclusion:   For  all  its  difficulties,  the  peace  process  set 


183 

TESTIMONY  OF  THE  AMERICAN  JEWISH  COMMITTEE  PAGE  2 


in  motion  four  years  ago  represents  Israel's  best  chance  to  depart  from  the  troubled  course 
of  modern  history  and  achieve  peace  with  its  neighbors. 

The  difficulties  that  have  marked  the  road  to  peace  cannot  be  minimized;  the 
tragedies  —  the  repeated  terror  attacks  by  those  bent  on  destroying  the  peace  process  — 
i  cannot  be  forgotten.   Our  support  for  the  peace  process,  and  our  trust  in  the  judgment  of 
jthe  duly  elected  Government  of  Israel  on  matters  of  Israel's  security,  are  given  in  full 
awareness  of  the  dangers  Israelis  face,  indeed  have  always  faced  in  a  region  and  among 
i people  largely  hostile  to  their  existence.   It  is  not  the  intention  of  the  framers  of,  and 
!  participants  in,  the  peace  process  to  simply  dismiss  the  dangers  and  redefine  the  hostility 
.of  Israel's  foes;  it  is  to  fundamentally  alter  the  nature  of  relations  between  Israel  and  its 
I  neighbors  in  order  to  strengthen  Israel's  present  and  future  security.   Future  generations  of 
both  Jews  and  Arabs  deserve  nothing  less. 

In  just  two  years  since  the  signing  of  the  DOP,  those  relations  have  already 
i  changed,  to  Israel's  benefit;  not  only  has  Israel  made  peace  with  Jordan,  but  it  has  engaged 

in  diplomatic  and  commercial  contacts  from  North  Africa  to  the  Persian  Gulf,  eroding  the 

Arab  League  economic  boycott  of  Israel  and  laying  the  groundwork  for  future  political 
|  and  economic  cooperation  throughout  the  region.   Further,  Israel's  withdrawal  from  Gaza 

more  than  one  year  ago  was  not  only  an  essential  element  in  establishing  a  new 
1  relationship  with  the  Palestinians,  but  it  was  and  remains  highly  popular  within  Israel 
(itself.   And  in  Gaza,  as  anyone  can  attest  who  visited  there  before  the  transfer  of  authority 
land  has  been  back  in  recent  months,  there  are  significant  indications  of  economic,  political 
land  even  social  progress,  achieved  with  the  help  of  U.S.  and  European  aid;  indeed,  with 
(the  Palestinian  Authority  increasingly  succeeding  there  against  the  Hamas  extremists  for 

control  and  popular  allegiance,  Gaza  may  be  the  only  place  in  the  Muslim  world  that  has 
|  actually  moved  farther  away  from  fundamentalism  in  the  last  year. 

The  Israeli  Government's  vision  since  Madrid  has  been  bold  but  clear-eyed,  and 
ve.  stand  behind  it  in  its  pursuit  of  peace  with  security.   Similarly,  Mr.  Chairman,  we 
Dmmend  and  support  the  continued  role  of  the  United  States  —  this  Congress  and  this 
jvery  supportive  Administration  —  as  it  seeks  to  assure  Israel's  security  on  the  perilous  but 
|  promising  road  to  peace.   In  the  American  Jewish  Committee's  support  for  the 
Government  of  Israel  as  it  pursues  peace  with  security,  and  for  our  own  Government  as  it 
seeks  to  advance  the  peace  process  for  the  benefit  of  Israel  and  its  neighbors,  I  know  that 
a  sister  organization,  the  American  Jewish  Congress,  wishes  to  associate  itself  with  iny 
remarks  today. 

Progress  in  the  talks  between  Israel  and  its  negotiating  partners  has  not  been  easy; 
in  fact,  on  two  of  the  bilateral  tracks,  with  Syria  and  Lebanon,  there  has  been  little 
progress  at  all.   On  the  Palestinian  track,  we  are  cautiously  hopeful  that  the  intensive 
negotiations  in  Taba  this  week  will  shortly  yield  a  long-sought  second  phase  agreement 
on  the  redeployment  of  Israeli  forces,  the  transfer  of  broad  authority  to  Palestinians  in  the 


184 


TESTIMONY  OF  THE  AMERICAN  JEWISH  COMMITTEE  PAGE  3 


West  Bank,  and  elections  to  a  new  governing  council.   We  hope  and  expect  that,  when 
concluded,  this  critical  next  step  in  Arab-Israeli  reconciliation  will  increase  the 
Palestinians'  stake  in  forging  a  new  and  mutually  beneficial  coexistence  with  Israel.   It 
will  strengthen  Israel's  long-term  security  while  offering  maximum  protection  to  Jewish 
communities  on  the  West  Bank. 

On  the  Syrian  track,  we  are  disappointed  by  President  Assad's  continued  failure  to 
fully  engage  Israel  in  direct  high-level  talks  —  even  after  giving  assurances  to  do  so  in 
meetings  with  senior  American  officials  in  recent  months.   Nevertheless,  we  are  hopeful 
that,  with  continued  American  involvement,  Jerusalem's  willingness  to  take  concrete  steps 
to  achieve  a  new  relationship  with  Syria  will  be  met  with  an  appropriate  response  from 
Damascus. 

To  strengthen  the  prospect  of  satisfactory  conclusions  to  these  negotiations,  and  the 
achievement  of  true  and  lasting  peace  in  the  region,  the  American  Jewish  Committee 
believes  that  the  critical  role  played  by  the  United  States  as  facilitator,  supporter  and 
honest  broker  for  peace  must  be  extended.  We  call  upon  the  Congress,  Mr.  Chairman,  to 
continue  to  provide  the  President  with  the  resources  and  the  authority  he  requests  —  in 
the  Middle  East  Peace  Facilitation  Act  and  other  measures  that  may  come  before  this  and 
the  other  body  —  so  that  the  United  States  may  press  forward  in  this  noble  endeavor  for 
peace.   We  believe  that  these  efforts  by  the  United  States  will  be  further  enhanced  by  the 
critically  important  efforts  of  America's  friends  and  allies  in  Europe,  Asia  and  the  Middle 
East 

In  expressing  our  hope  and  our  support  for  the  Middle  East  peace  process  and  for 
continued  U.S.  engagement  in  that  process,  Mr.  Chairman,  the  American  Jewish 
Committee  articulates  the  view  of  the  overwhelming  majority  of  American  Jews.   In  an 
attitude  survey  that  we  published  just  last  week,  copies  of  which  have  been  made 
available  to  the  Committee,  we  found  that  68  percent  of  American  Jews  —  more  than  4 
in  5  who  expressed  a  view  —  support  the  Israeli  Government  in  its  current  handling  of 
peace  negotiations;  87  percent  endorse  a  continuing  American  role  in  the  peace  process.   I 
should  note  that  there  are  those  who  are  choosing  to  read  selected  data  from  our  survey, 
and  employing  those  data  to  justify  their  own  views  on  the  peace  process,  without 
examining  the  survey  in  its  complex  and  compelling  totality. 

I'd  like  to  take  a  moment  to  outline  some  of  the  key  findings  of  our  poll  —  our 
third  annual  survey  of  American  Jewish  attitudes  toward  Israel  and  the  peace  process  — 
and  I  will  then  ask  that  the  full  survey  report  be  printed  in  the  hearing  record. 

First,  I  think  it  is  important  to  address  American  Jewish  concerns  and  fears  for 
Israel's  security.   In  the  two  years  since  the  signing  of  the  Oslo  Accord  —  two  years  of 
difficult  and  frustrating  negotiations,  and  repeated  terrorist  acts  intended  to  destroy  the 
peace  process  —  American  Jewish  support  for  the  Israeli  Government's  handling  of  the 


185 


TESTIMONY  OF  THE  AMERICAN  JEWISH  COMMITTEE  PAGE  4 


negotiations  has  declined;  the  level  of  support  was  84  percent  two  years  ago  in  the 
euphoria  surrounding  the  White  House  signing  ceremony,  77  percent  one  year  ago,  and  68 
percent  in  our  most  recent  poll.   Further,  there  is  widespread,  persistent  skepticism  about 
the  Arabs'  intentions  toward  Israel.  Asked  if  they  believed  "the  goal  of  the  Arabs  is  not 
the  return  of  occupied  territories  but  rather  the  destruction  of  Israel,"  56  percent  responded 
in  the  affirmative,  while  37  percent  disagreed  —  reflecting  deepening  doubts  since  1993, 
when  a  similar  question  found  42  percent  in  agreement,  and  50  percent  in  disagreement. 
Asked  if  they  believed  the  PLO  is  "doing  enough  to  control  terrorist  activity  against  Israel 
by  Hamas  and  other  Palestinian  extremist  groups,"  91  percent  answered  "no,"  5  percent 
"yes."  Asked  if  they  believed  "the  Palestinians  are  interested,  or  are  not  interested,  in  a 
true  and  lasting  peace  with  Israel,"  51  percent  answered  "not  interested,"  while  37  percent 
responded  "interested."  Asked  a  companion  question  about  Syrian  intentions,  45  percent 
responded  "not  interested,"  38  percent  "interested."   By  contrast,  74  percent  of  American 
Jews  believe  Jordanians  are  "interested  in  a  true  and  lasting  peace  with  Israel,"  while  17 
percent  do  not. 

The  message  in  these  numbers,  I  believe,  is  twofold:  that  American  Jews,  like  their 
Israeli  counterparts,  need  far  greater  assurance  of  Arab  —  and  particularly  Palestinian  — 
intentions  of  peaceful  coexistence  with  Israel.  The  rhetoric  from  Arab  leaders  has  begun 
to  change;  it  must  change  more,  and  quickly.  And  the  action  by  the  Palestinian  Authority 
to  control  terrorism  and  punish  its  perpetrators  must  continue  to  be  intensified.   The 
United  States,  this  Congress,  must  continue  to  convey  that  message  to  Palestinian 
leadership  and  to  the  Arab  world  generally.   The  second  message  in  this  regard  from  our 
poll  is  that  there  is  a  clear  differentiation  by  American  Jews  between  those  neighbors  of 
Israel  —  in  this  case  Jordan  —  that  have  signed  a  peace  treaty  and  made  conciliatory 
gestures,  and  those  that  have  not. 

I  see  no  contradiction,  Mr.  Chairman,  between  American  Jews'  overwhelming 
support  for  the  peace  process  and  their  profound  wariness  about  the  intentions  of  Israel's 
neighbors.   Indeed,  I  share  those  two  feelings.   Similarly,  I  am  not  surprised  by  the 
response  to  another  question  we  posed  —  whether  the  United  States  should  "provide 
economic  aid  to  the  Palestinians";  63  percent  said  "no,"  30  percent  "yes."   I  find  that 
result  consistent  not  only  with  American  Jews'  skepticism  about  Palestinian  leadership,  but 
consistent  with  general  American  attitudes  about  foreign  aid  to  any  country.   Further, 
based  on  the  results  of  other  questions  we  posed,  when  we  asked  respondents  to  weigh 
their  own  inclinations  and  concerns  about  elements  of  the  peace  process  with  their 
judgment  about  the  overall  merits  of  the  process  and  the  need  to  press  forward  in  accord 
with  the  decisions  of  the  elected  Government  of  Israel,  we  believe  that  if  we  had  asked  a 
similarly  linked  question  on  Palestinian  aid  we  would  have  recorded  a  substantially 
different  response. 

But  on  the  critical  questions  about  the  validity  and  the  potential  of  the  Arab-Israeli 
peace  process  —  and  about  the  Israeli  Government's  responsibility  to  manage  that  process 


186 

TESTIMONY  OF  THE  AMERICAN  JEWISH  COMMITTEE  PAGE  5 


in  a  manner  that  assures  its  nation's  security  —  American  Jews  express  support  for  the 
policies  pursued  jointly  by  Jerusalem  and  Washington. 

Asked,  for  instance,  if  they  felt  the  last  two  years  of  negotiations  "increase  the 
likelihood  of  another  war,  or  increase  the  likelihood  of  peace  with  the  Arabs,"  66  percent 
said  they  viewed  the  process  as  leading  to  peace,  18  percent  to  war  —  a  ratio  of  more 
than  3  to  1.   By  nearly  3  to  1  —  66  percent  versus  22  percent  —  American  Jews  support 
the  Israeli  Government's  "current  handling  of  the  peace  negotiations  with  the  Palestinians." 
And  although  American  Jews  do  not  strongly  support  "the  establishment  of  a  Palestinian 
state,"  with  46  percent  in  favor  and  39  percent  opposed,  a  significant  margin  —  62 
percent  versus  31  percent,  or  2  to  1  —  would  support  such  a  move  if  that  should  be  a 
"decision  made  by  the  duly  elected  Israeli  Government." 

In  the  final  analysis,  regardless  of  their  own  justified  fears  and  concerns,  American 
Jews  are  willing  to  set  aside  those  concerns  in  deference  to  the  decisions  made  by  the 
democratically  elected  Government  of  Israel.   Our  survey  confirms  the  confidence  our 
community  feels  in  that  government  —  and  its  confidence,  as  well,  in  America's 
partnership  with  Israel  in  pursuit  of  peace  in  the  Middle  East.  We  look  to  the  Committee 
to  maintain  that  partnership  and  we  call  on  it  to  continue  its  critical  support  of  the 
Government  of  Israel  as  it  seeks  —  and  takes  risks  for  —  a  new  era  of  peace  with  its 
neighbors.  Thank  you. 


187 

Testimony  of  Dr.  James  Zogby 

President,  Arab  American  Institute, 

on  the  Middle  East  Peace  Process, 

before  the  House  Committee  on  International  Relations, 

September  20,  1995 


Since  the  beginning  of  the  peace  process,  it  has  become  accepted  as  axiomatic  that  for  the 
process  to  succeed,  Palestinians  must  experience  the  benefit  of  peace.  It  was  understood  that 
merely  expanding  economic  opportunities  for  Palestinians  would  not  be  sufficient  to  make  peace, 
but  without  such  growth,  achieving  peace  would  be  impossible. 

Seen  in  this  context,  there  is  a  certain  tragedy  in  witnessing  the  reality  of  Gaza  and 
Jericho  today.  Where  there  was  great  optimism  and  promise,  there  is  now  cynicism  and  despair. 

The  statistics  are  staggering.  Unemployment  in  Gaza  stands  at  62%— a  dramatic  increase 
since  1993.  Virtual  reality  projections  from  international  bureaucrats  aside,  major  job  creating 
infrastructure  projects  have  not  begun.  Open  sewage  remains  a  serious  health  hazard.  And  as 
a  result  of  the  prolonged  closures  of  Gaza's  border  with  Israel  and  the  fact  that  no  regular  access 
or  egress  is  available  to  Egypt,  Jordan  or  the  outside  world,  commerce  has  remained  at  a 
standstill. 


While  two  years  ago  the  per  capita  GNP  of  Gaza  was  S800  (in  contrast  to  about  $14,000 
for  Israelis  and  $1,600  for  West  Bank  Palestinians),  today  Gaza  is  actually  poorer  than  when 
peace  was  signed. 

Surely  something  is  very  wrong.  While  there  is  plenty  of  blame  to  go  around,  I  do  not 
believe  that  the  fingerpointing  at  the  National  Authority  is  helpful  or  correct.  It  was  simply 
unwise  to  assume  that  the  Palestinian  National  Authority  could  create  an  accountable  and 
efficient  state  apparatus  out  of  whole  cloth.  Lacking  full  authority,  control  over  resources  and 
inheriting  neither  a  physical  nor  administrative  infrastructure-it  is  a  wonder  that  the  Palestinians 
have  accomplished  as  much  as  they  have. 

Unlike  recent  transformations  in  South  Africa,  Russia  or  Eastern  Europe,  the  Palestinians 
inherited  no  state  and  no  functioning  economy.  What  was  required  to  assist  them  was  a  FEMA- 
like  approach  to  reconstruction.  What  they  got  were  observers,  studies,  pledges  and  unfulfilled 
promises  of  projects,  and  blame. 


188 


I  am  pleased  to  note  that  in  the  past  year  our  own  Agency  for  International  Development 
(AID)  has  recognized  this  reality  and  the  urgency  of  the  crisis  in  Gaza  and  has  taken  steps  to 
redirect  U.S.  dollars  in  an  effort  to  meet  immediate  needs. 

The  U.S.  cannot  do  the  job  alone.  But  our  $75  million  sends  an  important  signal  of  our 
commitment  to  the  development  of  Palestinian  society  and  to  the  peace  process.  What,  of  course, 
are  required  are  the  billions  of  dollars  that  were  pledged  by  other  donor  nations  but  remain 
uncollected.  Even  today,  change  can  come  to  Gaza.  Rapid  implementation  of  a  massive  overhaul 
of  the  region  can  save  a  fragile  peace  process. 

Young  Palestinians  of  Gaza  and  the  West  Bank  want  nothing  more  than  to  have  a  job,  live 
a  meaningful  life,  raise  a  family,  provide  for  their  children  and  see  their  grandchildren  prosper. 
Their  anger,  all  too  often  seen,  is  a  product  of  despair  —  it  is  bom  of  the  fear  and  frustration  that 
they  have  no  future. 

If  peace  is  to  survive,  we  must  attack  this  crisis  with  all  of  the  resources  and  capabilities 
we  have— and  without  delay  or  encumbrances  to  show  the  Palestinian  people  that  the  promise  of 
peace  can  be  realized. 

Understand  that  building  a  comprehensive  peace  in  the  Middle  East  is  much  like 
constructing  an  inverted  pyramid.  The  foundation,  the  point  at  which  the  ultimate  stability  of  the 
entire  enterprise  rests,  is  embedded  in  the  sands  of  Gaza  and  in  the  rocky  terrain  of  the  West 
Bank. 

Unfortunately,  no  sooner  had  the  process  begun,  than  attention  turned  to  the  more 
glamorous  and  potentially  lucrative  sixth  and  seventh  stories  in  Casablanca  and  Amman,  while 
the  foundation  in  Gaza  remained  unfinished  and  what  had  been  started  was  in  danger  of 
crumbling  under  the  weight  of  neglect. 

Shimon  Peres,  Israel's  Foreign  Minister,  has  said  repeatedly  that  every  dollar  invested  in 
the  Palestinian  economy  is  an  investment  in  the  security  of  Israel.  From  the  Palestinian  view, 
each  job  created  is  a  vote  for  peace  and  the  leadership  that  made  peace  possible. 

If  we  do  not  do  more  and  do  it  quickly,  we  are  in  danger  of  further  eroding  confidence 
in  the  process  and  endangering  the  entire  edifice  of  peace. 

I  urge  you  not  only  to  continue  U.S.  assistance  to  the  Palestinians,  but  to  remove  from 
that  assistance  the  encumbrances  you  have  placed  on  it. 

No  sooner  had  the  euphoria  of  September  13  th  passed,  when  many  in  this  body  began 
once  again  to  use  the  harsh  language  of  the  past  to  describe  the  Palestinian  leadership.  That 
rhetoric  sends  the  wrong  message.  It  says  to  the  Palestinians  that  they  continue  to  be  viewed 
with  distrust  and  enmity.  To  impose  ever  more  severe  compliance  requirements  on  U.S. 
assistance  to  Palestinians  without  similarly  conditioning  U.S.  assistance  to  Israel  compromises  our 
role  as  an  impartial  broker  in  the  peace  process. 


189 


If  this  body  is  to  make  a  contribution  to  peace,  it  must  send  a  message  of  hope  and 
healing  to  Israelis  and  Palestinians  alike. 

Do  not  import  the  anger  and  fear  of  those  who  do  not  want  this  process  to  succeed. 
Export  rather  our  American  commitment  to  a  new  reality  and  a  new  relationship  where 
Palestinian  rights  and  security  and  Israeli  rights  and  security  are  mutually  recognized  and 
reinforced  by  U.S.  support  for  both  peoples. 


TI—TJO    /-> 


190 


THE 

CENTER 

FOR 

SECURITY 

POLICY 


TESTIMONY 


RAND  H.  FISHBEIN 


PRESIDENT,  FISHBEIN  ASSOCIATES,  INC. 
ROCKVILLE,  MARYLAND 


MEMBER,  ADVISORY  BOARD 

CENTER  FOR  SECURITY  POLICY 

WASHINGTON,  D.C. 


"PLO  COMPLIANCE: 
A  PREREQUISITE  FOR  U.S.  ASSISTANCE" 


BEFORE 


THE  HONORABLE  BENJAMIN  GILMAN,  CHAIRMAN 

THE  INTERNATIONAL  RELATIONS  COMMITTEE 

U.S.  HOUSE  OF  REPRESENTATIVES 


SEPTEMBER  20,  1995 
WASHINGTON,  D.C. 


12S0 MMtaMttlVK, Sutti 350.  Washington.  D.C  20037  (202)466-0515  FAX  (302) 466-0511 


191 


Before  beginning  my  testimony,  I  would  like  to  request  that  my  revised  and  extended 
remarks  be  included  in  the  record  along  with  supplementary  material  bearing  on  my  testimony. 
In  addition,  given  the  short  notice  which  I,  and  the  other  witnesses  at  this  hearing  have  had  to 
prepare  our  remarks,  I  would  like  to  ask  that  the  period  for  formal  submission  of  material  for 
the  hearing  record  be  extended  for  not  less  than  fourteen  working  days. 

Mr.  Chairman,  my  name  is  Rand  H.  Fishbein.  I  am  here  representing  myself  and  the 
Center  for  Security  Policy,  where  I  serve  on  the  Board  of  Advisors.  Formerly,  I  served  as  the 
Special  Assistant  for  National  Security  Affairs  to  Senator  Daniel  K.  Inouye  and  as  a  Professional 
Staff  Member  of  both  the  Senate  Defense  Appropriations  and  Senate  Foreign  Operations 
Appropriations  subcommittees. 

Mr.  Chairman,  I  wish  to  thank  you  for  the  opportunity  to  address  the  committee  on  an 
issue  of  critical  importance  to  millions  of  Americans.  The  issue  concerns  the  decision  of  this 
Administration,  with  the  support  of  Congress,  to  provide  $500  million  in  assistance  to  the 
Palestine  Liberation  Organization  (PLO). 

In  the  twenty-four  months  since  the  Declaration  of  Principles  was  signed  on  the  White 
House  lawn,  approximately  $100  million  in  U.S.  assistance  has  gone  to  support  PLO  activities 
in  the  administered  territories  of  Gaza  and  Jericho.  This  has  occurred  without  the  usual 
accountability  demanded  of  other  recipients  of  U.S.  foreign  assistance  and  without  the  usual 
scrutiny  of  Congress. 

Instead,  we  have  been  witness  to  a  grand  public  relations  campaign  designed  to  convince 
even  the  most  skeptical  observers  that  one  of  the  most  notorious  terrorist  organizations  of  the 
twentieth  century  has  mutated  into  a  democratic  entity  respectful  of  law  and  order  and 
fundamental  human  rights.   This,  of  course,  could  not  be  further  from  the  truth. 

Even,  you,  Mr.  Chairman,  referred  to  a  recent  State  Department  report  on  PLO 
compliance  as  nothing  more  than  a  "whitewash. "  A  growing  segment  of  the  American  public, 
if  not  a  majority,  is  inclined  to  agree  with  you.  As  hours  of  recently  recorded  speeches  of 
Yasir  Arafat  clearly  demonstrate,  he  has  no  intention  of  abiding  by  a  peace  with  Israel  or  any 
of  the  commitments  he  has  made  to  our  Government.  He  and  his  followers  are  bent  upon  using 
the  Oslo  Accords,  brokered  with  U.S.  assistance,  as  a  vehicle  for  waging  a  gradual  war  of 
annihilation  against  the  State  of  Israel. 

Incredibly,  the  President  and  many  Members  of  Congress  are  prepared  to  underwrite  this 
baffling  policy  by  supporting  an  extension  of  the  current  law,  the  Middle  East  Peace  Facilitation 
Act  (MEPFA),  which  would  place  virtually  no  conditionality  on  U.S.  assistance  to  the  PLO. 
Under  MEPFA,  the  PLO  is  held  to  no  clear  standard  of  performance.  Instead  it  relies  on  the 
"good  faith"  intentions  of  the  PLO.  The  strongest  compliance  provisions  of  MEPFA  are  in  a 
"Sense  of  Congress"  section  that  has  no  enforcement  authority.  Moreover,  MEPFA  permits 
U.S.  funds  to  be  channelled  through  international  organizations  such  as  the  United  Nations  and 
the  World  Bank. 


192 


-2- 

For  years  the  Congress  has  received  harsh  reports  critical  of  the  poor  financial  controls 
and  widespread  project  mismanagement  which  often  have  plagued  these  organizations.  To  make 
matters  worse,  Yasir  Arafat  has  shown  no  inclination  to  modify  the  standard  PLO  practice  of 
having  all  PLO  assets  secretly  controlled  and  disbursed  by  him. 

Still,  the  United  States  is  prepared  to  support  an  approach  that  reduces,  rather  than 
enhances,  congressional  oversight  of  funds  to  the  Palestinians. 

The  issue  here  is  not  one  of  opposition  to  the  peace  process  or  dissatisfaction  with  Israeli 
Government  efforts  to  find  a  new  method  of  coexistence  with  the  Palestinians.  Rather,  the 
question  is  whether  the  United  States  will  insist  upon  its  own  standards  of  conduct  when  it  is 
called  upon  to  render  assistance  to  both  parties. 

I  believe  that  it  is  imperative  that  the  U.S.  not  lose  sight  of  the  need  to  hold  the 
Palestinians  to  a  strict  level  of  both  political  and  financial  accountability,  just  as  it  does  Israel, 
if  the  United  States  is  to  remain  a  credible  player  in  the  resolution  of  mis  and  other  conflicts. 

However,  time  and  again,  this  Administration  is  prepared  to  overlook  the  PLO's 
wholesale  violations  of  the  Declaration  of  Principles  in  a  headlong  rush  to  float  the  current  peace 
process  on  a  bubble  of  cash.  Already,  this  bubble  is  on  the  verge  of  bursting  as  the  PLO 
flagrantly  violates  most  of  the  solemn  commitments  it  has  made  not  only  to  Israel,  but  to  our 
President  and  the  Vice-President  as  well.  In  a  recent  Luntz  poll,  78%  of  all  Americans  surveyed 
stated  that  the  PLO  should  be  "held  accountable  to  its  commitments  and  comply  with  the  peace 
accords  as  a  precondition  for  receiving  the  rest  of  the  (U.S.)  funds." 

Simply  put,  should  the  United  States  buy  peace  at  any  price.  Should  we  continue  to  pay 
for  the  privilege  of  Yasir  Arafat  remaining  at  the  peace  table,  or  should  we  insist  that  he  make 
good  on  his  obligations  to  halt  terrorism  and  to  apprehend  and  extradite  PLO  members  who  have 
harmed  Americans  and  should  he  now  account  for  the  funds  now  streaming  into  his  coffers. 

We  are  all  for  peace.  But  without  compliance  there  can  be  no  peace. 

In  another  context,  Arafat's  conduct  would  be  seen  as  simple  extortion.  Yet  when  it 
comes  to  the  politics  of  the  Middle  East,  it  is  viewed  as  the  cost  of  doing  business. 

It  was  not  too  long  ago  that  members  of  this  very  committee  would  have  bristled  at  the 
thought  of  funnelling  U.S.  subsidies  to  the  Palestine  Liberation  Organization.  If  Republicans 
and  Democrats  could  find  common  ground  on  any  subject,  it  was  the  dastardly  nature  of  Arafat 
himself. 

In  the  past,  many  of  you  would  have  paid  a  king's  ransom  to  put  Arafat  on  trial.  Now, 
you  are  prepared  to  pay  a  king's  ransom  to  keep  him  from  trial.  Today,  the  world  has  been 
turned  on  its  head  to  the  point  where  even  asking  fundamental  questions  about  PLO  compliance 
are  taboo. 


193 


-3- 

Has  our  view  of  responsible  congressional  oversight  changed  so  profoundly  that  we  can 
no  longer  openly  and  candidly  debate  an  issue  of  paramount  American  interest? 

Why  has  it  taken  two  years  for  this  committee  to  take  public  testimony  on  the  abysmal 
record  of  the  PLO  in  living  up  to  its  commitments.  History  will  only  judge  our  collective 
silence  as  acquiescence  to  the  tyranny  of  a  process  that  we  all  hoped  would  bring  us  peace. 

Mr.  Chairman,  this  committee  now  has  before  it  the  opportunity  to  right  some  of  the 
wrongs  of  the  past.  Pending  before  both  houses  of  Congress  is  the  Middle  East  Peace 
Compliance  Act  of  1995,  known  as  H.R.1960  in  the  House  and  S.915  in  the  Senate. 

I  ask  that  you  act  now  and  report  this  important  piece  of  legislation  out  of  committee  with 
a  strong  recommendation  that  it  be  taken  up  for  immediate  consideration  on  the  House  floor. 
MEPFA,  the  current  law  allowing  aid  to  the  PLO  must  be  allowed  to  lapse  when  it  expires  on 
October  1st.   H.R.1960  should  be  enacted  in  its  place. 

H.R.1960,  also  known  as  the  DeLay-Forbes-Saxton  bill,  would  deny  funds  to  the  PLO 
and  the  Palestinian  Authority  (PA)  while  permitting  aid  to  go  to  Palestinian  humanitarian  projects 
once  "substantial,  material  and  timely"  compliance  has  been  achieved  by  the  PLO.  It  recognizes 
that  there  is  no  real  distinction  between  the  PLO  and  the  PA,  both  of  which  are  controlled  by 
Arafat.  H.R.  1960  requires  that  all  funds  be  channelled  through  U.S.  Government  agencies  and 
entities  or  American  registered  private  voluntary  organizations  (PVOs). 

H.R.1960  is  a  prudent,  reasonable  and  tightly  crafted  bill.  Its  provisions  are  grounded 
in  precedents  currently  governing  the  allocation  of  U.S.  foreign  assistance.  The  bill  strengthens 
the  peace  process  and  ensures  comprehensive  financial  and  administrative  accountability  over 
all  U.S.  funds  flowing  to  territories  under  Palestinian  control. 

The  bill  also  would  require  that  the  PLO  provide  compensation  to  U.S.  victims  of  PLO 
terrorism  and  assist  U.S.  law  enforcement  in  the  apprehension  and  extradition  of  those 
responsible  for  such  acts.  As  far  as  I  know,  there  is  no  statute  of  limitations  on  the  murder  of 
Americans. 

The  only  foundation  upon  which  a  true  and  lasting  peace  can  be  built  is  one  in  which  the 
negotiating  partners  comply  with  the  letter  and  spirit  of  their  commitments.  The  DeLay-Forbes- 
Saxton  bill  promotes  peace  by  providing  a  strong  monetary  incentive  for  compliance.  Without 
compliance,  there  can  be  no  peace  and  certainly  no  U.S.  funding. 

If  the  U.S.  is  to  maintain  its  credibility  in  fighting  terrorism  world-wide,  it  can  not  be 
seen  to  reward  individuals  who  have  American  blood  on  their  hands.  Despite  its  alluring 
rhetoric,  the  PLO  has  proven  with  its  deeds  over  the  last  twenty-four  months  that  they  are 
unreformed  terrorists  and  continue  to  be  a  menace  to  civil  society.  Arafat,  himself,  continues 
to  praise  the  suicide  bombers  of  Islamic  Jihad  as  "martyrs"  and  celebrates  the  spiritual  leader 
of  Hamas,  Sheik  Yasin,  as  a  "prince." 


194 


Mr.  Chairman,  everywhere  we  turn  today  the  United  States  is  demanding  that  rogue 
states  and  peoples  comply  with  their  international  commitments.  In  Iraq,  we  insist  that  Saddam 
Hussein  comply  with  U.N.  resolutions.  In  Bosnia,  we  urge  the  Bosnian  Serbs  to  heed  Security 
Council  decisions.   In  North  Korea  we  require  compliance  with  IAEA  rules  and  regulations. 

Only  with  the  PLO  do  we  suspend  our  judgement,  retreat  from  a  moral  posture,  and 
shrink  from  that  honorable  determination  that  in  years  past  has  brought  respect  to  America. 

Mr.  Chairman,  members  of  the  Committee,  it  is  not  too  late  to  chart  a  course  that  will 
bring  honor  to  the  United  States,  peace  to  the  Middle  East  and  restore  the  moral  authority  and 
leadership  of  this  illustrious  legislative  body  in  the  area  of  foreign  policy. 

Your  recommendation  that  H.R.  1960  be  brought  up  for  immediate  consideration  on  the 
House  floor  would  do  just  that. 

Thank  you. 


195 

MORTON  A.  KLEIN: 
BIOGRAPHICAL  NOTES 

Morton  A.  Klein,  the  National  President  of  the  Zionist  Organization  of 
Amcrjca,  is  an  economist  and  portfolio  manager  who  served  in  the  Nixon,  Ford 
and  Carter  Administrations.  He  is  also  a  consultant/biostatistician  to  the  UCLA 
School  of  Public  Health  and  the  Linus  Pauling  Institute  of  Science  and  Medicine 
in  Palo  Alto,  California,  having  worked  closely  with  two-time  Nobel  Laureate 
Linus  Pauling.   Mr.  Klein  has  also  worked  as  a  lecturer  in  mathematics  and 
statistics  at  Temple  University. 

Mr.  Klein  is  widely  regarded  as  one  of  the  leading  Jewish  activists  in  the 
United  States.  The  national  Jewish  weekly  Forward  recently  named  Mr.  Klein  as 
one  of  the  top  five  Jewish  leaders  in  the  United  States  today.  His  efforts  on 
Capitol  Hill  on  behalf  of  America-Israel  friendship,  and  his  successful  campaigns 
against  anti-Israel  bias  in  textbooks,  travel  guides,  universities  and  the  media, 
have  been  the  subject  of  feature  stories  in  numerous  journals,  including  the 
Philadelphia  Inquirer,  Jerusalem  Report,  Near  East  Report,  and  Hadassah 
Magazine.   Mr.  Klein  traveled  to  Germany  and  persuaded  the  publishers  of 
Baedeker's,  the  world's  leading  travel  guide,  to  correct  the  many  anti-Israel 
errors  in  its  guides  to  Jerusalem  and  Israel.  His  efforts  also  helped  led  to  a 
dramatic  reduction  in  anti-Israel  activity  on  the  campus  of  Villanova  University. 

In  recognition  of  his  efforts,  Mr.  Klein  has  received  numerous  awards, 
including  Hadassah's  Myrtle  Wreath  Award  and  the  Ze'ev  Jabotinsky  Memorial 
Award  of  the  Jerusalem  Reclamation  Project.  His  scientific  research  on  nutrition 
and  heart  disease  was  cited  by  Discover  Magazine  as  one  of  the  Top  50  Scientific 
Studies  of  1992. 

More  than  250  of  Mr.  Klein's  articles  and  letters  have  been  published  in 
periodicals  around  the  world,  including  the  New  York  Times,  New  Yorker, 
Commentary,  the  Washington  Times,  the  Miami  Herald,  the  Jerusalem  Post,  the 
International  Journal  of  Preventive  Medicine,  and  the  Journal  of  Epidemiology. 

Mr.  Klein  has  delivered  more  than  150  lectures  at  institutions  including 
Harvard  University,  Princeton  University,  the  University  of  Pennsylvania, 
Brandeis  University,  the  National  Academy  of  Sciences,  the  Institute  of  Medicine, 
the  General  Assembly  of  Jewish  Federations  meetings,  B'nai  B'rith  Canada,  the 
American  Jewish  Press  Association  and  the  Rabbinical  Council  of  America. 

Mr.  Klein  is  a  child  of  Holocaust  survivors,  and  was  born  in  a  Displaced 
Persons  Camp  in  Gunzberg,  Germany.   He  is  married  to  Rita,  has  one  daughter  (a 
junior  at  Barnard  College),  and  lives  in  a  suburb  of  Philadelphia. 


\ 


196 


10 


V.  Recommendations  Regarding  the  Stationing 
of  U.S.  Troops  on  the  Golan  Heights 

For  the  reasons  enumerated  above,  the  United  States  should  declare  that  it 
is  not  prepared  to  station  its  forces  on  the  Golan  Heights. 

The  ZOA  also  urges  that  further  Congressional  hearings  be  held,  in  order 
to  provide  an  opportunity  for  a  fuller  discussion  of  this  important  issue. 


197 


*  American  troops  could  become  victims  of  terrorist  attacks,  including 
kidnappings,  by  Hezbollah.  Islamic  Jihad,  and  the  numerous  terrorist  groups  that 
are  headquartered  in  southern  Lebanon,  which  is  directly  adjacent  to  the  Golan 
Heights.  When  U.S.  Marines  were  sent  to  Lebanon  in  1983,  in  connection  with 
the  Lebanon-Israel  peace  treaty,  Hezbollah  terrorists  killed  271  of  them. 

*  Stationing  U.S.  troops  on  the  small  Golan  Heights  is  not  comparable  to 
the  U.S.  troops  that  are  now  stationed  in  the  Sinai,  between  Egypt  and  Israel. 
The  Golan  is  just  10  miles  wide;  the  vast,  sparsely-populated  Sinai  desert  is  over 
100  miles  wide.  The  Golan  is  very  close  to  Arab  terrorist  bases;  the  Sinai  is  not. 
And  on  the  Golan,  U.S.  troops  would  be  in  the  line  of  fire  from  Syria's  army- 
whereas  the  U.S.  troops  in  the  Sinai  are  hundreds  of  miles  from  Egypt's  military 
centers. 

*  If  in  the  future,  Syria  undertook  hostile  and  provocative  military  actions 
in  preparation  for  war  against  Israel,  the  Israelis  might  have  no  choice  but  to 
launch  a  pre-emptive  strike  (as  happened  in  the  1967  war).  If  this  happened,  the 
U.S.  troops  would  be  in  harm's  way.  Their  presence  could  delay  or  deter  Israel's 
ability  to  take  necessary  military  action. 

*  Syria  has  a  long  record  of  violating  its  international 
agreements.  For  example,  Syria  has  broken  its  pledge  to  remove  its  troops 
from  Lebanon,  which  was  included  in  the  1978  Riyadh-Cairo  accords,  the  1982 
Fez  Declaration,  and  the  1989  Ta'if  Accord.  In  1976,  Syria  entered  into  an 
agreement  with  Israel,  known  as  the  "Red  Line  Understanding,"  in  which  Syria 
would  not  send  missiles,  aircraft,  or  more  than  one  brigade  of  soldiers  in  to 
Lebanon.  Syria  soon  broke  the  agreement.  Itamar  Rabinovich  (before  he 
became  Israel's  ambassador  to  the  U.S.)  wrote  that  Syria's  behavior  in  Lebanon 
was  an  "unequivocal  violation"  of  the  Red  Line  Understanding,  and  posed  "a 
serious  threat"  to  Israeli  security  interests.  (The  War  for  Lebanon,  p.  117) 
Syria's  record  demonstrates  that  it  cannot  be  relied  upon  to  honor  any  new 
agreement  with  Israel  and  the  United  States. 

Eleven  senior  U.S.  military  experts  recently  conducted  a  study  of  this  issue 
for  the  Center  for  Security  Policy,  in  Washington,  D.C.  They  concluded  that 
"there  is  no  mission  or  rationale  for  a  U.S.  peacekeeping  force  on  the  Golan  that 
would  justify  the  resulting  costs  and  risks."  The  authors  of  the  study  included 
ret.  U.S.  Army  General  John  Foss,  who  was  responsible  for  U.S.  forces  in  the 
Sinai;  three  former  members  of  the  U.S.  Joint  Chiefs  of  Staff  (Gen.  Al  Gray, 
USMC,  Ret.,  Adm.  Carl  Trost,  USN,  Ret.,  and  Adm.  Elmo  Zumwalt,  USN,  Ret.); 
and  five  former  Defense  and  State  Department  officials. 

A  recent  study  by  Dr.  Dore  Gold  of  Tel  Aviv  University's  Jaffee  Center 
for  Strategic  Studies  found  that  "the  presence  of  a  large  American  force  on  the 
Golan  Heights  would  be  disadvantageous  for  Israel's  security. " 

A  poll  taken  in  November  1994  by  the  prestigious  journal  Middle  East 
Quarterly,  edited  by  Dr.  Daniel  Pipes,  found  that  64.3%  Americans  oppose  the 
stationing  of  American  troops  on  the  Golan  Heights  (only  17%  favor  it). 


198 


March  1973;  Michael  Nadler,  a  student,  murdered  by  axe-wielding  PLO 
terrorists  (DFLP)  on  the  Golan  Heights  in  November  1975;  the  American 
ambassador  to  Lebanon,  Frances  E.  Meloy,  and  his  economic  counselor,  Robert 
O.  Waring,  murdered  by  PLO  terrorists  (PFLP)  in  Lebanon  in  1976;  Gail 
Rubin,  niece  of  U.S.  Senator  Abraham  Ribicoff.  murdered  by  PLO  terrorists  in 
the  Tel  Aviv  Highway  massacre  of  March  1978;  Serena  Sussman,  murdered  in 
the  PLO  bombing  of  a  Jerusalem  bus  in  December  1983;  wheelchair-bound 
tourist  Leon  Klinghoffer,  shot  to  death  by  PLO  terrorists  (Palestine  Liberation 
Front)  aboard  the  S.S.  Achille  Lauro  in  October  J 985;  and  American  tourist  Gail 
Klein,  murdered  in  a  PLO  grenade  attack  at  the  Western  Wall  in  Jerusalem,  in 
October  1986. 

More  recently,  on  April  9,  1995,  American  college  student  Alisa  Flatow 
was  murdered  by  terrorists  in  PLO-controlled  Gaza.  When  the  Federal  Bureau 
of  Investigation  said  that  it  wanted  to  send  agents  to  investigate,  PLO  spokesman 
Rashid  Abu-Shibak  announced  that  the  PLO  would  not  let  the  FBI  do  so.  On 
August  20,  terrorists  blew  up  a  Jerusalem  bus,  murdering  five  passengers, 
including  Connecticut  school  teacher  Joan  Devanny.  Two  of  the  masterminds  of 
the  bombing  fled  to  PLO-controlled  Jericho.  The  PLO  has  refused  to  extradite 
them  to  Israel. 

JJI.   Recommendations  Regarding  U.S.  Aid  to  the  PLO 

More  than  two  years  have  passed  since  the  signing  of  the  peace  accords,  yet 
the  PLO  is  still  violating  virtually  every  aspect  of  the  accords;  the  PLO  has  had 
ample  time  to  demonstrate  that  it  sincerely  wants  to  fulfill  its  commitments,  yet  it 
has  not  done  so. 

At  a  time  when  the  Clinton  administration  is  pushing  for  the  enactment  of 
strong  anti-terror  legislation,  the  United  States  should  not  be  giving  financial  aid 
to  Arafat,  who  encourages  terrorism  with  his  "jihad,  via  deaths"  speeches  and 
praises  terrorists  as  "heroes." 

The  ZOA  recommends  that  Congress  suspend  all  U.S.  aid  to  the  PLO  and 
to  the  PLO's  Palestinan  Authority  immediately.  Aid  should  be  resumed  only 
after  Congress  has  determined  that  the  PLO  has  fully  complied,  for  a  period  of 
not  less  than  six  months,  with  all  of  the  commitments  it  made  in  the  Israel-PLO 
peace  accords. 

The  ZOA  also  urges  that  further  Congressional  hearings  be  held,  in  order 
to  provide  an  opportunity  for  a  fuller  discussion  of  this  important  issue. 

IV.  U.S.  Troops  on  the  Golan  Heights 

Should  American  troops  be  stationed  on  the  Golan  Heights,  as  part  of  a 
future  peace  treaty  between  Syria  and  Israel?  Such  a  deployment  would  involve  a 
number  of  dangers. 


199 


British  government  investigation.  Last  year,  Norway's  attorney  general  and  a 
United  Nations  oversight  committee  began  investigating  the  disappearance  of  a 
$100,000  Norwegian  grant  for  a  PLO  agricultural  project.  In  December  1994, 
the  nonpartisan  Israeli  organization  Peace  Watch,  which  monitors  Israeli  and 
PLO  compliance  with  the  peace  accords,  recently  reported  that  $16-million  in 
international  contributions  that  were  supposed  to  go  for  humanitarian  projects  in 
Gaza  and  Jericho  was  diverted  to  PLO  military  and  propaganda  activities  in 
Lebanon. 

No  wonder  that,  as  Senator  Richard  Shelby  (R-AL),  co-chair  of  the  Peace 
Accord  Monitoring  Group  in  the  U.S.  Senate,  recently  pointed  out,  increasing 
numbers  of  American  citizens  look  at  the  PLO's  rule  in  Gaza  —which  has  been 
characterized  by  totalitarianism,  corruption,  human  rights  abuses,  terrorism  and 
internecine  violence—  and  "wonder  why  we  should  be  pouring  money  into  a 
sinkhole  of  deepening  chaos  and  disorder." 

At  the  request  of  Congressman  Gilman,  the  Government  Accounting  Office 
(GAO)  conducted  an  investigation  to  determine  the  extent  of  the  PLO's  financial 
assets.  The  report  was  completed  earlier  this  year,  but  has  been  stamped 
"classified"  by  the  Clinton  administration  and  therefore  has  not  been  released  to 
the  public. 

A  1993  study  by  Great  Britain's  National  Criminal  Intelligence  Service 
concluded  that  the  PLO  has  worldwide  assets  of  $7-$10  billion  and  an  annual 
income  of  $1.5  -  $2  billion.  Even  that  estimate  may  be  "a  bit  low,"  according  to 
Dr.  Rachel  Ehrenfeld,  the  criminologist  and  author  of  Narcoterrorism  (which 
documents  the  link  between  Arab  terrorist  groups  and  the  illegal  narcotics 
industry).  If  the  GAO  report  determined  that  the  PLO  does  indeed  have 
substantial  sums  of  money  at  its  disposal,  American  citizens  will  justifiably 
wonder  why  they  should  contribute  additional  hundreds  of  millions  of  dollars  to 
Arafat. 

Pressure  must  be  put  on  Arafat  and  the  PLO  now  to  act  in  a  peaceful  and 
civilized  way,  before  they  are  given  additional  territory,  because  once  they  have 
that  territory  they  will  have  even  less  incentive  to  abide  by  the  accords.  As 
Senators  Liebcrman  and  Mack  have  stated  (in  a  December  9,  1994  letter  to 
Secretary  of  State  Warren  Christopher),  "So  long  as  the  PLO  and  Mr.  Arafat  are 
not  held  to  the  commitments  they  have  made,  there  will  be  no  peace." 

AMERICAN  VICTIMS  OF  ARAB  TERRORISM 

Over  the  years,  Arab  terrorists  have  murdered  numerous  Americans, 
including  tourist  Leo  Holtz,  murdered  by  PLO  terrorists  (Fatah  and  PFLP)  near 
Hebron;  Barbara  Ertle,  murdered  by  PLO  terrorists  (PFLP)  in  an  attack  on  a 
busload  of  Christian  pilgrims  near  Hebron  in  February  1 970;  David  Berger,  an 
Israeli- American,  murdered  in  the  PLO's  massacre  of  Israeli  athletes  at  the  1972 
Munich  Olympics;  the  U.S.  ambassador  to  Sudan,  Cleo  A.  Noel,  Jr.,  and  a  second 
U.S.  diplomat,  G.  Curtis  Moore,  murdered  by  PLO  terrorists  in  Khartoum  in 


200 


policemen."  Arab  dock  workers  —not  unemployed  beggars—  "armed  with  long 
boat-hooks  ran  through  the  streets  impaling  Jews  on  their  weapons,"  while 
"respectable-looking  Arabs  with  well-ironed  fezzes,  polished  shows,  well-creased 
pants  and  starched  collars,  rushed  into  [Jewish]  stores  and  helped  themselves  to  all 
kinds  of  merchandise."  Was  other  Arab  violence,  such  as  the  1929  massacre  or 
the  thousands  of  attacks  between  1936-1939,  also  because  of  poverty?  Were  the 
Arab  wars  against  Israel  (1948,  1956,  1967,  1973)  fought  for  economic  reasons? 

If  the  poverty  in  Gaza  is  the  root  of  violence,  one  might  ask,  why  was  there 
no  violent  mass  uprising  in  Gaza  during  the  years  1949-1967,  when  Egypt 
occupied  the  area?  The  Arabs  in  Gaza  were  impoverished  during  the  period  of 
Israeli  administration,  1967-1994,  yet  the  intifada  violence  did  not  begin  until 
1987,  after  twenty  years  of  Israeli  rule.  There  was  no  sudden  increase  in  poverty 
that  led  to  the  intifada.  Indeed,  the  United  Nations  Environmental  Programme 
has  cited  Israel  for  bringing  about  numerous  social  improvements  in  Gaza  and  the 
other  territories  during  the  years  of  its  administration,  (including  a  drastically 
lower  infant  mortality  rate,  increased  longevity,  an  improved  water  supply, 
electricity  and  dramatic  increase  in  a  number  of  material  possessions  (such  as 
appliances  and  other  goods). 

Ironically,  one  of  the  key  ingredients  in  the  intifada  was  the  emergence  of  a 
generation  of  radical  young  Arab  nationalists,  many  of  them  university-educated 
(Israel  built  six  universities,  and  sixteen  other  institutions  of  higher  education,  in 
the  territories)  and  relatively  well-to-do,  who  organized  mass  violence  for 
ideological,  not  economic,  reasons.  Furthermore,  as  Prof.  Perlmutter  points  out, 
the  leadership  of  the  Hamas  fundamentalist  movement  today  "is  made  up  of 
modern  middle-  and  upper-middle  class  professionals,  of  journalists,  lawyers, 
engineers  and  doctors."  Indeed,  news  accounts  of  the  400  Hamas  leaders  who 
were  temporarily  deported  to  Lebanon  in  1992-1993,  described  the  deportees  as 
well-educated  professionals.  And  the  Hamas  suicide  bomber  who  recently  killed 
three  Israelis  in  the  Gaza  Strip  was  reported  to  have  come  from  an  affluent,  well- 
educated  family.  Building  factories  or  hospitals  will  not  put  an  end  to  hatred  of 
Israel.  Devoted  to  ideologies  of  extreme  Arab  nationalism  (the  PLO  factions)  or 
extremist  Islam  (Hamas),  they  reject  the  concept  of  a  sovereign  non-Muslim  state 
in  the  Muslim  Middle  East, 

Money  is  not  the  solution  to  the  Arab-Israeli  conflict,  because  lack  of 
money  was  never  the  problem.  To  paraphrase  the  Democratic  Party  strategist 
James  Carville,  it's  not  the  economy,  stupid. 

PLO'S  MISUSE  OF  INTERNATIONAL  DONATIONS 

There  is  good  reason  to  be  concerned  about  how  the  PLO  will  use  the 
foreign  donations  that  it  receives.  Britain's  Overseas  Development  Agency  sent 
$5-million  to  pay  the  salaries  of  9,000  PLO  policemen  in  1994,  with  specific 
instructions  that  none  of  the  money  be  given  to  Arafat's  plain-clothes  "preventive 
security  forces"-yet  more  than  $500,000  was  given  to  those  forces,  prompting  a 


201 


Samahadana,  who  is  wanted  by  Israel  for  his  role  in  the  killing  and  wounding  of 
15  Israelis. 

THE  STATE  DEPARTMENT:  WHITEWASHING  THE  PLO 

Under  existing  legislation,  the  President  must  certify  PLO  compliance 
before  aid  can  be  sent.  He  bases  his  decision  on  reports  prepared  every  six 
months  by  the  State  Department.  These  reports  have  distorted,  ignored  or 
minimized  many  PLO  violations,  and  have  been  strongly  criticized  by  leading 
Jewish  organizations,  including  the  ZOA  and  AIPAC,  the  American  Israel  Public 
Affairs  Committee.  The  most  recent  report,  dated  June  1,  1995,  was  described 
by  U.S.  Congressman  Ben  Gilman  (R-NY),  chair  of  the  House  International 
Relations  Committee,  as  a  "whitewash."  Israel's  respected  English-language  daily 
newspaper,  the  Jerusalem  Post,  also  called  it  a  "whitewash." 

WILL  U.S.  MONEY  BRING  PEACE? 

Proponents  of  U.S.  aid  to  the  PLO  maintain  that  when  the  Palestinian 
Arabs  in  the  self-rule  areas  begin  to  "enjoy  the  fruits  of  peace,"  they  will  support 
peaceful  coexistence  with  Israel.  Is  this  argument  valid?  Is  poverty  the  real 
threat  to  Middle  East  peace?  Professor  Amos  Perlmutter,  of  American 
University,  doesn't  think  so.  Perlmutter,  a  professor  of  political  science  and 
sociology  and  editor  of  the  prestigious  Journal  of  Strategic  Studies,  recently 
wrote  that  "The  real  source  of  conflict  in  the  Gaza  is  not  poverty  or  the  horrible 
economy. ..The  real  problem  and  issue  is  the  rise  of  Hamas,  which  is  a  radical, 
nationalist  and  decidedly  rejectionist  movement. ..dedicated  to  the  destruction  of 
the  peace  and  the  eventual  formation  of  Complete  Palestine  [in  place  of  Israel]." 

A  recent  editorial  in  the  Jerusalem  Post  likewise  pointed  out  that  "there  is 
no  reason  to  believe  that  money  would. ..persuade  Palestinians  to  coexist  with 
Israel.,. not  all  problems  can  be  solved  with  money... Americans  are  particularly 
aware  of  the  limitations  of  financial  aid  in  resolving  social  and  political  problems. 
Throwing  staggering  amounts  of  government  and  private  funds  at  inner-city 
slums,  the  drug  problem  and  affirmative  action  for  minorities  had  done  little  to 
ameliorate  intractable  problems.  It  is  even  less  likely  that  the  Arab-Israeli 
conflict  can  be  reduced  to  materialist  terms.  The  intolerance  in  the  Arab  world 
for  Israel's  existence  does  not  stem  from  economic  hardship.  It  is  mostly 
religiously  and  nationalistically  inspired." 

The  historical  record  certainly  seems  to  support  the  view  that  Arab 
extremist  ideology,  rather  than  poverty,  is  at  the  core  of  the  Arab-Jewish 
conflict.  During  the  1920s  and  1930s,  for  example,  Jewish  immigration  to 
Palestine  brought  the  country  a  variety  of  economic  improvements,  including 
new  jobs  for  many  Arabs— yet  there  were  repeated  Arab  pogroms  against  the 
Jews.  Nor  were  the  pogromists  necessarily  the  most  impoverished  of  the  Arabs. 
Accounts  of  the  1921  Arab  pogrom  in  Jaffa,  for  example,  described  the  violence 
as   having   been   initiated  by    "a  howling   horde   led   by   uniformed   [Arab] 


202 


But  Arafat  has  not  done  so.  Instead,  he  has  made  numerous  speeches 
inciting  violence  against  Israel.  For  example,  in  May  1994,  Arafat  urged  a 
Muslim  audience  in  South  Africa  to  take  part  in  a  "jihad"  [Islamic  holy  war] 
against  Israel.  Arafat  has  repeatedly  publicly  praised  the  violent  Palestinian  Arab 
intifada  and  said  that  it  must  "continue,  continue,  continue."  He  has  described  the 
imprisoned  leader  of  the  Hamas  terrorists.  Sheikh  Ahmed  Yassin,  as  "brother 
Yassin"  and  called  for  his  release  from  jail.  On  November  15,  1994,  in  a  speech 
in  Gaza,  Arafat  referred  to  Israel  as  "the  Zionist  enemy"  and  described  the  peace 
accords  as  the  first  phase  in  the  PLO's  traditional  "Strategy  of  Phases"  for 
destroying  Israel  step  by  step.  On  November  21,  1994,  Arafat  vowed  to  a  Gaza 
audience  that  "this  Palestinian  people  will  continue  their  struggle  and  iihad."  He 
told  a  Gaza  audience  on  January  3,  1995  that  "we  have  the  weapon  of  faith,  the 
weapon  of  martyrdom,  the  weapon  of  jihad."  More  recently,  Arafat  declared  in 
a  speech  m  Gaza  on  June  19,  1995:  "The  commitment  still  stands,  and  the  oath  is 
still  valid:  that  we  will  continue  this  long  iihad.  this  difficult  jihad,  this  arduous 
jihad,  via  deaths,  via  battles."  The  June  19  videotape  also  shows  that  Arafat 
heaped  praise  on  Abir  Wahaydi  and  Dalai  Magribi,  two  female  Arab  terrorists, 
calling  them  "heroes"  and  "stars."  Of  Magribi,  a  leader  of  the  1978  Tel  Aviv 
Highway  massacre  of  37  Israeli  bus  passengers,  Arafat  said:  "She  commanded  the 
group  that  established  the  first  Palestinian  republic  in  [that]  bus.  This  is  a 
Palestinian  woman... the  woman  we  are  proud  of." 

Failing  to  Extradite  Terrorists.  According  to  the  peace  accords,  the 
PLO  must  honor  requests  by  Israel  for  the  extradition  of  terrorists  who  have 
taken  refuge  in  the  Gaza  and  Jericho  self-rule  areas.  Yet  the  PLO  has  ignored 
Israel's  requests  for  the  extradition  of  fifteen  Arab  terrorists. 

Refusing  to  Postpone  Sovereignty  Issues.  According  to  the  accords, 
issues  concerning  sovereignty  over  the  administered  territories  are  to  be 
postponed  until  the  1996  "final  status"  negotiations  between  Israel  and  the  PLO. 
Yet  the  PLO  continues  to  use  stationery  with  the  phrase  "State  of  Palestine"  and 
refers  to  Arafat  as  "President  of  Palestine."  The  map  on  the  PLO  stationery 
labels  all  of  Israel  as  "Palestine."  At  the  United  Nations,  Farouk  Kaddoumi  is 
routinely  introduced  as  "Foreign  Minister  of  the  State  of  Palestine." 

Failing  to  Respect  Human  Rights.  According  to  the  accords,  the 
PLO's  Palestinian  Authority  in  Gaza  and  Jericho  must  "adhere  to  internationally- 
accepted  norms  and  principles  of  human  rights  and  the  rule  of  law."  Yet  Human 
Rights  Watch,  Amnesty  International  and  the  Israeli  human  rights  group 
B'Tselem  have  documented  numerous  cases  of  PLO  policemen  torturing  Arab 
prisoners.  The  PLO  has  also  repeatedly  shut  down  Arab  newspapers  that  have 
failed  to  toe  the  Arafat  line. 

Hiring  Former  Terrorists  As  PLO  Policemen.  According  to  the 
accords,  the  PLO  police  force  is  not  to  include  terrorists.  But  a  number  of 
fugitive  terrorists  have  been  hired  as  PLO  policemen,  including  Yasser  Abu 


203 


attacks,  the  Popular  Front  for  the  Liberation  of  Palestine  (PFLP)  and  the 
Democratic  Front  for  the  Liberation  of  Palestine  (DFLP). 

Failing  to  "Discipline"  Terrorists.  The  peace  accords  require  Arafat 
to  "discipline"  -that  is,  punish--  any  PLO  members  who  violate  the  pledge  to  halt 
terrorism.  This  is  intended  to  deter  terrorism  both  by  making  terrorists  pay  a 
price  for  their  deeds  and  sending  a  message  to  the  broader  Palestinian  Arab 
community  about  the  unacceptability  of  violence.  There  are  a  variety  of  punitive 
measures  Arafat  could  take.  For  example,  if  individual  members  of  Arafat's 
Fatah  faction  of  the  PLO  commit  terrorism  on  their  own,  they  could  be  expelled 
from  Fatah.  As  for  PLO  factions  that  openly  reject  the  peace  accords  and 
continue  to  practice  terrorism,  such  as  the  DFLP  and  the  PFLP,  they  could  be 
expelled  from  the  PLO  altogether.  But  Arafat  has  taken  no  "disciplinary"  steps 
against  any  of  them. 

Ironically,  the  Clinton  administration's  1994  anti-terrorism  directive 
prohibiting  Americans  from  contributing  to  terrorist  groups  included  the  DFLP 
and  PFLP  on  its  official  list  of  terrorist  groups.  Yet  the  administration  itself  is 
still  sending  funds  to  the  PLO,  even  though  Arafat  and  the  PLO  refuse  to  expel 
these  terrorist  groups  from  its  ranks. 

Failing  to  Condemn  Terrorism.  Of  the  more  than  300  Arab  terrorist 
attacks  (including  more  than  200  murders)  that  took  place  during  the  first  two 
years  following  the  White  House  signing,  Arafat  has  explicitly  condemned  only 
three. 

Failing  to  Change  the  PLO  National  Covenant,  Which  Calls  for 
Israel's  Destruction.  The  accords  oblige  Arafat  to  "submit  the  [PLO 
Covenant]  to  the  Palestinian  National  Council  [PNC]  for.. .the  necessary  changes" 
so  that  the  articles  of  the  Covenant  no  longer  "deny  Israel's  right  to  exist"  or  urge 
violence  against  Israel.  This  means  substantially  altering,  or  entirely  deleting,  30 
of  the  33  articles  of  the  Covenant.  Yet  Arafat  has  taken  no  steps  in  this  direction. 
Indeed,  Radio  Monte  Carlo  has  reported  that  on  August  10,  1994,  Arafat  sent  a 
message  to  PLO  delegations  in  Arab  countries,  assuring  them  that  "I  will  never 
give  my  hand  to  the  annulment  of  one  paragraph  of  the  Palestinian  National 
Covenant."  On  August  20,  1994  the  Central  Committee  of  Arafat's  Fatah  wing 
declared  the  Covenant  will  not  be  changed  before  Israel  recognizes  the 
establishment  of  a  Palestinian  state  with  Jerusalem  as  its  capital. 

Continuing  to  Encourage  Terrorism  and  Praising  Terrorists. 
According  to  the  peace  agreement,  Arafat  must  make  speeches  urging  Arab 
audiences  to  "reject  terrorism  and  violence."  Israel's  leaders  insisted  that  the 
peace  accords  include  this  requirement  because  such  speeches  by  Arafat  would 
demonstrate  that  he  and  the  PLO  have  sincerely  transformed  themselves  from 
being  a  terrorist--and  because  such  speeches  could  influence  grassroots 
Palestinian  Arabs  to  change,  too.  They  could  begin  to  change  the  atmosphere  and 
create  a  new  moral  tone  among  the  Palestinian  Arabs;  they  would  send  a  loud  and 
clear  message  to  the  Arab  world  that  terrorism  is  immoral  and  must  cease. 


204 


II.  Why  the  $500-Million  in  U.S.  Aid  to  the  PLO 
Should  Be  Suspended 

Because  of  our  special  interest  in  the  prospects  for  peace  between  Israel  and  its 
Arab  neighbors,  we  have  assumed  the  task  of  monitoring  the  PLO's  compliance 
with  the  Israel-PLO  peace  accords.  We  are  the  only  American  organization  that 
does  so.  Our  researchers  carefully  track  the  PLO's  actions  and  statements,  and 
provide  Congressional  leaders  with  weekly  reports  on  the  PLO's  violations  of  the 
accords.  We  hope  that  this  information  will  help  Congress  in  formulating 
American  policy  towards  the  PLO,  including  the  question  of  U.S.  aid  to  the  PLO. 
In  late  1993,  President  Clinton  pledged  to  give  the  PLO  $500-million  to 
help  set  up  its  self-rule  regime  in  Gaza  and  Jericho.  Expecting  the  PLO  to 
sincerely  transform  itself  from  the  terrorist  organization  that  it  always  was,  the 
U.S.  Congress  temporarily  waived  existing  legislative  restrictions  on  American 
aid  to  the  PLO.  (The  restrictions  had  originally  been  imposed  due  to  previous 
PLO  terrorism  against  Israelis,  Americans,  and  others).  But  the  PLO's  behavior 
since  the  White  House  signing  has  convinced  many  Members  of  Congress  that  the 
PLO  has  not  really  changed,  after  all. 

PLO  VIOLATIONS:  A  SUMMARY 

Failing  to  Take  Serious  Steps  Against  Terrorism.  The  peace 
accords  require  the  PLO  to  take  "all  measures  necessary"  to  prevent  terrorism 
against  Israel.   It  has  not  done  so. 

*  Terrorists  Have  Not  Been  Disarmed.  The  PLO  announced  a  May  11 
deadline  for  the  handing  in  of  weapons.  Virtually  none  were  handed  in,  but  the 
PLO  has  not  confiscated  them.  The  New  York  Times  reported  on  May  20  that 
"the  deadline  came  and  went  without  any  visible  response  by  the  Palestinian 
security  forces.  There  have  been  no  sweeps  of  neighborhoods  to  fund  unlicensed 
weapons  or  to  disarm  Muslim  militants,  and  Palestinians  who  missed  the  deadline 
for  licensing  their  guns  have  not  been  punished." 

*  Terrorist  Training  Camps  Have  Not  Been  Shut  Down.  Hamas  members 
captured  by  Israel  in  early  June  revealed  that  their  training  facilities  in  Gaza  are 
still  functioning. 

*  Terrorist  Organizations  Have  Not  Been  Outlawed.  No  legal  action  has 
been  taken  by  the  PLO  to  outlaw  Hamas,  Islamic  Jihad,  or  similar  groups. 

*  The  PLO  Has  Friendly  Relations  with  the  Terrorists.  The  PLO  has 
initiated  negotiations  to  implement  a  "reconciliation"  with  Hamas.  In  Hebron, 
Arafat's  Fatah  faction  of  the  PLO  teamed  up  with  Hamas  to  run  a  joint  list  in 
recent  local  elections.  Talks  are  also  underway  to  bring  about  a  reconciliation 
between  Fatah  and  two  PLO  factions  that  have  engaged  in  numerous  terrorist 


205 


Testimony  Before  the 
House  International  Relations  Committee 

-  September  20,  1995  - 

by  Morton  A.  Klein, 

National  President  of  the  Zionist  Organization  of  America, 

Regarding  the  ZOA's  Opposition  to  $500-million  in  U.S.  Aid  to 

the  PLO,  the  ZOA's  Opposition  to  the  Stationing  of  U.S. 

Troops  on  the  Golan  Heights,  and  the  ZOA's  Other  Concerns 

About  the  Middle  East  Peace  Process 


Note;  Morton  A.  Klein  is  the  National  President  of  the  Zionist 
Organization  of  America.  More  than  250  of  his  articles  and  letters  about  Israel 
and  the  Middle  East  have  been  published  in  the  New  York  Times,  Commentary 
and  other  prominent  publications  around  the  world.  He  has  lectured  about  Israel 
at  Harvard  ,  Princeton,  the  University  of  Pennsylvania  and  elsewhere.  He  is  an 
economist,  and  served  in  the  Nixon,  Ford  and  Carter  Administrations.  He  has 
received  numerous  honors  in  recognition  of  his  work  on  behalf  of  America-Israel 
friendship. 


I.   Introduction 

The  Zionist  Organization  of  America  is  the  oldest,  and  one  of  the  largest,  pro- 
Israel  organizations  in  the  United  States.  Founded  in  1897  to  support  the  re- 
establishment  of  a  Jewish  State  in  the  ancient  Land  of  Israel,  its  presidents  have 
included  such  illustrious  Jewish  leaders  as  Supreme  Court  Justice  Louis  D. 
Brandeis,  Rabbi  Stephen  Wise  and  Rabbi  Abba  Hillel  Silver.  The  ZOA  was 
instrumental  in  mobilizing  the  support  of  the  U.S.  government.  Congress,  and  the 
American  public  for  the  creation  of  Israel  in  1948.  With  a  national  membership 
of  over  50,000  and  active  chapters  throughout  the  U.S.,  the  ZOA  today  works  to 
strengthen  American-Israeli  relations,  through  educational  activities,  public 
affairs  programs,  support  for  legislation  on  Capitol  Hill  to  strengthen  America- 
Isruel  relations,  and  by  combating  anti-Israel  bias  in  the  media,  textbooks,  travel 
guides,  and  on  campuses.  The  ZOA  also  sponsors  important  educational  and 
cultural  programs  in  Israel.  ZOA  House  is  the  premier  cultural  center  in  Tel 
Aviv;  the  ZOA's  Kfar  Silver  school,  on  a  500-acre  campus  near  Ashkelon, 
provides  education  and  vocational  training  for  more  than  1,000  new  Jewish 
immigrants  and  others;  the  ZOA's  youth  division,  Masada,  sends  more  than  800 
young  Jews  to  visit  Israel  each  year. 


206 

STATEMENT  OF 

RICHARD  A.  HELLMAN, 

PRESIDENT  OF 

THE  CHRISTIANS'  ISRAEL  PUBLIC  ACTION  CAMPAIGN 
(CIPAC) 

BEFORE  THE 

HOUSE  INTERNATIONAL  RELATIONS  COMMITTEE 

SEPTEMBER  20,   1995 


Thank  you,  Chairman  Gilman,  and  members  of  this 
distinguished   Committee,   for  the   opportunity   to   present   testimony   to 
you.     I  am  Richard  A.  Hellman,  President  of  CIPAC,  the  Christians' 
Israel  Public  Action  Campaign,  which  was  founded  over  six  years  ago 
to  organize  and  inform  the  Christian  community  in  the  U.S.  on  behalf 
of  sound  laws  and  policy  for  Israel. 

Mr.  Chairman  and  Committee  Members:    As  I  will  detail  for 
you  today,     the  Middle  East  peace  process  is  badly  flawed.     The 
recent     manuevers   of  the  negotiators  have  been   marked   by   abject 
failure  in  turns  of  any  real  progress  toward  peace  and  security  for 
Israelis,  Palestinian  Arabs  or  other  participants.      In  fact  the  reports 
of  the  demise  of  the  peace  process  may  not  be  exaggerated.     Thus  I 
urge  you  and  your  colleagues  in  the  leadership  and  membership  of 
the  House  and  the  Senate  to  exercise  much  more  oversight  and  exert 
much   more  leadership  in  the  policy  formulation  and   strategy  that 
govern  the  United  States  negotiators  involved  in  the  peace  process. 
I  am  sure  that  this  is  within  your  constitutional  mandate  and  that  it 
is  imperative     if  we  are  to  avoid  major  mistakes  that  will  be  costly  in 
terms  not  only  of  U.S.  foreign  expenditures  but  also  of    U.S.  troop 
losses  and     destabilization  of  the  Middle  East. 


207 


First,  by  way  of  background,  I  wish  to  note  that  we  are  the 
only  Christian   organization  registered  to  lobby   on  important  issues 
before  Congress  and   the  Administration   affecting   the  U.S. -Israel 
relationship.     We  also  are  the  only  registered  lobby  that  takes  a 
biblical  stance  on  behalf  of  the  whole  Land  of  Israel  and  the  rights  of 
the  Jewish  People  to  live  in  peace  and  safety  wherever  they  wish, 
including  Judea,  Samaria,  the  Golan  Heights,  Gaza,  and  all  of 
Jerusalem.     As  such  CIPAC  represents  the  views  of  some  70  million 
Bible-believing  Christians     and  many  biblically  oriented  Jews  as  well. 
We  work  from  the  perspective  that  U.S.  support  for  and  close 
relations  with  Israel  are  not  just  a  "Jewish  issue",  but  one  that 
concerns  Christians  and  indeed  all  Americans  as  well. 

CIPAC  is  a  national  membership  organization  of  American 
citizens  who  believe  that  a  strong  U.S. -Israel  relationship  is  in 
America's  best  interest.     We  believe  that  America  as  a  nation  is 
blessed  when  we  bless  Israel  and  her  People,  in  accordance  with 
Genesis  12:3.     Beyond  this  expression  of  our  faith,  we  also  are 
convinced  that  there  exist  many  other  compelling  reasons  for 
maintaining  a  strong  bond  between  our  country  and  the  nation  of 
Israel.     Israel  is  a  strategic  and  faithful  ally  in  an  unstable  and 
dangerous  region.     The  people  of  Israel  share  in  common  with  us  the 
moral  and  ethical  values  of  the  Judeo-Christian  tradition,  as 
evidenced  by  its  democratic  institutions  and  its  pursuit  of  justice  and 
the  rule  of  law.     Israel  is  a  valuable  partner  in  such  areas  as  trade 
and   commerce,   research   and   development,   intelligence   and   security, 
and  many  other  areas.     And  Israel  shares  with  this  nation,  perhaps 
more  than  any  other  nation  on  earth,  the  dream  and  destiny  of  being 
a  refuge  and  haven  for  persecuted  peoples  around  the  globe. 

On  a  personal  note  I  was  privileged  to  live  and  work  in  Israel, 
with  my  wife  and  children  for  almost  seven  years  and  have  been  an 
active  student  of  Middle  East  affairs  and  frequent  traveler  to  that 
region     for  a  total  of  over  nineteen  years. 

To  give  credit  where  credit  is  due,  we  applaud  the  peace 
treaty  between  Israel  and  Jordan.     This  builds  upon  the  modus 
vivendi   that  developed  between  the  countries  over  many  years,      and 
is  buttressed  by  the  geographical  and  military  realities  on  the 
ground.     Here  where  nations  of  good  will  seek  peace  in  an  open, 
honest,  fashion,  the  peoples  of     both  may  profit  greatly  in  every  way. 
In  fact  this  peace     appears  warmer  and  more  productive  already 
than  that  which  we  all  have  supported  between  Israel  and  Egypt.     I 


208 


well  recall  Israeli  Prime  Minister  Menachem  Begin  quoting  from  the 
Scriptures     "Blessed  are  the  peacemakers"  when  the  Camp  David 
accords  were  signed.     As  residents  of  Jerusalem  at  that  time,  my 
family  and  I  thrilled  to  the  fact  that  we  were  witnesses  to  the 
fulfillment  of  our  dreams  and  aspirations  as  we  were  among  those 
who     were  privileged  to  "pray  for  the  peace  of  Jerusalem"     on  site! 

Today,  however,  while  the  Christian  and  Jewish  members  of 
CIPAC  nationwide  and  those  of  us  in  Washington  continue  to  pray  for 
peace,  we  are  appalled  by  the  almost  200  deaths,  the  injuries  and  the 
destruction   caused   by   the   torrent  of  terrorism   unleashed   upon   Israel 
since  the  signing  of  the  Oslo  accords  on  the  White  House  lawn  a  little 
more   than   two  years   ago  and   the  equally   abhorent   Arab-on-Arab 
violence  and  abuse  of  rights  which  are  endemic  in  the  areas 
abandoned  by   Israel  to  Chairman  Arafat's   secret  police  and   military 
forces. 

Our  members  and  friends  of  CIPAC  across  America  denounce 
the  failure  of  Arafat  to  comply  with  his  agreement,  witnessed  on  the 
White  House  lawn  by  our  President  and  some  3,000  others,  to  initiate 
changes  to  the  Palestinian  national  covenant  to  delete  the  provisions 
calling  for  Israel's  destruction.     If  this  were  not  bad  enough,  we  also 
witness     mild,  pro  forma,  public  remonstrances  against  terror  in 
stark  contrast  to  his  inability  and  unwillingness  to  combat  it 
effectively  and,     most  obscene  of  all,  his  repeated  comments  to  Arab 
and   Islamic   audiences  which  actually  incite   terror  and  applaud   and 
affirm   the   "   heros   and   martyrs"   who  perpetrate   the  indiscriminate, 
wanton,     death,  injury  and     destruction  of  Israelis,  Arabs  and  even 
Americans  by   bus  bombings  and  other  heinous  acts. 

All  this  in  the  name  of  Jihad,  or  Holy  War,  an  oxymoron  if 
there  ever  was  one,  and  an  abomination  to  any  true  believer  in  a  just 
and  loving  God,  regardless  of  religion! 

How  can  any  U.S.  public  figure  greet  and  applaud  such  a  vile 
character  as  Arafat,     much  less  vouch  for  his  good  will  or  even 
consider  giving  him  any  more  U.S.  tax  dollars  in  foreign  aid.? 

And  regarding  foreign  aid,  I  wish  to  applaud  you,  Mr. 
Chairman,  for  requesting  the  GAO  Study  of  the  finances  of  the  PLO 
and  Arafat  as  recommended  by  CIPAC  a  year  and  a  half  ago  , 
together  with  a  second,  more  recent,  GAO  enquiry  regarding  the 
infamous     PLO  letters  which  expose  Arafat  and  the  PLO's  persistent, 
ingrained,  pattern  of  political  payoffs,  diversion,  fraud,  waste  and 


209 


abuse  of  foreign  aid  to  obtain  and  maintain  exclusive  power,  all 
masked  by  a  PR  Circus  and  official  and  media  complicity  in  cover-up. 

Some  public  figures  are  straining  credulity  and  violating 
common  sense  by  trying  to  give  these  Arafat  and  his  associates 
another  chance  at  the  U.S.  foreign  aid  trough!     I  ask  any  such  dupes 
or  unwitting  accomplices  to  PLO  malfeasance  simply:  How  can  you 
even   consider  it? 

If  the  current  drive  by  the  Administration  and  even  some  in 
Congress  to  paper  over  the  failed  peace  process  with  more  U.S. 
foreign  aid  to  Arafat  were  not  enough,  we  also  are  treated  to  the 
spectacle  of  a  basically  decent  but  misguided  Secretary  of  State 
preparing  to  shame  our  country     once  again  by  running  after  Hafez 
Al  Assad,  the  brutal  dictator  who  had  the  temerity  and  gall  to  insult 
his  boss  (and  our  President)  publicly  in  Damascus  just  last  December, 
to  lure  him  back  into  probably  fruitless,     and  possibly  dangerous, 
talks  with  Israel   -  dangerous  to  Israel's  legitimate  rights  and   indeed 
its  national  security.     And  dangerous  to  the  U.S.  treasury  in  terms  of 
the  "price  for  peace",  i.e.  the  conventional  bribes  to  Arab  dictators 
and  their  friends  to  accept  peace  (  as  if  peace  were  not  valuable  to 
their  long-suffering  people  in  its  own  right).     Yes!     Massive 
U.S.foreign  aid  for  Assad,  not  because  Syria  needs  it  but  to  make  sure 
Assad  gets  as  rich  and  prestigious  an  agreement  as  Egypt  did  for 
making  peace.     And  more  aid  for  Israel  to  compensate  for  the  loss  of 
the  presently   working   security   arrangements   on   the  Golan   and 
Mount  Hermon.      But  this  is  not  the  worst  of  it.     In     Administration 
plans  at  the  Pentagon,  State  Department,  and  other  offices  are 
detailed  scenarios  for  dangerous  U.S.  commitments  to  place  U.S. 
troops  in  harm's  way  as  peacemakers  or  peacemakers  on  the  Golan 
Heights. 

All  this  to  appease  an  Arab  dictator  and  help  him  obtain 
territory  which  he  lost  in  an  aggressive  war,  failed  to  hold  after  a 
later  sneak  attack,  and  to  which  he  never  had  a  legitimate  legal  or 
historic  right  to  begin  with. 

Hardly  ever  outdone  in   their  appeasement  of  Arab  dictators, 
except  perhaps  by   their  European   colleagues,   some   State   Department 
Middle  East  experts  in  the  peace  negotiations  also  are  reliably 
reported  (without  official  denial)  to  be  planning  to  leave  Assad  of 
Syria  in  continued  brutal   occupation  of  once-peaceful   and  democratic 
Lebanon,  and  to  give  Syria  a  quick  and  easy  exit  from  its  prominent 


210 


place  on  State's  lists  of  nations  that  sponsor  terrorism,  violate  human 
rights,     traffic  in  the  international  narcotics  trade,  counterfeit  our  U.S. 
currency  massively  and  more.     Even  by  historic  standards,     this  will 
give  cynical,     realpolitik,     diplomacy  a  bad  name  if  the  Congress  lets 
this  charade  of  misguided   statecraft  continue  without  raising  a  loud 
and  principled  cry  of  outrage.     Maybe  President  Clinton  needs  a 
foreign  policy  feather  in  his  cap,  but  this  one  will  give  a  major 
headache  not  only   to  the  nations  and  peoples  immediately  involved 
but  also  to  the  U.S.  and  the  world  by  destabilizing  Israel  and 
whetting  Assad's  appetite  for  the  next  moves  toward  his  goal  of  a 
greater  Syria  embracing  most  of  his  neighbors.     Anyone  who  thinks 
Assad  just  wants  the  Golan  and  that  this  wolf  then  will  become  a 
peaceful  lamb,     probably  would  have  believed  that     Hitler  would  be 
satisfied  with  the  Sudetenland.       Even  if  we  need  to  talk  to  unsavory 
characters  to  make  peace,     I     assure  you  from  experience  in  the 
Middle  East     that  no  smart  buyer  runs  after  a  merchant  to  shower 
him  with  coccessions.     Nor  should  we  run  after  Assad,  who  lost  his 
Soviet  patrons  some  years  ago  and  only  remains  a  serious  danger  to 
peace  because  the  State  Department  chooses  to  whitewash  his  record 
when  in  fact  his  past  aggression  and  current  military  purchases  of 
sophisticated    conventional    and    non-conventional    weaponry    and 
dual-use  technology  fully  justify  no  less  than     the  containment  and 
embargoes  which  we  impose  upon  such  other  outlaw  states  as  Iran, 
Iraq,   and  Libya. 

Let  us  make  no  mistake.     Shortsighted,  expedient,  policies  and 
actions  based  on  misjudgments  of  the  real   intentions  of  authoritarian 
rulers   usually   have   severe,   if  not  catastrophic,   adverse   consequences 
for  world  peace,  whether  it  be  from  a  Saddam  Hussein  or  a  Hafez  Al 
Assad. 

If  the  willful  U.S.  decision  to  overlook  the  record  and  candidly 
declared  intentions  of  Arafat,  not  once,  but  repeatedly  over  a  span  of 
decades,   has  cost  the  lives   of  hundreds  (conservatively  calculated) 
and  now  hundreds  of  millions  of  dollars  in  squandered  U.S,  foreign 
aid  -  think  for  a  moment  of  the  likely  consequences  for  the  Middle 
East  and  the  world  if  we     foolishly  appease  Assad  in  the  ways  I  have 
outlined.     He  (or  his  successors)  likely  will  decide  to  use  their  vast 
military  might,  and  new  strategic  advantage  on  the  Golan  and  in 
Lebanon,  to  assault  Israel,  Jordan,  or  both  with     massive  pre-emptive 
strikes   using  missiles   with  non-conventional   warheads.      While 
trusting  Arafat  has  cost  hundreds  of  lives,     appeasing  Assad  could 
cost  thousands,  or  tens  or  hundreds  of  thousands,  of  Israeli,  Arab  and 
even   American   lives. 


211 


For  these  reasons  I  applaud  the  Senate  staffers  and  their 
Chairman  who  authorized  them  to  tell  a  top  Syiian  official     that 
Congress  is  not  going  to  endorse,  and  authorize  payment  for,     a  Camp 
David-type  deal  in  which  Assad  would  get  aid  and  trade  and  a 
whitewash  of  his  past  record  while  holding  on  to  Lebanon.     Even  if 
this  was,  as  reported,  the  real  reason  why  the  Syrians  reneged  on 
their  promise  to  restart  negotiations  last  month  -  or  even  should  it 
produce  the  final  demise  of  this  present  peace  process,     I  still  would 
commend  such  a  reality  check  as  the  negotiating  model  that  you 
should    urge  upon  our  friends  in  Foggy  Bottom  ,  for  the  good  of  all 
involved  and  for  the  cause  of  real  peace  in  the  Middle  East. 

Lest  any  confusion   be  created  by  these  strong  statements,  let 
me  assure  you  that  we  fervently  hope  and  pray  for,  and   support, 
every  legitimate  initiative  for  real  peace.     But     the  words  of  the 
Prophet  Jeremiah   haunt  us   with   their  relevance  to  the  current 
Middle  East  and  particularly  those  arenas  I  have  described  ;     "  They 
have  healed  also  the  hurt  of  my  people  slightly,  saying,  Peace,  peace; 
when  there  is  no  peace."  (Jer.  6:14).     In  the  New  Testament  the 
warning  is  framed:  "  For  when  they  shall  say,  Peace  and  safety;  then 
sudden  destruction  comes  upon  them,  as  travail  upon  a  woman  with 
child;  and  they  shall  not  escape."  (1  Thess.  5:3). 


I  have  been  asked  why  I  believe  the  peace  process  may  be  all 
but  dead  for  now  ,  and  what  implications  there  are  for  America  in 
this  scenario.     Frankly  I  am  convinced  that  the  exaggerated 
expectations  of  Arafat  and  Assad  cannot  be  met  by  the  negotiators 
currently  facing  them  across  the  table,  in  no  small  measure     because 
the  Congress  is  disinclined  to  reward  the  meager  efforts  of  these  two 
with  the  foreign  aid,  concessions,  and  other  perquisites  alluded  to 
above.       Is  this  a  tragedy?     Only  for  the  bruised  egos  of  various 
senior  negotiators  with  heavy  investments  in  the  quest  for  the  holy 
grail  of  a  comprehensive  Middle  East  peace.     But  they  will,  I  trust,  get 
over  it,   or  better  yet,  return   with  tougher-minded,   more  realistic   and 
productive  objectives  for  the  peace  and  security  of  their  nations, 
including  the  U.S. 

For  the  sake  of  the  far  more  important  objectives  of  the  peace 
and  security  and  wellbeing  of  Israel  And  her  neighbors  and  their 
longsuffering  populations,  and  for  the  U.S.  interest  in  Mid-East  peace, 
I  frankly  will  shed  no  tears  for  this  peace  process.     While  some 


212 


lowhanging  fruit  was  picked  from  the  peace  process  tree  early  on  in 
the  case  of  the  Jordan-Israel  pact,  the  multilateral  talks  on  a  range  of 
issues,  and  the  general  loosening  of  bars  to  regional  trade,     the 
remaining   issues   have   been   marked  either  by   thin   interim 
agreements  that  avoid  or  defer  the  real  issues  in  the  case  of  Israel 
and  the  Palestinian  Arabs,  or  by  potentially  destabilizing  gambles  in 
the  case  of  Israel  and  Syria,  not  to  mention  the  shameful  silence  and 
doubletalk  masking  the  sell-out  of  Lebanon.     The  slight  downside 
risk  of  a  possible  unraveling  of  such  good  results  as  the  Israel-Jordan 
peace  resulting   from   Syrian  displeasure  and   troublemaking   -   a 
corollary  of  the  axiom  that  the  Arab  world  "cannot  make  peace 
without  Syria"  -     is  mitigated,  if  not  eliminated,  by  the  new  world 
realities   that  most  nations,  including   Syria,  have   witnessed   America's 
readiness  to  defend  Kuwait,  Jordan,  etc.,  and  more  positively,  are 
interested  in  a  good  partnership  with  the  U.S. 

Does  this  mean  we  stop  working  for  Mid -East  peace,  and  if  not, 
what  is  the  most  viable  alternative  to  the  current  process?     No,  we 
cannot  stop  planning  and  working  for  Mid-East  peace,  but  a  breather 
is  needed.     Instead  of  redoubling  our  efforts  after  apparently 
disregarding  the  lack  of  coherence  of  our  various  efforts  and  the 
absence  of  results,  it  probably  is  time  to  draw  back  and  reconsider 
the  issues,  hopefully  with  the  help  of  a  new  joint  Congressional- 
Executive  Branch  Commission  to  determine  how  U.S.  national 
interests  can  best  be  served.     Perhaps  such  radical  ideas  as  "peace 
through  strength"  and  "peace  for  peace"  could  be  considered  as  the 
bases  for  any  revived  telks. 

Of  course,  none  of  my  comments  are  intended  to  be  critical  of 
Israel  or  to  offer  gratuitous  advice  to  that  nation  and  its 
democratically  elected  government.     We  appreciate  the  fact  that 
Israel  shares  our  love  of  democracy  and  respects  the  rights  of  its 
people  to  work  for  peace  and  security  through  its  elected  officials. 
But  America  has  a  large  and  potentially  growing  investment  in  Israel 
and  the  Middle  East  which  must  be  reviewed  continually  in  light  of 
changing  circumstances   and  perceived   national   interests,   not   to 
mention  such   special  interests  as  that  of  American  Christians  and 
Jews  to  visit  holy  sites  and  worship  freely  despite  changes  in  political 
administration,  e.g.  in  Judea,  Samaria,  Gaza,  and  potentially  the  Golan 
and  even  Jerusalem.     While  CIPAC  does  not  wish  to  raise  problems 
where  they  are  not  widespread  or  to  exaggerate  those  that  may 
arise,  already  security  problems  have  in  fact  created  a  real  or 
perceived  reluctance  of  tour  guides  in  the  Holy  Land  to  take  tourists 


213 


and  pilgrims  to  sites  and  areas  which  once  posed  no  problem 
whatsoever. 

By  way  of  reminder,  CIPAC  has  been  uniquely  effective  as  a 
pro-Israel  lobby  in  leading  or  initiating  action  for  the  GAO  study  of 
the  PLO  finances,     a  prudent  maintenance  of  the  barriers  to  foreign 
aid     for  the  PLO  with  carefully  controlled  temporary  waivers,     the 
release  of  the  Pentagon's  Rand  Corporation   study  of  potentially 
dangerous  deployments  of  U.S.  troops  on  the  Golan  as  effected  by  the 
Nickles  Amendment  to  the  Defense  Appropriations  Act  for  this  year, 
an  immediate  relocation  of  the  U.S.  Embassy  to  Jerusalem  (by 
legislative  action  as  required)  and  the  freeing  of  Lebanon  in  any  U.S. 
approved  peace  agreement  involving  Syria,  among  other  issues.     Nor 
have  we  forgotten  the  more  particular  campaigns  to  free  the  Israeli 
POW'S/MIA'S     as  a  first  priority  and  to  effect  the  release  of  the  last 
prisoner  of  the  Cold  War,  Jonathan  Pollard,  to  go  home  to  Israel  and 
fulfill  his  obligation  as  an  Orthodox  Jew,  as  he  explained  was  his 
heart's   desire   when   we  met. 

If  I  may,  Mr,  Chairman,  I  would  like  to  wrap  up  my  last 
recommendations   to  you   and   the   Committee   Members   briefly,   with 
liberty  to  submit  supporting  materials,  tapes  ,  etc,  for  the  record. 
Thus  with  your     leave,  I  recommend  that  you  and  your  colleagues: 

*Reject  any  extension  of  authority  for  President  Clinton  to  grant 
further  waivers     to  the  prohibition  on  foreign  aid  to  the  PLO  or  its 
associated  entities.      As  explained  above  and  by  many  other  witnesses 
today,  Yasser  Arafat  and  the  PLO  have  violated  every  material  term 
of  their  agreements  with  the  U.S.  and  Israel,     refuse  to  spend  their 
own  ill-gotten  billions  of  dollars  as  documented  by  the  GAO  study 
you  commissioned,  did  not  even  cooperate  with  the  GAO,  have  a 
record   of  diversion,   waste,   fraud,   abuse,   mismanagement,   and 
inadequate   accounting   regarding   foreign   aid   they   recxeive   directly, 
continue   to  promote   and  encourage  terror,  rather  than  controlling   it 
as  promised.     I  wish  to  emphasize  that  we  have  no  objection  to 
extension  of  such  other  waiver  provisions  of  MEPFA  as,  for  example, 
that  permitting  negotiations  with  the  PLO,  for  example.,  under 
appropriate  terms  and  conditions  as  suggested  .in  the  bills  of 
Representative  Forbes  and  Senator  D'Amato.     And  any  aid  the 
Palestinian   People   need   for   humanitarian   or  development   purposes 
can  continue  to  be  allocated  on  a  project  basis  through  such  reliable 
third  parties  as  the  World  Bank  and  other  MDB's  or  CARE,  ANERA, 
World  Vision  or  other  PVO's,  with  customary  safeguards.     Thus  no 


214 


innocent  persons  need   suffer  for  Arafat's  inability   or  unwillingness 
to  govern  adequately  as  other  aid  recipients  do; 

♦Demand  immediate  agreement  from  the  CIA  or  other  agencies 
to  release  the  basic  findings  of  the  GAO  study,  i.e,  what  are  the 
general  ranges  of  PLO  assets  and  annual  income,  with  an  estimation 
of  the  general  extent  to  which  Arafat  and  the  PLO  spend  their  own 
money  on  their  own  people,  but  without  any  identification  or 
compromise  of  sources.     Now,  can  someone  tell  me  what  possible  U.S. 
national   security  interest  could  provide  a  legitimate  reason  for  not 
releasing  such  elementary  data,  when  even     the  British  National 
Criminal  Intelligence  service  has  published  such  data  openly  in 
unclassified  form?  Otherwise  this  looks,  sounds  and  smells  like  a 
coverup  to  conceal  the  State  Department's  dealings  with  and  rosy 
evaluations  of  the  PLO  and  its  leaders.; 

♦Question  the  GAO  closely  in  detail  regarding  the  extent  of 
cooperation  in  the  GAO  studies  of  the  PLO  by  the  Executive  Branch, 
British  NCIS,  the  PLO  itself,  and  other  foreign  sources,     and  any  actual 
or  suspected  U.S.  interference  with  any  of  the  foregoing  sources' 
or  other  enquiries  as   has  been  rumored. 

♦Refuse  to  act  on  extension  of  MEPFA  until  the  above  steps  are 
completed  and  British,  German  and  other  foreign  sources  called  to 
testify  to  get  to  the  bottom  of  the  questions  concerning  PLO  finances; 

♦Call  for  complete  hearings  on  all  suggested  scenarios  for 
deployment  of  U.S.  troops  on  the  Golan  as  part  of  any  Israel-Syria 
peace  agreement,  in  recognition  of  the  fact  that  this  question  is  no 
longer  "premature"  and  the  public  and  Congress  need  to  know 
beforehand  for  a  change;  and     finally 

♦Send  a  clear  signal,  by  way  of  law  or  resolution  that  the 
Congress  intends  that  Lebanon  be  freed  of  Syrian  occupation  in  any 
ageement  that  the  U.S.  endorses,  supports,  or  helps  to  fund;  and  of 
course,  hold  hearings  soon  on  all  pending  bills  to  direct  the  relocation 
of  the  U.S.  Embassy  to  Jerusalem.     In  fact  we  believe  this  can  be  done 
much  more  quickly,  in  time  for  the  3,000th  Anniversary  of  the 
Jewish  presence  in  Jerusalem  next  year,  since  construction  of  a  new 
building  really  is  not  critical  to  where  our  Ambassador  works  or 
conducts  business  with  the  government  of  Israel.  This  matter  has 
been  delayed  too  long  already. 

As  a  final  note  I  wish  to  state  for  the  record  that  none  of  our 
positions,  many  of  which  are  unique  and  contrary  to  the  conventional 
wisdom  of  the  peace  process,     have  any  connection  to,  or  origin  in, 
any  political  party  or  faction  in  the  U.S.  or  Israel,  but  in  fact  have 


215 


their  source  in  the  Bible,  in  cherished  U.S.  principles  and  values,  in 
that  rare  commodity,  common   sense,   or  some  combination   thereof. 

Finally,  Mr.  Chairman,  it  is  my  great  pleasure  to  wish  you,  your 
colleagues,  the  Jewish  People,  and  especially  Israel  and  her  People  a 
happy,  prosperous  and  peaceful   "Shana  Tova",  a  most  Happy  New 
Year  5756;  may  it  bring  real  peace  to  Israel  and  her  neighbors,  not  a 
false  peace  and  renewed  clouds  of  impending  war. 

Thank  you  for  the  opportunity  to  testify  today.     I  will  be 
pleased  to  answer  any  questions  you  may   have. 


10 


216 


EXECUTIVE  COMMITTEE 
Herbert  Zweibon.  Chairman 
Morris  Sorkower 
Emanuel  Epstein 
Richard  Hellman,  Esq 
Pro!   Ench  Isaac 
Prof  Rael  Jean  Isaac 
Ruth  King 


AMERICANS  FOR  A  SAFE  ISRAEL 


147  EAST  76th  STREET 
NEW  YORK.  NY.  10021 


Ron  KraviU.  Esq. 
Prof  Marvin  Maurer 
William  Mehlman 
Aio*  Rosa 
George  Rubin 
Elian  J   Singer 
Inez  Weissman 
Rabbi  Julian  M  White 
Jerry  Zemck 

BOARD  OF  GOVERNORS 


Herbert  Zweibon 
ADVISORY  COMMITTEE 


Hon.  Robert  A  Borski 

Charles  Brooks 

Hon   Robert  K.  Dornan 

Rev  Frank  Eiklor 

Lt  Gen.  Daniel  O.  Graham  (Ret.) 

Carl  Henry 

Leonard  Horwln 

Steven  S  Jacobs 

Col.  Irving  Kett  (Ret.) 

Dr.  David  Lewis 

E  E   Ed  McAteer 

Bernard  Smith 

Deborah  Hart  Strober 

Gerald  Strober 

Harry  Taubenleid 

ACADEMIC  ADVISORY  BOARD 

Prol.  Howard  Adelson 
Prof   Edward  Alexander 
Prof   Sidney  Baldwin 
Prof.  Sami  Beraha 
Prof  Albert  Blausteln 
Prof.  Norman  Chigier 


|2I2)  628-9400 
FAX:  |2I2)  988-4065 

Testimony  of 
Herbert  Zweibon,  Chairman 
Americans  for  A  Safe  Israel 

International  Relations  Committee 

Hearings  on  the  Middle  East  Peace  Process 

September  20,  1995 

Americans  for  A  Safe  Israel  (AFSI)  thanks  the  members  of  the  International 
Relations  committee  for  permitting  it  to  submit  this  written  testimony.  We  appreciate  the 
concern  with  which  the  committee  has  followed  the  Arab-Israeli  agreements  and  its 
support  for  a  strong  U.S.-Israel  relationship.  Founded  in  1971,  Americans  for  A  Safe 
Israel  views  the  retention  of  Judea  and  Samaria,  Gaza,  and  the  Golan  Heights  as  vital 
to  Israel  s  survival  and  its  continuance  as  a  strategic  asset  to  the  West.  To  abandon 
territory  won  in  wars  forced  on  it  would  make  it  vulnerable  once  again  to  renewed 
subversion  and  attack  not  only  by  hostile  Arabs  in  Judea  and  Samaria  but  unstable  Arab 
regimes. 


Prol  Celia  Heller 
Prol-  Joakim  Isaacs 
Prol  H.  David  Kirk 
Prof  Shoshana  Klebanoff 
Prol.  Gerhard  Levy 
Prol  Robert  Loewenberg 


NATIONAL  COUNCIL 


Jim  Bernstein.  Esq- 
Lawrence  Black 
Boris  Bresler 
Herb  Bun 

Rabbi  Hiliei  A  Cohen 
Michael  C.  Oallen.  Esq 
Dr  Fred  E   Ehrlich 
Elsa  Elkln 
Howard  Epstein 
Mitchell  Flnkel 
Or.  Howard  Garber 
Herbert  Gordon 
Jacob  Greenberg 
Kenneth  Gross 
Jacob  Helrwell 
Or.  David  Herman 
Bunny  Horowitz 


Isaac  kaplowitz 
Alan  Karo 
Helena  Klein 
Fabian  Kolkar 

Rabbi  Herzl  Kranz 

Jack  D.  Lauber 
David  Luowick 
Eugene  Levine 
Mae  L.  Lobel 
Dr.  Ivan  Mauer 
Cherna  Moskowltz 
Dr  Kenneth  Mulkner 
Or  William  Perl 
Leon  Penswetg.  Esg 
Larry  S.  Pollak.  Esq. 
Oscar  Reinhold 
Or  Richard  H  Rolnick 
Norbert  Rosenthal 
Raphael  Rolhslem 
Leo  Samet.  Esq. 
Bernard  Shapiro 
Saul  Singer 
Lucille  Weinberg 
Roberta  Welaa 
Jeff  Wilson 
Nathan  Workowltz 


It  has  fallen  to  Americans  for  A  Safe  Israel  to  declare  what  many  should  have  said  who 
came  before  you:  "The  emperor  has  no  clothes." 

This  is  a  hollow  peace. 

Remarkably,  to  say  this  is  taboo.  Those  that  dare  question  the  policies  of  the  current 
Israeli  government  are  demonized,  dismissed  as  some  kind  of  "lunatic  fringe," 
"extremists,"  and  "enemies  of  peace."  Even  American  Jewish  leaders  who  are  aware  that 
the  misnamed  peace  process  is  leading  to  disaster  will  not  oppose  it  outright,  fearing  that 
they  will  lose  "credibility"  by  doing  so.  Using  the  word  "peace"  to  describe  the  Arab- 
Israeli  agreements  has  effectively  stifled  debate  and  even  any  rational  discussion  of  the 
situation. 

Imagine  what  would  have  happened  had  Churchill  not  dared  to  criticize  the  Munich 
agreements.  He  would  not  have  been  chosen  to  lead  his  people  to  safety.  Indeed,  by 
attacking  Neville  Chamberlain's  policy,  Churchill  gained  credibility. 

It  is  appropriate  to  compare  the  Rabin-Arafat  accords  and  the  Munich  agreement.  In  both 
cases,  hope  replaces  rational  thought.  Confronted  with  the  insatiable  demands  of  an 
adversary,  weak-willed  leaders  offer  partial  fulfillment  of  those  demands  in  the  hope  of 
appeasing  the  opponent. 

The  mere  fact  that  compliance  has  become  such  a  key  issue  demonstrates  how  one-sided 
the  agreements  are.  It  takes  two  to  fulfill  a  contract.  If  all  the  concessions  come  from 
the  Israelis  and  nothing  from  the  Arabs,  what  other  result  can  there  be  but  bloody  conflict 
as  Israel  becomes  progressively  weaker?   Even  the  PLO  covenant  calling  for  the 


217 


destruction  of  the  State  of  Israel  has  remained  in  effect.  It  is  ironic  that  while  the  PLO 
covenant  is  treated  as  holy,  God's  covenant  with  the  Jewish  people  is  disregarded. 

Nothing  better  illustrates  the  chasm  between  Israel's  leaders  and  the  Arab  world  than  the 
Arab  interpretation  of  Shimon  Peres's  The  New  Middle  East.  Peres  was  the  "architect" 
of  the  Oslo  accords  and  in  this  book  he  outlines  the  vision  that  has  led  him  to  make  the 
far-reaching  concessions  involved  in  those  agreements.  The  book  envisions  Israel  as  part 
of  a  Middle  Eastern  Benelux,  describing  a  future  of  harmony  and  cooperation  on 
everything  from  water  development  to  security  arrangements.  Peres's  total 
incomprehension  of  his  Arab  neighbors  was  underlined  when  the  book  was  published  by 
the  Egyptian  government-owned  Al  Ahram  press.  The  introduction  explains  the 
importance  of  the  book  for  Arab  readers:  "When  The  Protocols  of  the  Elders  of  Zion  were 
discovered  200  years  ago  and  published  in  several  languages  including  Arabic,  the 
international  Zionist  apparatus  tried  to  deny  the  existence  of  the  conspiracy,  and  claimed 
it  was  a  fabrication.  But  now  Shimon  Peres  produces  irrefutable  proof  of  their 
truthfulness.  His  book  confirms  in  no  uncertain  terms  that  The  Protocols  are  genuine. 
Peres's  book  is  nothing  but  an  additional  step  toward  implementation  of  the  dangerous 
plots."  As  Jerusalem  Post  editor  David  Bar-Illan  pointed  out,  for  the  Arabs,  Peres's 
journey  on  a  pink  cloud  into  Utopia  is  proof  of  Israel's  sinister  plot  to  take  economic 
control  of  the  Arab  world. 

Peres's  world,  though  an  illusion,  will  have  real  and  dire  consequences  for  the  Jewish 
people.  This  so-called  peace  process  can  only  lead  to  a  dismembered,  disheartened  and 
demoralized  Israel,  incapable  of  defending  itself  against  the  newly  created  terrorist  state 
it  has  helped  arm  and  the  surrounding  Arab  states  that  are  still  bent  on  its  destruction. 

The  Middle  East  has  not  changed.  Nothing  the  Israeli  government  promised  has 
materialized;  everything  the  opponents  of  its  policies  warned  would  happen,  has 
happened. 

Yet  the  United  States  continues  to  encourage  more  Israeli  concessions,  acting  as  a 
facilitator  in  the  "peace  process."  American  involvement  goes  beyond  financial  pledges 
to  the  PLO.  The  Administration  has  been  involved  in  formulating  agreements,  conducting 
"shuttle"  diplomacy  and  keeping  the  negotiators  at  the  table.  It  is  intent  on  brokering  an 
Israeli  retreat  on  the  Golan,  this  one  likely  to  endanger  American  soldiers  commandeered 
as  "peacekeepers." 

It  is  not  in  America's  interest  to  weaken  a  loyal  ally  and  contribute  to  the  destabilization 
of  the  Middle  East.  The  American  government  should  not  be  party  to  a  process  that 
appeases  terrorism.  Nor  should  it  support  a  process  that  separates  the  Jewish  people  from 
its  patrimony.  There  is  one  honorable  course  for  the  United  States  -  to  remove  itself  as 
a  key  player  in  negotiations  that  render  Israel  dependent  on  the  "goodwill"  of  its  Arab 
neighbors. 

If  one  thing  is  crystal  clear,  it  is  that  the  current  "peace  process"  will  not  bring  peace  to 
the  Middle  East. 

-2- 


218 


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TESTIMONY  BY  GAIL  PRESSBERG 

DIRECTOR,  CENTER  FOR  ISRAELI  PEACE  AND  SECURITY', 

AMERICANS  FOR  PEACE  NOW 

TO  THE  INTERNATIONAL  RELATIONS  COMMITTEE 

OF  THE  HOUSE  OF  REPRESENTATIVES 

SEPTEMBER  20,  1995 


Two  years  ago,  the  Declaration  of  Principles  signed  at  The  White  House 
by  Israeli  Prime  Minister  Yitzhak  Rabin  and  TLO  leader  Yasser  Arafat  began  a 
three-year  period  in  which  disengagement  arrangements  and  peace  are  to  be 
negotiated  and  implemented  in  transitional  stages. 

Given  the  protracted  nature  of  the  Arab-Israeli-Palestinian  conflict, 
there  have  been  difficulties  in  implementing  this  process,  including 
unacceptable  acts  of  terrorism. 

To  deal  with  this  issue,  the  Clinton  Administration  has  successfully  used 
the  Middle  East  Peace  Facilitation  Act  to  pressure  PLO  Chairman  Yasser 
Arafat  to  improve  the  PLO's  compliance  records  regarding  agreements  Arafat 
made  with  Israel.   Compliance  issues  have  been  raised  with  the  PLO  on  a 
regular  basis  by  U.S.  officials  meeting  directly  with  Arafat  including  Vice 
President  Al  Gore,  Secretary  of  State  Warren  Christopher,  Special  Middle  East 
Negotiator  Dennis  Ross,  Assistant  Secretary  of  State  Robert  Pelletreau  and  U.S. 
Consul  General  Edward  Abington. 

The  compliance  legislation  and  Clinton  Administration  efforts  to  get  the  PLO 
to  comply,  have  yielded  the  following  positive  results:1 

1.  PLO  elements  loyal  to  PLO  Chairman  Yasser  Arafat  have  fully 
adhered  to  Arafat's  commitment  that  the  PLO  would  forsake  terrorism. 

2.  PLO  Chairman  Yasser  Arafat  has  publicly  condemned  terrorist 


Board  of  Advisor, 


'This  list  was  obtained  as  a  result  of  discussions  with  Israeli  officials. 


219 


attacks. 

3.  In  several  public  statements  Arafat  has  acknowledged  his  awareness  of  the 
importance  of  security  to  Israelis  and  has  restated  his  commitment  to  the  peace 
process  in  order  to  peacefully  resolve  the  Palestinians  conflict  with  Israel. 

4.  In  April  1995,  Hamas  and  Islamic  Jihad  members  were  not  only  arrested  but  were 
actually  tried  and  convicted  by  Palestinian  courts.  The  Palestinian  Security  Court  has 
sentenced  eighteen  Palestinians  who  were  convicted  on  charges  related  to  terrorism. 
On  August  28,  1995,  the  Palestinian  police  arrested  a  terrorist  who  was  on  his  way  to 
carry  out  a  suicide  attack  at  the  Central  Bus  Station  in  Jerusalem. 

5.  In  meetings  in  Taba,  Egypt,  Israel,  the  Palestinian  Authority,  Egypt  and  Jordan 
signed  a  declaration  which  supports  "all  efforts  to  end  the  boycott  of  Israel."   PLO 
negotiator  Nabil  Shaath  signed  the  declaration  on  behalf  of  the  Palestinian 
Authority. 

6.  While  the  Palestinian  Covenant  has  not  been  amended,  Ha'aretz  (often  referred  to 
as  The  New  York  Times  of  Israel)  reported  that  Arafat  pledged  to  make  amending  the 
covenant  part  of  his  electoral  platform  and  that  a  newly  elected  Palestinian  Council 
would  revoke  those  parts  of  the  covenant  that  contradict  the  Declaration  of  Principles 
signed  by  Israel  and  the  PLO  on  September  13,  1993. 

7.  The  Palestinian  Authority  has  also  undertaken  joint  security  patrols  with  Israel. 
The  intelligence  service  of  the  Palestinian  Authority  regularly  cooperates  with  Israeli 
security  forces  in  order  to  combat  terror. 

In  order  to  prevent  acts  of  terror  the  PLO  must  continue  to  demonstrate  that  it  has 
developed  the  intelligence  capability  to  deter  terrorist  groups.   In  addition,  the  Palestinian 
Authority's  arrest,  trial  and  sentencing  of  suspects  is  a  recent  phenomenon.   It  is  important  to 
monitor  the  Palestinian  Authority's  resolve  in  this  matter.   Therefore,  an  extension  of  the 
current  legislation  should  be  voted  by  Congress  that  requires  Arafat  to  accomplish  these 
goals. 

Continued  U.S.  diplomatic  and  financial  support  is  critical  in  order  to 
strengthen  the  Palestinian  Authority,  enhance  its  capacity  to  defeat  terrorist  groups,  and 
marshal  international  funds.   In  order  to  combat  the  influence  of  organizations  who  oppose 
the  peace  process,  the  U.S.  must  be  a  leader  in  the  multinational  effort  to  build  a  sorely- 
needed  economic  infrastructure  in  the  Gaza  Strip.   Indeed,  Israeli  intelligence  has  concluded 
that  the  effect  of  a  cut-off  in  aid  would  be  an  increase  in  terrorism.   In  order  to  assume  the 
mantle  of  leadership  in  this  effort,  the  U.S.  must  be  able  to  negotiate  with  PLO  leaders  and 
fund  projects  related  to  the  Palestinian  Authority. 

Israel's  interests  in  this  area  were  recently  articulated  by  Israeli  Ambassador  Itamar 
Rabinovich  (Near  East  Report.  April  24,  1995): 


220 


"The  U.S.  and  Israel  share  the  view  that  economic  progress  -  for  which  the 
international  aid  is  essential  -  will  reinforce  the  pragmatic  elements  in  Gaza  and  Jericho,  and, 
conversely,  that  stagnation  and  poverty  will  play  into  the  hands  of  groups  like  Hamas  and 
Islamic  Jihad. 

"As  for  the  implementation  by  the  Palestinians  of  the  commitments  they  have 
undertaken,  the  Government  of  Israel  has  played,  and  will  continue  to  play,  the  primary  role 
in  ensuring  it,  both  through  its  ongoing  contacts  with  the  Palestinian  Authority  and  through 
the  continuing  negotiation  on  the  transition  to  the  next  phase  of  the  agreement." 

Conclusion 

The  Middle  East  Peace  Facilitation  Act  has  served  three  purposes  vital  to  U.S. 
interests  in  the  Middle  East.   First,  it  has  served  as  a  vehicle  for  pressuring  the  PLO  and 
Palestinian  Authority  to  comply  with  agreements  it  signed  with  Israel.   Second,  it  has  enabled 
the  U.S.  to  play  a  role  in  fighting  the  roots  of  extremism  by  providing  the  funding  for 
economic  development  and  to  train  and  equip  the  nascent  Palestinian  police  force.   Third,  it  is 
necessary  for  the  Palestinian  population  to  experience  the  tangible  benefits  of  peace.    While 
the  Palestinians  have  not  yet  achieved  the  critical  goal  of  stopping  acts  of  terror,  the  Clinton 
Administration  has  successfully  used  the  Middle  East  Peace  Facilitation  Act  to  demonstrate  to 
the  PLO  that  continued  U.S.  diplomatic  and  financial  support  is  dependent  on  a  trajectory  of 
improvement  in  Palestinian  efforts  to  thwart  acts  of  terror. 

Congress  should  promptly  support  Senate  Bill  1064  -  without  amendment  -  The 
Middle  East  Peace  Facilitation  Act  of  1995,  introduced  by  Senators  Helms  and  Pell. 


221 


l  COMMISSION 


ABRAHAM  M   fOXMAN 


'Anb-Oefemabon  lea^te " 


KENNETH  |   BLM.KIN 
SEYMOUR  CRAUBARD 
MAXWELL  E   CREEN8ERC 


MEYER  EISENBERC 
THOMAS  HOMBURCER 


LESTER  POLLACK 


STATEMENT  OF  THE 

ANTI-DEFAMATION  LEAGUE 

TO  THE 

INTERNATIONAL  RELATIONS  COMMITTEE 

HEARINGS  ON  THE  MIDDLE  EAST  PEACE  PROCESS 

SEPTEMBER  20, 1995 


DOROTHY  BINSTOCK 
RUDY  BOSCHW1T2 
EDGAR  M.  BRONFMAN 
MAXWELL  DANE 


CERI  M   JOSEPH 


PHILIP  M   KLUTZNrCX 
PHILIP  KRUPP 
SAMUEL  H   MILLER 
BERNARD  D  M1NTZ 


Nal>onal  Executive  Commmn 


Natronal  Executive  Ot— ttl 
DAVID  A.  ROSE 


SYONEY  JARXOW 


CHARLES  COLDRINC 
MOEKUDUR 


IRVING  SHAPIRO 
Aasftant  SeoetvY 
LAWRENCE  ATLER 


SIDNEY  CLEAREIELD 


KENNETH  1ACOBSON 


».l  Rights 
'FREY  P  SJ 


In  no  uncertain  terms,  the  signing  of  the  Israel-PLO  Declaration  of  Principles 
in  1993  was  a  historic  breakthrough  in  the  long  and  difficult  search  for  Arab-Israeli 
peace  and  reconciliation.  For  Israel,  the  agreement  reflected  the  depth  of  its 
commitment  to  reaching  peace  with  its  Palestinian  neighbors.  For  the  PLO,  it 
represented  a  radical  break  with  its  longstanding  policies  of  violence  and  rejection. 
For  both  parties,  the  agreement  initiated  a  long  and  arduous  negotiating  process 
aimed  at  mutually  determining  the  future  status  of  the  West  Bank  and  Gaza  Strip. 

The  peace  process,  while  fraught  with  difficult  issues  and  efforts  by  extremists 
to  stop  it,  represents  an  enormous  diplomatic  success  for  Israel  and  the  U.S. 

58  countries  have  established  diplomatic  relations  with  Israel  since  the  peace 
process  began.  The  Israel-Palestinian  accord  has  boosted  progress  in  other  bilateral 
areas,  as  well.  Chief  among  them  has  been  the  Israel- Jordan  peace  agreement  which 
ushered  in  a  new  era  in  regional  cooperation.  The  potential  now  exists  for  regional 
stability. 

Since  the  signing  of  the  DOP  and  the  Cairo  agreement,  as  the  agreements 
were  translated  into  facts  on  the  ground,  and  the  path  was  paved  for  Palestinian 
autonomy  in  and  Israeli  withdrawal  from  Gaza  and  Jericho,  extremists  have  tried  to 
derail  the  process  using  brutal  means.  Renegade  violence,  whoever  the  perpetrator, 
is  never  legitimate  and  undermines  the  genuine  efforts  on  both  sides. 

Peace  in  this  context  is  not  an  overnight  phenomenon  Enmity  developed  over 
more  than  a  century  takes  time  to  transform.  During  this  time,  it  is  important  to 
provide  strong  U.S.  support  for  Israel's  quest  for  peace  while  requiring  the  PLO  to 
adhere  to  its  commitments  to  halt  terrorism. 


BOBBIE  ARBESFELO 

AMrtttnl  to  the  NMtavil  Owelty 
MARK  D   MEDIN 
Marketing  and  Gxnmuncatiom 
MARK  A   EDELMAN 


Sn"mOI 


Security  is  the  sine  qua  non  of  the  process.  In  order  for  the  Israeli  public  to 
feel  confident  that  their  security  interests  are  being  protected,  pressing  for  Palestinian 
compliance  with  commitments  is  essential.  Over  the  long  term,  continued  movement 
toward  coexistence  in  the  region  is  the  best  defense  against  terrorism. 


Ceneral  Counsel 


JUSTIN  |.  FINCER 


Anti-Defamation  League  of  B'nai  B'rith.  823  United  Nations  Plaza.  New  York,  NY  10017  (212)  490-2525  FAX  (212)  867-0779 


222 


STATEMENT  OF  THE  ANTI-DEFAMATION  LEAGUE 
PAGE  TWO 

At  the  same  time,  regardless  of  how  we  assess  Palestinian  performance  in  combatting 
terrorism,  the  fact  of  the  newly  formed  Israeli-Palestinian  partnership  in  this  fight  —  including  joint 
security  patrols  and  other  joint  antiterrorism  initiatives  —  and  shared  commitment  to  peace  is  historic 
and  represents  a  victory  for  the  diplomatic  process  in  and  of  itself. 

Israel  has  called  upon  the  United  States  and  the  international  community  to  assist  the  fledgling 
Palestinian  Authority  (PA)  based  on  its  assessment  that  international  support  is  critical  to  the  ability 
of  the  PA  to  sustain  itself.  Israel  entered  into  a  partnership  on  the  basis  of  three  fundamental 
commitments  made  by  the  PLO: 

—  Acceptance  of  Israel's  right  to  exist  in  peace  and  security 

—  Acceptance  of  United  Nations  Resolutions  242  and  338 

—  Renunciation  of  and  commitment  to  combat  terrorism 

Since  that  time,  through  the  Middle  East  Peace  Facilitation  Act,  the  U.S.  Congress  has  been 
resolute  in  requiring  the  PLO  to  take  meaningful  steps  to  comply  with  its  commitments.  ADL 
supports  enactment  of  the  1995  Middle  East  Peace  Facilitation  Act  (MEPFA1.  Through  MEPFA, 
the  U.S.  sends  a  strong  message  that  the  PLO  must  fully  and  meaningfully  adhere  to  its  commitments 
if  it  hopes  to  continue  to  receive  U.S.  assistance. 

We  acknowledge  and  welcome  the  PA's  recent  increased  resolve  and  concrete  actions  in  the 
area  of  combatting  terrorism  on  the  ground.  More  needs  to  be  done.  The  Palestinian  Covenant 
remains  unamended  and  Islamic  militants  still  operate  with  relative  freedom.  We  continue  to  urge 
the  PA  to  use  all  available  means  to  rein  in  radicals  who  are  engaging  in  a  brutal  campaign  of  violence 
against  Israeli  citizens  and  who  seek  the  destruction  of  the  State  of  Israel. 

The  Arab-Israeli  peace  process  remains  a  major  U.S.  foreign  policy  goal.  Congress's  role  in 
promoting  reconciliation  between  Israel  and  the  Palestinians  by  pressing  for  compliance  with 
agreements  and  supporting  continued  negotiations  is  indispensable  in  the  larger  strategy  of  alleviating 
terror  and  extremism  in  the  Middle  East. 

m 


223 


FOREIGN  POLICY 


NUMBER  100  FALL  1995 


The  Path  to  Peace 


by  Robert  Satloff 


In  October  1991,  in  a  royal  palace  in  Madrid,  a  dour,  monosyl- 
labic Israeli  prime  minister  sat  across  a  great,  rectangular  table 
from  second-tier  representatives  of  the  Palestinian  people, 
whose  own  organizational  leadership  was  banished  from  the 
proceedings  because  of  its  reliance  on  terrorism  as  policy.  To- 
day, the  two  principals,  Israel  and  the  Palestine  Liberation  Organiza- 
tion (plo),  are  formally  bound  by  a  contractual  agreement  witnessed 
by  the  United  States  and  Russia  to  settle  all  disputes  peacefully  and 
to  negotiate  the  end  of  their  century-old  conflict  by  determining  the 
"final  status"  of  the  West  Bank  and  Gaza  and  other  critical  issues. 

Seated  near  the  Palestinian  representative  in  Madrid  was  the  for- 
eign minister  of  the  Hashemite  Kingdom  of  Jordan,  whose  soldiers — 
then  (and  perhaps  still)  the  finest  in  the  Arab  world — were  the  first 
to  cross  the  Jordan  River  on  May  15,  1948,  to  take  up  arms  against 
the  fledgling  Jewish  state.  Today,  Israel  and  Jordan  are  at  peace,  hav- 
ing negotiated  a  remarkably  creative  treaty  that  not  only  ends  46 
years  of  war  but  sketches  a  blueprint  for  a  warm  web  of  political,  eco- 
nomic, and  human  relationships. 

Also  at  that  table  was  the  foreign  minister  of  Syria,  a  country  that 
earned  its  spot  on  the  U.S.  government's  list  of  terror-supporting 
states  both  for  its  direct  role  in  terrorism  and  for  its  sponsorship  and 
sufferance  of  Palestinian,  Lebanese,  Armenian,  Turkish,  and  other 
terrorist  groups.  Though  miffed  that  lesser  Arab  brethren  brokered 
their  own  separate  agreements  with  Israel,  Syrian  representatives — 
including  the  chief  of  staff  of  the  Syrian  armed  forces,  a  lofty  posi- 
tion in  a  military  dictatorship — are  today  quietly  negotiating  with 
their  Israeli  counterparts  on  aspects  of  a  peace  treaty  that  is  hailed 


ROBERT    SATLOFF    is  executive  director  of  The  Washington  Institute  for 
Near  East  Policy. 


224 


by  supporters  (and  detractors)  as  a  potential  "peace  to  end  all  wars" 
in  the  Middle  East. 

Overall,  the  diplomatic  record  since  Madrid  is  resoundingly  pos- 
itive. For  that,  the  Bush  and  Clinton  administrations,  which  have 
been  the  principal  sponsors  of  the  peace  process,  deserve  wide  ac- 
claim. The  speed  of  change  has  been  so  rapid — Gaza-Jericho,  the 
"handshake"  on  the  White  House  lawn,  multilaterals,  London  talks, 
Washington  Declaration,  Wadi  al  'Arabah,  Casablanca,  military-to- 
military  talks — that  the  novel  has  become  ho-hum.  That,  however, 
does  not  make  the  change  any  less  significant. 

In  historical  terms,  the  greatest  achievement  of  the  Madrid 
process  is  to  have  bolstered  a  dynamic  change  in  Arab-Israeli  rela- 
tions from  conflict  to  negotiation  to,  in  some  hopeful  areas,  recog- 
nition of  mutual  interests.  For  most  observers,  the  operative  issue  to- 
day is  not  the  imminence  of  Arab-Israeli  war  but  the  battle  being 
waged  on  many  fronts  between  the  region's  moderate  forces — Arab, 
Israeli,  and  Turkish — and  their  reactionary,  atavistic  nemeses,  both 
secular  and  religious.  After  a  half  century  of  simmering  intercom- 
munal  conflict  in  what  was  once  Mandatory  Palestine  and  a  quarter 
century  of  interstate  conflict  that  spanned  a  far  wider  arena,  the  last 
two  decades  have  witnessed  a  slow  but  consistent  process  of  peace- 
making, both  within  societies  and  between  states  and  peoples.  In  this 
process,  most  Arab  leaders  (and,  to  an  alarmingly  lesser  degree,  their 
peoples)  have  come  to  terms  with  Israel's  strength,  resilience,  and 
permanence;  Palestinians  have  gained  recognition  of  nationhood 
from  everyone  that  matters  (most  importantly,  Israel);  and  Israelis, 
now  able  to  flit  about  the  region  from  Marrakech  to  Manama,  feel 
more  secure  to  do  business  in  Milan  and  Manila.  Through  it  all,  the 
win-win  process  of  peacemaking  has  come  to  supplant  the  zero-sum 
process  of  warfare,  which  the  Arabs  clearly  lost  but  from  which  Is- 
rael could  not  gain. 

Against  this  litany  of  good  news  stand  two  unhappy  realities.  First, 
as  the  fate  of  the  1983  peace  accord  between  Israel  and  Lebanon 
shows,  the  peace  process  is  neither  irreversible  nor  irrevocable.  The 
post-Gulf  war  successes  of  Madrid,  Oslo,  Wadi  al  'Arabah,  et  al., 
were  made  possible  by  the  historic  confluence  of  American  domi- 
nance, Soviet  irrelevance,  Israeli  strength,  Palestinian  disillusion- 
ment, and  a  general  sense  of  realism  and  pragmatism  that  took  hold 
in  the  Arab  world.  As  those  ingredients  shift,  the  process  changes, 


225 


and  the  ability  of  those  achievements  to  survive  future  tests,  such  as 
succession  crises,  will  change,  too. 

Second,  because  the  Arab-Israeli  conflict  has  been  a  systemic  phe- 
nomenon, in  which  the  ideological,  economic,  social,  cultural,  po- 
litical, and  military  energies  of  states,  nations,  and  peoples  were  com- 
mitted (both  voluntarily  and  through  force  majeure)  to  "the  struggle," 
ending  the  conflict  will  require  decades  of  effort  and  perhaps  even 
generational  change.  It  is  important  to  recall  that  on  just  the  diplo- 
matic level,  nearly  10  years  were  needed — from  the  Kilometer  101 
talks  in  1973  to  the  final  Israeli  withdrawal  from  the  Sinai  in  1982 — 
to  create  peace  between  Egypt  and  Israel;  Syria  and  Israel  began  a  ne- 
gotiating process  at  about  the  same  time,  but  they  remain  far  from 
signing,  let  alone  implementing,  a  peace  accord.  To  the  dismay  of 
diplomats,  the  end  of  the  Arab-Israeli  conflict  is  not  just  one  shuttle 
mission,  one  secret  negotiation,  or  one  signing  ceremony  away.  In 
fact,  Uday  Hussein,  the  son  of  the  leader  of  the  Arab  state  most  re- 
cently to  attack  Israel,  could  still  in  June  1995  editorialize  in  his 
Baghdad  newspaper  Babil  that  the  Arabs  need  to  improve  upon 
Egyptian  leader  Gamal  Abdel  Nasser's  exhortation  to  throw  the  Jews 
into  the  sea  because  some  of  them  might  still  swim  to  safety. 

American  Interests 

For  the  United  States,  helping  to  achieve  Arab-Israeli  peace  re- 
mains a  vital  national  security  policy,  even  though  the  region 
is  no  longer  a  setting  for  potential  superpower  confrontation — 
a  main  reason  for  Washington's  devotion  to  peacemaking  in  the 
1960s,  1970s,  and  1980s.  In  the  late  1990s,  Arab-Israeli  peace  is  a  key 
element  in  maintaining  America's  two  overriding  interests  in  the  Mid- 
dle East:  the  safety  and  survival  of  Israel  and  secure,  unhindered  ac- 
cess to  the  region's  oil  and  gas  at  reasonable  prices. 

For  the  former  U.S.  interest,  the  relevance  is  obvious;  for  the  lat- 
ter, the  impact  of  peace  is  more  complicated  but  no  less  direct.  Do- 
mestically, peace  would  permit  America's  friends  to  devote  a  greater 
share  of  their  nations'  resources  to  solving  economic  and  social  prob- 
lems, denying  radicals  fertile  ground  for  propagandizing  and  prosely- 
tizing at  home.  Regionally,  peace  would  deprive  troublemakers  like 
Saddam  Hussein  the  "wedge  issue"  of  Palestine  to  make  mischief  in 
the  region  and  would  permit  Arabs,  Israelis,  and  Westerners  to  focus 


226 


their  energies  on  the  two  challenges  to  regional  stability  that  threaten 
them — the  secular  radicalism  of  Iraq  and  the  religious  militancy  of 
Iran.  What  makes  the  potential  payoff  of  peace  so  great  for  the 
United  States  is  that  it  would  affirm  a  strategic  consensus  between 
America  and  all  of  its  regional  allies. 

Recognizing  the  two  unhappy  realities  of  the  peace  process — that 
past  achievements  are  not  necessarily  irreversible  and  that  future  suc- 
cesses may  take  considerable  time — the  Clinton  administration  faces 
steep  challenges  between  now  and  November  1996.  The  Israel-PLO 
accord  of  September  1993,  a  breakthrough  of  seismic  proportions, 
risks  succumbing  to  popular  disenchantment  on  both  sides  owing  to 
a  sinister  cycle  of  terrorism,  retribution,  deprivation,  disillusion,  and 
more  terrorism.  The  Jordan-Israel  peace  treaty  of  October  1994,  an- 
other signal  achievement,  risks  settling  into  an  unfulfilling  "peace  of 
the  elites,"  because  the  Jordanian  man-in-the-street  (or  soldier-in- 
the-barracks)  has  yet  to  benefit  from  its  trickle-down  effects.  The 
Egypt-Israel  peace  of  March  1979,  foundation  for  the  peace  process, 
risks  eroding  as  an  array  of  issues — from  Egypt's  criticism  o{  Israel's 
nuclear  policy  to  competition  for  dwindling  U.S.  aid  dollars — divides 
these  pioneers  in  peacemaking.  The  multilateral  peace  process,  a  lit- 
tle-known but  innovative  series  of  experts'  discussions  on  transna- 
tional issues  (e.g.,  water  resources,  environment,  economic  develop- 
ment, refugees,  arms  control,  and  regional  security),  risks  atrophying 
without  the  political  commitment  of  the  region's  leaders.  The  process 
of  Israel's  political  and  economic  integration  into  the  Middle  East, 
heralded  by  diplomatic  openings  throughout  North  Africa  (except 
Libya)  and  the  Arab  Gulf,  risks  slowing  without  having  achieved  an 
end  to  the  Arab  boycott  of  Israel. 

On  top  of  all  this,  the  Clinton  administration  has  made  the 
achievement  of  an  Israel-Syria  peace  agreement  one  of  its  highest  pri- 
orities. This  reflects  both  the  wish  of  the  Israeli  government,  whose 
relations  with  the  United  States  are  at  a  historic  high  after  the  quar- 
rels of  the  George  Bush- Yitzhak  Shamir  years,  and  the  predilection 
of  Bill  Clinton,  Secretary  of  State  Warren  Christopher,  and  the  lat- 
ter's  "peace  team."  The  reason  for  this  situation  is  simple:  Peace  with 
Syria,  it  is  argued,  would  have  implications  far  beyond  a  straightfor- 
ward bilateral  agreement.  Reconciliation  between  "the  beating  heart 
of  Arab  nationalism"  on  the  one  hand  and  the  "Zionist  entity"  on 
the  other  would  constitute  the  keystone  to  what  is  termed  "compre- 


227 


hensive  peace."  Comprehensive  peace  means  ending  the  Arab  con- 
flict on  Israel's  borders,  committing  Damascus  to  cut  off  Hizbollah 
and  other-  terrorist  groups,  giving  the  "green  light"  for  an  Israel- 
Lebanon  peace  agreement,  and  removing  all  obstacles  to  Israel's  nor- 
malization with  the  wider  Arab  world.  For  the  United  States  and  Is- 
rael, the  attainment  of  a  comprehensive  peace  would  confirm  the 
wisdom  of  strategic  cooperation  in  the  peace  process  and  would  usher 
in  a  truly  "new  Middle  East." 

With  so  much  at  stake,  neither  Washington  nor  Jerusalem  has 
been  shy  about  pursuing  peace  with  Syria.  Israel,  for  example,  has  put 
aside  its  preference  for  direct  talks,  accepting  what  Israel's  chief  ne- 
gotiator has  termed  "trilateral  negotiation"  (with  Washington  as  the 
third  party),  and  it  has  not  required  Syria  to  end  its  support  for  anti- 
Israel  (e.g.,  Hizbollah)  terrorism  as  a  precondition  of  formal  bar- 
gaining. On  the  American  side,  its  interest  in  an  Israel-Syria  peace 
is  such  that  Christopher  has  visited  Syria  19  times  on  12  trips  to  the 
Middle  East  in  just  30  months.  (By  contrast,  he  has  visited  America's 
troubled  neighbor  Mexico  only  once.)  These  exertions  notwith- 
standing, Israel-Syria  negotiations  move  at  a  glacial  pace.  After  more 
than  three  and  one-half  years  of  talks,  the  two  sides  are  only  now  be- 
ginning serious  bargaining  on  the  core  issue  of  security.  Even  this  ten- 
tative step  forward  first  required  agreement  to  postpone  talks  on 
three  other  critical  items — the  extent  of  Israel's  territorial  with- 
drawal, the  parameters  of  normalization,  and  the  timetable  for  im- 
plementing a  peace  accord.  Should  the  Syrians  be  truly  committed 
to  an  agreement,  finalizing  it  will  take  time,  even  if  its  contours  ap- 
pear clear. 

Steps  Toward  Peace 

Both  Americans  and  Israelis  go  to  the  polls  in  1996,  and  some- 
time in  the  first  half  of  that  year  electoral  politics  will  intrude 
on  the  peace  process,  making  progress  less  likely.  With  so  much 
in  the  peace  process  uncertain,  there  is  much  to  do  and  little  time. 
For  the  United  States,  this  needs  to  be  a  period  of  shoring  up  past 
achievements  and  working  toward  new  ones.  To  meet  that  challenge, 
U.S.  diplomats  should  return  to  first  principles  that  have  been  honed 
from  nearly  30  years  of  peacemaking  efforts.  First,  secure  an  environ- 
ment in  which  Arabs  and  Israelis  can  settle  their  disputes  through  nego- 


228 


tiation.  In  practical  terms,  this  approach  involves  proactive,  ongoing 
efforts  to  insulate  the  peace  process  from  its  enemies — Iraq,  Iran,  and 
transnational  terrorism.  Madrid  happened  because  of  U.S.  leadership 
in  the  Gulf  war;  without  that  leadership,  and  without  the  continued 
deterrence  of  the  region's  radical  forces,  the  chances  for  further 
progress  toward  Arab-Israeli  peace  are  slim. 

Second,  reduce  the  risks  of  peacemaking  for  those  who  contemplate 
compromise  and  support  the  courage  of  those  who  opt  for  it.  Four  simul- 
taneous efforts  are  necessary  to  the  realization  of  this  principle: 

►  Continue  to  work  in  partnership  with  Israel.  The  strength  of 
the  U.S. -Israeli  relationship  is  critical  to  helping  Israelis 
persevere  with  the  peace  process  in  the  face  of  suicide  car 
bombs  and  katyusha  rocket  attacks,  demands  to  cede  strategic 
territory  in  exchange  for  promises  of  peace,  and  harangues  over 
Israel's  strategic  deterrent. 

►  Redouble  efforts  to  promote  international  aid  and  investment  in 
the  West  Bank  and  Gaza  Strip  as  a  way  to  bolster  popular 
support  for  the  pro-Oslo  Palestinian  leadership  while  taking  a 
firm  stand  against  backsliding,  mismanagement  of  aid  funds,  and 
sufferance  of  terrorism.  Although  the  Israel-PLO  negotiations 
are  largely  a  bilateral  affair,  the  United  States  must  try  to  ensure 
that  the  Palestinian  Authority  (PA)  does  not  wither  on  the 
vine  (as  many  Arab  parties  seem  willing  to  permit)  while  at  the 
same  time  insisting  that  the  PA  not  receive  a  "free  pass"  when  it 
comes  to  meeting  its  contractual  commitments. 

►  Remove  the  issue  of  Jordanian  debt  relief  from  White 
House-congressional  feuding  and  find  low-cost  ways  (such  as 
excess  defense  articles,  corporate  trade  missions,  and  increased 
funding  for  International  Military  Education  and  Training 
(imet))  to  help  Jordanians  realize  the  benefits  of  peace.  Failing 
to  find  some  support  for  Jordan's  peacemaking  efforts  would  be 
not  only  penny-wise  and  pound-foolish  as  far  as  the  Jordanians 
are  concerned,  but  it  would  send  negative  signals  to  Damascus 
and  elsewhere  about  America's  resolve  in  support  of 
peacemakers. 

►  Broaden  ongoing  dialogue  with  Egypt  to  ensure  that  the  special 
U.S.-Egyptian  relationship  remains  on  firm  footing  as  Egyptians 
contemplate  a  Middle  East  in  which  they  are  no  longer  the  only 
state  at  peace  with  Israel.  A  stable  Egypt  is  the  linchpin  of  a 


229 


stable  Middle  East.  It  is  especially  important  to  talk  early, 
seriously,  and  creatively  with  Egypt  about  ways  to  bolster 
U.S.-Egyptian  strategic  ties  and  the  future  of  the  U.S.  economic 
assistance  package. 

Third,  with  Syria,  be  prepared.  Having  engineered  direct  negotia- 
tions at  a  high  level — the  two  sides'  chiefs  of  staff — the  United  States 
should  let  the  negotiations  take  their  course,  injecting  itself  into  the 
process  only  when  both  needed  and  asked  by  the  two  sides.  This 
means  that  the  United  States  should  be  prepared  at  the  highest  level 
to  act  as  an  honest  broker  should  Israel  and  Syria  together  seek  U.S. 
mediation;  to  serve  in  a  limited  role  as  monitor  should  they  together 
seek  U.S.  help  in  implementing  terms  of  a  future  agreement;  and  to 
press  U.S.  demands  on  Syria  regarding  terrorism,  proliferation,  nar- 
cotics, counterfeiting,  Lebanon,  and  human  rights  lest  they  be  lost  in 
the  festivities  accompanying  an  Israel-Syria  breakthrough.  (A 
"mechanism"  established  by  Presidents  Clinton  and  Hafez  al- Assad 
in  January  1994  to  address  these  concerns  died  an  early  death.)  Strik- 
ing the  proper  pose  between  advancing  U.S.  interests  in  Israeli-Syr- 
ian peace  and  protecting  U.S.  concerns  about  the  troubled  U.S.-Syr- 
ian  relationship  is  a  difficult  balance,  only  somewhat  eased  by  Syria's 
own  desire  for  improved  ties  with  Washington. 

Finally,  maintain  perspective ,  composure,  and  momentum. Like  the 
stock  market,  the  peace  process  is  on  a  historically  upward  slope,  but 
that  does  not  mean  it  is  immune  from  great  shocks.  From  outside  the 
process,  terrorism  (Beit  Lid,  Afula,  Hebron),  assassination  plots 
(Hosni  Mubarak,  Yasir  Arafat),  and  coup  attempts  (King  Hussein, 
Sultan  Qaboos  of  Oman)  can  all  be  expected.  Inside  the  process, 
progress  toward  "final  status"  arrangements  will  itself  produce  intense 
and  divisive  disputes  over  sensitive  issues,  not  least  of  which  is 
Jerusalem.  Through  it  all,  America's  role  is  to  help  its  friends  and  part- 
ners work  toward  agreements  that  promote  stability,  satisfy  their  basic 
requirements,  and  terminate  sources  of  future  conflict. 

Burdened  with  daunting  challenges  to  safeguarding  past  achieve- 
ments and  substantial  obstacles  to  finding  future  breakthroughs,  the 
Arab-Israeli  peace  process  faces  a  difficult  time  ahead.  For  the  Clin- 
ton administration,  which  has  invested  so  much  to  see  still  so  much 
left  undone,  solace  should  come  in  knowing  that  this  will  not  be  the 
first,  the  only,  or  the  most  troubled  period  in  a  historic  process  that  is 
still  unfolding. 


230 


PEACE  AT  RISK 

by  Dr.  James  Zogby 

President 
Arab  American  Institute 

November  21,  1994 


The  peace  process,  despite  the  great  hopes 
that  it  engendered  and  its  much  celebrated 
achievements  and  despite  the  fact  that  Israelis  and 
Palestinians  may  soon  sign  yet  another  agreement, 
is  at  an  impasse.    It  is  an  impasse  rather  than  a 
collapse  because  some  aspects  of  the  process  are 
irreversible.    Instead  of  moving  forward,  the  Israeli- 
Palestinian  relationship  has,  to  all  appearances, 
entered  a  new  stasis  —  and  within  that  stasis  the 
dynamic  is  a  downward  spiral. 

And  in  this  situation  the  Palestinians  are 
the  big  losers,  victims  once  again  of  the  asymmetry 
of  power  that  has  marked  their  entire  political 
history. 

There  is  a  great  deal  of  irony  in  all  of  this, 
since  it  was  the  Palestinians  signing  of  a 
Declaration  of  Principles  with  Israel  in  1993  which 
opened  the  door  and  made  possible  the  progress 
achieved  thus  far:  the  Israel- Jordan  peace 
agreement,  movement  toward  ending  the  Arab 
boycott  of  Israel,  the  expansion  of  Israel's  relations 
with  Muslim  nations  from  2  to  14,  and  the  historic 
Middle  East  economic  summit  in  Casablanca  and 
the  one  to  come  in  Amman. 

And  yet,  with  world  attention  focused  on 
those  developments,  the  Israeli-Palestinian 
relationship  itself  has  deteriorated.    It  is  as  if  energy 
has  been  mobilized  toward  constructing  the  5th  and 
6th  floors  of  a  building  whose  foundations  are 
unfinished  and  even  crumbling.   Or,  to  return  to  the 
original  metaphor,  Palestinians  opened  the  door  to  a 
new  Middle  East,  held  it  open  for  others  but  have 
not  been  permitted  to  enter  themselves. 

The  centerpiece  of  the  Israel-Palestinian 
Declaration  of  Principles  was  its  "mutual 
recognition"  of  two  peoples  with  equal  rights.    In 
the  preamble  to  the  agreement,  Israel  and  the  PLO 


to: 

"recognize  their  mutual  legitimate  and 
political  rights,  and  strive  to  live  in 
peaceful  coexistence  and  mutual  dignity 
and  security  and  achieve  a  just,  lasting  and 
comprehensive  peace  settlement  and 
historic  reconciliation...." 
The  implementation  of  these  mutual  rights 
was  to  be  phased  with  each  phase  designed  to  create 
the  confidence  to  enables  the  parties  to  move 
forward  to  the  next  phase. 

Israelis  expected  that  the  process  would 
create  greater  security  and  regional  acceptance  of 
their  state,  while  Palestinians  expected  that  the 
process  would  yield  economic  prosperity  and 
implementation  of  their  political  rights  to  an 
independent  state. 

But  upon  entering  into  negotiations  to 
implement  the  Declaration  of  Principles,  the 
Palestinians  discovered  that  the  government  of 
Israel  lacked  the  political  strength  to  apply 
"mutuality"  as  spelled  out  in  the  agreement.   The 
optimism  of  the  Palestinian  negotiators  was  crushec" 
as  the  Israelis  continued  to  squeeze  the  Palestinians 
to  accept  less  and  less  at  each  stage  of  the  talks. 

Nabil  Shaath,  for  example,  projected  that 
the  process  would  work  despite  the  objections  of  a 
strong  Palestinian  opposition.   He  described  how  as 
peace  expanded,  Palestinians  would  receive  the 
expanded  benefits  of  peace.   Opposition  would 
dissipate  and  those  who  used  violence  to  subvert  the 
peace  would  be  isolated  by  the  larger  community 
that  would  be  invested  in  the  fruits  of  peace.   The 
strength  of  the  Palestinian  Authority  and  the 
strength  of  the  peace  process  itself  depended  upon 
the  ability  to  change  Palestinian  daily  life  and  move 
Palestinians  from  a  state  of  oppressive  occupation  to 
real  freedom. 

In  this  view,  the  Israeli  quest  for  security 
and  recognition  is  intrinsically  linked  with  the 
Palestinian  quest  for  prosperity  and  peace  —  they 
are  two  sides  of  the  same  coin.   To  the  extent  that 
Israel  continues  to  control  the  process,  to  impose 
humiliating  conditions  on  the  Palestinian  Authority, 
and  to  dominate  daily  life  in  the  West  Bank  and 
Jerusalem  —  to  that  same  extent  will  the  Palestinian 
authority  and  the  peace  process  itself  lose 
legitimacy  in  the  eyes  of  the  Palestinians.   And  to 
that  same  extent,  Israelis  will  not  achieve  the 
security  they  long  for,  as  Palestinian  militants  will 
continue  to  strike  out  against  them  and  be 
supported  by  a  frustrated  and  alienated  Palestinian 


231 


constituency. 

Its  is  now  one  year  since  the  September 
13th  signing,  and  the  fruits  of  peace  are  too  few  to 
maintain  momentum  for  the  process  in  a  Palestinian 
population  sill  losing  its  rights. 

—  Gaza  still  has  60%  unemployment  and 
open  sewers. 

Even  the  few  thousand  Palestinians  who 
worked  for  poverty- level  wages  as  day 
laborers  in  Israel  have  been  repeatedly 
denied  access  to  jobs  —  jobs  made 
necessary  by  an  Israeli  policy  of  de- 
development  of  the  West  Bank  and  Gaza 
economies  during  its  27  years  of 
occupation. 

—  Israel  has  failed  to  offer  even  a 
minimum  of  confidence-building  gestures 
to  the  Palestinians.  And  the  Israelis 
continue  to  exercise  control  over  too  many 
areas  of  activity,  which  promotes  a  lack  of 
public  confidence  in  the  independence  of 
the  Palestinian  Authority. 

—  Israeli  settlement-building  continues 
unabated.    Rabin's  Labor  government, 
while  pledging  an  end  to  all  settlement 
construction  as  a  condition  of  receiving 
U.S.  loan  guarantees,  has,  during  the  past 
two  years,  either  completed  or  started 
construction  on  roughly  30,000  new 
housing  units  in  the  West  Bank  and  Gaza 
and  in  the  "annexed"  area  around  East 
Jerusalem.   And  with  this  construction 

comes  new  roads  and  expanded 
infrastructure. 

—  East  Jerusalem,  the  religious,  cultural, 
economic  and  welfare  center  of  Palestinian 
life  has  been  virtually  cut  off  from  the  rest 
of  Palestinian  society. 

—  The  process  leading  to  Palestinian 
elections  has  been  repeatedly  delayed. 
While  elections  are  necessary  for  the 
legitimacy  of  the  process  and  the 
Palestinian  Authority,  Israel's  concerns 
have  once  again  won  out,  quite  simply 
because  they  have  the  power  to  set  the  time 
and  terms  of  the  process. 

—  And  finally,  donor  funds  —  so  vital  for 
building  infrastructure,  creating  jobs,  and 
inspiring  hope  in  the  peace  process  —  have 
simply  not  materialized  on  the  scale  needed 
to  jumpstart  the  process  of  moving 
forward.    And  so,  instead  of  being 
strengthened,  the  process  was  weakened. 


The  problem  today  is  not  only  these  delays 
and  the  tragic  and  condemnable  acts  of  extremist 
violence  that  take  innocent  lives.  The  defining 
problem  is  that  both  Palestinians  and  Israelis  have 
lost  the  hope  they  once  had  that  real  peace  is 
possible. 

Israelis  may  feel  today  more  accepted  in 
the  broader  Middle  East,  they  can  travel  to  Petra  or 
Casablanca  and  attend  conferences  in  other  Arab 
capitals.   But  now  they  fear  getting  on  a  bus  to  go 
to  the  local  market    An  implied  potential  external 
threat  has  been  replaced  by  a  real  internal  threat 
And  Palestinians  see  their  once-raised  expectations 
dashed,  and  a  once-revered  leadership  undermined 
and,  at  times,  humiliated. 

This  is  new  stasis  —  an  unraveling  of  hope 
and  an  expansion  of  anger  and  cynicism  in  both 
Israeli  and  Palestinian  societies. 

The  question  that  now  remains  to  be  asked 
is,  has  there  already  been  too  much  erosion  for  the 
peace  process  to  be  salvaged?  Or  has  the  region 
merely  moved  from  one  stage  of  conflict  to  another, 
without  the  just  resolution  that  so  many  hoped  for? 

The  solution  applies  a  counterintuitive 
logic  to  the  problem.   For  Israel  to  be  more  secure 
and  for  peace  to  be  won,  it  must  take  greater  risks 
and  surrender  more  rights  and  power  to  the 
Palestinians.   Steps  should  be  taken  to  rapidly 
implement  the  Declaration  of  Principles  and  invest 
the  Palestinians  in  the  process  and  in  their 
leadership.   Elections  and  Israeli  withdrawal  from 
Palestinian  population  centers  should  take  place  as 
soon  as  possible  and  without  any  more  conditions 
being  imposed. 

It  is  not  enough  for  Palestinians  to  be 
reduced  to  administering  the  occupation  —  they 
must  be  given  freedom,  and  only  Israel  can  give 
that   And  economic  investment  must  be 
accelerated,  with  the  international  community 
adopting  a  sense  of  urgency  in  this  regard. 

For  only  when  Palestinians  experience 
freedom,  the  benefits  of  peace  and  thehope  that 
justice  will  be  done  can  their  support  for  the  peace 
process  and  their  leadership  be  restored.   Only  then 
can  the  Palestine  National  Authority  act  with 
legitimacy  to  establish  order,  and  only  then  will 
Israelis  achieve  the  security  they  hoped  peace  would 
bring. 


232 


$ 


NEWS  RELEASE 


ZIONIST  ORGANIZATION  OF  AMERICA 


Jacob  &  Llbby  Goodman  ZOA  House  4  East  34th  Street,  New  York,  NY  10016 

Telephone:  212-481-1500  Fax:  212-481-1515 

September   13,    1995  Contact i     Morton    Klein,      (212)     481-1500 

Attn:   NEWS  EDITOR 

NEW  POLL  SHOWS  MAJORITY  OF  U.S.  JEWS 
OPPOSE  U.S.  AID  TO  PLO  AND  DISTRUST  ARAFAT 

NEW  YORK-  The  latest  survey  by  the  American  Jewish  Committee 
shows  that  the  majority  of  American  Jews  oppose  further  U.S.  aid  to  the 
PLO  and  distrust  Yasir  Arafat.  Officials  of  the  Zionist  Organization  of 
America  (ZOA)  are  meeting  with  leading  Members  of  Congress  this  week  to 
discuss  the  new  poll  and  other  issues  concerning  U.S.  aid  to  the  PLO. 

The  AJCommittee  poll,  released  on  September  12,  1995,  found: 

*  63%  of  U.S.  Jews  oppose  further  American  "economic  aid  to  the 
Palestinians."    (Just   30%   support    it.) 

*  71%  of  U.S.  Jews  say  that  Arafat  and  the  PLO  cannot  be  "relied 
upon  to  honor  agreements  and  refrain  from  terrorism. "  (Only  17%  think 
they  are  reliable.  ) 

*  56%  of  U.S.  Jews  believe  that  "the  goal  of  the  Arabs  is  not  the 
return  of  occupied  territories,  but  rather  the  destruction  of  Israel." 
(37%  do  not  believe   that.) 

*  91%  of  U.S.  Jews  say  "the  PLO  is  not  doing  enough  to  control 
terrorist  activities  against  Israel." 

The  poll  results  are  similar  to  those  of  the  Luntz  Poll  which  was 
taken  in  May  1995.  Luntz  found  that  62%  of  U.S.  Jews  distrust  Arafat, 
and  56%  said  the  Israel-PLO  peace  accords  have  failed.  A  Luntz  Poll  of 
the  entire  American  public,  also  in  May  1995,  found  that  78%  of 
Americans  oppose  giving  further  aid  to  the  PLO  until  the  PLO  keeps  its 
commitments  and  expels  terrorists  from  Gaza  and  Jericho. 

"These  polls  show  that  American  Jews  are  losing  confidence  that 
these  peace  agreements  will  bring  real  peace, "  said  Morton  A.  Klein,  ZOA 
National  President.  "The  clear  majority  of  both  American  Jews  and 
Americans  in  general  are  opposed  to  giving  hundreds  of  millions  of 
dollars  to  Arafat,  who  encourages  terrorism  by  continuing  his  'jihad, 
via  deaths'  speeches  and  by  praising  terrorists  as  'heroes',  who  is 
violating  virtually  all  aspects  of  the  accords,  and  who  is 
misappropriating  funds  donated  from  around  the  world. " 

"The  U.S.  Congress,  which  is  now  considering  the  issue  of 
further  U.S.  aid  to  the  PLO,  should  take  into  consideration  the  fact 
that  the  overwhelming  majority  of  Americans,  and  the  overwhelming 
majority  of  American  Jews,  clearly  do  not  want  their  tax  dollars 
being  sent  to  Arafat  and  the  PLO, "  Klein  said. 


& 


233 


NEWS  RELEASE 

ZIONIST  ORGANIZATION  OF  AMERICA 

Jacob  &  Llbby  Goodman  ZOA  House  4  East  34th  Street.  New  York,  NY  10016 

Telephone:  212-481-1500  Fax:  212-481-1515 

August    21,     1995  Contact:    Morton   Klein,     (212)    481-1500 

Attn:     NEWS    EDITOR 

American  Woman  Killed  in 
Jerusalem  Arab  Bus  Bombing 

ZOA:    U.S.    AID    TO    PLO   MUST    BE    CONDITIONED   ON 
PLO    PURSUING    TERRORISTS    WHO    KILLED   AMERICANS 

NEW  YORK-  In  response  to  the  murder  of  an  American  woman  in 
today's  Jerusalem  bus  bombing  (in  which  5  people  were  killed  and  over 
100  wounded) ,  the  Zionist  Organization  of  America  (ZOA)  is  urging 
Congress  to  withhold  the  planned  $500-million  in  U.S.  aid  to  the  PLO 
unless  the  PLO  makes  an  all-out  effort  to  apprehend  Arab  terrorists  who 
have  killed  or  injured  American  citizens,  and  pays  compensation  to  the 
victims'  families. 

"The  U.S.  should  not  be  giving  the  PLO  $500-million  in  taxpayers' 
money  unless  the  PLO  is  actively  attempting  to  catch  and  extradite  Arab 
terrorists  who  have  been  involved  in  attacks  on  Americans,  and  pays 
compensation  to  the  families  of  Americans  who  were  killed  by  PLO  members 
in  the  past,"  said  ZOA  National  President  Morton  A.  Klein. 

Klein  noted  that  when  an  American  student,  Alissa  Flatow,  was 
murdered  by  Arab  terrorists  in  the  PLO-controlled  Gaza  Strip  in  April 
1995,  Rashid  Abu-Shibak,  deputy  commander  of  the  PLO  security  services, 
announced  that  the  PLO  would  not  allow  agents  of  the  Federal  Bureau  of 
Investigation  to  investigate  the  killing  (as  reported  on  Israel  Radio, 
April  13,  1995) . 

The  Middle  East  Peace  Facilitation  Act  (MEPPA) ,  which  sets 
conditions  for  U.S.  aid  to  the  PLO,  was  temporarily  renewed  until 
September  30,  1995.  The  draft  of  MEPFA  which  is  currently  being 
circulated,  and  will  be  taken  up  in  September, 

does  not  contain  any  provisions  regarding  U.S.  victims  of  Arab 
terrorism.  By  contrast,  two  other  bills  regarding  aid  to  the  PLO,  the 
Engel-Saxton  bill  and  the  D' Amato-Forbes  bill,  would  condition  funding 
to  the  PLO  on  the  PLO '  s  pursuit  of  terrorists  who  have  attacked 
Americans,  and  would  require  the  PLO  to  pay  compensation  to  the  victims 
of  PLO  attacks. 

"We  are  calling  on  Senators  Jesse  Helms  and  Claiborne  Pell,  co- 
chairs  of  the  Senate  Foreign  Relations  Committee,  to  revise  their  bill 
to  incorporate  this  vital  provision  concerning  American  victims  of  Arab 
terrorism,"  the  ZOA  President  said.  "It  is  a  moral  outrage  that  the  PLO 
receives  U.S.  aid  while  it  is  refusing  to  lift  a  finger  to  catch  those 
who  have  murdered  Americans,  refusing  to  pay  compensation  to  the 
families  of  the  victims,  and  violating  virtually  every  one  of  its 
obligations  in  the  Israel-PLO  peace  accords." 


234 


NEWS  RELEASE 

ZIONIST  ORGANIZATION  OF  AMERICA 

Jacob  &  Llbby  Goodman  ZOA  House  4  East  34th  Street,  New  York,  NY  10016 

Telephone:  212-481-1500  Fax:  212-481-1515 

May   12,    1995  Contact:     Morton    Klein,      (212)      481-1500 

Attn:   NEWS  EDITOR 

CIA  DIRECTOR  GAVE  SENATE  ERRONEOUS 
INFORMATION  ON  TERRORISM  BY  PLO  FACTIONS 

NEW  YORK-  The  Acting  Director  of  the  Central  Intelligence  Agency 
recently  made  erroneous  statements  to  a  Senate  committee  about  terrorism 
committed  by  factions  of  the  Palestine  Liberation  Organization  (PLO) . 
said  Morton  A.  Klein.  National  President  of  the  Zionist  Organization  of 
America  (ZOA) . 

In  recent  written  testimony  to  the  Senate  Intelligence  Committee, 
CIA  Acting  Director  William  Studeman  erroneously  claimed  that  the  PLO 
has  not  carried  out  any  attacks  since  the  signing  of  the  Israel -PLO 
peace  accords.  Studeman  also  erroneously  claimed  that  some  of  the  PLO 
factions  which  are  still  engaging  in  terrorism  "renounced  their 
membership"  in  the  PLO  two  years  ago. 

(Studeman  was  replying  to  questions  that  were  submitted  to  him  by 
the  Committee  in  writing,  following  his  testimony  to  the  Committee  in 
January.  He  gave  his  reply  in  March;  it  was  only  recently 
declassified. ) 

"William  Studeman 's  erroneous  testimony  to  the  U.S.  Senate 
concerning  PLO  terrorism  may  reflect  the  administration's  strategy  of 
whitewashing  PLO  terrorism  and  other  major  PLO  violations  of  the  PLO's 
obligations  under  the  peace  accords,  so  that  the  PLO  will  qualify  for 
U.S.  aid,"  ZOA  President  Klein  said.  "The  State  Department  has  used 
similar  tactics  in  its  first  three  biannual  reports  on  PLO  violations. 
Congress  and  the  American  public  deserve  to  hear  the  full  truth  about 
the  PLO's  behavior,  and  if  the  CIA  and  the  State  Department  cannot  be 
relied  upon  to  provide  it,  then  Congress  may  have  no  choice  but  to 
assume  a  more  prominent  role  in  monitoring  PLO  violations--for  example, 
by  establishing  a  bipartisan  subcommittee,  under  the  aegis  of  the  Senate 
Foreign  Relations  Committee  and  the  House  International  Relations 
Committee,  to  provide  its  own  biannual  reports  to  the  President 
concerning  PLO  violations." 

According  to  a  transcript  of  the  statements  obtained  by  the  Jewish 

Continued  on  pass  2 


235 


Page  2 

Telegraphic  Agency,  Studeman  was  asked  by  Senator  Arlen  Specter  (R-PA) , 
the  committee  chair,  and  Senator  Bob  Kerrey  (D-NB) ,  "Is  there  any 
evidence  suggesting  that  the  PLO  is  still  involved  in  terrorist 
activities?"   Studeman  replied: 

"We  have  no  evidence  that  any  PLO  group  has  engaged  in  acts  of 
terrorism  since  Israel  and  the  PLO  signed  the  Declaration  of  Principles 
in  September  1993,  and  Arafat  reiterated  his  1988  renunciation  of 
terrorism.  Since  September  1993,  Palestinian  terrorism  including  that 
perpetrated  by  Islamic  extremist  groups  such  as  Hamas,  has  been  confined 
to  splinter  groups  beyond  Arafat's  control.  The  Popular  and  Democratic 
Fronts  for  the  Liberation  of  Palestine  (PFLP  and  DFLP) ,  which  have  never 
been  directed  by  Arafat,  renounced  their  membership  in  the  PLO  in 
September  1993  to  protest  the  Gaza-Jericho  accord  and  have  conducted 
several   attacks  inside   the  Territories  over   the  past  year.' 

"The  truth  is  that  Yasser  Arafat's  own  Fatah  faction  of  the  PLO 
continued  to  engage  in  terrorism  against  Jews  and  Arabs  after  the 
signing  of  the  accords,"  said  ZOA  President  Klein.  "Since  Septemoer 
1993,  Fatah  has  carried  out  at  least  63  terrorist  attacks,  in  which  25 
people  were  killed  and  22  injured. " 

Other  PLO  factions,  such  as  the  DFLP  and  the  PFLP,  have  also 
continued  to  engage  in  terrorism.  Klein  noted  that  the  DFLP  and  the 
PFLP  have  not  committed  merely  "several  attacks,"  as  Studeman  claimed. 
but  in  fact  since  September  1993,  the  PFLP  has  carried  out  at  least  14 
attacks  (leaving  5  dead  and  8  wounded)  and  the  DFLP  has  carried  out  at 
least  14  attacks  (leaving  10  dead  and  12  wounded) . 

[For  a  complete  list,  with  details,  of  the  attacks  by  Fatah,  the 
DFLP  and   the   PFLP,    please   call   212-481-1500.] 

Klein  noted  that  there  is  no  evidence  that  the  DFLP  or  PFLP  ever 
"renounced  their  membership"  in  the  PLO,  as  Studeman  claimed.  On  the 
contrary,  Klein  noted,  as  recently  as  April  22,  1995  PLO  spokesman  and 
Finance  Minister  Mohammed  Nashashibi  publicly  referred  to  the  fact  that 
Yasser  Arafat  has  been  holding  "serious  and  promising  talks  with 
factions  of  the  PLO,  including  the  DFLP,  the  Popular  Front  for  the 
Liberation  of  Palestine,  and  the  Arab  Liberation  Front."  (Jerusalem 
Post,    April  23,  1995) 

Klein  said  Studeman' s  claim  that  there  has  been  "no  PLO  terrorism" 
since  the  signing  of  the  accords  "is  particularly  ironic  in  view  of  the 
fact  that  the  State  Department's  own  June  1994  and  December  1994  reports 
on  PLO  compliance  mentioned  a  number  of  the  Fatah  attacks  and  attacks  by 
other  PLO  factions."  (see  Annex  I.  pp. 1-3  of  the  June  1994  report;  and 
pp  5-6  of  the  December  1994  report.)  Klein  added:  "One  would  have 
thought  that  before  testifying  about  PLO  behavior,  the  Acting  Director 
of  the  CIA  would  have  read  the  State  Department's  reports  on  the 
subject . " 

With  regard  to  Studeman 's  reference  to  Arafat's  "1988  renunciation 
of  terrorism"  (which  was  made  only  in  exchange  for  a  dialogue  with  the 
U.S.),  Klein  pointed  out  that  shortly  after  Arafat's  1988  statement,  PLO 
terrorism  resumed.  Indeed,  the  U.S.  later  broke  off  its  dialogue  with 
the  PLO.  because  Arafat  refused  to  condemn  an  attempted  terrorist  attack 
on  Tel  Aviv  beachgoers  by  a  PLO  member-organization. 


236 


A] Congress 


American  Jewish  Congress 

Stephen  Wise  Congress  House 

IS  East  »4th  Street 

Nt—  York.  NY  10028-0458 

212  079  aSOO  •  F»  212  249  3672 

September  20,  1995 

The  Honorable  Benjamin  Gilman 
Chair,  House  International  Relations  Committee 
United  States  House  of  Representatives 
2449  Rayburn  House  Office  Building 
Washington,  DC  20515 

Via  Fax  to  202/225-2035 

Dear  Mr.  Chairman: 

Thank  you  for  the  invitation  to  include  our  comments  as  part  of  the  Hearing 
Record  for  today's  hearing  on  issues  relating  to  the  Middle  East  Peace  Process.  This 
brief  letter  will  serve  to  underscore  our  deep  support  for  that  process,  for  the 
leadership  of  Prime  Minister  Rabin,  and  for  Middle  East  Peace  Facilitation  Act 
(MEPFA)  which  would  help  to  ensure  the  steady  advancement  of  this  much  needed 
process. 

This  is  a  critical  moment  in  the  Middle  East  peace  process.    Israel  and  the 
Palestinians  are  completing  negotiations  on  implementation  of  the  historic  second 
stage  of  the  Declaration  of  Principles.  The  talks  between  Israel  and  Syria  continue. 
Israel  and  Jordan  plan  for  an  unprecedented  joint  airport  With  these  talks  comes  the 
hope  for  peace,  peace  at  long  last. 

Yet,  the  continuation  of  this  important  --  and  fragile  -  process  hinges  on  the 
outside  assistance  of  facilitators,  especially  the  United  States.  Only  political  support, 
backed  up  by  financial  help,  can  ensure  that  these  talks,  and  the  results  they  have 
already  produced,  will  continue.   That  is  why  MEPFA  is  indispensable,  and  why  ail 
who  truly  desire  peace  must  support  its  timely  renewal. 

The  American  Jewish  Congress  expresses  its  full  support  for  the  government  of 
Israel  as  it  carefully  pursues  difficult  negotiations  while  being  subjected  to  increasingly 
strident  criticism  by  opponents  of  the  peace  process  both  in  Israel  and  here  in  the 
United  States.  Supporters  of  the  peace  process  must  raise  their  voices  so  that  they 
are  heard,  and  are  not  drowned  out  by  discordant  shouts  of  disapproval. 

Today's  hearing  will  reflect  a  difference  of  opinion  in  the  American  Jewish 
community.    But  lack  of  unanimity  is  not  the  same  as  lack  of  consensus,  and  we  are 
confident  that  those  who  oppose  the  peace  process  are  a  small  minority,  however 
vocal  they  may  be.    That  is  one  reason  why  we  have  associated  ourselves  with  the 
testimony  which  our  sister  agency,  the  American  Jewish  Committee,  is  presenting  this 
morning.    Let  there  be  no  mistake  --  the  vast  majority  of  American  Jews  support  the 
government  of  Israel  in  its  quest  for  peace 


237 


The  Honorable  Benjamin  Gilman  Page  Two 

September  20,  1995 

Despite  the  implications  that  the  failure  of  the  negotiations  would  have  for  the 
future  of  Israel  and  its  people,  the  fact  is  that  a  loud  and  fervently  motivated  segment 
of  Jewish  society  will  not  accept  any  peace  agreement  that  includes  territorial 
concessions,  unfortunately,  without  territorial  concessions  there  can  be  no  peace 
agreement.   Of  equal  importance,  it  must  be  recognized  that  security  considerations 
have  been,  and  remain,  at  the  core  of  the  Israeli  government's  concerns  as  it 
negotiates. 

We  urge  you  to  bear  these  concerns  in  mind  as  you  consider  MEPFA  and 
related  issues. 

Respectfully, 


*9o/w«^&W  fhkf&MJvVK. 


David  V  Kahn  Phil  Baum 

President  Executive  Director 


c:wpwin\gilman  1  .let 


238 


MADAltAH  50  WIST  II   STMIT  TUIPMONI  POUNBID  IT 

tKIWOMINS  NIWTPUCITT  aia.31l.T9aa  HINRIITTA  f  IOID 

ZIONIST  NEWTORR  f*»  IN   1912 

organisation  10019  iiiimmi 

OF  AMIRICA.  INC. 


September  20,  1995 


The  Honorable  Benjamin  A.  Gilman 
Chairman,  International  Relations  Committee 
The  House  of  Representatives 
Washington,  DC  20515 
FAX:  (202)  225-2035 


Dear  Chairman  Gilman, 

Since  we  were  unable  to  be  attendant  and  offer  verbal  testimony  at  the  International 
Relations  Committee  hearings  on  the  Middle  East  peace  process,  we  would  like  to  present 
to  you  and  the  committee  a  brief  outline  of  our  organization's  position  on  this  and  other 
related  issues. 

As  you  know,  Hadassah,  The  Women's  Zionist  Organization  of  America,  is  the  largest 
Jewish  organization  in  the  United  States.  We  support  and  administer  world-reknown 
medical  and  educational  facilities  in  Israel,  and  provide  an  array  of  educational, 
community  service  and  public  affairs  programs  for  our  members  across  the  United  States. 

It  goes  without  saying  that  Hadassah  and  its  members  feels  closely  connected  to  the 
people  of  Israel  and  have  many  hopes  and  concerns  about  the  current  peace  process.  While 
there  is  a  variety  of  opinions  among  the  vast  membership  of  our  organization,  2,500 
delegates  to  our  just  concluded  National  Convention  held  in  Jerusalem  in  August, 
representing  our  385,000  members  nationwide,  overwhelmingly  approved  a  resolution 
expressing  Hadassah' s  "wholehearted  support  for  the  government  and  people  of  Israel  for 
their  bold  and  determined  pursuit  of  peace,  security  and  economic  stability  for  Israel  and 
for  all  the  peoples  and  states  in  the  Middle  East." 

We  believe  that  the  United  States  and  Israel  share  fundamental  interests  in  the  post-Cold 
War  Middle  East:  a  common  commitment  to  promoting  democracy,  pursuing  the  peace 
process;  and  countering  Arab  and  Islamic  extremists  opposed  to  peace  and  regional 
reconciliation.  We  are  convinced  that  American  foreign  assistance  provides  Israel  with 
the  confidence  and  military  deterrence  necessary  for  taking  the  enormous  risks  it  has  in 
order  to  pursue  a  lasting  and  secure  peace  with  its  Arab  neighbors.  That  is  why  we 
support  the  continuation  of  current  levels  of  aid  to  Israel  and  to  other  participants  in  the 
peace  process. 


239 


In  this  regard,  we  also  support  extension  of  the  Middle  East  Peace  Facilitation  Act 
(MEPFA),  particularly  the  version  of  the  legislation  introduced  by  Senators  Jesse  Helms 
and  Claiborne  Pell.  As  you  know,  the  Helms-Pell  proposal,  which  has  received  strong 
bipartisan  support  in  Congress  and  the  backing  of  the  Administration,  also  strengthens 
MEPFA  wth  provisions  pressing  the  PLO  toward  full  compliance  with  all  of  its 
obligations  and  commitments  in  its  agreements  with  Israel.  This  includes  measures  that 
must  be  taken  to  combat  terrorism  and  to  remove,  within  a  reasonable  time  following  the 
election  of  a  Palestinian  Council,  sections  of  the  PLO  Covenant  calling  for  Israel's 
destruction.  We  believe  that  adoption  of  this  legislation  will  help  pave  the  way  for  further 
progress  in  the  peace  process. 

We  thank  you  for  the  opportunity  to  present  our  views  and  the  position  of  our  organization 
as  you  and  the  committee  deliberate  on  these  issues  of  vital  interest  to  our  country  and  of 
deep  concern  to  the  members  of  our  community. 

Sincerely, 

MarlenePost  Beth  Wohlgelemter  <0 

National  President  Executive  Director 


240 


104th  CONGRESS 
1st  Session 


h.  R.  I960 


To  govern  relations  between  the  United  Slates  and  the  Palestine  Liberation 
Organization  (PLO),  to  enforce  PLO  compliance  with  standards  of  inter- 
national conduct,  and  for  other  purposes. 


IN  THE  HOUSE  OF  REPRESENTATIVES 

Juke  29,  1993 
Mr  FORBES  introduced  the  following  bill;  which  was  referred  to  the  Commit- 
tee on  International  Relations,  and  in  addition  to  the  Committee  on 
Banking  and  Financial  Services,  for  a  period  to  be  subsequently  deter- 
mined by  the  Speaker,  in  each  case  for  consideration  of  such  provisions 
as  faU  within  the  jurisdiction  of  the  committee  concerned 


A  BILL 

To  govern  relations  between  the  United  States  and  the  Pal- 
estine Liberation  Organization  (PLO),  to  enforce  PLO 
compliance  with  standards  of  international  conduct,  and 
for  other  purposes. 

1  Be  it  enacted  by  the  Senate  and  House  of  Representa- 

2  tives  of  the  United  States  of  America  in  Congress  assembled, 

3  SECTION  1.  SHORT  TITLE. 

4  This  Act  may  be  cited  as  the  "Middle  East  Peace 

5  Compliance  Act  of  1995". 

6  SEC.  2.  DEFINITIONS. 

7  For  the  purposes  of  this  Act — 


241 

2 

1  (1)  the  term  "Palestine  Liberation  Organization 

2  (PLO)"  snail  be  defined  as  a  membership  organ  iza- 

3  tion  encompassing  all  constituent  groups  that  belong 

4  to  the  Palestine  National  Council  and  all  individuals 

5  that  have  or  continue  to  publicly  demonstrate  their 

6  allegiance  to  the  Palestine  Liberation  Organization, 

7  or  receive  funds,  directly  or  indirectly  from  sources 

8  controlled  by  the  PLO.  Its  legal  status  is  defined  by 

9  United  States  law  pursuant  to  title  X  of  Public  Law 

10  100-204,  section  1002; 

11  (2)  for  the  purpose  of  this  section,  the  term 

12  "foreign  assistance"  shall  be  the  same  as  that  used 

13  under  section  634(b)  of  the  Foreign  Assistance  Act 

14  of  1961  (Public  Law  87-195);  and 

15  {3)  the  term  "Palestinian  Authority"  shall  be 

16  defined  as  the  administrative  entity  established  in 

17  the  self-rule  areas  of  Gaza  and  the  West  Bank  in  ac- 

1 8  cordance  with  the  Declaration  of  Principles  signed  in 

19  Washington,  DC.  September  13,  1993,  between  Is- 

20  rael    and    the    Palestine    Liberation    Organization 

21  (PLO). 

22  SEC.  3.  POLICY. 

23  It  is  the  policy  and  interest  of  the  United  States — 

24  (1)  to  contribute  to  the  advancement  of  peace 

25  and  security  in  the  Middle  Kast  by  supporting  ef- 


242 

3 

1  forts  by  Israel  and  the  Palestine  Liberation  Organi- 

2  xation    (PLO)   to   reach   a   nonviolent   resolution   of 

3  their  conflict  under  the  terms  of  the  Declaration  of 

4  Principles  on  Interim  Self-Government  Arrangement 

5  signed  in  Washington,  DC,  September  13,  1993; 

6  (2)  to  ensure  that  both   Israel  and  the  PLO 

7  fully  and  meaningfully  comply  with  the  terms  and 

8  conditions  of  all  agreements  made  between  them; 

9  (3)  to  demonstrate  firm,  consistent,  and  unam- 

10  biguous  opposition  to  terrorism  by  insisting  that  Is- 

1 1  rael  and  the  Palestine  Liberation  Organization  take 

12  significant,   material,   and  timely  steps  to  preempt 

13  tourist  attacks; 

14  (4)   to  ensure   that   the   Palestinian   Authority 

15  fully  accounts  for  basic  human  needs  and  infrastruc- 

16  ture   development    funds   expended    by   the    United 

17  States    in    Gaza    and    Jericho    in    accordance    with 

1 8  standard  commercial  principles  and  practices; 

19  (5)  to  ensure  that  Israel  and  the  Palestine  Lib- 

20  eration    Organization    cooperate    fully   with    United 

21  States  law  enforcement  agencies  to  apprehend,  pros- 

22  ecnte,    and   convict   all    individuals    involved    in    the 

23  criminal  injury  rr  death  of  United  States  citizens  or 

24  the  willful  damaging  of  United  States  property; 


243 

4 

1  (6)  to  hold  the  PLO  and  its  administrative  au- 

2  thority  in  Gaza  and  Jericho  accountable  for  unlawful 

3  acts  carried  out  within  its  jurisdiction  or  emanating 

4  from  territory  under  its  administrative  control; 

5  (7)    to   ensure    that    all    recipients    of  United 

6  States  foreign  assistance  evidence  a  clear  comrait- 

7  ment  to  democracy,  justice,  and  the  rule  of  law  and 

8  conform  to  established  standards  of  financial  man- 

9  agement  and  accountability;  and 

10  (8)  to  contribute  to  the  long-term  security,  sta- 

11  bility,  and  economic  health  of  the  State  of  Israel 

12  through  the  maintenance  of  close  bilateral  ties  and, 

13  to  the  greatest  extent  possible,  to  provide  such  levels 

14  of  assistance  to  Israel  as  are  necessary  and  suffi- 

15  cient  to  achieve  these  objectives,  irrespective  of  the 

16  success  or  failure  of  the  agreements  between  Israel 

17  and  the  PLO. 

18  SEC.  4.  FINDINGS  AND  DETERMINATIONS. 

19  (a)  Pursuant  to  the  commitments  between  Israel  and 

20  the  PLO  described  in  section  6  of  this  Act,  the  Congress 

21  makes  the  following  findings: 

22  (1)  After  decades  of  conflict,   Israel   and  the 

23  PLO  have  entered  a  new  era  which  presents  an  his- 

24  boric  opportunity  for  peaceful  coexistence  and  a  sta- 
">S  hT*>  Homf\f.r»tin  fiitnrp  fr»r  frh^msHves  and  the  region. 


244 

1  (2)  The  basis  for  this  new  relationship  between 

2  Israel  and  the  PLO  is  the  set  of  agreements  to 

3  which  both  parties  are  signatories  and  which  ema- 

4  nate  from  the  Declaration  of  Principles  on  Interim 

5  Self-Government  Arrangements,  signed  in  Washing- 

6  ton,  D.C.,  on  September  13,  1993. 

7  (3)   The  United   States  agrees  to  serve  as  a 

8  partner  in  the  effort  to  bring  about  a  lasting  rec- 

9  onciliation  and  understanding  between  Israel  and  the 

10  PLO. 

11  (4)   The   United   States  recognizes  all  of  the 

12  agreements  referred  to  in  section  6  of  this  Act  are 

13  legally  binding  on  Israel  and  the  PLO,  that  they 

14  were  entered  into  freely  and  in  good  faith  and  that 

15  Israel  and  the  PLO  are  committed  to  their  complete 

16  fulfillment. 

17  (5)  The  United  States  is  relying  upon  Israel 

18  and  the  PLO  to  honor  their  commitments  to  elected 

19  representatives  and  officials   of  the  United   States 

20  Government  prior  to  and  following  the  signing  of  the 

21  Declaration  of  Principles,  including  the  promise  of 

22  the  PLO  to  halt  terrorism  emanating  from   areas 

23  under  its  control. 

24  (6)  The  United  States  is  committed  to  provid- 

25  ing  funding  for  infrastructure  development  and  basic 


245 

6 

1  human  needs  in  Gaza  and  Jericho,  but  not  through 

2  any  institution  or  entity  of  the  PLO  or  the  Palestin- 

3  ian  Authority  and  only  where  Israel  and  the  PliO 

4  have  demonstrated  that  they  have  taken  substantial, 

5  timely,  and  meaningful  steps  toward  full  compliance 

6  under  their  respective  agreements. 

7  (7)  The  United  States  is  resolute  in  its  deter- 

8  mination  to  ensure  that  in  providing  assistance  to 

9  Palestinians  living  under  the  administrative  control 

10  of  the  Palestinian  Authority  or  elsewhere,  the  bene- 

1 1  ficiaries  of  such  assistance  shall  be  held  to  the  same 

12  standard   of  financial    accountability  and   manage- 

13  ment  control  as  any  other  recipient  of  United  States 

14  foreign  assistance. 

15  {8)    Since   the   signing  of  the   Declaration   of 

16  Principles,  the  United  States  has  had  sufficient  time 

17  to  evaluate  the  sincerity,  commitment,  and  effective- 

18  ness  with  which  Israel  and  the  PLO  have  complied 

1 9  with  both  the  spirit  and  the  letter  of  the  joint  agree- 

20  ments  to  which  they  are  signatories. 

21  (b)  Determinations. — Therefore,  the  Congress  de- 

22  termines  the  following: 

23  (1)  The  PLO  continues  to  demonstrate  wide- 

24  spread  and  systematic  disregard  for  both  the  spirit 

25  and  the  letter  of  the  understandings  reached  in  a 


246 

7 

1  succession  of  agreements  between  it  and  the  State  of 

2  Israel. 

3  (2)   Information  provided  by  the  President  on 

4  the  compliance  of  the  PLO  with  its  agreements  is 

5  often  ambiguous,  insufficient,  at  variance  with  the 

6  assessments  of  independent  monitoring  groups  and 

7  falls  short  of  the  standard?   of  accountability  ex- 

8  pected  of  other  recipients  of  United  States  foreign 

9  assistance. 

10  (3)  The  PLO  specifically  has  failed  to  take  sub- 

11  stantial,  timely,  and  meaningful  steps  to  fulfill  its 

12  legal  obligations  in  the  following  areas: 

13  (A)    AMBNDINO    THE    PLO   COVENANT. — In 

14  violation  of  commitments  made  by  the  PLO  in 

15  the  letter  of  September  9,   1993,  between  the 

16  PLO  leader  and  the  Prime  Minister  of  Israel, 

17  1993,  the  PLO  has  failed  to  repeal  the  provi- 

18  sions  of  its  charter  which  declare  Israel  to  be  il- 

19  legitimate  and  call  for  its  elimination  through 

20  armed  struggle. 

21  (B)   Preventing  terrorism. — In  viola- 

22  tion  of  the  terms  agreed  to  in  the  Gaza-Jericho 

23  Agreement,  annex  III,  article  I,  section  5  and 

24  the  letters  of  September  9,  1993,  between  the 

25  PLO  leadrr  and  the  Prime   Minister  of  Israel 


247 

8 

1  and  between  the  PLO  leader  and  the  Foreign 

2  Minister  of  Norway,  the  PLO  has  not  legally 

3  banned  terrorist  organizations  such  as  Hamas 

4  and  Islamic  Jihad  and  has  done  little  to  dis 

5  eipline  them.  In  the  19  months  before  the  Dec- 

6  laration  of  Principles  there  were  318  casualties 

7  from  terrorism  in  Israel  and  the  territories  {68 

8  people  were  killed  and  250  injured).  This  is  in 

9  contrast  to  the  19  months  following  the  signing 

10  of  the  Declaration  of  Principles,  there  were  651 

1 1  casualties  from  terrorism  in  Israel  and  the  ter- 

12  ritories  (134  people  were  killed  and  517   in- 

13  jured),  an  increase  of  nearly  100  percent. 

14  (C)  Prosecuting  terrorists. — In  viola- 

1 5  tion  of  the  terras  agreed  to  in  the  Gaza- Jericho 

16  Agreement,  annex  III,  article  I,  section  5  and 

17  the  letters  of  September  9,  1993,  between  the 

18  PLO  leader  and  the  Prime  Minister  of  Israel 

19  and  between  the  PLO  leader  and  the  Foreign 

20  Minister  of  Norway,  the  PLO  has  failed  to  in- 

21  vestigate  terrorist  incidents,  prosecute  terrorists 

22  according  to  the  rule  of  law,  or  ensure  that  the 

23  sentences  imposed  for  terrorist  acts  are  more 

24  than  perfunctory.  The  PLO  repeatedly  has  de- 

25  clared  that  it  considers  terrorist  organizations 


248 

9 

1  such  as  Hamas  and  Islamic  Jihad  as  legitimate 

2  opposition  groups  with  whom  they  are  prepared 

3  to  conduct  a  dialog.  The  PLO  has  not  legally 

4  banned    extremist    organizations    and    instead, 

5  employs  llamas  sympathizers  in  its  administra- 

6  tion  in  Gaza. 

7  (D)    Preventing   incitement   to   vio- 

8  LENCE. — In  violation  of  the  terms  agreed  to  in 

9  the  Gaza-Jericho  Agreement,  article  XII,  para- 

10  graph  1  and  the  letters  of  September  9,  1993, 

11  between  the  PLO  leader  and  the  Prime  Min- 

12  ister  of  Israel  and  between  the  PLO  leader  and 

13  the  Foreign  Minister  of  Norway,  PLO  officials 

14  continue  to  advocate  holy  war  (jihad)  against 

15  Israel,  glorify  suicide  bombers,  lend  support  and 

16  comfort  to  terrorist  groups,  and  issue  propa- 

17  ganda   delegitimizing   Israeli   sovereignty  even 

18  within  its  pre- 1967  borders. 

19  (E)  Barring  unauthorized  forces. — 

20  In  violation  of  the  terms  agreed  to  in  the  Gaza- 

21  Jericho  Agreement,  article  IX,  section  2,  the 

22  PLO  continues  to  permit  illegal  military -and 

23  paramilitary  groups  to  conduct  terrorist  oper- 

24  ations  against  Israel  from  administrative  areas 

25  under  its  control. 


249 

10 

1  (P)  Confiscating  unauthorized  weap- 

2  ONS. — In  violation  of  the  terms  agreed  to  in  the 

3  Gaza-Jericho  Agreement,  annex  I,  article  VIII, 

4  section  8,  the  PLC)  has  failed  to  fulfil]  its  com 

5  mitment  made  to  the  United  States  Vice  Presi- 

6  dent  on  March  24,   1995,  to  take  significant 

7  steps    to    disarm    military    and    paramilitary 

8  groups  under  its  administrative  control,  to  ii- 

9  cense  weapons,  or  to  substantially  enforce,  by 

10  judicial  means,  individual  violations. 

11  (G)  Excluding  terrorists  from  secu- 

12  rity    services. — In    violation    of   the    terms 

13  agreed    to    in    the    Gaza- Jericho    Agreement, 

14  annex  I,  article  III,  section  4(b),  the  PLO  con- 

15  tinues  to  employ  policemen  who  have  been  con- 

16  victed  of  serious  crimes. 

17  (H)  Extraditing  terrorists — In  viola- 

18  tion  of  the  terms  agreed  to  in  annex  III,  article 

19  II,  section  7,  the  PLO  consistently  refuses  to 

20  extradite     individuals    suspected     in     terrorist 

21  crimes  against  Israeli  citizens  and  has  not  com- 

22  plied  with  earlier  demands  of  the  United  States 

23  Government  to  extradite  individuals  suspected 

24  of   crimes   against   Americans    to    the    United 

25  States. 


250 

11 

1  (I)  Prohibiting  the  ixjcation  ok  insti- 

2  TUTIONS     OP     THK     PALESTINIAN     AUTHORITY 

3  OUTSIDE  OF  GAZA  AND  JERICHO. — Under  arti- 

4  cle  V  of  the  Gaza-Jericho  Agreement,  the  Pal- 

5  estinian  Authority  has  attempted  to  extend  its 

6  authority  beyond  the  boundaries  of  Gaza  and 

7  Jericho.  It  has  failed  to  live  up  to  its  commit- 

8  ment  not  to  operate  offices  in  Jerusalem  and 

9  has  opened  at  least  7  institutions  in  and  around 

10  the  city. 

11  (J)  Facilitating  the  release  op  is- 

12  rakli  pows/mias. — The  PLO  has  failed  to  pro- 

13  vide  Israel  with  information  it  possesses  on  the 

14  condition  and  possible  whereabouts  of  at  least 

15  one  Israeli  MIA. 

16  (K)  Avoiding  and  punishing  the  illb- 

17  gal  transfer  op  funds. — In  violation  of  the 

18  spirit    of    the    Gaza- Jericho    Agreement    and 

19  standard  international  principles  and  practices 

20  of  financial  accountability,  administrative  au- 

21  thorities    in    Gaza    have    diverted    substantial 

22  amounts  of  development  assistance  to  activities 

23  of  the  PLO  both  inside  and  outside  of  Gaza  and 

24  Jericho. 


251 

12 

1  (L)  Preventing  infiltrations. — In  vio- 

2  lation  of  the  terms  agreed  to  in  the  Gaza-Jeri- 

3  eho  Agreement,  article  IV(2)(c),  the  Palestinian 

4  Police  authorities  has  failed  to  halt  infiltrations 

5  from  Egypt  to  Gaza  and  from  Gaza  to  Israel. 

6  SEC.  6.  GENERAL  RESTRICTIONS  ON  ASSISTANCE. 

7  Notwithstanding  any  other  provision  of  law,  the  fol- 

8  lowing  restrictions  shall  apply  with  regard  to  all  assistance 

9  provided  by  the  United  States  and  intended  to  benefit  Pal- 
ID  estinians  living  in  areas  controlled  by  the  PI/)  or  the  Pal- 

1 1  estinian  Authority: 

12  <  1)  All  funds  made  available  to  areas  under  the 

13  administrative  control  of  the  Palestinian  Authority 

1 4  shall  be  provided  only  through  agencies  or  entities  of 

15  the  United  States  Government  or  private  voluntary 

16  organizations  designated  by  the  Secretary  of  State 

17  and  registered  in  the  United  States:  Provided,  That 

18  no  funds  shall  be  obligated  or  expended  for  any 

19  projects  or  activities  of  the  Palestinian  Authority  in 

20  Jerusalem    or   that    benefit    Palestinians    living   in 

21  Jerusalem. 

22  (2)  Under  no  circumstances  and  notwithstand- 

23  ing  any  other  provision  of  law,  none  of  the  funds  au- 

24  thorized  or  appropriated  under  this  or  any  other  Act 

25  shall  be  made  available,  directly  or  indirectly,  to  ben- 


252 

13 

1  efit  the  Palestine  Liberation  Organization  (PLO),  its 

2  agents,  entities,  projects,  programs,  institutions,  or 

3  activities  under  its  control,  or  directly  or  indirectly, 

4  to  benefit  the  operation  of  the  Palestinian  Authority 

5  in  Gaza,  Jericho,  or  any  other  area  it  may  control. 

6  (3)   Funds   authorized  or  appropriated   under 

7  this  or  any  other  Act  shall  only  be  made  available 

8  for  humanitarian  assistance,  economic  development, 

9  and  basic  human  needs  infrastructure  projects  or  ac- 

10  tivitics  which  directly  benefit  Palestinians  in  areas 

11  under  the  administrative  control  of  the  Palestinian 

12  Authority. 

13  (4)  The  total  amount  of  United  States  assist- 

14  ance  benefiting  the   Palestinians  resident  in   areas 

15  under  the  administrative  control  of  the  PLO  and  the 

16  Palestinian  Authority  for  any  single  year  shall  not 

17  exceed  the  largest  total  contribution  by  a  member  of 

18  the  Arab  League  to  the  Palestinian  Authority  in  the 

19  previous  full  calendar  year. 

20  (5)   None   of  the   funds  authorized   or  appro- 

21  priated  under  this  or  any  other  Act  shall  be  made 

22  available  to  benefit,  directly  or  indirectly,  Palestin- 

23  ians  living  under  the  administrative  control  of  the 

24  Palestinian  Authority  until  the  PLO  substantially, 


253 

14 

1  materially,  and  in  a  timely  fashion  complies  with  the 

2  provisions  of  section  7  of  this  Act. 

3  (6)   No  funds  made  available  by  this  or  any 

4  other  Act  and  intended  to  benefit  Palestinians  living 

5  in  areas  controlled  by  the  PLO  or  the  Palestinian 

6  Authority  shall  be  used  for  the  purchase,  lease,  or 

7  acquisition  by  any  means  of  lethal  equipment,  sup- 

8  plies,  or  infrastructure  to  support  that  equipment  or 

9  its   use   in   military  or   paramilitary  operations  or 

10  training. 

11  (7)  No  funds  shall  be  made  available  under  this 

12  or  any  other  Act  to  benefit  Palestinians  living  in 

13  areas  controlled  by  the  PLO  or  the  Palestinian  Au- 

14  thority  should  the  PLO  conclude  a  formal  or  infor- 

15  mal  arrangement  with  J  lamas,  Islamic  Jihad,  or  any 

16  other  group  practicing  or  supporting  terrorism  under 

17  which  the  terrorist  activities  of  these  groups,  either 

18  inside  or  outside  of  Gaza  and  Jericho,  will  be  al- 

19  lowed  to  continue  or  be  tolerated  in  any  respect. 

20  (8)  As  set  forth  in  section  585  of  the  Foreign 

21  Operations,    Export    Financing,    and    Related    Pro- 

22  grams  1995  Appropriations  and  1994  Supplemental 

23  Appropriations  Act  (Public  Law  103-306): 

24  (A)    None    of   the    funds    made    available 

25  under  this  or  any  other  Act  shall  be  obligated 

21-733  0-96-9 


254 

15 

1  or  expended  to  create  in  any  part  of  Jerusalem 

2  a  new  office  of  any  department  or  agency  of  the 

3  United  States  Government  for  the  purpose  of 

4  conducting  official   United  States  Government 

5  business  with   the   Palestinian  Authority   over 

6  Gaza  and  Jericho  or  any  successor  Palestinian 

7  governing  entity  provided  for  in  the  Israel  -PLO 

8  Declaration  of  Principles:  Provided,  That  this 

9  restriction  shall  not  apply  to  the  acquisition  of 

10  additional  space  for  the  existing  Consulate  Gen- 

1 1  eral  in  Jerusalem. 

12  (B)  Meetings  between  officers  and  employ- 

13  ees  of  the  United  States  and  officials  of  the 

14  Palestinian   Authority,   or   any   successor   Pal- 

15  estinian  governing  entity  provided  for  in  the  Is- 

16  rael-PLO  Declaration  of  Principles,  for  the  pur- 

17  pose  of  conducting  official  United  States  Gov- 

18  ernment  business  with  such   authority  should 

19  continue  to  take  place  in  locations  other  than 

20  Jerusalem.  As  has  been  true  in  the  past,  offi- 

21  cers  and  employees  of  the  United  States  Gov- 

22  ernment  may  continue  to  meet  in  Jerusalem  on 

23  other    subjects    with    Palestinians    (including 

24  those  who  now  occupy  positions  in  the  Palestin- 


255 

16 

1  ian  Authority),  have  social  contacts,  and  have 

2  incidental  discussions. 

3  {9)  No  funds  made  available  under  this  or  any 

4  other  Act  shall  be  used  to  benefit  any  individual  who 

5  has  directly  participated  in,  or  conspired  in,  or  was 

6  an  accessory  to,  the  planning  or  execution  of  a  tcr- 

7  rorist  activity  which  resulted  in  the  death,  injury  or 

8  kidnaping  of  an  American  citizen. 

9  SEC.  6.  PLO-ISRAEL  COMMITMENTS  DESCRIBED. 

10  The  commitments  referred  to  under  this  Act  and  rec- 

1 1  ognized  by  the  United  States  are  the  legally  binding  com- 

12  mitments  made  by  the  Palestine  Liberation  Organization 

1 3  and  Israel  in  the  following  declarations; 

14  (1)  The  PLO  letter  of  September  9,  1993,  to 

15  the  Prime  Minister  of  Israel. 

16  (2)  The  PLO  letter  of  September  9,  1993,  to 

1 7  the  Foreign  Minister  of  Norway. 

18  (3)  The  Declaration  of  Principles  on  Interim 

19  Self-Government  Arrangements  signed  in  W&shing- 

20  ton,  DC.  on  September  13,  1993 

21  (4)  The  Agreement  between  Israel  and  the  PLO 

22  signed  in  Cairo  on  May  4,  1 994. 

23  (5)  The  Joint  Communique  between  Israel  and 

24  the   PLO   issued   at   Blair   House,    in   Washington, 

25  DC.  Kobmarv  12,  199:") 


256 

17 

1  SBC.  7.  REQUIREMENTS  FOB  THE  TRANSFER  OF  FUNDS. 

2  In  General. — Notwithstanding  any  other  provision 

3  of  law,  none  of  the  funds  authorized  or  appropriated  under 

4  this  or  any  other  Act  shall  be  made  available,  directly  or 

5  indirectly,  to  benefit  Palestinians  living  under  the  adminis- 

6  trative  control  of  the  PLO  or  the  Palestinian  Authority 

7  in  Gaza,  Jericho  or  any  other  area  it  may  control,  until 

8  the  following  requirements  set  forth  in  this  section  are 

9  fully  met  and  certified  to  Congress  by  the  President  of 

10  the  United  States. 

11  (1)  Substantial,  material  and  timely  com- 

12  PLIANCE. — That  the  PLO  and  the  Palestinian  Au 

13  thority  have  made  substantial,  material  and  timely 

14  progress  in  meeting  their  legal  obligations  as  set 

15  forth  in  the  agreements  between  the  PLO  and  Israel 

16  and  as  enumerated  in  section  6  of  this  Act.  The 

17  President  snail  submit  to  the  relevant  congressional 
IS  committees  a  quarterly  report  that — 

19  (A)  comprehensively  evaluates  the  compli- 

20  ance  record  of  the  PLO  according  to  each  spe- 

21  cifie  commitment  set  forth  in  its  agreements 

22  with  Israel; 

23  (B)  establishes,  as  appropriate,  both  objec- 

24  tive   and  subjective   measures  to  assess   PLO 

25  compliance;  and 


257 

18 

1  (C)    measures    PIX)    compliance    against 

2  each  previous  quarterly  assessment  and  dem- 

3  onstrates  significant  and  continual  improvement 

4  each  quarter. 

5  (2)  Financial  accountability. — Sixty  days 

6  following  the  enactment  of  this  Act  and  every  180 

7  days  thereafter,  the  President  of  the  United  States 

8  shall  submit  to  the  relevant  congressional  commit- 

9  tees  a  financial  audit  carried  out  by  the  General  Ae- 

10  counting  Office   (GAO),  which  provides  a  full  ac- 

1 1  counting  of  all  United  States  assistance  which  bene- 

12  fits,  directly  or  indirectly,  the  projects,  programs  or 

13  activities  of  the  Palestinian  Authority  in  Gaza,  Jeri- 

14  cho  or  any  other  area  it  may  control,  since  Septem- 

15  ber  13,  1993,  including,  but  not  limited  to,  the  fol- 

16  lowing) — 

17  (A)    the   obligation    and   disbursal    of   all 

18  funds,  by  project,  activity,  and  date,  as  well  as 

19  by  prime   contractor,   all    subcontractors,   and 

20  their  countries)  of  origin; 

21  (B)  the  organization s)  or  individual(s)  re- 

22  sponsible  for  the  receipt  and  obligation  of  U.S. 

23  assistance; 

24  (C)  the  amount  of  both  private  and  inter- 

25  national  donor  funds  that  benefit  the  PLO  or 


258 

19 

1  the  Palestinian  Authority  in  Gaza,  Jericho  or 

2  any  other  area  it  may  control,  and  to  which  tfoe 

3  United  States  may  he  a  contributor;  and 

4  (D)  the  ultimate  beneficiaries  of  the  assist - 

5  ance. 

6  (3)   Report  on  the   possible  misuse  of 

7  FUNDS. — Pursuant   to   section    7(a),   the   President 

8  shall  also  provide  the  relevant  congressional  commit- 

9  tees  with  a  comprehensive  accounting  of  all  United 

10  States  and  International  donor  funds,  credits,  guar- 

11  antees,  insurance,  in-kind  assistance  and  other  re- 

12  source  transfers  to  the  PLO,  the  Palestinian  Author 

13  ity  or  other  associated  entities  under  their  control 

14  which  the  General  Accounting  Office  believes  may 

1 5  have  been  misused,  diverted  or  illegally  converted  for 

16  purposes  other  than  those  originally  intended  by  the 

17  donors  and  shall  include  a  discussion  of — 

18  (A)  the  possible  reasons  for  the  diversion 

19  of  resources  and  the  likely  use  toward  which 

20  they  were  put; 

21  (B)    the    manner    and    mechanism(s)    by 

22  which  the  resources  were  misdirected; 

23  (C)  the  person(s)  and  institution  likely  re- 

24  sponsible  for  the  misdirection  of  the  resources; 

25  and 


259 

20 

1  (D)  the  efforts  being  made  by  the  Palestin- 

2  ian   Authority,    the   President    and    the    inter- 

3  national  community  to  account  for  and  recover 

4  the  misdirected  resources. 

5  (4)  Penalties  and  deductions. — Not  less 

6  than  thirty  (30)  days  following  the  issuance  to  Con- 

7  gress  of  the  findings  set  forth  in  section  7(2)  the 

8  President  shall  deduct  one  dollar  from  the  amount 

9  of  funds  or  other  resources  appropriated  to  benefit 

10  Palestinians  living  in  areas  controlled  by  the  Pal- 

1 1  estinian  Authority  for  each  dollar  which  the  General 

12  Accounting  Office  is  able  to  demonstrate  may  have 

13  been  diverted  by   Palestinians  for  purposes  other 

1 4  than  what  they  were  originally  intended. 

15  .  (5)  Accountability  for  past  terrorism. — 

16  The  President  shall  certify  to  the  relevant  congres- 

17  sional  committees  that  the  Palestine  Liberation  Or- 

18  ganization  has  taken  substantial,  material  and  time- 

19  ly  steps  to  provide  information  to  United  States  law 

20  enforcement  agencies  leading  to  the  arrest  and  ex- 

21  tradition  to  the  United  States  for  prosecution  of  in- 

22  dividuals  connected  directly  or  indirectly  with  the 

23  Palestine   Liberation   Organization   and   alleged    to 

24  have  been  responsible  for  terrorist  attacks  on  Amer- 


260 


21 

1  ican  citizens  or  property  since  1964  to  include,  but 

2  not  be  limited  to,  the  kidnapping,  or  murders  of — 

3  (A)   David   Berger,  in  Munich,   Germany, 

4  September,  1972; 

5  (B)  Clco  A.  Noel,  Jr ,  United  States  Am- 

6  bassador  to  the  Sudan,  and  G.  Curtis  Moore, 

7  U.S.  Diplomat,  in  Khartoum,  March  2,  1973; 

8  (C)  Gail  Rubin,  in  Israel,  March  11,  1978; 

9  (D)   Leon  Klinghoffer  on  the  cruise  ship 

10  Achillc  Lauro,  October  8,  1985;  and 

11  (E)  Gail  Klein,  in  Jerusalem,  October  15, 

12  1986. 

13  (6)  Report  to  the  congress. — Pursuant  to 

14  subsection  (B)  of  this  section,  the  President  shall  re- 

15  port  to  the   relevant  congressional   committees,   in 

16  both  classified  and  unclassified  form,  no  later  than 

17  September  1,  1995,  and  every  180  days  thereafter, 

18  on — 

19  (A)    the    name,    date,    location,    and    cir- 

20  cumstance  of  all  Americans  alleged  to  have  been 

21  killed  or  injured,  directly  or  indirectly,  by  mem- 

22  bers,  agents,  supporters  or  surrogates  of  the 

23  Palestine  Liberation  Organization  from  1964  to 

24  the  present; 


261  ; 

22 

( 

1  (B)  the  name,  date,  precise  location,  and 

2  circumstance  of  all  violent  incidents  against  Is 

3  raelis  or  others  by  any  terrorist  group,  organi- 

4  zation,  entity  or  individual  operating  in  Israel 

5  or  the  territories  controlled  by  Israel  or  the 

6  PLO  and  to  indicate — 

7  (i)    where    the   violent    incident   was 

8  planned,  organized  and  launched; 

9  (ii)  how  and  through  what  means  the 

10  violent  incident  was  funded; 

1 1  (iii)  the  source  and  type  of  any  lethal 

12  equipment  used   in   any  violent   incident; 

13  and 

14  (iv)   whether  the   United  States   has 

15  been  able  to  independently  confirm  infor- 

16  mation  provided  by  either  Israel  or  the 

17  PIX)  regarding  violent  incidents  reported 

18  under  this  subsection. 

19  (C)  the  status  of  all  warrants  issued  by 

20  United     States     law     enforcement     agencies, 

21  Interpol,  or  other  international  police  authori- 

22  ties,  for  the  arrest  of  members  of  the  Palestine 

23  Liberation  Organization,  to  include,  but  not  be 

24  limited  to,  the  name  of  the  individual,  the  date 

25  and  nature  of  the  crime  alleged  to  have  been 


262 

v 

v 

23 

1  committed,  the  statute  under  which  prosecution 

2  is  being  sought,  and  the  level  and  nature  of  the 

3  cooperation  provided  by  the  Palestine  Libera- 

4  tion  Organization  in  the  apprehension,  prosecu- 

5  tion  and  conviction  of  this  individual (s); 

6  (D)  the  disposition  of  all  past  and  current 

7  investigations  into  the  criminal  activities  of  the 
.  8  Palestine  Liberation  Organization  as  well  as  the 

9  warrants  for  the  arrest  of  alleged  members  of 

10  the  Palestine  Liberation  Organization  that  have 

11  been  revoked  or  suspended  by  agencies  or  enti- 

12  ties   of  the   United    States   Government  since 

13  1964  and  reason  for  the  revocation  or  suspen- 

14  sion;  and 

15  <E)  the  name  of  any  individual  who  cur- 

16  rently  serves  as  an  official  or  agent  of  the  Pal- 

17  estine  Liberation  Organization  or  the  Palcstin- 

1 8  ian  Authority  who  at  any  time  has  been  subject 

19  to  a  United  States  or  international  arrest  war- 

20  rant  or  has  been  placed  on  a  United  States 

21  Government  "watch  list." 

22  (7)  Matters  to  be  considered. — In  deter- 

23  mining  whether  to  make  the  certification  required  by 

24  subsection   (4)   of  this   section  with  respect  to  the 

25  PLO,  the  President  shall  also  consider  and  report, 


263 

24 

1  in  both  classified  and  unclassified  form,  to  the  rel- 

2  evant  congressional  committees  the  following: 

3  (A)  Have  the  actions  of  the  PLO  resulted 

4  in  the  maximum  reductions  in  terrorism  carried 

5  out  by  members  or  affiliates  of  the  PLO?  Has 

6  the  PLO  leadership  publicly,  in  Arabic,  English 

7  and  Hebrew,  and  using  all  major  print  and  elec- 

8  tronic  media  outlets,  strongly  condemned  acts 

9  of  terrorism  against  Israel  and  the  West  when 

10  they  occur? 

1 1  (B)  Has  the  PLO  taken  legal  and  law  en- 

12  forcement  measures  to  enforce  in  areas  under 

13  its  administrative  control,  to  the  maximum  ex- 

14  tent  possible,  the  elimination  of  terrorist  acts 

15  and  the  suppression  of  criminal  elements  re- 

16  sponsible  for  terrorism  as  evidenced  by  the  sei- 

17  zure  of  illegal  weapons,  the  closure  of  offices 

1 8  and  training  areas  belonging  to  terrorist  organi- 

19  zations  and  the  arrest  and  prosecution  of  viola- 

20  tors   involved   in   the   incitement,    recruitment, 

21  training,  planning,  or  conduct  of  terrorist  oper- 

22  ations   affecting  the   United   States,    Israel   or 

23  other  countries! 

24  (C)  Has  the  PLO  taken  the  legal  and  law 

25  enforcement  steps  necessary  to  eliminate,  to  the 


264 

25 

1  maximum   extent   possible,   the   laundering   of 

2  profits  derived  from  smuggling,  narcotics  traf- 

3  ticking,   illegal  weapons  transactions  or  other 

4  criminal  activity  as  evidenced  by  the  enactment 

5  and  enforcement  by  the  PLO  of  laws  prohibit- 

6  ing  such  conduct? 

7  (D)  Has  the  PLO  taken  the  legal  and  law 

8  enforcement  steps  necessary  to  eliminate,  to  the 

9  maximum   extent   possible,   bribery  and   other 

10  forms  of  public  corruption  which  facilitate  the 

11  execution  of  terrorist  acts  or  which  discourage 

12  the  investigation  and  prosecution  of  such  acts, 

13  as  evidenced  by  the  enactment  and  enforcement 

14  of  laws  prohibiting  such  conduct? 

15  (E)  Has  the  PLO,  as  a  matter  of  policy  or 

16  practice,  encouraged  or  facilitated  the  continued 

17  sponsorship  of  terrorist  acts? 

18  (P)  Does  any  senior  official  of  the  PIjO 

19  engage  in,   encourage,  or  facilitate  the  incite- 

20  ment,  recruitment,  training,  planning,  or  con- 

21  duct  of  terrorist  operations  affecting  the  United 

22  States,  Israel  or  other  states  or  condone  other 

23  internationally  recognized  criminal  activity? 

24  (G)  Has  the  PLO  investigated  aggressively 

25  all  cases  in  which  any  citizen  of  the  United 


265 


26 

1  States  or  member  of  the  United  States  Govern- 

2  ment  has  been  the  victim,  since  1964,  of  acts 

3  or  threats  of  violence,  inflicted  by  or  with  the 

4  complicity  of  any  agent  of  the  PLO  or  any  po- 

5  litica)  subdivision  or  supporter  thereof,  and  en- 

6  ergetically  sought  to  bring  the  perpetrators  of 

7  such  offense  or  offenses  to  justice? 

8  (H)  Having  been  requested  to  do  so  by  the 

9  United  States  Government,  does  the  PLO  fail 

10  to  provide  reasonable  cooperation  to  lawful  ac- 

11  tivities    of    United    States     law    enforcement 

12  agents,  including  the  refusal  of  permission  to 

13  such    agents   engaged   in   counter-terrorism    to 

14  pursue   suspected  terrorists  or  other  criminal 

15  elements  that  may  support  terrorist  activities 

16  into  areas  or  facilities  it  controls? 

17  (I)  Has  the  PLO  or  its  administrative  au- 

18  thority  in  Gaza  and  Jericho  adopted  legal  codes 

19  in  order  to  enable  law  enforcement  officials  to 

20  move   more   effectively   against   terrorists,    the 

21  supporters  of  terrorism  and  other  related  crimi- 

22  nal  elements,  such  as  effective  conspiracy  laws 

23  and  asset  seizure  laws? 

24  (J)  Has  the  PIA)  expeditiously  processed 

25  United  States,  Israeli,  or  other  countries'  extra- 


266 

27 

1  dition  requests  relating  to  terrorism,  narcotics 

2  trafficking  or  other  criminal  offenses! 

3  (K)  Has  the  PLO  refused   to  protect  or 

4  given  haven  to  any  known  terrorist,  drug  traf- 

5  ficker  or  other  accused  or  convicted  of  a  serious 

6  criminal  offense,  and  has  it  expeditiously  proc- 

7  essed  extradition   requests  relating  to  acts  of 

8  terrorism  or  narcotics  trafficking  made  by  other 

9  countries? 

10  (L)  Has  the  PLO  cooperated,  both  publicly 

11  and  privately,  with  efforts  undertaken  by  the 

12  President  of  the  United  States  to  end  the  Arab 

13  League  boycott  of  Israel  and  if  so,  to  what  ex- 

1 4  tent  and  to  what  practical  effect* 

15  (8)  Victims  of  terrorism  compensation. — 

16  Pursuant  to  section  5570  of  Public  Law  99-399  no 

17  funds  shall  be  made  available  to  benefit  the  PLO, 

18  the  Palestinian  Authority,  or  any  person  or  entity 

19  under  its  control  until  the  President  certifies  to  the 

20  relevant  congressional  committees  that  full  and  fair 

21  compensation  is  provided  by  the  Palestine  Liberation 

22  Organization  to  United  States  victims  of  PLO  ter- 

23  rorism  after  abjudication  in  a  United  States  couit  of 

24  law. 


267 

28 

1  (9)  Preemption  of  terrorism. — The  Presi- 

2  dent  shall  make  available  to  Israel,  equipment  for 

3  the   state-of-the-art  security  examination   of  cargo 

4  containers  and  vehicles:  Provided,  That  this  equip- 

5  ment  shall  include  automated,  nonintrusive  inspec- 

6  tion  technology,  or  technologies,  for  the  direct  detec- 

7  tion  and  chemical  elemental  identification  of  eontra- 

8  band.  Provided  further,  That  some  of  this  equipment 

9  may  be  in  the  form  of  technology  in  the  advanced 

10  stages  of  development  and  suitable  for  field  testing 

1 1  and  evaluation:  Provided  further,  That  not  less  than 

12  $40,000,000  is  authorized  to  be  appropriated  in  fis- 

13  cal  year  1996  for  the  purposes  set  forth  in  this  sec- 

14  tion  from  the  funds  made  available  by  the  United 

15  States  to  support  the  agreements  between  Israel  and 

16  the  PLO:  Provided  further,  That  the  President  shall 

17  negotiate  the  transfer  of  this  technology  no  later 

18  than  September  30,  1995,  and  prior  to  the  obliga- 

19  tion  of  not  more  than  $50,000,000  in  United  States 

20  funds  to  benefit  Palestinians  living  in  Gaza,  Jericho, 

21  or  any  additional  territories  which  might  be  adminis- 

22  tered  by  the  PLO:  Provided  farther,  That  it  is  the 

23  purpose  of  this  section  to  enable  the  United  States 

24  to  support  efforts  by  both  Israel  and  the  PLO  to 

25  meet  their  compliance  obligations  and — 


268 

29 

1  (A)  to  assist  them  in  combating  terrorism; 

2  (B)  to  assist  them  in  combating  narcotics 

3  smuggling   and    other    contraband    smuggling; 

4  and 

5  (C)    to   assist   them    in    ensuring   proper 

6  manifesting  and  customs  regulation  compliance 

7  and  revenue  collection. 

8  (10)  Review  of  legislation. — Prior  to  the 

9  disbursement  of  any  funds  authorized  under  this  or 

10  any  other  Act  for  the  benefit  of  the  PLO,  the  Pal- 

11  estinian  Authority  or  any  of  its  constituencies,  ac- 

12  li vi  ties  or  projects,  the  President  shall  carry  out, 

13  and  report  to  the  relevant  congressional  committees, 

14  a  thorough  review  of  pertinent  legislation  affecting 

15  the  status  of  the  PLO  to  include,  but  not  be  limited 

16  to,  title  X  of  Public  Law  100-204  and  shall  rec- 

17  ommend  to  Congress  modifications  consistent  with 

18  United   States  policy  toward   countering  terrorism 

19  and  promoting  peace  in  the  Middle  East. 

20  (11)    Presidential    disclosure. — No    later 

21  than  60  days  following  the  enactment  of  this  Act, 

22  the  President  shall  disclose  in  a  classified  maimer  to 

23  the  relevant  congressional  committees,  the  substance 

24  of  any  secret  agreements,  understandings,  or  prom- 

25  ises,  either  formal  or  informal,  between  the  United 


269 

30 

1  States  and  Israel,  and  the  United  States  and  the 

2  PLO,  connected  with  the  implementation  of  the  Dec- 

3  laration  of  Principles,  that — 

4  (A)    commits   the    United    States    to   any 

5  course  of  action  in  its  foreign,  diplomatic  or  se- 

6  curity  policies; 

7  (B)  commits  the  United  States  to  provide 

8  funds  or  other  forms  of  assistance  for  particu- 

9  lar  projects  or  activities; 

10  (C)  provides  assurances  to  particular  indi- 

11  vi duals  who  may  or  may  not  be  targets  of  a 

12  United  States  or  international  criminal  inves- 

13  tigation;  and 

14  (D)  extends  to  particular  individuals  the 

15  promise  of  protection  or  safety  should  future 

16  circumstances  warrant  it. 

17  (12)  Provisions  that  may  be  suspended. — 

18  Subject  to  the  requirements  of  section  7   and  the 

19  prior  approval  of  the  Chairmen  of  the  relevant  com- 

20  mittees  of  the  Congress  of  the  United  States  the 

21  President  may  suspend  only  the  following  provisions 

22  of  law  for  a  period  not  to  extend  beyond  May  31, 

23  19%: 

24  (A)  Section  307  of  the  Foreign  Assistance 

25  Act  of  1961  (22  I'.SIC.  2227)  as  it  applies  with 


270 

31 

1  respect  to  the  Palestine  Liberation  Organization 

2  or  entities  associated  with  it. 

3  (B)    Section    114    of  the   Department   of 

4  State  Authorization  Act,  fiscal  years  1984  and 

5  1985  (22  US.C.  287e  note)  as  it  applies  with 

6  respect  to  the  Palestine  Liberation  Organization 

7  or  entities  associated  with  it. 

8  (C)  Section  1003  of  the  Foreign  Relations 

9  Authorization  Act,  fiscal  years  1988  and  1989 

10  (22  U.S.C.  5202). 

11  <D)    Section    37    of  the    Bretton   Woods 

12  Agreement  Act  (22  U.S.C.  286w)  as  it  applies 

13  to  the  granting  to  the  Palestine  Liberation  Or- 

14  ganization  of  observer  status  or  other  official 

15  status  at  any  meeting  sponsored  by  or  associ- 

16  ated  with  the  International  Monetary  Fund.  As 

17  used  in  this  paragraph,  the  term  "other  official 

18  status"   does   not   include   membership  in   the 

19  Internationa)  Monetary  Fund. 

20  SEC.  8.  FINANCIAL  DISCLOSURE. 

21  (a)  Within  thirty  (30)  days  of  the  enactment  of  this 

22  Act,  the  President  shall  request  that  both  the  Palestine 

23  Liberation  Organization   and  the   Palestinian  Authority 

24  provide   to  the  United   States,   comprehensive  financial 

25  statements  of  their  assets  and  income  for  the  prior  year: 


271 

32 

1  Provided,  That  in  addition  to  these  statements,  the  Presi- 

2  dent  shall  certify  to  the  Congress  that — 

3  (1)    the    United    States    Government    has    no 

4  knowledge  or  information  as  to  other  further  assets 

5  or  income  of  the  Palestine  Liberation  Organization 

6  or  Palestinian  Authority;  and 

7  (2)  the  Palestine  Liberation  Organization  and 

8  Palestinian  Authority  are   spending   and   investing 

9  substantially  all  of  their  respective  assets  and  in 

10  come  for  the  welfare  and  benefit  of  the  Palestinian 

11  people  in  the  areas  administered  by  the  Palestinian 

12  Authority  and  for  purposes  related  exclusively  to  the 

13  duties  and  functions  of  the  Palestinian  Authority  as 

14  authorized  under  agreements  between  Israel  and  the 

15  PLO 

16  (b)  No  funds  shall  be  obligated  or  expended  for  the 

17  benefit  of  the  Palestinian  people  in  areas  administered  by 

18  the  Palestinian  Authority  until  the  President  has  delivered 

19  to  the  relevant  congressional  committees  the  information 

20  required  in  section  8{a). 

21  (c)  The  President  shall  report  to  the  relevant  congres- 

22  siona)  committees,  in  both  classified  and  unclassified  form, 

23  no  later  than  September  lt   1995,  and  every  180  days 

24  thereafter,  on  all  assistance  provided  by  the  international 

25  community  to  the  PLO  and  the  Palestinian  Authority,  or 


272 

33 

1  an}'  affiliated  organization  or  entity,  both  directly  and  in- 

2  directly,  to  include — 

3  (1)  the  amount  of  such  assistance,  by  project, 

4  and  whether  the  assistance  is  provided  in  cash  or  in 

5  kind; 

6  (2)  the  organization  or  entity  through  which  the 

7  international  assistance  is  disbursed; 

8  (3)  the  use(s),  by  project,  to  which  the  inter- 

9  national  assistance  is  being  put;  and 

10  (4)  the  ultimate  beneficiaries  of  the  assistance. 

1 1  SEC.  9.  PROHIBITION  ON  FORMAL  DIPLOMATIC  REPRESEN- 

12  TATTON. 

13  Notwithstanding   any   other   provision    of  law,    the 

14  President  of  the  United  States  shall  make  no  commit 

15  ments  and  shall  provide  no  funds  for  the  obligation  or  ex- 

16  penditure,  for  any  activity  leading  to  the  establishment, 

17  on  either  a  temporary  or  permanent  basis,  of  any  United 

18  States  diplomatic  post,  to  include  an  embassy,  consulate 

19  or  interest  section  in  any  territory  under  the  administra- 

20  tive  control  of  the  PLO  or  the  Palestinian  Authority. 

21  8EC.      10.      RELEVANT      CONGRESSIONAL      COMMITTEES 

22  DEFINED. 

23  As  used  in  this  Act,  the  term  "relevant  congressional 

24  committees"  means — 


273 

34 

1  (1)  the  Committee  on  Internationa!  Relations, 

2  the  Committee  on  Banking  and  Financial  Services, 

3  and  the  Committee  on  Appropriations  of  the  House 

4  of  Representatives;  and 

5  (2)  the  Committee  on  Foreign  Relations,  the 

6  Committee  on  Appropriations,  and  the  Committee  on 

7  Banking,  Housing,  and  Urban  Affairs  of  the  Senate. 

8  SEC.  11.  TERM  OP  THIS  ACT. 

9  This  Act  shall  become  effective  upon  the  day  of  enact- 

10  ment  and  expire  no  earlier  than  May  31,  1996,  unless 

1 1  amended. 

O 


274 


IDF  Judge  Advocate-General  Headquarters 
Assistant  to  the  Judge  Advocate-General  for  International  Law 


13  December  1994 


Subject:  Concatenation  of  Palestinian  Violations 


1.  The  following  is  a  concatenation  of  Palestinian  violations  and 
deviations  [from  signed  agreements],  based  on  documents  made  available  to 
us  from  the  Office  of  the  Coordinator  of  Government  Activities  in  the 
Territories,  the  Coordination  and  Control  Administration  Office  in  the 
Territories,  and  the  IDF  Intelligence  Branch,  as  well  as  facts  and  figures  taken 
out  of  documents  regularly  received  by  us. 

Alongside  every  violation  or  deviation  appears  a  short  legal  analysis 
which  notes  the  relevant  directives  in  the  Gaza-Jericho  Agreement 
(henceforth  'the  agreement')  in  relation  to  which  the  violation  or  deviation 
occurred. 

2.  It  should  be  noted  that  this  list  does  not  pretend  to  include  every 
violation  committed  by  the  Palestinian  Authority  (PA)  or  its  personnel. 
Violations  which  appeared  to  be  particularly  esoteric  were  not  included; 
similarly,  we  did  not  include  violations  which  occurred  in  very  specific 
circumstances — mostly,  those  which  occurred  in  the  months  May-June,  when 
the  transfer  of  authority  took  place  and  before  the  other  party  had  even  an 
initial  opportunity  to  organize  itself  (the  violations  we  are  speaking  of  here 
mainly  involved  irregular  behaviour  on  the  part  of  Palestinian  policemen). 

In  addition,  we  did  not  receive  information  on  economic  violations 
from  the  Ministry  of  Finance,  and  the  details  on  violations  in  this  sphere 
included  in  this  document  are  based  on  the  figures  of  the  Office  of  the 
Coordinator  of  Government  Activities  in  the  Territories.  Similarly,  we  did 
not  receive  a  list  of  violations  in  the  sphere  of  foreign  affairs  from  the 
Foreign  Ministry,  and  the  details  on  violations  in  this  field  are  mainly  based 
on  IDF  Intelligence  documents  and  on  regular  reports  and  correspondences 
on  the  subject  maintained  by  our  office  in  the  course  of  our  work.  We 


275 


presume  that  in  these  fields  there  are  additional  violations  and  deviations 
from  the  agreement  which  we  do  not  know  of. 


Security  Related  Violations 

3.  Details  on  these  violations  is  mainly  based  on  a  concatenation  of 
violations  prepared  by  the  Coordination  and  Control  Administration  Office 
in  the  Territories  and  on  material  included  in  his  letter  (attached  is  his  letter 
and  material  included  in  it)  in  addition  to  the  IDF  Intelligence  Branch  report. 
Subjects  which  were  raised  in  the  framework  of  the  [Joint  Israeli-Palestinian] 
Legal  Committee  were  also  included. 

4.  Requests  for  the  transfer  of  suspects  have  elicited  no  answer  from  the 
PA— two  requests  for  the  transfer  of  the  following  suspects  were  submitted  to 
the  PA:  the  killers  of  Uri  Megidish  (first  requested  on  29  September  1994)  and 
the  killers  of  Gil  Revah  and  Shlomo  Kappah  in  Ramie  (first  requested  on  28 
August  1994).  These  requests  have  yet  to  be  answered.  In  addition,  a  non- 
formal  verbal  request  was  made  for  the  transfer  of  suspects  involved  in  the 
an  attack  on  an  Israeli  in  Kfar  Yama. 

Legal  Analysis — Article  II  (7)  of  Annex  HI  to  the  agreement  establishes 
that  Israel  is  entitled  to  request  that  the  PA  arrest  and  transfer  to  its  authority 
a  person  suspected  of  committing  a  crime  falling  under  Israeli  jurisdiction,  as 
long  as  the  crime  carries  a  penalty  of  at  least  seven  years'  imprisonment  and 
as  long  as  the  arrest  warrant  accompanying  the  request  for  transfer  was  issued 
on  the  basis  of  the  Attorney-General's  recommendation.  According  to  sub- 
clause (f),  a  party  receiving  such  a  request  must  arrest  the  suspect  and  transfer 
him  to  the  custody  of  the  requesting  party. 

5.  The  Handling  of  Terror  Acts  Perpetrated  Against  Israel  and  Israelis— 
the  question  of  whether  the  PA  is  living  up  to  its  commitments  to  take  action 
to  prevent  terror  acts  against  the  State  of  Israel  is  a  question  of  judgement  and 
requires  the  taking  of  a  political  stand  as  to  what  the  PA  is  expected  to  do  in 
this  matter. 

With  respect  to  the  investigation  of  terror  acts,  once  again  it  is  a 
question  of  judgement  as  to  what  extent  the  investigations  that  have  been 
carried  out  were  handled  in  a  serious  manner. 

A  separate  question  relates  to  reporting  on  investigations  that  are 
under  way.  The  PA  has  not  reported  [to  Israel]  on  investigations  [it  has  carried 
out].  A  formal  request  to  receive  updates  on  the  status  of  investigations  in  the 
matters  of  four  incidents  in  which  Israelis  were  killed  and  injured  in  the  Gaza 
Strip  was  submitted  to  the  PA  in  the  framework  of  a  meeting  of  the  Legal 
Committee  on  27  November  1994. 

Legal  Analysis — Article  XVIII  of  the  agreement  establishes  that  both 
sides  shall  take  all  measures  necessary  in  order  to  prevent  acts  of  terrorism, 
crime  and  hostilities  directed  against  each  other,  and  shall  take  legal  measures 


276 


against  offenders.  It  especially  stresses  that  the  PA  shall  act  to  prevent  hostile 
acts  directed  against  the  Settlements. 

Article  I  (5)  of  Annex  III  establishes  that  with  respect  to  crimes 
committed  within  the  territory  of  the  Palestinian  Authority,  the  PA  shall  take 
measures  to  investigate  and  prosecute  suspects,  and  shall  report  to  Israel  on 
the  result  of  the  investigation  and  any  legal  proceedings. 

6.  Non-compliance  With  the  Commitment  to  Prevent  Acts  of  Incitement 
Against  Israel — there  have  been  many  incidents  of  wild  incitement  against 
Israel  in  which  the  PA  has  not  taken  action  in  order  to  intervene  and  prevent 
their  occurrence. 

Legal  Analysis — Article  XII  of  the  agreement  establishes  that  Israel  and 
the  PA  shall  prevent  acts  of  hostile  propaganda  against  each  other  and  shall 
take  legal  measures  to  prevent  such  incitement  by  any  organizations,  groups 
or  individuals  within  their  jurisdiction. 

7.  Submission  of  Lists  of  Policemen — the  PA  has  yet  to  submit  to  Israel 
the  list  of  the  names  of  policemen  who  were  recruited  from  amongst  the 
residents  of  the  Gaza  Strip  and  Jericho. 

Legal  Analysis — Article  HI  (4)  (b)  of  Annex  I  states  that  the  list  of 
Palestinians  recruited  to  the  Palestinian  Police,  whether  locally  or  from 
abroad,  shall  be  agreed  on  by  both  sides. 

8.  Arrests  of  Israeli  Citizens — there  have  been  reports  of  a  number  of 
incidents  in  which  Israelis  have  been  arrested  by  the  Palestinian  Police.  A  list 
of  13  such  incidents  was  submitted  to  the  PA  in  the  Joint  Legal  Committee 
meeting  of  27  November  1994. 

Legal  Analysis — Article  Vm  (4)  (b)  of  Annex  I  establishes  that  Israelis 
shall  not  be  arrested  by  Palestinian  policemen  under  any  circumstances.  The 
Palestinian  Police  may  only  stop  an  Israeli  suspected  of  committing  a  crime 
and  detain  him  in  place  until  an  Israeli  official  or  joint  patrol  arrives  on  the 
scene.  A  similar  directive  appears  in  Article  II  of  Annex  HI. 

9.  Delays  of  Israeli-licensed  Vehicles  in  the  Territory  of  the  Palestinian 
Authority — no  details  on  concrete  incidents  have  been  given  to  us  (IDF 
Intelligence  Branch  reports  contain  a  number  of  examples,  including  cases  in 
which  vehicles  were  flying  Israeli  flags  and  ordered  to  remove  them). 

Legal  Analysis — Article  VITJ  (4)  (a)  of  Annex  I  establishes  that  Israeli- 
licensed  vehicles  traveling  in  the  territory  of  the  PA  may  be  stopped  by  the 
Palestinian  Police  for  the  inspection  of  licences  and  identifying  documents. 
The  Palestinian  Police  may  not  delay  an  Israeli  vehicle  for  any  other  reason. 
Article  II  (2)  (d)  of  Annex  ITJ  establishes  that  the  PA  may  take  steps  to  detain 
an  Israeli-licensed  vehicle  if  it  was  involved  in  the  perpetration  of  a  crime  of 
if  it  poses  an  immediate  danger  to  public  health  or  security.  In  such  cases  the 
PA  must  immediately  inform  Israel  of  the  incident. 


277 


10.  Delays  of  Israeli  Security  Forces  at  Checkposts — the  frequency  of  this 
phenomenon,  according  to  Coordination  and  Control  Administration  Office 
in  the  Territories,  has  been  decreasing. 

Legal  Analysis — Article  VIII  (6)  of  Annex  I  establishes  that  the 
Palestinian  Police  may  not  under  any  circumstances  ,stop  or  detain 
uniformed  members  of  the  Israeli  military  forces,  as  well  as  vehicles 
belonging  to  the  Israeli  military  forces.  Article  II  (4)  of  the  agreement  includes 
in  its  definition  of  "Israeli  military  forces"  the  Israel  Police  as  well  as  other 
Israeli  security  forces. 

11.  Movement  of  Palestinian  Police  through  'Blue  Areas' — there  have 
been  incidents  in  which  Palestinian  Police  have  traveled  within  the 
boundaries  of  the  Settlements,  without  prior  coordination  with  Israel. 
According  to  figures  provided  by  the  Coordination  and  Control 
Administration  Office  in  the  Territories,  there  is  a  decreasing  trend  in  the 
frequency  of  this  violation.  (According  to  an  IDF  Intelligence  Branch  report, 
there  was  an  attempt  by  Palestinian  Policemen  to  make  contact  with 
collaborators  in  Kfar  Denia) 

Legal  Analysis — Article  V  of  the  agreement  establishes  that  the 
territorial  jurisdiction  of  the  Palestinian  Authority  does  not  extend  to  Israeli 
Settlements  and  Israeli  military  installations.  Article  HI  (1)  (a)  of  Annex  I 
establishes  that  the  Palestinian  Police  is  responsible  for  public  order  and 
internal  security  only  in  those  territories  given  over  to  the  territorial 
jurisdiction  of  the  Palestinian  Authority  and  must  act  accordingly.  From 
other  directives  appearing  in  the  agreement  it  can  clearly  be  understood  that 
Palestinian  Police  on  duty  may  not  enter  Israeli  Settlements  of  Military 
installations. 

12.  Independent  Palestinian  Police  Activity  on  the  Lateral  Roads — the 
Palestinian  Police  has  executed  independent  activities  on  the  Lateral  Road, 
outside  of  the  framework  of  the  Joint  Patrols.  Again,  this  violation  occurred 
frequently  mainly  in  the  initial  period  after  the  transfer  of  authority,  but  it 
does  still  occur. 

Legal  Analysis — Article  IV  (7)  of  Annex  I  establishes  that  the  Lateral 
Roads  shall  be  under  the  responsibility  of  Israel,  which  is  entitled  to  execute 
independent  activities  on  them,  alongside  Joint  Patrols  led  by  an  Israeli 
vehicle.  Accordingly,  independent  Palestinian  activities  are  prohibited  on 
these  roads. 

13.  Palestinian  Police  in  Camouflaged  Fatigues — members  of  the 
Palestinian  Police  have  been  seen  in  movement  while  dressed  in 
camouflaged  fatigues  sewn  in  the  West  Bank. 

Legal  Analysis — Article  m  (5)  (b)  (5)  of  Annex  I  establishes  that  the 
Palestinian  Police  shall  posses  distinctive  uniforms.  According  to  what  we 
have  been  told,  in  the  framework  of  the  Joint  Security  Committee 
discussions,  it  was  agreed  that  Palestinian  Police  shall  wear  only  uniforms  of 


278 


particular  colours  and  it  was  also  established,  in  any  event,  that  their 
movement  in  camouflaged  fatigues  shall  be  prohibited. 

14.  Movement  of  Members  of  the  Palestinian  Police  Without  Permits — 
there  have  been  incidents  in  which  members  of  the  Palestinian  Police  have 
traveled  from  Jericho  to  the  Gaza  Strip  (via  Israel  and  the  West  Bank) 
without  permits. 

Legal  Analysis — Article  m  (1)  (b)  of  Annex  I  establishes  that  the 
movement  of  Palestinian  Police  between  Jericho  and  the  Gaza  Strip  will  be 
conducted  in  accordance  with  Article  IX  of  the  same  Annex.  Article  IX  (2) 
establishes  that  a  travel  permit  or  permit  for  entry  into  Israeli  is  required  as  a 
condition  for  use  of  the  safe  passage  roads  [between  Jericho  and  the  Gaza 
Strip].  Currently,  the  arrangements  for  safe  passage  have  not  yet  been  put  in 
force,  and  therefore  the  usual  rules  requiring  an  entry  permit  to  Israel  (not  a 
travel  permit  from  one  zone  to  another)  apply. 

As  to  movement  in  the  West  Bank,  residents  of  Jericho  may  freely 
move  within  the  West  Bank  (subject  to  the  laws  in  force  in  the  West  Bank, 
such  as  the  requirement  to  carry  identifying  documents),  but  Palestinian 
police  may  not  operate  in  the  West  Bank,  and  therefore  Palestinian  Police  in 
uniform  may  not  travel  there. 

15.  Palestinian  Police  Driving  Stolen  Vehicles — members  of  the 
Palestinian  Police  have  been  spotted  driving  stolen  vehicles. 

Legal  Analysis — Such  activity  by  the  Palestinian  Police  stands  in 
contradiction  to  the  spirit  of  the  agreement  and  the  very  idea  behind  the 
creation  of  the  Palestinian  Police  Force.  In  particular,  the  following  articles 
may  be  noted:  Article  XII  (2)  of  the  agreement  establishes  that  Israel  and  the 
PA  will  cooperate  in  combating  criminal  activities,  including  offenses  related 
to  vehicles;  Article  III  (2)  of  Annex  I  establishes  that,  amongst  the  tasks  of  the 
Palestinian  Police,  are  the  prevention  of  crime;  and  Article  II  (1)  of  Annex  m 
establishes  that  the  Palestinian  Police  and  the  Israeli  Police  will  cooperate  and 
assist  one  another  in  criminal  matters. 

16.  Use  of  Weapons  Belonging  to  the  Palestinian  Police  In  the  Course  of  a 
Terrorist  Attack  in  Jerusalem — in  the  course  of  a  terrorist  attack  in  Jerusalem 
on  9  October  1994,  use  was  made  of  a  Kalashnikov  rifle  belonging  to  the 
Palestinian  Police,  which  entered  the  country  through  the  Allenby  Bridge  for 
use  by  the  Palestinian  Police.  The  issue  was  first  brought  up  with  the 
Palestinians  on  11  October  1994. 

Legal  Analysis — Article  IX  of  the  agreement  establishes  that  the 
provisions  regarding  the  structure  of  the  Palestinian  Police,  including  its 
weaponry,  is  set  out  in  detail  in  Annex  I.  Indeed,  Annex  I,  in  Article  m  (5) 
establishes  in  detail  the  types  and  numbers  of  weapons  which  are  permitted 
to  be  used  by  the  Palestinian  Police.  It  is  clear  that  weapons  which  have  been 
permitted  to  enter  the  territory  under  this  article  are  to  be  used  only  by  the 
police  and  any  other  use  is  a  violation  of  the  agreement.  Despite  this,  it  must 


279 


be  noted  that  the  burden  is  on  us  to  prove  that  the  police  weapon  was 
knowingly  delivered  to  the  terrorists.  If  all  that  is  involved  here  is  negligence 
it  will  be  difficult  for  us  to  press  claims  against  them  (see  the  issue  of  weapons 
stolen  from  the  IDF  mentioned  in  paragraph  6  above).  In  such  cases  all  that 
can  be  done  is  to  request  that  they  investigate  what  occurred. 

Other  relevant  directives  appear  in  Article  IX  (3)  of  the  agreement  and 
Article  VHI  (3)  of  Annex  I  which  establishes  that  private  individuals  are 
prohibited  from  bearing  arms  and  that  each  side  is  charged  with  enforcing 
this  prohibition. 

17.  Subpeoning  of  Witnesses  for  Testimony  in  Court — the  PA  was  sent  a 
letter  on  28  September  1994,  in  which  it  was  requested  to  prepare  subpoenas 
for  witnesses  residing  in  Gaza  whose  testimony  is  required  in  legal 
proceedings  in  the  Military  Court  in  Erez  and  the  Military  Court  of  the  IDF 
Southern  Command.  The  requests  were  not  responded  to. 

Legal  Analysis — Article  II  (9)  of  Annex  HI  establishes  that  when  a 
subpoena  calling  a  witness  to  testify  has  been  issued  by  an  Israeli  court 
relating  to  a  person  located  in  the  territories  of  the  PA,  such  person  shall  be 
located  by  the  PA,  which  will  be  responsible  for  seeing  that  the  subpoena  be 
enforced  by  the  Palestinian  Police. 

18.  Released  Prisoners  in  the  Jericho  Area  and  Gaza  Who  Leave  For  the 
West  Bank — a  number  of  prisoners  who  were  released  on  condition  that  they 
remain  in  the  Jericho  Area,  as  well  as  prisoners  transferred  to  prison  in  Gaza, 
have  been  caught  moving  about  the  West  Bank,  without  a  permit  to  do  so. 
Among  those  transferred  to  the  Gaza  Strip  were  a  number  of  prisoners  who 
received  a  pardon  from  the  Palestinian  Chairman.  One  of  the  prisoners  even 
claimed  that  he  was  recruited  into  the  ranks  of  the  Palestinian  Intelligence 
services  and  was  even  armed  by  them. 

Legal  Analysis — Article  XX  (1)  of  the  agreement  establishes  that 
prisoners  turned  over  to  the  PA  in  the  framework  of  the  confidence  building 
measures  shall  be  obliged  to  remain  in  the  Gaza  Strip  or  the  Jericho  Area  for 
the  remainder  of  their  sentence.  Therefore,  the  granting  of  legitimacy  to  the 
passage  of  such  released  prisoners  to  the  West  Bank  (or  even  pretending 
ignorance  in  the  matter)  on  the  part  of  the  PA  stands  in  contravention  to  the 
agreement. 

The  recruitment  of  a  former  prisoner  to  the  Palestinian  Intelligence 
service  stands  in  contravention  to  the  directives  of  Article  HI  (4)  (b)  of  Annex 
I,  according  to  which  the  list  of  Palestinians  recruited  shall  be  agreed  on  by 
both  sides  and  the  employment  of  those  who  have  been  convicted  of  serious 
crimes  will  be  immediately  terminated. 

19.  Non-compliance  With  the  Requirement  to  Prevent  Infiltrations  into 
Israel  and  Egypt — there  is  a  definite  phenomenon  of  infiltrators  crossing  the 
border  between  Egypt  and  Gaza  and  similarly  of  infiltrators  from  Gaza  to 
Israel. 


280 


Legal  Analysis — In  all  aspects  relating  to  infiltrations  into  Israel 
through  the  Green  Line,  Article  IV  (2)  (c)  of  Annex  I  establishes  that  the 
Palestinian  Police  will  enforce  measures  aimed  at  preventing  infiltrations. 

As  for  infiltrations  to  Egypt,  the  PA  is  generally  committed  to 
preventing  criminal  acts. 

20.  Deviations  from  the  Agreement  Regarding  Maritime  Activity — there 
have  been  cases  in  which  Palestinian  ships  have  deviated  from  the  zones  set 
aside  for  their  navigation  rights  (Zones  K  and  M),  with  the  Palestinian 
Coastal  Police  taking  no  action  to  prevent  such  activity.  In  addition,  there 
have  been  incidents  in  which  the  Palestinian  Police  have  themselves 
deviated  from  the  navigation  range  permitted  them  in  Zone  L. 

Legal  Analysis — Article  XI  (1)  of  Annex  I  establishes  the  extent  of 
Maritime  Activity  Zones  and  determines  that  in  Zones  K  and  M  navigation 
will  be  restricted  solely  to  activity  of  the  Israel  Navy  (Clause  (a)  (1)  (c))  and 
that  the  navigation  of  vessels  in  Zone  L  shall  be  subject  to  various  restrictions 
(Clause  (2)  (b)  (1)). 

Article  XI  (2)  of  the  Annex  establishes  that  the  Palestinian  Coastal 
Police  may  function  in  Zone  L  up  to  a  distance  of  6  nautical  miles  from  the 
coast.  In  special  cases,  it  may  also  exercise  control  in  an  additional  area  up  to 
the  limit  of  12  nautical  miles  from  the  coastline. 

21.  Weapons  in  the  Possession  of  Civilians — this  issue  was  raised  in  the 
report  of  the  Coordination  and  Control  Administration  Office  in  the 
Territories.  From  various  reports  we  have  learned  that  the  PA  is  not  taking 
action  to  disarm  Palestinian  civilians,  even  when  such  civilians  walk  around 
with  their  weapons  on  them  in  a  non-concealed  manner. 

Recently  it  has  been  made  known  to  us  that  the  PA  has  issued  licences 
permitting  residents  to  bear  arms,  but,  it  appears,  this  licensing  was  not 
coordinated  with  Israel. 

Legal  Analysis — Article  VEH  (8)  of  Annex  I  establishes  that  each  side 
shall  enforce  upon  civilians  subject  to  it  authority  a  prohibition  on  possession 
or  carrying  weapons  without  a  licence.  Clause  (3)  of  Article  VEH  (8)  permits 
the  PA  to  grant  licences  for  the  possession  of  pistols  for  civilian  use,  but 
restricts  such  licences  only  to  those  which  will  be  agreed  upon  in  the  Joinst 
Security  Committee. 

22.  Abuse  of  Collaborators — this  subject  was  raised  in  the  report  of  the 
Coordination  and  Control  Administration  Office  in  the  Territories.  From 
various  reports  it  transpires  that  the  PA  has  been  arresting  individuals 
suspected  of  collaboration  and  interrogating  them,  and  there  were  even  cases 
in  which  they  were  brutalized. 

Legal  Analysis — Article  XX  (4)  of  the  agreement  establishes  that  the 
Palestinian  side  commits  itself  to  solving  the  problem  of  those  Palestinians 
who  were  in  contact  with  the  Israeli  authorities.  Until  an  agreed  solution  is 
found,  the  Palestinian  side  undertakes  not  to  prosecute  these  Palestinians  or 


281 


to  harm  them  in  any  way.  Arbitrary  arrests  and  demeaning  and  painful 
interrogations  are  in  contravention  to  the  commitment  not  to  harm 
collaborators. 

23.       From  the  IDF  Intelligence  Branch  report  a  number  of  additional  issues 
relating  to  security  violations  are  mentioned,  as  briefly  reviewed  here: 

a.  Incidents  in  which  Palestinian  Police  aimed  their  weapons  at  Israelis, 
cocked  their  rifles  and  at  times  even  shot  in  their  direction.  Legal  Analysis — 
The  Palestinian  Police  have  no  authority  to  arrest  Israelis,  as  explained  above, 
and  therefore  they  have  no  authority  to  take  measures  aimed  at  capturing 
suspects.  In  addition,  Article  VHI  (9)  (c)  of  Annex  I  establishes  that  the  use  of 
firearms  is  permitted  only  in  incidents  constituting  a  danger  to  life  or 
property  and  then  only  as  a  last  resort  after  all  attempts  at  controlling  the  act 
or  the  incident  in  other  ways  have  failed. 

b.  Incidents  in  which  vehicles  belonging  to  the  Palestinian  Police  have 
broken  through  IDF  checkpoints  in  the  Jericho  Area.  Legal  Analysis — 
According  to  the  agreement  the  PA  has  no  authority  to  act  outside  the 
boundaries  of  Gaza  and  Jericho,  and  therefore  Palestinian  Police  are  not 
permitted  to  enter  the  West  Bank  in  uniform  or  in  official  police  vehicles. 
Within  the  West  Bank,  the  IDF  has  full  security  authority,  including  the 
authority  to  establish  roadblocks  and  stop  vehicles,  and  members  of  the 
Palestinian  Police  must  comply  with  the  soldiers'  directives  in  the  same 
manner  as  any  other  persons  in  the  area. 

c.  An  incident  in  which  a  vehicle  belonging  to  the  Palestinian  Police 
traveled  from  Jericho  to  Auja  without  an  accompaniment. 

Legal  Analysis — Article  V  (1)  of  Annex  I  clarifies  that  Route  90,  which 
crosses  Auja,  is  under  Israeli  authority.  This  is  also  applicable  with  respect  to 
that  [part  of]  road  leading  from  the  Jericho  Area  to  Auja.  Therefore,  the 
Palestinian  Police  has  no  authority  whatsoever  to  travel  along  this  road. 


General  Violations 

24.  The  details  mentioned  here  are  based  on  the  report  of  the  Coordination 
and  Control  Administration  Office  in  the  Territories,  on  reports  issued  by  the 
IDF  Intelligence  Branch  and  also  on  documents  which  have  arrived  at  our 
office,  dealing  with  various  topics. 

25.  Activities  of  PA  Agents  in  the  West  Bank  (in  Matters  Which  Have  Not 
Yet  Been  Transferred  to  the  Authority  of  the  PA) — there  are  numerous 
examples  of  such  violations,  in  the  civilian  sphere  as  well  as  the  security 
sphere. 


282 


These  activities  are  particularly  prominent  in  the  sphere  of  local 
authority.  The  person  in  charge  of  local  authorities  for  the  PA,  Saeb  Areikat, 
directly  operates  in  the  West  Bank,  for  example  by  changing  the  status  of  local 
councils,  issuing  orders  to  the  heads  of  local  councils,  calling  on  residents  of 
the  West  Bank  to  approach  the  offices  of  the  PA  for  various  services,  etc. 

An  additional  sphere  in  which  there  is  continuous  and  prominent 
activity  is  the  operation  of  agents  of  the  Palestinian  Preventive  Security 
Apparatus,  headed  by  Jibril  Rajoub,  who  move  about  the  West  Bank  and 
issue  direct  orders  to  people  there. 

In  addition,  there  have  been  incidents  in  other  spheres  in  which 
authority  has  been  extended  [by  the  PA]  to  the  West  Bank,  such  as  the  issuing 
of  licences  to  businesses  operating  there.  It  is  also  known  that  in  a  number  of 
incidents  offices  of  the  PA  have  been  opened  in  the  West  Bank,  such  as 
branches  of  the  Palestinian  Central  Bureau  of  Statistics,  the  Ministry  of 
Information  in  Ramallah,  etc. 

Beyond  the  above  mentioned,  there  are  activities  which  are  less  active 
and  are  expressed  by  the  demonstrative  presence  of  PA  officials  in  the  West 
Bank,  such  as  in  tours,  working  meetings,  lectures  and  attendance  at 
ceremonies. 

Legal  Analysis — Article  V  of  the  agreement  limits  the  authority  of  the 
PA  to  the  boundaries  of  Gaza  and  Jericho,  and  neither  the  PA  nor  its  officials 
have  authority  to  act  outside  these  boundaries. 

The  Agreement  on  The  Preparatory  Transfer  of  Authority  in  the  West 
Bank  (henceforth — the  West  Bank  Agreement)  establishes  in  a  detailed 
manner  the  authorities  transferred  to  the  PA  in  each  relevant  sphere  and  also 
establishes  that  the  Military  Administration  and  the  Civilian  Administration 
will  continue  to  implement  their  authorities  in  spheres  which  have  not  been 
transferred  (Article  VI  (5)). 

26.  Activities  of  the  PA  in  Jerusalem  or  in  Connection  to  Jerusalem — this 
issue  requires  additional  inspection  with  the  Foreign  Ministry  given  the  lack 
of  clarification  with  regard  to  various  agreements  in  this  subject. 

Legal  Analysis — As  stated  above,  the  PA  may  not  extend  its  authority 
outside  the  areas  given  over  to  its  responsibility.  In  the  matter  of  Jerusalem,  it 
was  specifically  established  in  the  Declaration  of  Principles  and  the  West  Bank 
Agreement  that  the  PA  has  no  authority  with  respect  to  Jerusalem  (see 
above). 

27.  Ignoring  Laws  and  Regulations  from  the  Period  of  Israeli  Rule — the 
newspaper  'Al-Kuds'  published  an  announcement  according  to  which  [legal 
officials]  are  to  ignore  all  laws  passed  since  5  June  1967.  The  announcement 
was  worded  in  such  a  way  that  it  can  be  understood  to  apply  to  the  West  Bank 
as  well.  In  practice,  since  the  announcement  there  have  been  a  number  of 
public  expressions  [by  Palestinians]  which  indicate  that  the  officials  of  the  PA 
are  ignoring  security  legislation. 


283 


10 


Legal  Analysis — Article  VII  (9)  of  the  agreement  establishes  that 
legislation  that  was  in  force  in  Gaza  and  Jericho  on  the  date  of  the  signing  of 
the  agreement  will  remain  in  force  until  such  time  as  it  is  changed  or 
amended  in  accordance  with  the  agreement,  that  is,  after  such  changes  have 
been  approved  by  the  Joint  Legislative  Subcommittee. 

28.  Legislation  Passed  Without  Being  Submitted  for  Approval — from 
various  reports  it  transpires  that  the  PA  has  been  issuing  new  laws,  in 
various  spheres,  which  have  not  been  submitted  for  approval  by  the  Joint 
Legislative  Subcommittee.  The  Palestinians  claim  that  they  have  only  issued 
drafts  of  laws  and  have  not  yet  publicized  final  legislative  decisions,  but  from 
a  report  issued  by  the  Advisor  for  Arab  Affairs  in  the  West  Bank  it  transpires 
that  recently  the  first  volume  of  the  Official  Gazette  of  the  PA  has  been 
published,  including  within  it  legislation  and  organizational  directives  issued 
by  the  Chairman  of  the  PA.  In  addition,  it  is  known  to  us  that,  in  various 
spheres,  the  Palestinians  are  operating  according  to  laws  which  are  different 
from  the  laws  which  were  in  force  on  the  eve  of  the  transfer  of  authority.  It 
follows  that  one  of  the  following  two  possibilities  is  true — either  new 
legislation  has  been  issued  without  having  been  submitted  for  approval  by 
the  Legislative  Subcommittee,  or  there  is  a  willful  ignorance  of  the  existing 
legislation,  as  stated  in  Paragraph  27  above.  For  example,  a  district  court  has 
been  established  in  the  Jericho  Area,  and  the  Jericho  court  is  formally 
subordinate  to  the  Supreme  Court  in  Gaza.  Such  [an  administrative]  act 
requires  an  amendment  in  [the  existing]  legislation. 

Legal  Analysis — Article  VII  of  the  agreement  establishes  that  the  PA 
will  submit  its  own  primary  and  secondary  legislation  to  a  Joint  Legal 
Subcommittee  as  a  condition  for  the  legislation's  coming  into  force. 

29.  Changes  in  the  Composition  of  the  PA  Without  an  Exchange  of 
Letters — it  known  that  there  have  been  a  number  of  changes  in  the 
composition  of  the  PA  which  have  not  been  formally  announced  to  Israel. 
For  example,  the  appointment  of  Hassan  Tahboub  as  responsible  for  the 
Office  of  Religious  Affairs  and  the  termination  of  the  appointment  of  Faisal 
Husseini  (as  per  his  testimony). 

Legal  Analysis — Article  IV  (3)  of  the  agreement  establishes  that  changes 
in  the  composition  of  the  PA  will  be  effected  via  the  exchange  of  letters 
between  the  PA  and  the  government  of  Israel. 

30.  The  Issuance  of  Documents  by  the  PA  Bearing  the  Title  "The 
Palestinian  National  Authority" — the  PA  has  been  using  the  title  "The 
Palestinian  National  Authority"  on  various  occasions,  in  formal  letters, 
forms,  etc.  From  reports  issued  by  the  IDF  Intelligence  Branch  it  transpires 
that  the  use  of  such  a  title  has  been  used  even  in  an  international  agreement 
signed  by  the  PLO  (with  UNESCO),  and  that,  in  addition,  the  (non-official) 
Arabic  version  of  the  same  agreement  bore  the  words  'State  of  Palestine'. 


284 


12 

With  regard  to  Jerusalem,  it  was  explicitly  stated  in  the  Declaration  of 
Principles,  in  a  comment  on  the  transfer  of  authority  in  Article  VI,  that  the 
PA  has  no  authority  with  respect  to  the  affairs  of  Jerusalem.  A  directive  in 
this  spirit  appears  in  Article  HI  (2)  of  the  West  Bank  Agreement. 

Religious  affairs  on  the  West  Bank  have  not  yet  been  transferred  to  the 
PA  and  therefore  its  representatives  have  no  authority,  as  such,  in  this  sphere 
in  the  West  Bank.  There  is,  however,  some  difficulty  [in  determining  this] 
when  the  actions  are  taken  by  a  body  'wearing  two  hats' — as  part  of  the  PA 
and  as  the  Supreme  Islamic  Council. 

34.  The  Printing  of  Passports  Differing  from  What  Was  Agreed  Upon — the 
PA  has  ordered  from  a  German  printing  house  the  printing  of  passports 
whose  format  differs  from  what  was  agreed  upon  in  the  agreement,  including 
special  passports  for  VEPs  and  service  passports. 

Legal  Analysis — Article  II  (b)  (27)  (0  of  Annex  II  to  the  agreement 
permits  the  printing  of  Palestinian  passports,  whose  format  is  established  in 
detail  in  section  C  of  the  annex.  Deviations  from  the  agreed  format  and  the 
preparation  of  special  passports  are  violations.  It  should  be  noted  that  the 
issuance  of  service  passports  can  be  seen  as  the  execution  of  powers  in  the 
sphere  of  foreign  affairs,  in  contravention  to  the  directives  of  Article  VI  (2)  (a) 
of  the  agreement  which  establishes  that  the  PA  shall  not  have  powers  in  the 
sphere  of  foreign  relations. 

35.  The  Forging  of  Documents  for  the  Purpose  of  Entering  into  Israel — 
there  is  a  wide  phenomenon  of  forging  documents  (such  as  labour  court 
subpoenas,  medical  and  hospital  documents)  for  the  purpose  of  entering  into 
Israel,  as  well  as  the  forging  of  driver  licences,  insurance  papers  etc.  The  PA  is 
not  combating  this  phenomenon  of  forgeries.  In  addition,  there  are  incidents 
in  which  employees  of  the  PA  are  themselves  involved  in  the  forging  of 
documents  (for  example,  there  is  an  incident  in  which  the  names  of  students 
which  appeared  on  lists  approved  for  entry  into  Israel  were  changed). 

Legal  Analysis — There  is  no  specific  directive  in  the  agreement  with 
regard  to  forgeries,  but  it  is  clear  that  a  criminal  act  is  involved  in  the  act  of 
forgery,  and  there  are  clauses  requiring  the  PA  to  assist  Israel  in  combating 
crime  (such  as  Article  XII  (2)  of  the  agreement)  as  detailed  above. 

When  the  forgeries  are  committed  by  the  PA  there  is  a  lack  of  good 
faith  in  the  implementation  of  the  agreement  and  such  forgeries  are  in 
contravention  of  the  spirit  and  goals  of  the  agreement,  which  are  aimed  at 
building  trust  and  confidence  between  the  two  sides  (see,  for  example,  the 
preamble  to  the  agreement  and  Articles  XII  and  XX). 

36.  Lack  of  Supervision  and  Enforcement  With  Regard  to  Illegal 
Construction — within  the  boundaries  of  the  PA  buildings  are  being 
constructed  in  contravention  to  the  building  and  construction  codes 
established  by  the  agreement. 


285 


ii 


Legal  Analysis — In  the  Declaration  of  Principles,  in  Annex  n,  it  was 
established  that  a  'Palestinian  Authority'  shall  be  established  in  Gaza  and 
Jericho.  The  PA  was  established  under  Article  III  of  the  agreement,  bearing 
that  [exact]  title  [i.e.  'Palestinian  Authority'].  There  is  no  basis  for  the  use  of 
the  title  'Palestinian  National  Authority'  and  such  use  is  a  form  of  violation 
of  the  agreement.  The  use  of  the  title  'State  of  Palestine'  stands  in 
contradiction  to  the  Declaration  of  Principles  (see  Article  I  of  the  DOP).  From 
agreements  which  have  been  signed  in  the  wake  of  the  DOP  it  is  clear  that  the 
[Palestinian]  entity  which  has  been  established  is  not  a  state  but  a  self-ruling 
authority  for  the  interim  period,  and  that  the  use  of  terms  such  as  "Palestine" 
instead  of  'the  Palestinian  Self-Rule'  or  'the  Palestinian  Authority'  is 
prohibited. 

31.  An  Attempt  to  Establish  a  Municipal  Guard  in  Nablus — the  PA  has 
attempted  to  establish  a  Municipal  Guard  in  Nablus,  after  members  of  the 
Guard  underwent  a  training  course  in  Jericho  under  the  auspices  of  the 
Palestinian  Police.  The  establishment  of  such  a  guard  was  not  coordinated 
with  the  Civilian  Administration  on  the  West  Bank  and  there  was  no 
coordination  with  our  office. 

Legal  Analysis — As  detailed  above,  the  PA  has  no  authorities 
whatsoever  in  the  security  sphere  in  the  West  Bank.  In  addition,  no 
authorities  in  the  municipal  sphere  have  been  transferred  to  the  PA,  so  that 
there  is  not  even  an  ostensible  basis  for  the  establishment  of  such  a  Guard  by 
the  PA.  The  establishment  of  a  Guard  in  Nablus  also  constitutes  in  and  of 
itself  a  violation  of  the  laws  of  the  West  Bank. 

Violations  in  the  Civilian  Sphere 

32.  Details  on  the  violations  mentioned  in  this  section  are  mainly  based 
on  a  concatenation  [of  such  violations]  prepared  by  the  Coordinator  of 
Government  Activities  in  the  Territories. 

33.  Responsibility  for  Wakf  (Islamic  Religious)  Affairs  in  Jerusalem  and  the 
West  Bank — the  person  responsible  for  the  Office  of  Religious  Affairs  in  the 
PA  announced,  in  the  capacity  of  his  title  as  Chairman  of  the  Supreme 
Islamic  Council,  that  his  office  is  now  responsible  for  the  holy  sites  of 
Jerusalem.  In  addition,  the  same  person  (who  designates  himself  as  "the 
Minister  of  Religious  Affairs)  has  taken  upon  himself  responsibility  with 
regard  to  the  Wakf  (Islamic  Religious  System)  in  the  West  Bank  (following 
the  Jordanian  announcement  that  it  no  longer  has  any  connection  to  the 
Wakf)  and  the  Wakf  in  Jerusalem  (in  parallel  to  the  Jordanian  claims  [on  the 
Jerusalem  Wakf]). 

Legal  Analysis — Article  V  of  the  agreement  limits  the  jurisdiction  of 
the  PA  to  the  boundaries  of  Gaza  and  Jericho  and  neither  the  PA  nor  its 
officials  have  any  authority  to  operate  outside  these  boundaries. 


ii     nnn    r\ 


286 


13 


Legal  Analysis — Article  VI  of  Annex  I  establishes  the  various 
limitations  on  planning  and  construction  in  the  vicinity  of  the  Green  Line 
and  Lateral  Roads.  The  absence  of  enforcement  by  the  PA  and  the  resultant 
deviations  from  this  article  are  violations  of  the  agreement. 

37.  The  Construction  of  a  Temporary  Port  in  Gaza  Without 
Coordination — the  PA  has  begun  constructing  a  harbour  which  is  to  serve  as 
a  temporary  port,  without  coordinating  the  matter  [with  Israel]  and  without 
submitting  appropriate  plans  for  discussion  in  the  Joint  Construction  and 
Building  Committee. 

Legal  Analysis— Article  XI  (4)  of  Annex  I  establishes  that  the 
construction  of  a  port  in  Gaza  will  be  agreed  upon  in  negotiations  between 
the  two  sides,  and  from  this  it  is  clear  that  the  PA  is  prohibited  from 
constructing  one  independently.  In  addition,  the  PA  has  not  submitted  to 
Israel  a  copy  of  the  construction  plans  for  the  port,  in  contravention  to  the 
directives  of  Article  II  (b)  (32)  of  Annex  II,  which  deals  with  building  and 
construction. 

38.  The  Distribution  of  Stamps  In  Contravention  to  the  Agreement — the 
PA  has  distributed  stamps  in  Gaza  which  contain  nationalistic  symbols, 
including  the  words  "Palestine"  and  with  a  price  listed  in  "mils"1. 

Legal  Analysis— Article  II  (b)  26  (b)  of  Annex  II  establishes  directives 
with  respect  to  the  appearance  and  format  of  Palestinian  stamps.  According  to 
the  article,  the  word  "Palestine"  will  not  appear  on  the  stamp,  only 
"Palestinian  Authority",  and  nationalistic  symbols  are  not  to  appear.  In 
addition,  the  price  listed  on  the  stamps  must  be  in  the  legal  tender  of  the 
territory.  The  'mil'  is  not  legal  tender,  according  to  Article  IV  (10)  of  Annex 
IV. 

39.  Lack  of  Submission  of  Land  Registry  Records  to  the  Relevant  Israeli 
Authorities — the  PA  has  not  submitted  to  the  relevant  Israeli  authorities  the 
original  Land  Registry  Records  which  relate  to  land  within  Israeli  Settlements 
and  Military  Installations.  It  should  be  noted  that  a  request  for  the  return  of 
these  records  was  turned  down  by  the  PA,  which  claimed  that,  among  other 
reasons,  it  was  not  required  to  return  these  records  under  the  agreement. 

Legal  Analysis— Article  II  (B)  (22)  of  Annex  II  establishes  that  the  PA 
will  receive  authority  over  land  registration,  except  for  the  land  registration 
in  Israeli  Settlements  and  Military  Installations.  Article  II  (A)  (2)  establishes 
that  all  records  and  documents  necessary  for  the  functioning  of  the  PA  be 
turned  over  to  it.  Parts  of  the  land  registry  documentation  touching  upon 
lands  which  remained  in  Israel's  jurisdiction  were  not  supposed  to  have  been 
transferred  to  the  PA,  but  given  that  they  were  transferred,  for  technical 
reasons,  the  refusal  of  the  PA  to  return  them  indicates  a  lack  of  good  faith  in 


1  Translator's  note:  'mil'  is  a  currency  formerly  in  use  in  British  Mandate  Palestine 


287 


14 


the  implementation  of  the  agreement,  even  though  there  is  no  violation  of 
an  explicit  directive  in  the  agreement. 

40.  Non-payment  of  Water  Supply  Costs  to  the  'Mekorot'  Corp. — water 
supply  costs  have  not  yet  been  paid  to  Mekorot. 

Legal  Analysis — Article  n  (B)  (31)  (e)  of  Annex  II  establishes  that  the  PA 
shall  pay  Mekorot  for  the  cost  of  the  water  supplied  from  Israel  and  for  the 
real  expenses  incurred  in  supplying  water  to  the  Palestinian  Authority.  Non- 
payment of  these  expenses  is  a  violation  of  this  article. 

41.  Exporting  of  Defective  Agricultural  Products  from  Gaza  to  Israel — the 
PA  has  not  executed  proper  veterinary  supervision  over  agricultural  products 
exported  from  Gaza  to  Israel  and  as  a  result  rotten  eggs,  vegetables  which  had 
been  irrigated  with  sewage  water,  etc.,  have  been  exported. 

Legal  Analysis — Article  VIE  (2)  to  Annex  VI  establishes  that  the 
veterinary  and  plant  protection  services  of  each  side  will  be  responsible  for 
controlling  animal  health,  animal  products  and  plants  and  parts  thereof,  in 
their  respective  jurisdictions.  Article  VIH  (3)  establishes  that  these  official 
services  will  take  all  measures  to  reach  equivalent  and  compatible  standards 
between  Israel  and  the  Territories  and  will  make  arrangements  to  prevent  the 
spread  of  plant  and  animal  pests  and  diseases.  In  the  veterinary  sphere  there 
are  additional  directives  limiting  the  passage  from  the  PA  to  Israel  of 
deliveries  of  animals  and  their  products  (including  eggs)  without  permits 
which  assert  that  they  meet  necessary  veterinary  standards. 

42.  Counterfeit  Israeli  Products  in  Gaza — soaps  and  deodorants  [falsely] 
bearing  the  label  "Neka  7",  which  were  produced  in  Gaza,  have  been 
uncovered. 

Legal  Analysis — Article  IX  (4)  of  Annex  rv,  dealing  with  industrial 
matters,  establishes  that  the  two  sides  will  cooperate  in  preventing  'deceptive 
practices'.  Article  IX  (3)  establishes  that  each  side  will  do  its  best  to  avoid 
damage  to  the  industry  of  the  other  side. 

43.  A  Palestinian  Fund  for  Road  Accident  Victims  Compensation  Has  Not 
Yet  Been  Established — 

Legal  Analysis — Article  XI  (2)  (a)  of  Annex  IV  establishes  that  the  PA 
will  establish  such  a  fund  for  the  compensation  of  road  accident  victims  who 
are  not  covered  by  insurance  for  bodily  injury. 

44.  The  Issuance  of  International  Driver  Licences — the  PA  has  issued 
international  driver  licences  in  contravention  to  the  agreement  which  states 
that  such  licences  may  only  be  issued  by  the  Israel  Automobile  Association.  In 
addition,  the  licence  bears  the  title  'Palestine'. 

Legal  Analysis — The  Israel  Transport  Ministry's  position  is  that  the 
issuance  of  international  licences  is  an  act  which  falls  under  the  sphere  of 
international  relations  and  therefore  the  PA  is  prohibited  from  doing  so 


288 


15 

under  Article  VI  (2)  (a)  of  the  agreement  which  establishes  that  the  PA  will 
not  have  any  powers  in  foreign  relations. 

As  for  the  use  of  the  title  'Palestine' — see  above  Paragraph  41. 

45.  Issuance  of  New  Automobile  Licence  Plates — the  PA  has  issued  new 
automobile  licence  plates  without  updating  the  Israeli  Transport  Ministry. 

Legal  Analysis — At  the  conclusion  of  discussions  held  by  the 
Subcommittee  on  Transport  the  form  and  appearance  of  automobile  licence 
plates  for  vehicles  in  the  PA  was  agreed  upon  and  it  was  established  that  if  the 
PA  wants  to  add  an  additional  type  of  licence  plate  the  matter  must  be 
coordinated  in  the  framework  of  the  Subcommittee. 

Violations  in  the  Sphere  of  Foreign  Relations 

46.  The  details  on  these  violations  are  based  on  a  report  prepared  by  the 
IDF  Intelligence  Branch. 

47.  The  appointment  of  Zuhadi  Al  Kidra  as  the  PA  representative  in  Egypt, 
in  addition  to  his  title  as  PLO  representative  there. 

Legal  Analysis — Article  VI  (2)  (a)  of  the  agreement  establishes  that  the 
PA  will  not  have  any  powers  and  responsibilities  in  the  sphere  of  foreign 
relations.  Exceptions  to  this  refer  solely  to  [activities  permitted  to]  the  PLO,  as 
opposed  to  the  PA. 

48.  Morocco  has  opened  a  'liaison  office'  in  Gaza.  Its  representative 
submitted  a  letter  of  credentials'  to  Arafat . 

Legal  Analysis — Article  VI  (2)  (c)  of  the  agreement  establishes  that  a 
representative  office  of  a  foreign  nation  may  be  opened  in  the  territory  of  the 
PA,  for  the  purpose  of  implementing  agreements  which  the  PLO  has  signed 
in  the  name  of  the  PA  with  that  nation,  in  accordance  with  clause  (b)  of  the 
Article  VI  (2).  In  this  case,  there  is  no  such  agreement  which  the  above 
mentioned  office  is  to  implement.  Therefore,  its  existence  is  a  form  of 
violation. 

49.  The  PLO  Representative  in  Moscow  signed  a  protocol  on  security 
cooperation  with  Russia,  in  the  name  of  the  PA.  According  to  the  protocol  the 
Russian  Defence  Ministry  is  to  provide  security  training  to  teams  of 
Palestinians. 

Legal  Analysis — Article  VI  (2)  (b)  of  the  agreement  establishes  various 
categories  of  types  of  international  agreements  which  the  PLO  is  permitted  to 
sign  for  the  PA.  Security  cooperation  agreements  are  not  listed  in  this  clause 
[as  being  permissible]. 

50.  'Palestine'  has  joined  the  International  Airport  Council.  It  appears  that 
this  refers  to  the  PA  joining  the  council. 


289 


16 


Legal  Analysis — As  stated,  the  PA  has  no  powers  in  the  sphere  of 
foreign  relations.  As  for  the  PLO,  joining  [an  international  body]  is  not  one  of 
the  foreign  relations  tasks  that  it  is  entitled  to  implement  for  the  PA. 

In  addition,  from  Article  XII  of  Annex  I,  which  deals  with  airspace 
issues,  it  is  clear  that  there  was  no  intention  of  permitting  the  PA  to  join  the 
ICAO  (International  Civilian  Aviation  Organization),  since  all  activity 
involving  the  ICAO  must  handled  by  either  Israel  or  another  member  state. 
(See  clauses  5  and  10  of  Article  XII).  We  can  conclude  from  this  that  the  PA 
has  no  authority  to  join  any  other  international  aviation  organization. 


Conclusion 

51.  The  detailed  listing  of  violations  brought  forward  in  this  document  is, 
one  the  one  hand,  not  meant  to  be  exhaustive  of  all  violations  committed  by 
the  PA,  whether  knowingly  or  not,  and  on  the  other  hand  is  not  limited 
solely  to  substantial  and  fundamental  violations  which  justify  their  being 
discussed  at  the  highest  levels. 

The  goal  of  this  document  is  to  present  in  a  concentrated  manner  all 
the  fundamental  violations  which  have  occurred  since  the  agreement  went 
into  effect,  except  for  those  violations  which  had  been  stopped  or  corrected  by 
the  time  of  the  writing  of  this  document.  This  document  can  form  the  basis 
for  other  documents  on  the  subject  of  violations,  in  various  categories  and  in 
greater  or  lesser  generality,  depending  on  the  subject  matter  and  the  needs  of 
the  documents'  composers. 

52.  It  should  be  noted  that  if  there  are  those  who  would  want  to  use  this 
document  as  the  basis  for  discussions  with  the  Palestinians,  we  would 
recommend  that  the  Israeli  side  be  backed  up  with  detailed  documents  which 
include  figures  and  examples  of  violations,  in  order  to  be  prepared  to  answer 
Palestinian  charges  that  these  are  empty  claims,  and  in  order  to  prevent  them 
from  'returning  the  ball  to  our  court'. 

53.  As  for  the  continued  handling  of  violations  in  the  future,  it  appears 
that  there  is  a  need  for  the  formation  of  a  body  that  can  monitor  all  the 
violations  on  a  continual  basis,  as  well  as  a  need  to  decide  who  will  be 
empowered  to  decide  how  to  deal  with  the  violations. 


David  Yahav,  Col. 

Assistant  to  the  Judge  Advocate  General 

for  International  Law 


290 


0«U   2?/WM  T«n«:  14:M:M  Fagf  1  el 2 


For  Immediate  Release 

THR  PALESTINIAN  NATIONAL  AUTHORITY  •  MINISTRY  OP  INFORMATION 

Ramellah.  September  23.  19&5 


The  Amencan  decision  to  extend  financial  assistance  to  the  Palestinian  National 
Authority  contradicts  any  accepted  practice.  1  his  decision  that  was  taken  while 
handcuffed  with  the  heavy  chains  of  conditions.   It  is  provocative  and  insulting  to  the 
Palestinian  national  feelings.  The  decision  is  a  flagrant  intrusion  in  internal  Palestinian 
matters.  There  Is  no  doubt  that  this  decision  has  aroused  the  envy  of  the  majority  of 
Knesset  members  from  the  far  and  extreme  right  because  their  colleagues  in  the 
American  Congress  have  set  a  record  for  themselves  In  the  competition  of  hatred 
towards  the  Palestinian  people,  its  leadership  and  its  national  rights. 

The  American  Congress  has  placed  at  the  very  heart  of  its  conditions  the  closing  of 
Palestinian  institutions  In  Jerusalem  and  the  cessation  of  support  by  the  Palestine    v 
National  Authority  for  these  institutions    This  exposes  the  true  face  of  American  policy 
towards  the  Holy  City,  a  policy  that  supports  and  assists  further  Jewish  occupation  of 
Jerusalem,  its  annexation  to  Israel  and  It  further  confirms  Israel's  claims  that  Jerusalem 
is  Its  united,  everlasting  capital    This  stance  Is  a  natural  extension  of  the  American  veto 
in  the  United  Nations  which  stood  in  the  way  of  the  Security  Council's  decision  to  call 
for  a  haft  to  the  confiscation  of  land  and  settlement  In  the  Arab  cfry]of  Jerusalem]    The 
question  that  must  [now]  be  asked  is  how  does  the  Congress  allow  Itself  to  call  for  the 
closure  of  Institutions  that  emerged  from  the  vital  needs  of  the  Jerusalemrte 
community    How  does  Congress  allow  Itself  to  oct  in  a  racist  manner  towards  the 
Palestinian  people  by  denying  It  the  simplest  right  to  civil  Institutions 

The  institutions,  that  were  established  by  the  Palestinian  people  and  protected  by  them 
and  have  never  ceased  to  be  protected  by  them,  are  one  of  the  fruits  of  the  long 
struggle  of  the  Palestinian  people.   This  is  one  of  their  basic  rights  which  thoy  did  not 
borrow  from  anyone  and  will  not  negotiate  or  bargain  for  them  with  anybody.  They 
cannot  be  considered  as  merchandise  by  the  American  Congress  that  may  think  thoy 
can  be  paid  for.   Therefore,  their  offer  is  rejected  by  the  Palestinian  National  Authority 
both  in  its  details  and  its  totality.   It  would  be  more  suitable  for  the  members  of  the 
American  Congress  to  know  well  that  the  Palestinian  institutions  and  rights  are  not  foi 
sate  or  exchange  for  all  the  funds  in  the  entire  American  Treasury. 

The  bounds  have  been  overstepped  above  and  beyond  meosure.   The  American 
Congress  has  relinquished  the  American  role  as  a  sponsor  of  the  OOP  and  declared  rts 
absoluto  partiality  In  the  Interest  of  the  worst  and  most  damaging  of  Israeli 
interpretations,  by  rushing  ahead  more  than  the  Israelis  themselves  have  done  when 
they  (members  of  Congress]  demanded  the  cancelling  of  some  articles  in  the 
Palestinian  National  charter  and  when  they  demanded  Palestinian  co-operation  with 
Israel  In  surrendering  wanted  Palestinian  citizens  to  It  despite  the  fact  that  this  demand 
violates  the  signed  agreements  between  the  PLO  and  the  government  of  Israel 

According  to  all  criteria,  this  is  a  c'ieai  lelinquishment  of  the  supposed  US  rote  as  a 
neut:al  sponsor.   This  hostile  policy  to  the  Palestinian  National  Authority  and  the 


291 


M«:  21/S/M  TMw:  H:0t:S7  Pag*  2  of  2 


Palestinian  people  will  only  present  additional  hardships  to  the  building  of  the  Palestine 
National  Authority  at  a  lime  when  it  was  expected  that  the  United  States  was  to  fill  a 
role  of  support  to  the  process  rather  than  hinder  or  complicate  it  so  as  to  lead  to  its  ruin. 


The  conditions  that  the  American  Congress  demanded  will  not  find  anyone  to  respond 
to  them    The  members  of  Congress,  who  do  not  respect  international  legitimacy,  will 
not  need  to  wait  six  long  months  because  the  Palestinian  people  will  not  barter  their 
rights  (or  all  the  money  In  the  world. 


292 


Pilctttoian  National  Authority 


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293 


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294 


Cairo,  June  9,  1974 

The  Palestinian  National  Council: 

On  the  basis  of  the  Palestinian  National  Charter  and  the   Political 
Programme  drawn   up  at   the  eleventh   session,    held  from   January  6-12, 
1973;  and  from  its  belief  that  it  is  impossible  for  a  permanent  and  just 
peace   to  be  established   in  the   area  unless   our  Palestinian  people 
recover  all  their  national  rights  and,  first  and  foremost,   their  rights 
to  return   and  to   self-determination  on  the  whole  of  the  soil  of  their 
homeland;  and  in  the  light  of  a  study  of  the  new  political  circumstances 
that  have   come  into   existence  in  the  period  between  the  Council's  last 
and  present  sessions,  resolves  the  following: 


1.  To  reaffirm  the  Palestine  Liberation  Organization's  previous  attitude 
to  Resolution   242,  which  obliterates  the  national   right  of  our  people 
and  deals   with  the   cause  of  our  people  as  a  problem  of  refugees.   The 
Council  therefore  refuses  to  have  anything  to  do  with  this  resolution  at 
any  level,  Arab  or  international,  including  the  Geneva  Conference. 


2.  The  Liberation   Organization  will   employ  all   means,   and  first   and 
foremost  armed   struggle,   to   liberate  Palestinian  territory   and  to 
establish  the   independent  combatant  national  authority  for  the  people 
over  every   part  of  Palestinian  territory  that  is  liberated.   This  will 
require  further  changes  being  effected  in  the  balance  of  power  in  favour 
of  our  people  and  their  struggle. 

3.  The  Liberation   Organization  will  struggle  against  any  proposal  for  a 
Palestinian  entity   the  price   of  which   is  recognition,   peace,   secure 
frontiers,   renunciation   of  national  rights  and  the   deprival  of  our 
people  of  their  right  to  return  and  their  right  to  self-determination  on 
the  soil  of  their  homeland. 

4.  Any  step  taken  towards   liberation  is  a  step  towards  the  realization 
of  the  Liberation  Organization's  strategy  of  establishing  the  democratic 
Palestinian  state   specified  in  the  resolutions  of  previous  Palestinian 
National  Councils. 

5.  Struggle  along  with  the  Jordanian  national  forces  to  establish  a 
Jordanian-Palestinian  national  front  whose  aim  will  be  to  set  up  in 
Jordan  a  democratic  national  authority  in  close  contact  with  the 
Palestinian  entity  that  is  established  through  the  struggle. 


295 


6.  The   Liberation   Organization   will   struggle  to  establish  unity  in 
struggle  between  the  two  peoples  and  between  all  the  forces  of  the  Arab 
liberation  movement  that  are  in  agreement  on  this  programme. 

7.  In  the   light  of  this  programme,   the   Liberation  Organization   will 
struggle  to  strengthen  national  unity  and  to  raise  it  to  the  level  where 
it  will  be  able  to  perform  its  national  duties  and  tasks. 

S.  Once   it  is   established,   the   Palestinian  national   authority  will 
strive  to   achieve  a  union  of  the  confrontation  countries,   with  the  aim 
of  completing  the  liberation  of  all  Palestinian  territory,  and  as  a  step 
along  the  road  to  comprehensive  Arab  unity. 

9.  The  Liberation  Organization  will  strive  to  strengthen  its  solidarity 
with  the  socialist  countries,  and  with  forces  of  liberation  and  progress 
throughout  the   world,   with  the  aim  of  frustration  all  the  schemes  of 
Zionism,  reaction  and  imperialism. 

10.  In  light  of  this  programme,   the  leadership  of  the  revolution  will 
determine  the  tactics  which  will  serve  and  make  possible  the  realization 
of  these  objectives. 

The  Executive   Committee  of  the  Palestine  Liberation  Organization  will 
make  every  effort  to   implement  this  programme,  and  should  a  situation 
arise  affecting   the  destiny   and  the  future  of  the  Palestinian  people, 
the  National  Assembly  will  be  convened  in  extraordinary  session. 


2% 


Clinton  Claps  Secret  Cover 
On  Report  on  PLO  Finances 

I /mg- Awaited  GAO  Study  Too  Hot  to  Publish 


FORWARD  STAFF 

WASHINGTON  —  President  Clin- 
ton has  clapped  a  stamp  of  secrecy 
on  a  report  on  the  Palestine  Libera- 
tion Organization's  financial  state 
that  was  completed  last  month  by 
the  General  Accounting  Office,  the 
Forward  has  learned,  and  the  strug- 
gle to  find  out  what  the  GAO  discov- 
ered is  quietly  emerging  as  a  new 
issue  in  the  battle  over  sending  tax- 
payer dollars  to  the  Palestinian 


Clinton  Seals  Report  on  PLO 


Continued  from  Page  1 
tied;  however,  Washington  sources 
say  that  any  government  depart- 
ment or  agency  that  provided  infor- 
mation to  the  GAO  could  have  asked 
for  such  a  classification. 

The  GAO  investigation  was  under- 
taken to  answer  several  basic  ques- 
tions: What  are  the  PLO's  total  assets; 
what  is  its  annual  income;  and  to 
what  extent  are  Mr.  Arafat  and  the 
Palestine  Authority  investing  the 
organization's  money  in  their  own 
people's  welfare?  The  Clinton  admin- 
istration has  earmarked  some  $500 
million  over  the  next  five  years  to 
help  Mr.  Arafat  promote  stability  in 
the  territories.  Congressional  watch- 
dogs, however,  are  concerned  that 
American  taxpayer  dollars  are  being 
wasted  or  even  abused  by  the  PLO 

Opponents  of  the  aid  are  also 
charging  that  several  administration 
departments  and  agencies  —  includ- 
ing the  State  Department  and  the 
Central  Intelligence  Agency  —  were 
less  than  forthcoming  with  the  GAO 
during  its  audit  "The  administration 
did  everything  it  could  in  order  to 
sabotage  this  investigation,"  says 
Rachel  Ehrenfeld,  an  expert  on 
international  money-laundering. 

Change  of  Heart 

Ms.  Ehrenfeld  says,  for  example, 
that  an  investigator  for  the  GAO  was 
dispatched  to  London  last  fall  to 
meet  with  representatives  of  the 
British  National  Criminal  Intelli- 
gence Service.  A  recent  report  by  the 
NCIS  concluded  that  the  PLO  had 
between  $8  billion  and  $10  billion  in 
hidden  assets  in  1993,  with  annual 
income  of  between  $1.5  billion  and 
$2  billion.  After  initially  being  told 
that  he  would  have  cooperation  from 
the  British,  the  GAO  auditor  found 
the  NCIS  reluctant  to  provide  him 
with  information.  The  change  of 
heart,  according  to  Ms.  Ehrenfeld, 
came  only  after  the  GAO  notified  the 
State  Department  that  it  was  send- 
ing a  man  to  London.  A  spokesman 
for  the  State  Department  wasn't 
immediately  available  to  comment. 

The  Christians'  Israel  Public 
Action  Committee  is  also  calling  for 
the  release  of  the  GAO  report  and 
congressional  hearings  on  the  issue 
—  before  Congress  goes  on  recess  in 
August.  "The  Clinton  administration 
is  covering  up  for  Arafat,"  says 
Richard  Hellman,  president  of 
Cipac,  a  right-of-center  group. 

Mr.  Oilman,  the  congressman  who 
requested  the  GAO  audit,  wasn't 
available  to  comment  on  the  admin- 


istration's handling  of  the  report. 
Some  hawks  are  charging  that  the 
language  of  his  initial  request  was 
too  mild.  "It  could  have  been  written 
with  stronger  language  which  would 
have  given  the  GAO  more  authori- 
ty," says  Ms.  Ehrenfeld,  who  adds 
that  GAO  agents  did  not  have  the 
power  to  subpoena  witnesses. 
"Gilman  was  under  a  lot  of  pressure 
not  to  ask  for  the  investigation  and 
he  was  under  even  more  pressure 
when  he  did  ask  for  it,"  she  says. 

If  the  GAO  report  is  not  made  pub- 
lic soon,  it  may  be  too  late  to  enter 
into  the  debate  over  PLO  funding. 
The  Senate  is  expected  to  consider 
the  Foreign  Aid  Authorization  bill 
next  week,  and,  according  to  a  source 
inside  the  Senate,  under  one  of  the 
scenarios  now  being  contemplated, 
the  GOP  would  agree  to  extend  aid  to 
the  PLO  for  another  year  as  long  as 
Mr.  Clinton  agrees  not  to  veto  its  pro- 
posed reorganization  of  the  State 
Department 

"When  this  government  wanted  to 
know  where  Ferdinand  Marcos  got 
his  ill-gotten  gains,  we  found  out," 
says  Mr.  Fishbein.  "Why  is  it  that  in 
the  case  of  the  PLO  we're  covering 
up?  The  American  people  have  a 
right  to  know." 


Authority  headed  by  Yasser  Arafat 

The  probe  into  the  PLO's  income, 
assets  and  expenditures,  which  the 
GAO  confirmed  is  classified,  was  ini- 
tiated late  last  year  at  the  request  of 
Rep.  Benjamin  Gilman,  a  Rockland 
County,  N.Y.,  Republican  and  chair- 
man of  the  House  Foreign  Affairs 
Committee.  The  eagerly  awaited 
investigation  was  intended  to  shed 
light  on  the  PLO's  bank  accounts  and 
books,  which  have  heretofore 
remained  shrouded  in  mystery 
despite  Mr.  Arafat's  repeated  claims 
of  being  short  of  funds. 

Critics  Cry  Coverup 

The  move  to  seal  the  document 
comes  at  a  critical  time  in  the  debate 
over  American  funding  of  the  PLO. 
The  legislation  that  allows  Mr.  Clin- 
ton to  disburse  tax  dollars  to  the 
Palestine  Authority,  the  PLO's  gov- 
erning body,  expired  at  the  end  of 
last  month  and  was  extended  until 
mid-August  pending  further  debate 
in  Congress.  For  Mr.  Clinton,  who 
considers  the  aid  crucral  to  the  peace 
process,  a  cornerstone  of  his  foreign 
policy,  a  report  critical  of  the  PLO's 
spending  habits  could  spell  trouble 
—  even  as  the  White  House  gears  up 
to  host  the  signing  of  the  second 
phase  of  the  Israeli-Palestinian 
peace  accord  later  this  month. 

Critics  of  PLO  aid  say  the  adminis- 
tration's decision  to  keep  the  docu- 
ment out  of  the  public's  hands 
smacks  of  a  coverup.  "As  far  as  Tm 
concerned,  the  fact  that  this  is  being 
kept  a  secret  is  an  indictment  of  the 
administration,"  says  Rand  Fish- 
bein, who  is  a  former  top  aide  to  Sen- 
ator Inouye,  a  Democrat  from 
Hawaii,  and  is  the  author  of  Senator 
D'Amato's  recently  proposed  bill 
intended  to  crack  down  on  American 
aid  to  the  PLO.  "Are  they  such  apol- 
ogists for  the  PLO  that  they  can't 
make  this  public?  What  is  the  admin- 
istration trying  to  hide?" 

It's  not  clear  exactly  who  request- 
ed that  the  report  be  deemed  classi- 
Please  turn  to  Page  5 


Forward 


Juiy14,1895 


FOUNDED  APRIL  22,  18S7 

Votuma  LXXXXVUII 
No.  31,03* 


297 


The  End  of  Zionism 
and  the  Last  Israeli 


By  Yoram  Hazony 


The  agreement  Israeli  prime  minister  Yitzhak 
Rabin  and  FLO  chairman  Yaiir  Arafat  signed 
to  a  choru*  of  hounnaa  last  week  it  principally 
concerned  with  the  material  assets  Israel  is  handing 
over  to  the  Palestinians:  military  installations,  strate- 
gic terrain,  water. 

But  with  the  Rabin  government  readying  the 
transfer  of  authority  in  ancient  Jewish  tides  such  as 
Hebron,  Bethlehem,  and  Shiloh — and  the  opening  of 
negotiations  over  Jerusalem  itself  a  few  months  from 
now — it  is  becoming  dear 
that  the  diplomats'  scalpel 
has  reached  cultural  bone. 
Two  years  have  passed  since 
Israel  signed  the  1993  Oslo 
accord  with  Ararat  But  with 
the  relinquishment  of 
Hebron,  the  final  resting 
place  of  the  Hebrew  patri- 
archs, by  the  stroke  of  a  pen, 
Israelis  arc  only  now  becom- 
ing aware  of  the  most  painful 
ramifications  of  the  deal  cut 
with  Ante — the  ones  which 
cannot  be  quantified  by  negotiators  and  military  men. 
Witness  a  recent  exchange  between  two  prominent 
columnists,  both  identified  with  the  left,  in  the  presti- 
gious Israeli  daily  Ha'ana.  "In  their  wont  night- 
mares,'' wrote  Yoel  Marcus,  perhaps  Israel's  moat 
rcapecaad  columnist  and  a  long-time  supporter  of 
Rabin's  governing  Labor  party,  'neither  Yitzhak 
Rabin  nor  Shimon  Peres  could  have  imagined  himself 
twenty-five  years  ago  as  die  architect  of  a  government 
that  would  take  Israel  back  to  its  pre- 1967  borders.  But 
this  is  exactly  what  they  arc  doing." 

Marcus  asked  Israelis  to  "leave  for  a  moment  the 
preoccupation  with  the  headlines  of  the  hour,"  and 
consider  "the  nalfy  dramatic  revolution  taking  pbet* 
The  reason  the  Golan  Heights,  Bethlehem,  and 
Jerusalem  could  be  put  on  the  negotia ring  block  by  the 
Labor  government  without  pandemonium  in  the 

YMWft  Hew*/  It  aV  Dim**  eftht  ShaUm  Cmttr-Nttioml 
Policy  Institute  tnjmutkm. 


streets  is  the  near-total  collapse  of  the  Jewish  national- 
ist ideology  that  built  the  sate.  "Our  people  has  long 
since  tired  of  bearing  Zionism  on  in  shoulders  genera- 
tion after  generation,"  Marcus  observed.  "While  the 
Arabs  have  remained  faithful  to  their  ideology  of  the 
holiness  of  the  land . . .  Israel  is  ready  lightly  to  with- 
draw from  the  lands  that  were  the  cradle  of  Judaism," 
in  exchange  for  "personal  safety  and  a  'normal'  life." 

Marcus's  piece  was  gleefully  parried  by  his  col- 
league uHa'ana,  Gidon  Samct.  "Thanks  be  to  God," 
Samet  cheered;  the  agree- 
ment with  Arafat  "has  bro- 
ken down  the  ingredient  that 
was  the  cement  in  the  wall  of 
our  old  national  identity.1' 
According  to  Sarnet,  the  dis- 
integration of  the  cultural 
wall  that  had  kept  the  con- 
flict with  the  PLO  alive  sig- 
nals a  new  Israeli  openness 
to  world  culture,  from  pubs 
to  pasta:  "Madonna  and  Big 
|  Macs  are  only  the  moat 
peripheral  of  examples  of . . . 
a  'normalncas'  which  means,  among  other  things,  the 
end  of  the  terrible  fear  of  everything  that  is  foreign 
and  strange . . . .  Only  those  trapped  in  the  old  way  of 
■hinting  will  not  recognize  the  benefits.* 

It  is  not  coincidental  that  both  articles  focused  on 
"nonnalneas"  (wrmalm  in  Hebrew),  an  old  Jewish 
code-word  meaning  "like  the  Gentiles."  "Normal" 
people,  so  the  argument  goes,  do  not  live  in  fear  of 
being  blown  up  on  buses.  They  do  not  hold  grudges 
over  crimes  committed  years  ago,  and  they  do  not 
spend  their  time  fighting  over  real  or  imagined  burial 
places  of  real  or  imagined  ancestors.  They  go  to  pubs 
and  eat  pasta. 

The  debate  over  the  mxmalivt  supposedly  ushered 
in  by  Oslo  underscore*  what  has  become  evident  to 
Israelis  of  all  penuaaions  in  recent  months:  that  Oslo 
was  not,  like  the  peace  agreements  with  Egypt  and  Jor- 
dan, a  strictly  political  achievement  whose  desirability 
can  be  judged  in  terms  of  guns  and  batter.  For  "the 
handshake,"  as  the  deal  with  Arafat  it  known,  sought 


^fiffi:  ! 


OcToaiat.lW 


TM  WtEXU  aTAKDAXD  /  29 


298 


to  achieve  the  heart's  desire  of  "normal"  Israelis  by 
renouncing  precisely  those  emotional  assets  which 
show  many  "JemMT  Israelis  to  lead  meaningful  lives. 
And  on  th*  hecb  of  thit  realizsuon  ha*  come  a  sec- 
ond, the  recognition  that  the  Jewish  ttate  is  sliding 
headlong  into  a  bitter  cultural  civil  war.  Israel  is 
realigning  into  two  camps:  those  for  whom  forgetting 
about  Arafat*  s  murderous  past  and  giving  him  what  he 
wants  means  achieving  an  exhilarating  liberation;  and 
those  for  whom  these  concessiont  mean  abandoning 
the  entire  purpose  of  the  Jewish  state  in  the  first 
place— a  calamity  of  unfathomable  proportions. 


Zionism  is  Jewish  nationalism — the  belief  that 
there  should  be  a  Jewish 
nation-state  in  the  land  of 
Israel.  Few  people  today  rec- 
ognize what  en  abomination 
ibis  idea  was  to  Jewish  intel- 
lectuals when  it  was  formally 
constituted  as  a  political 
organization  in  1897.  Of  the 
great  Jewish  thinkers,  virtu- 
ally none  could  stomach  the 
idea.  Hermann  Cohen,  Frans 
Rosenrweig,  Martin  Buber, 
Hsim  Solovchchik,  and  the 
Hasidic  rabbet  of  both 
Lubevicch  and  Satmar— all  rejected  ^ril'tri  fc,  much 
the  same  reason:  They  believed  the  Jewish  people  was 
essentially  s  thing  of  the  spirit  The  creation  of  a  state, 
which  parfocce  meant  a  Judaism  of  tanks  and  exple- 
tives, of  politics  and  intrigue,  of  bureaucracy  and  capi- 
tal— in  short,  the  tmpontrnunt  of  Judaism — would 
mean  the  end  of  Judaism  as  a  philosophy,  an  ideal,  a 
faith. 

What  took  the  teeth  out  of  the  anti-Zionism  of  the 
Jewish  left  and  right  was  the  Holocaust  In  the  wake  of 
the  most  fearsome  possible  demonstration  of  the  evil 
of  Jewish  powcriessness,  the  anti-Zionism  of  all  camps 
became  an  embarrassment  The  pugnacious  little 
fighters  of  Palestine,  lashing  out  at  the  British  enemy 
and  Arab  marauders,  became  the  heroes  of  the  Jewish 
people.  By  the  time  Jewish  toughs  like  David  Ben- 
Gurioo  and  Menachem  Begin  had  —  ««gH  to  bomb 
the  British  off  their  baefca,  the  state  they  had  founded 
had  really  become  the  scats  of  virtually  the  entire  Jew- 
ish people.  After  the  gas  chambers,  almost  every  Jew 
everywhere  becaana  a  Zionist,  a  belie***  in  the  necessi- 
ty and  obligation  of  Jewish  power. 

Yet  Jewish  and  even  Israeli  intellectuals  never  real- 
ly reconciled  themselves  to  the  Jewish  empowerment 


entailed  in  the  creation  of  a  Jewish  nation- state.  The 
Tery  desirability  of  the  Israeli  War  of  Independence  in 
194J  was  caustically  challenged  in  the  writings  of  S. 
Yizhar,  perhaps  the  most  prominent  writer  of  the 
nation's  early  years.  And  by  the  1960s,  Israeli  acade- 
mia,  itself  founded  by  tntj-nationaliso  such  aa  Buber 
and  Yehuda  Magnes,  had  begun  to  spawn  an  entire 
generation  of  literary  figures  whose  point  of  departure 
was  the  rejection  of  Jewish  nationalism. 

The  most  famous  novel  by  the  nation's  most 
famous  novelist,  Amos  Ox's  My  MiehatU  portrays 
Jerusalem — the  very  symbol  of  the  Jewish  national 
revival — as  a  dry  ofbrooding  insanity  and  iUncaa.  AJL 
Yehoshua*s  story  "Before  the  Forest"  has  a  young  Jew 
joining  forces  with  an  Arab  to  burn  down  the  "Zion- 
ist" forest  planted  on  the 
ruins  of  an  Arab  village.  In 
Tfu  Loot,  Ychoehua's  best- 
known  novel,  the  hero 
deserts  his  Army  unit  in 
mid-battle,  and  a  high  school 
girl  from  •  well-to-do  family 
finds  comfort  in  the  arms  of 
an  Arab. 

O'hj^f  enaex90ai  thrnvr  of 
Israeli  literature  arc  much 
the  same:  the  escape  from 
Israeli  the  destruction  of 
Israel;  death  (by  decay; 
rather  than  struggle);  the  Israel  Defense  Forces  as  con- 
centration camp,  pigsty,  whorehouse;  and  the  ideal  of 
disempowennest  represented  by  the  Holocaust— 
which,  as  novelist  Moshe  Shamir  has  observed,  "is 
becoming  the  common  homeland  of  the  Jews,  their 
promised  land." 

While  literary  figures  have  long  led  the  effort  to 
create  a  poet-Zioaisi  consciousness  in  Israel,  acade- 
mics have  been  even  more  ferocious.  The  1967  Six 
Day  War  immediately  inspired  attacks  by  opponents 
of  nationalism  such  as  Yishayahu  Leibowiu,  who 
claimed  that  Israel  was  undergoing  Naztfication,  used 
the  term  "Judeo-Nssi"  to  describe  the  Israeli  armed 
forces,  and  said  the  nation  would  soon  set  up  conccn- 
trarion  camps.  In  the  last  two  decades,  these  seemingly 
bcyead-the-pale  expressions  of  hatred  far  Zionist  pow- 
er have  paved  the  way  far  a  more  "scientific"  delcgit- 
imirttinn  of  the  Jewish  tuts  by  historians,  sociolo- 
gists, and  Journalises  nJfrriiyj  more  acceptable  versions 
of  the  same  themes.  Zionism  was  a  colonialist  move- 
ment, said  Uan  Fapo.  It  forcibly  expelled  the  Arab 
refugees  from  their  homes  in  194a,  said  Benny  Morris. 
It  fabricated  a  false  connection  between  the  Jews  and 
the  land,  said  Boas  Evron.  It  used  the  Holocaust  to 


30/TlwWizxuSTW«tuuu> 


9.1993 


299 


advance  its  political  end*,  laid  Tom  Segcv.  And  »o  on. 

There  arc  certainly  element*  of  truth  in  some  of 
the  allegation*  raised.  The  reality  of  power  and  espe- 
cially of  power  wielded  in  desperation,  as  Zionist  pow- 
er ha*  been — is  thai  fa  inevitably  has  it*  seamier  side 
But  instead  of  contributing  to  a  new  balance  in  Israeli 
historiography,  the  new  academics  have  waged  what 
amounts  to  a  scorched-earth  campaign  against  the 
put.  They  nave  joined  novelise*,  poet*,  and  arrjau  in  a 
wholesale  effort  to  wreck  the  basic  faith  of  the  Israeli 
public  in  in  own  history. 

As  the  novelisi  Aharon  Mcgcd,  a  veteran  member 
of  the  Labor  movement,  described  the  rite  of  post- 
Zionism  among  Israeli  intellectual*:  "For  two  or  three 
decade*  now,  several  hundred  of  our  society'*  'best,' 
men  of  the  pen  and  of  the 
ipirit. .  have  been  working 
tlngle-tnindedly  and  without 
respite  to  preach  and  prove 
that  our  cause  i*  not  just: 
Not  only  that  fa  ha*  been 
unjust  since  the  Six  Day  War 
and  the  'occupation'. .  .and 
not  only  tincc  the  founding 
of  the  rote  in  1948.  ..but 
*lnce  roe  beginnings  of  Zion- 
ist settlement  at  the  end  of 
the  last  century." 

In  light  of  this  assault, 
every  value  invoked  in  building  the  Jewish  rate — the 
ingathering  of  the  exiles,  the  redemption  of  a  neglect- 
ed land,  the  purity  of  arms  used  in  self-defense — is 
repainted  as  the  product  of  ignorance,  hypocrisy,  and 
cynicism,  as  is  the  Jewish  rate  itself.  "Poet-Zionism" 
become*  the  only  belief  acceptable  to  an  "enlightened" 
individual. 

By  now,  post-Zionist  truths  have  become  so  self- 
evident  as  to  constitute  an  Israeli  "political  correct- 
ness," Justifying — let  no  one  be  surprised— the  censor- 
(hip  of  opposing  views.  The  most  notorious  example  is 
that  of  Maya  Kagajukaya,  a  razor-wined  literary  critic 
and  a  well-known  personality  in  the  Israeli  Russian- 
language  press.  After  her  immigration  to  Israel, 
Kaganskaya  was  for  a  brief  while  a  prominent  person- 
ality in  Hebrew  literary  circles.  But  her  career  as  an 
Israeli  intellectual  came  to  an  end  on  July  24, 1992, 
when  a  translator  named  Nili  Minki  accused  her  in 
Ha'artn  of  harboring  hitherto  concealed  narionslitt 


Minki  quoted  from  a  piece  of  Kaginiksya'*,  writ- 
ten in  Russian,  which  compared  Israeli  socialism  to 
Soviet  communism,  ridiculed  the  firmer-proletarian 
ism  of  Israeli  fashion,  bristled  against  the  social-con- 


trol methods  of  kibbutz  society,  and  argued  that  the 
Israeli  left  can  no  longer  be  considered  Zionist,  Hav- 
ing thus  "discovered"  Kaganskaya's  views,  Mirski 
went  on  to  accuse  her  of  a  "complete  inability  to 
understand  the  Israeli  reality"  and  a  "capricious  and 
burning  hatred"  of  the  left -cultural  clique,  which  had 
ihowered  her  with  honor*  "the  will  probably  be  sorry 
to  give  up." 

In  the  three  year*  *incc  the  appearance  of  Mirski  "i 
handiwork,  Kaganskaya  ha*  been  erased  from  the 
Israeli  literary  establishment  Not  a  single  essay  of 
hers  ha*  appeared  in  Hebrew.  She  has  been  blacklisted 
by  the  cultural  media  and  talons.  She  returned  to  the 
land  of  her  forefathers — there  to  become  a  despised 
Jewish  dissident. 


Few  Israeli  politicians 
would  or  could  openly 
admit  to  being  pott-Zionists. 
They  could  still  lose  a  lot  of 
votes  that  way.  But  this  does 
not  mean  that  Israeli  policy- 
making has  remained 
immune  to  the  intellectual 
assault  on  Zionism. 

With  the-  disappearance 
from  public  life  of  Zionism'* 
founding  fathers — Labor'* 
Ben-Gunon  died  in  1973,  and  Likud'*  Begin  ceased 
all  public  activity  in  1983 — both  major  political  parties 
began  to  drift.  In  the  absence  of  a  countervailing  na- 
tionalist intellectual  movement,  the  nationalist  agenda 
of  the  Labor  party  (which  ruled  the  country  for  three 
decade*  from  Israel's  founding  until  the  late  1970s)  has 
been  rapidly  eviscerated.  In  in  place:  a  menu  of  post- 
Zionist  concepts  resembling  the  wotidview  of  the 
European  "New  I  .eft-  (think  of  John  Lennon).  A  less 
pronounced  shift  in  the  same  direction  has  been  cak- 
ing place  in  the  more  right-wing  Likud. 

The  victory  of  the  Labor  party  in  June  1992  there- 
fore  marked  no  return  to  the  fufl-throtted,  proud,  and 
aggressive  Labor  Zionism  of  20  yean  ago.  Indeed,  the 
"Labor"  half  of  the  formula  had  been  rtcsn  ted  defrcto 
at  a  party  convention  that  year,  which  discarded  the 
red  banner  of  Socialism  and  even  the  Socialist  anthem, 
the  IfutmaatmaU,  which  had  been  warbled  by  Labor 
Zionists  for  seven  decade*  or  more.  And  as  the  policies 
of  the  Rabin  government  have  unfolded,  it  has  become 
clear  that  the  "Zionist*  half  ha*  fared  no  better.  Virtu- 
ally every  area  of  government  policy  hat  been  quietly 
redirected  to  dismantling  the  Jewish  national  charac- 
ter of  the  rate. 


•,1995 


TBa  Wtasojr  Stocoasd  /  31 


300 


For  rxamplr,  Unci's  school!  have  been  subjected 
to  two  decades  of  progressive  dilution  of  Jewish  sub- 
Iccts  such  ss  Bible,  Talmud,  sad  Jewish  history.  But 
the  new  Leber  government  outdid  its  predecessors  by 
installing  Sbukunh  Atoni,  of  its  most  radical  anti-reli- 
gious fringe,  as  minuter  of  education.  In  this  post, 
Aloni  declared  traditional  Jewish  dietary  laws  unnec- 
essary, attacked  school  trips  to  Auschwitz  for  stirring 
up  "nationalist"  sentiment  among  the  students,  and 
insisted  that  iifcrcncts  10  God  be  eliminated  from 
armed  forces  memorial  services.  The  educational 
activities  of  the  deputy  minister,  Miens  Goldman, 
have  included  calling  for  a  change  in  the  text  of  the 
national  anthem,  Haakta,  "in  order  to  give  expression 
to  citizen*  who  are  not  Jews";  advocating  that  the 
poetry  of  Tewfik  Ziyad,  an 
Arab  nationalist  and  anti- 
Zionist,  be  taught  "next  to 
the  poetry"  of  modern 
Hebrew  bard  Chaim  Bialik; 
sad  ordering  s  purge  of  reli- 
gious teachers  in  the  min- 
istry's school  system. 

The  ministry's  appointee 
as  chairman  of  the  Commit- 
tee far  History  Curriculum 
Reform  is  Moshe  Zimmer- 
menn,  who  has  used  media 
interviews  to  compare  ortho- 
dox  Jewish  children  to  Hitler  Youth,  the  Bible  to  Mass 
Kamff,  and  the  armed  forces  to  die  SS.  Says  Zunmer- 
mann,  "Learning  about  the  Jewish  people  and  the 
State  of  Israel  appears  in  the  [new  educational]  pro- 
gram, but  certainly  not  as  a  subject  of  primary  impor- 


A  similar  trend  is  in  evidence  at  the  Defense  Min- 
Istry,  which  has  recently  approved  a  new  code  of  ethics 
for  the  armed  forces  called  T\*  Spin  cfttu  IDF— "the 
moral  and  normative  identity  card  of  the  bract 
Defense  Forces. .  according  to  which  every 
soldier. .  .educates  himself  and  bis  fellows.  *  The  new 
code  is  a  showcase  of  post-Zionist  virtue,  touting  the 
importance  of  defending  "democracy*'  against  all  pos- 
sible menace.  Yet  nowhere  in  its  11  "values''  and  94 
"basic  principles"  ones  it  refer  to  the  Jewish  sate,  the 
Jewish  people,  the  Jewish  tradition,  or  the  land  of 
Israel. 

So  ubiquitous  arc  efforts  to  ckjudaixc  the  Israeli 
government  that  It  it  often  hard  to  read  the  papers 
without  thiakia«  it  all  a  leke.  Shordy  after  tha  1992 
elections,  in  which  Labor  had  pledged  to  stop  spend- 
ing money  to  build  highways  in  the  Wen  Bank  "for 
the  benefit  of  the  settlers,"  Housing  Ministry  Direc- 


tor-General Arych  Misrehi  announced  a  sew  plan  in 
which  highways  would  be  built  anyway— so  product! 
from  Syria.  Saudi  Arabia,  and  Jordan  would  be  able  to 
arrive  in  the  port  cities  of  Haifa  and  Ashdod  once 
peace  is  at  hand. 

The  new  Ministry  of  Tourism  has  determined  ha 
focus  to  be  encouraging  tourists  from  Islamic  coun- 
tries. The  Ministry  of  Religious  Affairs  rseendy  pro- 
mulgated new  guidelines  for  the  disbursement  of 
funds  that  give  preference  to  groups  encouraging 
meetings  between  Jewish  and  Moslem  youth,  "secu- 
lar" groups  using  "multi-media  and  games"  to  pro- 
mote Judaism,  and  organisations  promoting  Moslem 
pilgrimage  io  Mecca.  Even  m  seemingly  benign  an 
agency  as  the  Parka  Authority  has  called  for  catting 
the  nation's  birth  rate  to  scro 
and,  tf  astsBSsentJI  ■m*iiH»«g 
the  law  giving  any  diaspora 
Jew  jaansauaent  dtiaenship  if 
neimmjgjBiii  **'  to  protect 
the  national  parks,  of  course. 
Tha  Jewish  Agency,  s 
quasi-governmental  body 
ostensibly  responsible  for 
Jewish  Immigration,  has 
begun  testing  foreign  Jews  to 
determine  whether  they  are 
"fir"  to  immigrate  to  Israel 
to  new  head,  Avium  Burg, 
has  been  one  of  the  leading  advocates  of  revising 
Israeli  law  to  "separate  religion  and  state."  He  has 
insisted  that  efforts  to  find  "lost"  Jewish  tribes  and 
bring  them  to  Israel  "must  be  frustrated  every  step  ot 
the  way,"  and  declared  Yishayaho  Leibowia  (of 
"Judeo-Naxi"  fame)  to  be  bis  "moral  compass."  Burg's 
advisers,  Halm  Bcn-Sbacfaar  and  Arik  Cannon,  have 
developed  a  plan  whereby  the  Zionist  movement 
would  drop  its  focus  on  Jewish  immigrstion  and  con- 
cern itself  with  distributing  "plnralamV"  Jewish  mate- 
rial over  the  Internet 

The  National  Insurance  Instiom  is  likewise  phas- 
ing out  its  long-standing  system  of  family  benefiu  for 
dtisens  who  have  served  in  the  armed  forms  in 
order  »  prevent  discrimination  against  the  majority  of 
Arab  dozens  who  choose  not  to  serve.  Meanwhile,  the 
Supreme  Court's  new  chief  justice,  Aharon  Bersk,  has 
artkulatsd  a  doctrine  under  which  the  belie*  of  "the 
enlightened  public  in  Israel*  will  be  the  benchmark 
against  which  Israeli  law  it  interpreted  (these  beliefs 
have  proved  to  include  court-ordered  hiring  quota, 
and  gay  families). 

Bur  nowhere  Is  the  strange  fruit  of  post-Zionist 
policy  more  in  evidence  than  in  tha  Foreign  Ministry, 


32/ 


OercaavfclfM 


301 


which  has  came  to  be  a  kind  of  foreign  ministry  not 
for  the  Jewish  state,  but  for  the  entire  Middle  East. 
Among  the  consequences  U  that  a  chief  responsibility 
of  Israeli  diplomats  has  become  rundraising  for  Arab 
regimes — based  on  the  principle  that  they  will  become 
peaceable  if  they  are  plied  with  ever-higher  levels  of 
aid.  Thus,  in  the  judgment  of  former  deputy  foreign 
minister  Yossi  Bcilin,  while  Israel  is  "a  wealthy  coun- 
try" needing  no  donations  from  abroad,  Jewish  philan- 
thropic organizations  hare  an  "obligation"  to  provide 
assistance  to  the  PLO  and  Jordan.  Ministry  Director- 
General  Uri  Savir  claims  thai  "anyone  who  objects  to 
American  aid  to  the  PLO  has  no  right  to  be  called  a 
friend  of  land."  Aid  for  Syria,  too,  has  become  an  aim 
of  Israeli  policy. 

As  for  more  traditional 
Israeli  foreign  policy  goals, 
like  explaining  the  needs  and 
interests  of  the  Jewish  state, 
Foreign  Minister  Peres  haa 
ordered  the  closing  of  the 
Foreign  Ministry's  Informa- 
tion Department  because  "if 
you  have  good  policy,  you  do 
not  need  public  relations," 
Sites  such  as  the  Golan 
Heights  and  Masada  that 
connote  Israeli  nationalism 
and  strength  have  been 
removed  from  the  schedules  of  visiting  dignitaries 
(while  the  Holocaust  memorial  remains  sacrosanct). 
For  ambassadors,  the  new  Foreign  Ministry  has  select- 
ed post-nationalists  such  as  Gad  Ys'acobi  at  the  United 
Nations  (There  is  no  such  thing  as  Jewish  land")  and 
Shimon  Shamir  in  Jordan  ("When  we  celebrate  our 
independence  day,  it  is  always  incumbent  upon  us  to 
remember  that  our  holiday  is  a  day  of  destruction  for 
another  people"). 

The  strategic  aims  of  Israeli  foreign  policy?  Again, 
Yossi  Bcilin:  Israel  should  become  "a  country  involved 
in  resolving  other  people's  conflicts,  (and]  providing 
officials  for  the  U .N.,  including  U.N.  secretary-gener- 
als,.. ."  Foreign  Minister  Shimon  Peres:  "There  can 
be  no  doubt  that  Israel's  nest  goal  should  be  to  become 
a  member  of  the  Arab  League." 

Thus  have  the  United  Nations  and  the  Arab 
League  become  the  highest  concerns  of  a  post-Zionist 
foreign  policy.  The  existence  and  welfare  of  the  Jewish 
soma  haa  become  too  parochial  a  rauam  d'bat  for  Israeli 
leaders. 

Zionism  was  predicated  on  the  idea  that  the  land  of 
Israel  is  the  historic  inheritance  of  only  one  peo- 


ple, the  Jews;  that  this  right  was  recognized  under 
international  law  by  the  League  of  Nations  In  1920; 
and  that  the  Arabs,  having  secured  self-expression  in 
20  Arab  national  states,  do  not  need  one  more.  It  was 
such  a  Jewish-nationalist  view  that  guided  Ben-Guri- 
on,  who  insisted  that:  "No  Jew  has  the  right  to  relin- 
quish the  right  of  the  Jewish  nation  to  the  land  of 
Israel . . .  Even  the  whole  Jewish  people  alive  today 
has  no  authority  to  relinquish  any  part  whatsoever  of 
the  land.  This  is  a  right  of  the  Jewish  nation  in  all  its 
generations — a  right  which  may  not  be  forfeited  under 
any  condition" 

Nothing  could  be  farther  from  these  original  Zion- 
ist premises  than  the  Oslo  agreement,  in  which  the 
government  of  Israel  and  the  PLO  agree  to  recognize 
"their  mutual  legitimate  »"^ 
political  rights" — a  phrase 
usually  glossed  over  aa 
though  it  merely  acts  op 
Israeli  concessions  in  the 
West  Bank  and  Gaza  Strip. 

But  considering  that  all 
previous  Israeli  governments 
had  claimed  the  land  aa  the 
legitimate  right  of  the  Jewish 
people  alone,  conceding  the 
"mutual  legitimate  rights*  of 
Jews  and  Arabs  to  the  land  is 
a  step  pregnant  with  mean- 
ing not  only  for  Hebron  and  Jerusalem,  but  for  Haifa 
and  Tel  Aviv  as  well.  To  claim  that  the  United  States 
and  Mexico  have  "mutual  legitimate  and  political 
rights*  to  Texas  is  a  way  of  saying  that  no  part  of  Texas 
belongs  rightfully  and  solely  to  America.  Similarly,  in 
creating  an  equivalence  between  Jewish  and  Arab 
rights,  Oslo  proposes  that  the  Jews  give  pp  soma  of  the 
land  to  the  PLO — but  on  the  strength  of  equivalent 
Arab  "rights"  to  afl  of  it. 

Which  cuts  to  the  heart  of  why  Oslo  haa  created 
such  a  sandstorm  of  opprobrium  and  honor  in  brad: 
The  recognition  of  such  an  Arab  national  right  to  the 
land  of  Israel  is  a  flagrantly  post-Zionist  proposition,  It 
means  that  the  PLCs  carnival  of  carnage  spanning 
three  decades  was  a  perhaps  distasteful  but  neverthe- 
less putifisd  war  of  resistance.  By  the  same  token,  all 
the  Uvea  lost  in  pursuing  Zionism — from  the  draining 
of  the  malarial  swamps  to  the  raid  on  Entebbe— were 
in  the  service  of  a  morally  questionable  and  perhaps 
even  illegitimate  enterprise.  For  under  this  rendering 
of  history,  die  land  never  really  belonged  to  the  Jews. 

One  would  like  to  believe  these  implications  of  the 
Oslo  agreement  were  unintended,  the  product  of 
diplomatic  expedirncr  Unfortunately  for  this  suppoai- 


OCTOmsxf.lWS 


Tub  Waaxur  Stmcmbo  /  33 


302 


rion,  Shimon  Pares  has  written  ■  book  —pHf'tig  the 
ideological  underpinnings  ot  <**  agreement  la  detail. 
la  Tkt  S*xd  MidA*  Ban,  Peres  rejects  ibc  entire  con- 
cept of  the  nations]  tote,  arguing  that  wherever  ""par- 
tieularist  nsaJonanatn, .  Jm  staked  a  claim,  the  aocial 
order  has  been  subvened  and  hostility  and  violence 
have  taken  root."  It  waa  Jewish  and  Arab  nationalism, 
says  Ftrca,  that  caused  die  Arab-Israeli  wars,  aad  the 
only  solution  is  to  leave  these  nationalisms  behind, 
forging  what  he  calls  aa  "ultrsnstional"  entity  encom- 
passing the  entire  Middle  East,  with  a  common  Arab- 
Jewish  government,  army,  aad  economy. 

If  Arabs  aad  Jews  are  to  give  up  their  w,"*"'tfl<«nif 
aad  live  in  sueh  a  New  Middle  East,  what  would  be 
their  identity?  Peres  is  unequivocal:  "One  day  our  self- 
awaraaess  aad  personal  iden- 
tity will  be  baaed  on  this  new 
reality  aad  we  will  find  that 
we  have  stepped  outside  the 
national  arena."  True,  "peo- 
ple are  not  yet  ready  to 
accept  an  ultranatioaal  iden- 
tity," but  he  nevertheless 
believes  that  gradually  "a 
new  type  of  citizenship  is 
rarrhmg  on,  with  a  aew  per- 
sonal identity. . . .  Particular 
ist  nationalism  is  fading  and 
the  idea  of  •  'citizen  of  the 
world-  ts  taking  hold- 
It  waa  therefore  no  coincidence  that  the  agreement 
with  the  PLO  waa  drafted  without  consulting  the 
Israeli  military.  Oslo  was  baaed  oa  a  presumed  "aew 
reality"— one  in  which  both  tkasatm  and  Arab 
aarJoaalism  arc  "fading,"  aad  the  location  of  the 
defease  borders  is  irrelevant,  because  the  ead  of 
aarionalrsm  means  the  end  of  war. 

But  it  k  also  dear  from  Perert  hoped-for  "new  per- 
sonal identity"  that  the  end  of  nationalism  may  — 
the  end  of  the  Jewish  people  in  Israel,  sewelL 

The  Jewish  state  is  first  aad  foremost  a  political 
idea.  Armks  may  menace  it  phvsscaOy,  but  It  is  oa 
the  level  of  ideas  than  the  gravest  threats  are  registered. 
The  Soviet  Union  was  perhaps  the  num  powerful  state 
in  the  world  militarily,  but  it  fall  in  IM9  because  (to 
borrow  from  Oidon  Samet)  "the  ingredient  that  was 
the  cement  in  the  wall  of  the  old  national  identity" 
hsd  long  since  broken  down. 

Israel  is  in  the  midst  of  an  Ideological  dlauucgra- 
tfoa  Whose  auapainidc  aad  meaning  defy  comprehen- 
sion. In  most  prominent  political  aad  cultural  figures 
speak  about  the  absorption  of  the  country  into  the 


Arab  League,  compere  the  Israeli  armed  forces  to 
Nazis,  "■wHiT"  as  illegitimate  the  awdoJMl  movement 
which  founded  the  ante,  and  arc  preparing  to  open 
negotiations  over  the  capital  dry,  Jerusalem. 

The  Jew ish  state  is  poorly  equipped  to  cope  with 
such  s  crisis.  The  Labor  Zionists  who  built  the  state 
wished  to  flee  the  resist  of  ideas  in  which  the  Jews  had 
been  immersed  for  millennia,  aad  build  something 
powerful  and  real,  something  physical.  They  built 
farms  and  ketones  and  fighter  planes,  among  the  best 
in  the  world.  But  they  did  not  recognize  the  need  to 
build  the  ads*  of  the  Jewish  state  in  the  minds  of  the 
people.  The  result  is  that,  today,  with  the  Zionist  idea 
being  expunged  before  their  very  eyes,  most  cannot 
even  see  what  is  happening.  The  factories  and  the 
fighter  planes  look  fine. 

la  most  countries,  the 
role  of  defending  the  idea  of 
thenariosi — the  preservation 
and  rtii inning  of  its  her- 
itage, in  texts  and  holy 
places,  and  the  wisdoms  aad 
social  crafts  which  its  people 
have  acquired — belongs  to 
political  coaaervudves.  But 
Israel  has  never  had  an  orga- 
nized aeafhjasj  consnrarjsm. 
What  passes  for  a  "national 
camp"  in  Israel,  Likud  and 
its  sister  parries,  has  no  Tradition  of  iateUeauai  dis- 
course m  speak  of  It  has  no  colleges,  no  serious  think 
tanks  or  publishing  houses,  no  newspapers  or  broad- 
casting. Nothing  like  ths  writings  of  Smith,  Burke,  or 
Hayek  has  ever  been  set  down  in  Hebrew,  or  even 
translated;  Israel's  founding  fathers  translated  Man. 

This  means  that,  in  spite  of  all  the  hardware  pro- 
cured over  the  bat  SO  years,  the  Jewish  state  will  have 
to  wage  and  win  in  next  wax,  the  war  of  ideas,  out- 
gunned  again.  Hat  in  this  fight  Israel's  Jewish  aatioaal- 
istt  hare  a  hidden  advantage:  No  people  gives  up  its 
identity  and  lift-meaning  too  easily,  least  of  all  the 
Jews.  Indeed,  it  is  hut  such  conditions  of  intellectual 
wUderaesa  and  danger  which  bring  the  most  creative 
aad  powerful  aspects  of  the  national  character  to  the 
fare. 

Consigned  to  political  opposrdoo  for  the  first  time, 
Zionism  has  now  become  a  <i  oiiasn  * ausm  But  fust  as  it 
was  the  mate  of  annihilation  that  ooght  the  Jews  the 
need  for  physical  defrnsrs,  it  may  be  that  this  brush 
with  sskcOogseas  decay  waa  steaded  far  the  Jews  to  learn 
me  importance  of  dm  aattrmalidra  and  of  fhc  politi- 
cal oramnvdam  which  protects  it— fee  the  survival  of 
even  a  normal   people,  e 


34  /  Tan  Waaxur  Stsmoasp 


MtW 


303 


Embargo:  Until  Thursday.  24  August  1995, 
10:00  a.m.  (Israeli  tima) 


Jerusalem,  August  1995 


NEITHER  LAW  NOR  JUSTICE 

EXTRA-JUDICIAL  PUNISHMENT,  ABDUCTION, 

UNLAWFUL  ARREST,  AND  TORTURE  OF 

PALESTINIAN  RESIDENTS  OF  THE  WEST  BANK  BY  THE 

PALESTINIAN  PREVENTIVE  SECURITY  SERVICE 


D%3 


•      /  • 

BTSELEM 

The  Israeli  Information  Center  for  Human  Rights 
In  the  Occupied  Territories 


304 

-  9    - 

HUMAN  RIGHTS  VIOLATIONS  BY  THE  PSS 


"The  single  factor  on*  must  obey  Is  law  and  justice,  including 
the  principles  of  protecting  human  rights  and  ensuring  the 
right  of  the  opposition  to  express  its  opinions,  while 
respecting  the  institutions  of  the  National  Authority." 
Glbril  Rajoub,  Head  of  the  Preventive  Security  Service  in  the 
West  Bank* 


B'Tselem  research  shows  that  the  policing  activities  of  the  PSS 
throughout  the  West  Bank  are  conducted  in  a  manner  that  severely 
violates  basic  human  rights.  Residents  are  arrested  without  arrest 
warrants,  held  in  detention  for  lengthy  periods  without  an  indictment 
being  filed  against  them,  and  tortured  during  interrogations.  The 
methods  of  torture  used  by  the  PSS  include,  among  others,  severe 
beatings,  painful  tying-up.  sleep  deprivation,  threats,  and 
humiliation. 

The  following  is  a  list  of  persons  who  gave  testimonies  to  B'Tselem. 
The  full  names  and  places  of  residences  of  all  of  those  who  testified 
are  on  file  at  B'Tselem.  Most  are  not  published  at  their  request 
because  they  fear  PSS  reaction. 


305 


-   IX   - 


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306 


-  12  - 

All  ware  arrested  without  a  warrant  and  those  who  were  detained 
were  not  brought  before  a  judge  to  extend  the  detention  period. 
No  indictment  was  filed  against  those  released,  and  they  were  not 
prosecuted. 

As  far  as  B'Tselem  knows,  the  PSS  did  not  initiate  legal  proceedings 
against  any  PSS  agents  for  the  human  rights  violations  described 
above. 

How  the  PSS  violates  human  rights  is  demonstrated  by  the  case  of 
Muhammad  Nabil  Omar  Fakher  a-Din,  resident  of  Nablus,  aged  45. 
He  states  that  members  of  the  PSS  seized  him,  and  that  he  was  beaten 
and  shot  in  the  legs  by  Ahmad  Tabuk,  an  agent  of  the  PSS  in  Nablus. 
Palestinian  residents  from  Nablus  told  B'Tselem  that  as  a  result 
of  this  and  other  cases,  Gibril  Rajoub  summoned  Tabuk  and  several 
of  his  men  to  Jericho,  but  took  no  measures  against  them.  They 
were  not  arrested,  and  they  returned  to  Nablus  about  a  week  later. 
The  residents  indicated  that  Tabuk  is  currently  operating  in  Nablus 
as  a  PSS  agent,  working  out  of  the  same  office  as  previously. 

l.   Extra-judicial  Punishment 

Testimonies  gathered  by  B'Tselem  show  that  PSS  agents  occasionally 
shoot  the  legs  of  persons  suspected  of  committing  various  crimes, 
or  beat  them.  Usually,  the  persons  are  suspected  of  sexual  crimes 
or  what  the  PSS  members  consider  to  be  crimes  of  immorality,  such 
as  having  sexual  relations  outside  of  marriage.  The  PSS  agents 
act  without  warning,  and  without  attempting  to  arrest  the  person 
or  determine  his  guilt. 

A.J.  testified: 

On  23  May  1995,  about  12:15  p.m.,  I  was  on  my  way  home  from 
work.  When  I  approached  the  movie  theater  in  the  center  of 
Jenin,  shots  were  fired  at  me.  The  bullets  hit  my  legs  -  four 
bullets  in  the  left  leg,  and  three  in  the  right.  I  fell  to 
the  ground.  I  saw  the  fellow  who  shot  me.  X  know  him;  his 
name  is  Muhammad  Suleiman  Ahmad  Tazazah.  He  lives  in  Kabatiyah 
and  is  a  member  of  the  PSS.  After  I  fell  down,  he  kicked  and 
cursed  ma. 

Muhammad  Navil  Omar  a-Din  testified: 

(They)  began  to  beat  me  with  sticks.  As  they  were  beating 
me,  I  was  able  to  push  Ahmad  Tabuk.  He  went  berserk  and  started 
screaming  at  me  -  for  pushing  him  -  and  he  took  his  pistol 
and  started  to  shoot  me  in  the  knees  and  feet.  I  don't  remember 
if  he  shot  six  or  seven  times. 


307 


-  13  - 

These  acts  constitute  extra-judicial  punishment,  which  is  a  flagrant 
human  rights  violation.  During  the  Intifada,  this  method,  extra- 
judicial punishment  by  shooting  a  person's  legs,  was  one  of  the 
methods  used  by  members  of  Palestinian  organizations  against 
individuals  suspected  of  collaboration  with  the  Israeli 
authorities." 

2.    Unlawful  Detention 


"They  (PSS  agents)  have  no  authority  to  detain  persons  or 
use  weapons.  They  have  no  authority  to  interrogate  persons 
with  force;  they  are  prohibited  from  using  force 
altogether."  Jamal  A-Shubai,  Fatah,  in  charge  of  the 
southern  West  Bank  region11 


a.    The  Arrest  Procedure 

Testimonies  given  to  B'Taelem  indicate  that  PSS  agents  arrest  persons 
without  presenting  an  arrest  warrant,  identification  card  or  any 
other  document.  In  some  of  instances,  individuals  are  forcefully 
taken  from  their  home  to  Jericho  or  another  place  in  the  West  Bank. 
In  other  instances,  the  PSS  informed  the  person  verbally  that  he 
was  to  go  to  PSS  offices  in  Jericho  or  a  place  near  his  home.. 
They  frequently  did  not  mention  that  he  was  suspected  of  any  crime, 
claiming  only  that  they  wanted  to  clarify  something  with  him. 

The  father  of  F.D.  stated: 

On  1  June  1995,  six  young  men  arrived  in  a  car  with  Ramallah 
license  plates.  They  came  to  my  house  and  asked  about  F.  I 
asked  them  why  they  want  him.  They  said  that  they  understand 
that  he  has  a  house,  and  that  he  had  an  argument  with  his 
neighbors  about  the  path  leading  to  it.  They  said  they  are 
from  Fatah,  and  that  they  want  to  take  him  to  the  office  to 
resolve  the  problem  and  help  him.  I  refused  to  let  F.  go  with 
them  to  Ramallah,  but  he  came  out  of  the  room  and  said  that 
he  would  go.  I  told  him  not  to  do  it,  but  he  did  not  listen 
to  me,  and  he  got  into  the  car.  He  did  not  return  that  day. 


10  See  B'Tselem,  Collaborators  in  the  Occupied  Territories: 
Human  Rights  Abuses  and  Violations,  Jerusalem,  January,  1994,  pp. 
136-138. 

u  Uri  Nir,  "The  Persuaders  Came  to  Town" ,  Ha'aretz,  11  October 
1994. 


308 


-  n  - 

The  following  day,  2  June  1995,  I  went  with  a  few  others  to 
the  PLO  office  in  Ramallah,  where  I  asked  about  F.  They  told 
me  to  go  to  the  Preventive  Security  Service  office  and  ask 
there.  One  of  the  men  with  me  said  that  he  knew  the  office. 
We  went  there,  where  I  saw  several  of  the  fellows  who  had 
come  to  my  home  and  had  taken  F.  I  asked  them  where  he  was. 
They  answered  that  he  had  been  sent  to  Jericho. 

In  his  testimony  to  B'Tselem,  A.D.  stated: 

When  I  got  to  the  olive  fields,  about  a  kilometer  from  my 
home,  a  masked  man  came  out  from  behind  the  olive  trees,  jumped 
me  and  grabbed  me  by  the  throat.  He  had  a  knife  in  his  other 
hand.  He  dragged  me  towards  the  trees,  where  two  other  masked 
persons  were  waiting.  The  two  tied  my  hands  behind  me  with 
cloth,  blindfolded  me  and  pushed  a  piece  of  cloth  into  my 
mouth.  They  demanded  my  identity  card,  and  I  gave  it  to 
them....  They  said  they  were  from  the  Preventive  Security 
Service,  and  accused  me  of  selling  drugs  and  weapons... 

M.D.  stated  in  his  testimony: 

At  5:00  a.m.  on  21  May,  M.  [a  PSS  agent]  came  to  my  house. 
He  woke  me  up  and  told  me  to  get  dressed  so  that  he  could 
take  me  to  Jericho.  M.  took  me  from  my  uncle's  house  ... 
put  me  into  my  father-in-law's  car.. .  They  drove  to  Jericho, 
where  they  dropped  me  off  at  the  entrance  to  the  Preventive 
Security  Service  building.  They  left  me  and  went  away. 

b.    Prevention  of  Legal  Representation 


"I  heard  from  PSS  personnel  that  there  is  no  such  thing  as 
retaining  an  attorney."  M.Y.,  in  his  testimony  to  B'Tselem 
fieldworker,  Bassem  'Eid. 


The  right  of  a  detainee  to  be  represented  by  legal  counsel  and 
to  meet  regularly  with  his  attorney  is  fundamental  and  is  intended 
to  ensure  his  rights.  Detainees  have  no  links  with  the  outside 
world,  hence  a  meeting  with  an  attorney  helps  them  understand  their 
legal  status  and  the  legal  alternatives  available  to  them,  and 
to  complain  if  interrogators  have  exert  unlawful  pressure  and  treat 
them  violently. 

None  of  those  who  gave  testimony  had  received  had  legal 
representation.  B'Tselem  learned  that  for  various  reasons,  primarily 
because  of  the  refusal  of  the  PA  in  Jericho  to  allow  proper  legal 
representation  for  detainees,  attorneys  in  the  West  Bank  refrained 
from  representing  West  Bank  residents  arrested  by  the  PA. 


309 

-  15  - 

M.Y.  testified: 

In  the  43  days  I  was  detained,  I  did  not  ses  any  lawyer  vit 
prisoners. 

The  father  of  f.D.  testified: 

F,  told  me  not  to  bring  a  lawyer  since  Jericho  has  no  courts, 
and  a  lawyer  wouldn't,  therefore,  do  him  any  good.  So  to  this 
day,  I  did  not  get  him  a  lawyer. 


Testimony  of  Attorney  N.T.,  given  to  Bassem  'Sid  on  10 
August  1995 

The  relatives  of  the  S.  brothers  came  to  my  office  in  Nablus 
and  requested  that  I  represent  the  brothers,  as  they  were 
accused  of  murder. 

On  26  April  1995,  I  contacted  PSS  headquarters  in  Jericho. 
X  requested  permission  from  the  prosecutor  to  meet  with  my 
clients,  but  he  refused,  stating  that  the  investigation  has 
not  yet  been  completed,  and  that  I  could  not,  therefore, 
meet  them  at  that  time.  He  told  me  to  contact  him  again  on 
1  May. 

On  1  May,  I  contacted  him,  and  he  agreed  to  bring  the 
detainees  to  his  room  provided  that  I  only  request  them  to 
sign  a  power  of  attorney  and  that  I  don't  speak  with  them  at 
all.  I  agreed,  and  the  detainees  came  into  the  room.  I  had 
them  sign  the  power  of  attorney,  and  then  I  asked  one  of 
them,  the  one  the  family  had  said  limps,  how  his  leg  was. 
The  prosecutor  immediately  stood  up  and  said  Z  was  forbidden 
to  ask  any  questions.  He  shouted  for  a  soldier,  who  took  the 
detainees  back  to  the  prison. 

The  family  requested  that  Z  stop  handling  the  case  since  Z 
was  not  allowed  to  meet  with  my  clients. 


c.    Lack  of  Judicial  Review 

International  law  stipulates  that  restricting  a  person's  liberty 
must  be  subject  to  effective  review  by  judicial  authority.  A 
reasonable  time  after  his  arrest,  a  detainee  must  be  brought  before 
a  judge  so  thet  he  can  determine  whether  denying  liberty  to  the 
detainee,  who  is  presumed  innocent,  is  justified  in  light  of  the 
prima   facie  evidence  against  him. 


310 


-  16  - 

The  testimonies  gathered  by  B'Teelem  indicate  that  detainees  are 
held  in  Jericho  for  extended  periods  without  any  judicial  scrutiny, 
and  without  giving  them  an  opportunity  to  appeal  their  arrest  or 
the  conditions  under  which  they  are  being  held. 

The  father  of  F.D.  stated  in  his  testimony: 

47  days  have  already  passed  since  he  was  arrested,  but  he 
has  not  yet  been  brought  before  a  judge. 

The  father  of  I.  S.  testified: 

My  son,  I.,  was  released  on  30  July;  during  the  entire  period 
of  his  incarceration  [he  was  arrested  on  5  April  1995],  he 
was  never  brought  before  a  judge  for  a  hearing  or  to  extend 
the  detention. 

d.    Prohibition  of  Periodic  Family  Visitation 

International  law  recognizes  the  right  of  detainees  to  meet  with 
their  families.  Family  visits  allow  detainees  to  maintain  contact 
with  the  world  outside  the  prison  and  to  ensure  that  someone  will 
act  to  protect  their  rights. 

PSS  personnel  do  not  permit  periodic  family  visits  to  detainees; 
they  do  not  even  notify  families  that  their  relatives  have  been 
arrested  or  where  they  are  being  held. 

The  father  of  F.D.  testified: 

Ten  days  passed  and  we  did  not  hear  anything  about  him,  so 
I  decided  to  rent  a  car  and  go  to  Jericho  with  my  wife,  my 
children,  and  F.  's  wife.  . .  We  rented  a  car  for  NIS  100,  bought 
gifts  for  another  NIS  100,  took  clothes,  and  went  to  Jericho. 
We  went  to  the  police  station  and  asked  about  F.  The  police 
asked  if  he  was  a  criminal  or  a  security  detainee.  I  said 
that  I  did  not  know  the  charges  against  him.  An  officer  went 
with  us  in  our  car  to  the  PSS  in  Jericho  and  checked  if  F. 
was  there.  They  said  he  was.  The  officer  said  that  his  family 
had  arrived  for  a  visit,  but  he  was  told  that  F.  was  not 
allowed  to  receive  visitors.  I  got  involved  and  said  that 
the  whole  family  had  come  to  visit,  that  we  had  spent  lots 
of  money  to  get  there,  and  that  they  should  at  least  let  us 
look  at  him  through  the  bars  of  his  cell.  The  PSS  man  refused. 
We  went  home  without  seeing  F. 

Only  on  30  June  1995,  a  month  after  his  arrest,  was  F.'s  family 
allowed  to  visit  him. 

s.D.  was  detained  for  24  days.  On  the  fifth  day  of  his  detention, 
his  cousin  asked  the  PSS  in  Jericho  to  allow  his  family  to  visit 
him,  but  his  request  was  denied.  His  family  was  allowed  to  visit 
him  only  11  days  after  his  arrest. 


311 


-  17  - 

3.    Torture  and  Ill-Treatment  during  Interrogation 


"I  confessed  to  all  the  crimes  that  had  taken  place  in  the 
village.  When  I  denied  something,  they  brought  plastic  cups, 
took  off  my  shirt,  and  began  to  melt  the  plastic  on  my  body, 
mostly  on  my  back.  They  plucked  hairs  from  my  chest  and  my 
mustache.  I  began  to  confess  to  more  and  more  things.  They 
alleged  that  I  had  killed  my  father,  and  I  confessed." 
M.D.,  in  his  testimony  to  B'Tselem  fieldworker,  Bassem  'Eid 


The  testimonies  given  to  B'Tselem  indicate  that,  when  interrogating 
suspects,  PSS  personnel  torture  and  humiliate.  Some  of  their 
techniques  resemble  those  used  in  Israeli  CSS  interrogation 
facilities;  like  their  Israeli  counterparts,  PSS  interrogators 
beat  detainees,  bind  them  painfully  for  lengthy  periods  of  time, 
deprive  them  of  sleep,  cover  their  head  with  a  sack,  and  insult 
and  humiliate  them.  Some  of  the  testimonies  mentioned  other  torture 
techniques,  like  dripping  molten  plastic  on  their  bodies,  forcing 
them  to  undress,  or  hanging  them  by  their  feet.  Iman  Shihab,  the 
only  woman  among  those  who  gave  testimonies  for  this  report, 
mentioned  sexual  abuse,  which  included  pulling  her  nipples  with 
pincers. 

a.    Beatings,  tvlno-up.  and  other  forms  of  physical  abuse 

Several  of  the  interviewees  reported  that  they  were  severely  beaten 
with  sticks  and  rubber  hoses,  and  were  punched  and  kicked.  For 
some,  the  beatings  lasted  for  several  hours,  the  interrogators 
taking  turns.  In  some  cases,  the  interrogators  beat  detainees  after 
forcing  them  to  undress,  and  poured  water  on  them.  Other  techniques 
used  included  dripping  molten  plastic  on  their  bodies  and  forcing 
them  to  stand  in  painful  positions  for  long  periods. 

All  the  testimonies  indicate  that  at  one  stage  or  another  of  the 
interrogation,  they  were  tied-up  for  many  hours.  Some  were  tied 
immediately  upon  arrival  at  the  prison  in  Jericho  in  the  position 
known  as  "shabah"."  Detainees  are  held  in  this  position  for  hours 
and  sometimes  days,  their  head  covered  with  a  sack. 


11  This  tying  technique  is  known  to  human  rights  organisations 
from  GSS  interrogations.  The  detainee's  hands  are  tied  behind  him 
and  to  a  pipe  or  pole  affixed  to  the  wall  or  ceiling,  sometimes 
very  high.  The  detainee  often  has  difficulty  standing  on  his  feet, 
which  are  also  tied.  See  B'Tselem,  Interrogation  of  Palestinians 
during  the  intifada:  Ill-Treatment,  {"Moderate  Physical  Pressure" 
or  Torture?,  March,  1991,  pp.  62-67. 


312 


-  X8 


Iman  Shihab  testified: 

Abu  Arajad  arrived  and  took  me  to  another  room,  where  he  tied 
my  hands  behind  me  and  sprayed  me  with  tear  gas  from  a 
canister.  Z  felt  burns  all  over  my  body.  I  started  to  scream 
in  pain.  Z  begged  for  mercy.  He  started  to  melt  candles  on 
my  body  while  telling  me  to  confess  to  the  allegations.  I 
said:  "I  am  a  collaborator,  Z  committed  crimes  of  immorality, 
Z  had  sex  -  just  leave  me  alone."  He  told  me  that  he  wanted 
me  to  confess  of  my  own  free  will,  and  not  because  of  the 
torture.  I  swore  by  God  that  none  of  the  allegations  were 
true.  That  went  on  until  evening.  Twice  during  the 
interrogation  Abu  Amjad  pulled  the  nipples  of  my  breasts  with 
pincers. 

Z.I.  testified: 

They  tied  my  legs  with  rope,  and  tied  the  rope  to  a  piece 
of  wood  on  the  ceiling,  so  that  Z  was  hanging  upside  down. 
They  started  to  beat  me  on  the  head  with  a  black  wooden  stick. 
That  continued  from  midnight  until  4  in  the  morning. . . 

A.F.  was  beaten  several  times: 

One  of  the  interrogators  stood  behind  me,  and  the  other  was 
in  front.  The  one  in  the  back  started  to  beat  me  with  a  rubber 
hose,  and  the  other  punched  and  kicked  me.  This  lasted  until 
about  2:00  in  the  morning.  They  took  turns  beating  me.... 
A  rubber  hose  was  lying  on  the  ground.  They  sprayed  water 
on  me  and  beat  me  with  the  rubber  hose.  That  lasted  about 
20  minutes. . . .  They  brought  bottles  of  water.  One  hit  me  with 
a  rubber  hose  and  the  other  sprayed  me  with  water.  That  went 
on  for  about  an  hour. 

M.Y.  testified: 

They  told  me  to  stand  and  spread  my  legs  as  far  as  possible. 
I  spread  my  legs  as  much  as  I  could.  They  brought  a  piece 
of  wood  and  placed  it  lengthwise  between  my  legs.  The  wood 
had  rope  at  each  end,  and  they  tied  the  rope  to  my  legs,  and 
left  me  like  that  for  about  an  hour.  Then  they  moved  the  wood, 
and  Z  stayed  there  with  my  hands  tied  until  morning.... 
The  interrogator  sat  me  down  on  the  chair,  its  back  being 
to  my  side.  The  others  in  the  room  told  me  to  lower  my  head 
backwards  to  the  floor.  A  couple  of  them  pulled  my  knees 
downwards  so  that  my  back  was  on  the  chair  and  my  head  lower. 
One  of  them  sat  on  my  knees  and  another  grabbed  my  shoulders 
and  pushed  my  head  down  hard.  That  went  on  for  about  ten 
minutes.  Then  they  told  me  to  get  up.  Z  said  that  I  couldn't. 
They  grabbed  me  by  the  shoulders  and  took  me  back  to  the 
detention  room. 


313 


-  i»  - 


M.D.  stated: 


He  began  to  beat  m«  with  his  hands  and  a  stick  that  was  in 
the  room.  H«  beat  ma  mostly  in  the  mouth,  the  shoulders,  and 
stomach.  That  lasted  from  5:00  p.m.  to  4:30  the  following 
morning.  The  interrogator  would  come  and  go.  Two  others  also 
came  in  during  that  time  and  beat  me  with  their  hands.  The 
interrogator  who  came  back  later  kicked  me  in  the  groin.  Each 
of  the  other  two  grabbed  me  with  one  hand,  and  with  the  other 
punched  me  in  the  face....  Two  hours  later  they  took  me  to 
another  room. . .  I  sensed  that  more  than  one  was  beating  my 
hands  and  legs  with  a  stick.  I  confessed  to  things  I  had  done 
and  had  not  done. 


Threads  and  Insult* 


I  "He  put  a  pistol  to  my  head  and  said  that  he  had  killed  50 
I  men,  and  that  I  would  be  number  51."  I.I.,  in  his  testimony 
|  to  B'Tselem  fieldworker,  Bassem  'Bid fl 

All  persons  who  had  been  interrogated  and  testified  for  this  report 
said  that  they  had  been  threatened  and  humiliated  during  the 
interrogations.  In  several  cases,  the  interrogators  threatened 
their,  or  their  relatives',  lives.  The  interrogators  also  told 
them  they  would  torture  them  more  severely  or  that  their  detention 
would  be  extended.  In  one  case,  they  threatened  to  try  the  detainee 
before  a  military  court  in  Gaza."  The  interrogators  also  threatened 
the  detainees  that  if  they  relate  what  had  taken  place  during  the 
interrogations,  they  would  distribute  their  confessions,  obtained 
through  torture,  in  their  communities  so  as  to  endanger  them. 

In  many  instances,  interrogators  humiliated  detainees  by  directing 
sexual  insults  to  their  female  relatives.  In  addition  to  verbal 
insults,  interrogators  also  used  physical  humiliation,  like 
undressing  the  detainees,  spitting  in  their  faces,  or  serving  them 
urine  to  drink. 


"  In  April,  1995,  the  State  Security  Court  in  Gaza,  established 
by  the  Palestinian  Authority,  began  to  try  persons  accused  of 
security  crimes.  According  to  Amnesty  International,  the  trials 
in  these  courts  are  exceedingly  unfair  and  violate  the  minimal 
standards  of  international  law.  See  Amnesty  International,  Trial 
at  Midnight:  Secret,  Summary,  Unfair  Trials  in  Gaza,  June,  1993. 


314 

-  20  - 

I.I.  related: 

I  was  questioned  by  three  interrogators...  They  asked  me  if 
Z  was  a  collaborator.  I  said  no.  Mahmud  'Abaci  [one  of  the 
interrogators]  told  me:  "We  will  kill  you  like  we  killed  your 
uncle,14  and  you  will  die  a  month  from  now".  .  .  .  Then  a  fellow 
named  Abu  Al-'Az  entered  and  said  to  Jamal:  "If  he  dies,  throw 
him  behind  the  wall  and  say  that  he  committed  suicide".... 
Mahmud  Abasi  took  me,  in  a  white  jeep,  to  the  Jericho 
barricade.  Along  the  way,  he  told  me. .  .  "We'  11  have  your  wife 
working  as  a  prostitute." 

S.D.  stated  that: 

Jamal  [the  interrogator)  grabbed  the  pistol  and  started  to 
chase  me,  and  said:  "If  you  don't  tell  the  truth,  I'll  empty 
the  magazine  into  your  head"....  The  jailer  returned  after 
a  while  and  told  ma  that  I  have  until  11:00  p.m.  to  confess. 
If  I  do  not,  he  said,  they  will  take  me  to  the  room  with  the 
electricity.  He  said:  "Ask  your  friend  about  that  room,  if 
electricity  doesn't  work,  there  are  other  means,  like  having 
you  sit  on  bottles." 

Iman  Shihab  testified: 

About  an  hour  later,  Abu  Amjad  came  back.  He  untied  my  hands 
and  ordered  me  to  undress.  I  screamed  and  refused.  He  said: 
"If  you  don't  take  your  clothes  off,  we'll  do  it  for  you." 
I  took  off  my  pants,  blouse,  end  shoes,  and  stood  there  in 
my  underwear.  .  . .  They  said:  "Why  don't  you  confess?  Many  have 
already  confessed  while  sitting  on  this  chair.  We  are  going 
to  go  away  now,  and  we'll  come  back  in  an  hour.  We'll  bring 
you  a  piece  of  paper,  and  you'll  write  your  confession.  If 
not,  we'll  take  you  to  the  top  of  the  mountain,  and  you  don't 
know  what  will  happen  to  you  there.  We'll  put  out  an 
announcement  that  you  are  a  collaborator  and  will  distribute 
it  where  you  live."'* 

M.Y.  stated  in  his  testimony: 

They  told  me  I  was  going  to  be  released,  but  they  ordered 
me  not  to  say  anything  about  the  interrogation.  They  said 
that  if  I  did,  the  torture  would  be  even  worse  the  next  time. 


14  His  uncle  was  killed  in  August  of  1994  by  masked  persons 
on  the  suspicion  that  ha  was  a  collaborator  with  Israel. 

"  During  the  Intifada,  many  Palestinians  were  injured  by  other 
Palestinians  following  rumors  that  they  had  collaborated  with  the 
Israeli  authorities.  See  B'Tselem,  Collaborators  in  the  occupied 
Territories!  Human  Rights  Abuses  and  Violations,  January,  1994. 


315 


-  2X  - 

A.F.  •tat**: 

They  untied  my  hands  and  legs  and  ordered  me  to  drop  my 
pajamas.  I  was  left  standing  in  my  underpants....  Then  they 
took  me  into  the  room  and  had  me  put  my  pajamas  on....  The 
guy  who  put  the  gun  to  my  head  came  into  the  room  and  said: 
"you  don't  want  to  talk,  so  you  can  stay  here."  He  started 
to  write  something,  and  then  said:  "I  am  writing  your 
confession,  and  I'll  send  it  to  Headquarters."  He  wrote:  "I, 
A.F.  admit  that  I  have  been  working  for  the  Shabak  [CSS]  since 
1982"  (at  which  time  I  was  14)....  We  went  into  one  of  the 
rooms,  where  they  tied  me  to  a  window.  One  of  them  said:  "Here 
is  where  we  are  going  to  finish  you  off"....  Then  they  took 
me  to  the  roof  and  said:  "We  are  going  to  throw  you  over  the 
side." 

c.  Sleep  peprlva.tlpn 

In  some  of  the  cases,  PSS  interrogators  used  various  means  to  prevent 
the  detainees  from  sleeping:  painful  tying-up  night  and  day, 
imprisonment  in  a  small  cell  in  which  one  cannot  lie  down  or  sit 
comfortably,  and  regular  deliberate  disturbances  by  workers  in 
the  facility.  The  testimonies  show  that  some  of  the  Interrogations 
lasted  several  hours,  throughout  the  night  and  the  following  day. 

1. 1.,  who  was  detained  for  eight  days,  stated  that  throughout  that 
period,  he  was  able  to  sleep  only  three  hours.  A.F.  was  interrogated 
non-stop  for  three  days. 

S.D.,  who  was  jailed  three  days  in  a  bathroom,  testified: 

The  interrogator. . .  hooded  me  and  ordered  me  to  stand  on  one 
leg.  This  continued  for  three  consecutive  days. .  .  .  Every  five 
minutes  the  door  opened  so  they  could  make  sure  I  was  standing 
on  one  leg. 

d.  Prevention  of  Medical  Treatment 

The  testimonies  show  that  detainees  requiring  medical  care  following 
brutal  interrogation,  or  for  any  other  reason,  remain  untreated. 

Several  people  who  testified  claimed  that  the  PSS  does  rot  allow 
the  Red  Cross  to  meet  with,  and  medically  examine,  detainees.  In 
cases  where  meetings  with  the  Red  Cross  are  allowed  with  detainees 
who  had  been  injured  during  the  interrogation,  the  detainees  are 
warned  not  to  tell  the  Red  Cross  visitors  about  their  health 
condition. 


316 

-  22  - 

S.D.  stated: 

My  friends,  from  a  Christian  family,  requested  that  the  Re 
Cross  visit  me,  and  they  came,  but  before  they  arrived,  Jama 
told  me  Red  Cross  personnel  had  come  to  visit  me  with  ; 
physician,  and  that  I  should  not  sey  anything  about  the 
beatings  I  had  received.  When  the  Red  Cross  people  arrived, 
I  did  not  let  the  physician  examine  me,  and  I  said  I  was 
perfectly  healthy.  The  physician  saw  signs  of  beatings  and 
swellings  on  my  face,  and  began  to  ask  questions,  but  I  only 
cried.  I  was  in  a  terrible  emotional  state. 

A.S.'s  father  said: 

A  few  days  after  they  were  arrested,  I  heard  from  some  members 
of  the  Palestinian  Military  Police  that  my  children  were 
severely  tortured  by  the  PSS.  A  couple  of  days  later  my  wife 
went  to  Jericho  to  visit  my  injured  son. . .  she  requested  that 
the  Red  Cross  give  him  medical  treatment,  but  the  interrogator 
said:  "We  don't  recognize  the  Red  Cross  or  human  rights 
organizations." 

A.S.  testified: 

They  pulled  me  with  this  hand,  which  had  11  stitches  in  it 
(he  was  wounded  before  the  arrest).  I  also  had  medications 
I  was  taking,  but  thoy  took  them  from  me  when  I  got  to  Jericho. 
Whenever  I  asked  for  them,  they  said:  "After  you  confess." 


317 


Appendix  B 


NCIS 

BRIEFING  PAPER 


AI^  OUTLINE  ASSESSMENT 

OF  THE  THREAT  AND  IMPACT  BY 

ORGANISED/ENTERPRISE  CRIME 

UPON  UNITED  KINGDOM  INTERESTS 


NATIONAL  CRIMINAL  INTELLIGENCE  SERVICE 

LONDON  HEADQUARTERS,  PO  BOX  8000 

LONDON  SEU5EN 


318 

Appendix  B         111 


THE  PROVISIONAL  IRA 


The  Provisional  Irish  Republican  Army  was  formed  m  1970.  It  sees  publicity 
as  a  key  means  of  furthering  its  aims  of  a  unified  Ireland  with  a  32-couoty 
socialist  administration  and  so  has  concentrated  many  of  its  attacks  on  London 
where  it  is  guaranteed  the  most  attention  It  favours  attacks  on  poorly  defended 
'soft'  targets  connected  with  the  military  and  political  establishments  However 
recent  events  demonstrate  it  is  directing  its  attention  to  disrupt  the  economic 
infrastructure,  particularly  by  bombing  outrages  in  the  City.  This  could  already 
be  a  prelude  to  activity  witnessed  in  the  Province,  where  failure  to  pay 
"protection  money'  can  result  in  bomb  attacks. 

Most  of  their  money  does  indeed  come  from  racketeering,  extortion  and  bank 
robberies.  Only  a  small  proportion  (less  than  £100,000  a  year)  comes  from 
sympathizers  at  home  and  in  the  US.  Income  tax.  fraud  in  the  construction 
industry  is  also  a  good  source. 

Much  of  this  money,  coupled  with  the  risk  of  infiltration,  finds  its  way  into  UK 
institutions.  Any  suspicions  in  this  area  must  be  reported  to  the  Financial  Desk 
of  the  National  Criminal  Intelligence  Service,  who  will  treat  the  matter 
sensitively. 


THE  ANIMAL  LIBERATION  FRONT 

The  UK  based  ALF  is  a  highly  motivated  and  efficient  organization  dealing 
with  an  emotive  issue.  Their  attacks  are  on  a  wide  range  of  establishments  and 
businesses  which  have  connections  with  food,  animal  products,  or  are  suspected 
of  using  animals  in  testing.  They  have  recently  switched  to  attacking  people 
connected  in  some  way  in  this  industry.  This  has  included  car  bombs  and 
incendiary  devices 


MIDDLE  EAST  TERRORIST  GROUTS  AND  STATES 

The  conglnneraffan  nf  Pajeatinian  movememi  g^n  i£g  umbrella  of  the 
Palestine  Liberation  Organization  (PLO)  are  the  richest  of  all  terrorist  groups. 
It  is  estimated  that  they  have  worldwideauets  approacning  RPI0  billion  \J$ 
and  an  annual  income  of  about  $1.5-2  billion  US.  Whilst  the  target  of  their 
attention  remains  Israel  and  Israeli  interests,  their  activity  frequently  turns  to 
European  cities  and  London  has  not  escaped  various  outrages,  often  financed 
and  assisted  by  maverick  states  and  factions  such  as  Libya  and  Iraq.  The 
current  situation  indicates  that  this  will  continue  and  that  the  fraud  centres  of 


319 


278       Appendix  B 

London  and  Frankfort  are  ironically  apt  only  targets ,  but  axe  used  to  handle  the 
resources  or  these  groups. 


COUNTERFEIT  CURRENCY 

The  United  Kingdom's  National  ^entral  Office  for  the  Suppression  of 
Counterfeit  Currency  was  formed  as  a  result  of  Article  12  of  the  Geneva 
Convention  1929. 

The  Convention  states: 

in  every  country,  within  the  !  frame  work  of  its  domestic  law, 
investigations  on  the  subject  of  counterfeiting  should  be  organized  by  a 
central  office. 

This  central  office  should  be  in  close  contact: 

(a)  with  the  institutions:  issuing  currency; 

j         i 

(b)  with  the  police  authorities  within  the  country; 

(c)  with  the  central  offices  ofj  other  countries. 

It  should  centralize,  in  each  country,  all  information  of  a  nature  to 
facilitate  the  investigation,  prevention  and  punishment  of  counterfeiting 
currency. 


Until  August  1990,  the  counterfeit  problem  in  the  United  Kingdom  was  of  little 
significance.  What  little  counterfeit  currency  that  was  seen,  was  not  UK 
sterling.  The  majority  of  counterfeit  currency  operations  and  intelligence  at  that 
time  related  to  the  USA  dollar.  Sipce  then,  however,  there  has  been  a  large 
increase  in  counterfeit  currency  within  the  UK.  This  increase  has  been  across 
the  whole  range  of  currencies. 

Modern  printing  techniques  mean  thai  counterfeiting  is  now  available  to  a  much 
larger  group  of  criminals  and  many  have  been  tempted  to  have  a  go.  Colour 
copier  machines  are  now  widely  available  in  offices  throughout  the  UK  and 
there  has  been  a  corresponding  rite  jn  counterfeits  produced  on  these  machines, 
although  they  have  not  replaced  traditional  methods.  However  the  quality  of 


320 


\  NCIS 

ORGANISED  CRIME  UNIT 


AN  OUTLINE  ASSESSMENT 

OF  THE  THREAT  AND  IMPACT  BY 

ORGANISED/ENTERPRISE  CRIME 

UPON  UNITED  KINGDOM  INTERESTS 


SECOND  BRIEFING  -  FEBRUARY  1994 


NATIONAL  CRIMINAL  INTELLIGENCE  SERVICE 

LONDON  HEADQUARTERS,  PO  BOX  8000 

LONDON  SEU  SEN 

21  733    475 


321 

INDEX  TO  PAPERS 

PAGES  NOS 

UK  OVERVIEW  1-3 

FRAUD  AND  MONEY  LAUNDERING  4-5 

GLOBAL  DRUG  TRAFFICKING  AND  ITS  EFFECT  ON  THE  UK  6-9 

TRIAD  GROUPS  10-11 

ITALIAN  MAFIA  12-14 

CRIMINAL  GROUPS  FROM  THE  FORMER  SOVIET  UNION  15-17 

THE  THREAT  OF  JAMAICAN  CRIMINALS  IN  THE  UK  18-19 

BIKER  GROUPS  20-21 

TURKISH  GROUPS  22-23 

CRIMINAL  ACQUISITION  AND  USE  OF  FIREARMS  24-25 

CRIMINAL  MISUSE  OF  TRAVEL  DOCUMENTS  26 

X^       TERRORISM  27-28 

COUNTERFEIT  CURRENCY  29-30 

CRIMINAL  INFILTRATION  INTO  THE  TOXIC  WASTE  INDUSTRY  31-23 

ISRAELI  ORGANISED  CRIME  33-34 

CASINOS  AND  GAMING  35-37 


21-733  O  -  Qfi  -   15 


322 


socialist  administration  and  so  has  concentrated  many  of  its  attacks  on  London 
where  it  is  guaranteed  the  most  attention.  It  favours  attacks  on  poorly 
defended  'soft*  targets  connected  with  the  military  and  political  establishments. 
However  recent  events  demonstrate  it  is  directing  its  attention  to  disrupt  the 
economic  infrastructure,  particularly  by  bombing  outrages  in  the  City.  This 
could  already  be  a  prelude  to  activity  witnessed  in  the  Province,  where  failure 
to  pay  'protection  money*  can  result  in  bomb  attacks. 


Most  of  their  money  does  indeed  come  from  racketeering,  extortion  and  bank 
robberies.  Only  a  small  proportion  (less  than  £100,000  a  year)  comes  from 
sympathizers  at  home  and  in  the  US.  '  Income  tax  fraud  in  the  construction 
industry  is  also  a  good  source.  ;  I 

Much  of  this  money,  coupled  with  the  rijsk  of  infiltration,  finds  its  way  into  UK 
institutions.  Any  suspicions  in  this  area  must  be  reported  to  the  Financial  Desk 
of  the  National  Criminal  Intelligence1  i  Service,  who  will  treat  the  matter 
sensitively.  I  j 


THE  ANIMAL  LIBERATION  FRONT 

'.  ji 
The  UK  based  ALF  is  a  highly  motivated  and  efficient  organisation  dealing 
with  an  emotive  issue.  Their  attacks  'are  on  a  wide  range  of  establishments 
and  businesses  which  have  connections  with  food,  animal  products,  or  are 
suspected  of  using  animals  in  testing.  They  have  recently  switched  to  attacking 
people  connected  in  some  way  in  this  industry.  This  has  included  car  bombs 
and  incendiary  devices.  ! 


MIDDLE  EAST  TERRORIST  GROUPS  AND  STATES 

i      ,! 
A  conglomeration  of  Palestinian  movements  constitutes  the  richest  of  all 

terrorist  groups.    Despite  denials  to  the  contrary ,  it  is  estimated  that  they  have 

world  wide  assets  approaching  $8  -  l'Oj  billion  US  and  an  annual  income  of 

about  $1.5  -  2  billion  US.     Whilst  the  target  of  their  attention  has  been  Israel 

and  Israeli  interests,  their  activity  has  frequently  turned  to  European  cities  and 

London  has  not  escaped  various  outrages,  often  financed  and  assisted  by 

maverick  states  and  factions  such  as  Libya  and  Iraq.     The  current  situation 

indicates  that  the  financial  centres  of  London  and  Frankfurt  are  ironically  not 

only  targets,  but  are  used  to  handle  the i  resources  of  these  groups. 


323 


THE  PALESTINE  NATIONAL  COVENANT 

(Al-Mihaq  Al-Watani  Al-Filastini) 

ARTICLE  1 
Palestine  is  the  homeland  of  the  Palestinian  Arab  people  and  an  integral  part  of  the  great  Arab 
homeland,  and  the  people  of  Palestine  is  a  part  of  the  Arab  Nation. 

ARTICLE  2 
Palestine  with  its  boundaries  that  existed  at  the  time  of  the  British  Mandate  is  an  integral  regional 
unit 

ARTICLE  3 
The  Palestinian  Arab  people  possesses  the  legal  right  to  its  homeland,  and  when  the  liberation  of 
its  homeland  is  completed  it  will  exercise  self-determination  solely  according  to  its  own  will  and  choice. 

ARTICLE  4 
The  Palestinian  personality  is  an  innate,  persistent  characteristic  that  does  not  disappear,  and  it  is 
transferred  from  fathers  to  sons.  The  Zionist  occupation,  and  the  dispersal  of  the  Palestinian  Arab  people 
as  a  result  of  the  disasters  which  came  over  it,  do  not  deprive  it  of  its  Palestinian  personality  and 
affiliation  and  do  not  nullify  them. 

ARTICLE  5 
The  Palestinians  are  the  Arab  citizens  who  were  living  permanently  in  Palestine  until  1947, 
whether  they  were  expelled  from  there  or  remained.  Whoever  is  born  to  a  Palestinian  Arab  father  after 
this  date,  within  Palestine  or  outside  it,  is  a  Palestinian. 

ARTICLE  6 
Jews  who  were  living  permanently  in  Palestine  until  the  beginning  of  the  Zionist  invasion  will  be 
considered  Palestinians. 

ARTICLE  7 
The  Palestinian  affiliation  and  the  material,  spiritual  and  historical  tie  with  Palestine  are  permanent 
realities.  The  upbringing  of  the  Palestinian  individual  in  an  Arab  and  revolutionary  fashion,  the 
undertaking  of  all  means  of  forging  consciousness  and  training  the  Palestinian,  in  order  to  acquaint  him 
profoundly  with  his  homeland,  spiritually  and  materially,  and  preparing  him  for  the  conflict  and  the  armed 
struggle,  as  well  as  for  the  sacrifice  of  his  property  and  his  life  to  restore  his  homeland,  until  the  liberation 
-  all  this  is  a  national  duty. 

ARTICLE  8 
The  phase  in  which  the  people  of  Palestine  is  living  is  that  of  the  national  (Watani)  struggle  for 
the  liberation  of  Palestine.  Therefore,  the  contradictions  among  the  Palestinian  national  forces  are  of  a 
secondary  order  which  must  be  suspended  in  the  interest  of  the  fundamental  contradiction  between 
Zionism  and  colonialism  on  the  one  side  and  the  Palestinian  Arab  people  on  the  other.  On  this  basis,  the 
Palestinian  masses,  whether  in  the  homeland  or  in  places  of  exile  (Mahajir),  organizations  and  individuals, 
comprise  one  national  front  which  acts  to  restore  Palestine  and  liberate  it  through  armed  struggle. 

ARTICLE  9 
Armed  struggle  is  the  only  way  to  liberate  Palestine  and  is  therefore  a  strategy  and  not  tactics. 
The  Palestinian  Arab  people  affirms  its  absolute  resolution  and  abiding  determination  to  pursue  the  armed 


324 


struggle  and  to  march  forward  toward  the  armed  popular  revolution,  to  liberate  its  homeland  and  return 
to  it,  [to  maintain]  its  right  to  a  natural  life  in  it,  and  to  exercise  its  right  of  self-determination  in  it  and 
sovereignty  over  it. 

ARTICLE  10 
Fedayeen  action  forms  the  nucleus  of  the  popular  Palestinian  war  of  liberation.  This  demands  its 
promotion,  extension  and  protection,  and  the  mobilization  of  all  the  mass  and  scientific  capacities  of  the 
Palestinians,  their  organization  and  involvement  in  the  armed  Palestinian  revolution,  and  cohesion  in  the 
national  (Watani)  struggle  among  the  various  groups  of  the  people  of  Palestine,  and  between  them  and 
the  Arab  masses,  to  guarantee  the  continuation  of  the  revolution,  its  advancement  and  victory. 

ARTICLE  11 
The  Palestinians  will  have  three  mottoes:  National  (Walaniyya)  unity,  national  (Qawmiyya) 
mobilization  and  liberation. 

ARTICLE  12 
The  Palestinian  Arab  people  believes  in  Arab  unity.   In  order  to  fulfill  its  role  in  realizing  this, 
it  must  preserve,  in  this  phase  of  its  national  (Watani)  struggle,  its  Palestinian  personality  and  the 
constituents  thereof  increase  consciousness -of  its  existence  and  resist  any  plan  that  tends  to  disintegrate 
or  weaken  it 

ARTICLE  13 
Arab  unity  and  the  liberation  of  Palestine  are  two  complementary  aims.  Each  one  paves  the  way 
for  realization  of  the  other.  Arab  unity  leads  to  the  liberation  of  Palestine,  and  the  liberation  of  Palestine 
leads  to  Arab  unity.   Working  for  both  goes  hand  in  hand. 

ARTICLE  14 
The  destiny  of  the  Arab  nation,  indeed  the  very  Arab  existence,  depends  upon  the  destiny  of  the 
Palestine  issue.    The  endeavor  and  effort  of  the  Arab  nation  to  liberate  Palestine  follows  from  this 
connection.  The  people  of  Palestine  assumes  its  vanguard  role  in  realizing  this  sacred  national  (Qawmt) 
aim. 

ARTICLE  15 

The  liberation  of  Palestine,  from  an  Arab  viewpoint,  is  a  national  (Qawmi)  duty  to  repulse  the 
Zionist,  imperialist  invasion  from  the  great  Arab  homeland  and  to  purge  the  Zionist  presence  from 
Palestine.  Its  full  responsibilities  fall  upon  the  Arab  nation,  peoples  and  governments,  with  the  Palestinian 
Arab  people  at  their  head. 

For  this  purpose,  the  Arab  nation  must  mobilize  its  military,  human,  material  and  spiritual 
capabilities  to  participate  actively  with  the  people  of  Palestine.  They  must,  especially  in  the  present  stage 
of  armed  Palestinian  revolution,  grant  and  offer  the  people  of  Palestine  all  possible  help  and  every  material 
and  human  support,  and  afford  it  every  sure  means  and  opportunity  enabling  it  to  continue  to  assume  its 
vanguard  role  in  pursuing  its  armed  revolution  until  the  liberation  of  its  homeland. 

ARTICLE  16 
The  liberation  of  Palestine,  from  a  spiritual  viewpoint,  will  prepare  an  atmosphere  of  tranquility 
and  peace  for  the  Holy  Land,  in  the  shade  of  which  all  the  holy  places  will  be  safeguarded,  and  freedom 
of  worship  and  visitation  to  all  will  be  guaranteed,  without  distinction  or  discrimination  of  race,  color, 
language  or  religion.  For  this  reason,  the  people  of  Palestine  looks  to  the  support  of  all  the  spiritual  forces 
in  the  world. 


325 


ARTICLE  17 
The  liberation  of  Palestine,  from  a  human  viewpoint,  will  restore  to  the  Palestinian  man  his 
dignity,  glory  and  freedom.    For  this,  the  Palestinian  Arab  people  looks  to  the  support  of  those  in  the 
world  who  believe  in  the  dignity  and  freedom  of  man. 

ARTICLE  18 
The  liberation  of  Palestine,  from  an  international  viewpoint,  is  a  defensive  act  necessitated  by  the 
requirements  of  self-defense.  For  this  reason,  the  people  of  Palestine,  desiring  to  befriend  all  peoples, 
looks  to  the  support  of  the  states  which  love  freedom,  justice  and  peace  in  restoring  the  legal  situation  to 
Palestine,  establishing  security  and  peace  in  its  territory,  and  enabling  its  people  to  exercise  national 
(Wataniyya)  sovereignty  and  national  (Qawmiyya)  freedom. 

ARTICLE  19 
The  partitioning  of  Palestine  in  1947  and  the  establishment  of  Israel  is  fundamentally  null  and 
void,  whatever  time  has  elapsed,  because  it  was  contrary  to  the  wish  of  the  people  of  Palestine  and  its 
natural  right  to  its  homeland,  and  contradicts  the  principles  embodied  in  the  Charter  of  the  United  Nations, 
the  first  of  which  is  the  right  of  self-determination. 

ARTICLE  20 
The  Balfour  Declaration,  the  Mandate  Document,  and  what  has  been  based  upon  them  are 
considered  null  and  void.  The  claim  of  a  historical  or  spiritual  tie  between  Jews  and  Palestine  does  not 
tally  with  historical  realities  nor  with  the  constituents  of  statehood  in  their  true  sense.  Judaism,  in  its 
character  as  a  religion  of  revelation,  is  not  a  nationality  with  an  independent  existence.  Likewise,  the  Jews 
are  not  one  people  with  an  independent  personality.  They  are  rather  citizens  of  the  states  to  which  they 
belong. 

ARTICLE  21 
The  Palestinian  Arab  people,  in  expressing  itself  through  the  armed  Palestinian  revolution,  rejects 
every  solution  that  is  a  substitute  for  a  complete  liberation  of  Palestine,  and  rejects  all  plans  that  aim  at 
the  settlement  of  the  Palestine  issue  or  its  internationalization. 

ARTICLE  22 

Zionism  is  a  political  movement  organically  related  to  world  imperialism  and  hostile  to  all 
movements  of  liberation  and  progress  in  the  world.  It  is  a  racist  and  fanatical  movement  in  its  formation; 
aggressive,  expansionist  and  colonialist  in  its  aims;  and  Fascist  and  Nazi  in  its  means.  Israel  is  the  tool 
of  the  Zionist  movement  and  a  human  and  geographical  base  for  world  imperialism.  It  is  a  concentration 
and  jumping-off  point  for  imperialism  in  the  heart  of  the  Arab  homeland,  to  strike  at  the  hopes  of  the  Arab 
nation  for  liberation,  unity  and  progress. 

Israel  is  a  constant  threat  to  peace  in  the  Middle  East  and  the  entire  world.  Since  the  liberation 
of  Palestine  will  liquidate  the  Zionist  and  imperialist  presence  and  bring  about  the  stabilization  of  peace 
in  the  Middle  East,  the  people  of  Palestine  looks  to  the  support  of  all  liberal  men  of  the  world  and  all  the 
forces  of  good  progress  and  peace;  and  implores  all  of  them,  regardless  of  their  different  leanings  and 
orientations,  to  offer  all  help  and  support  to  the  people  of  Palestine  in  its  just  and  legal  struggle  to  liberate 
its  homeland. 

ARTICLE  23 
The  demands  of  security  and  peace  and  the  requirements  of  truth  and  justice  oblige  all  states  that 
preserve  friendly  relations  among  peoples  and  maintain  the  loyalty  of  citizens  to  their  homelands  to 
consider  Zionism  an  illegitimate  movement  and  to  prohibit  its  existence  and  activity. 


326 


ARTICLE  24 
The  Palestinian  Arab  people  believes  in  the  principles  of  justice,  freedom,  sovereignty,  self- 
determination,  human  dignity  and  the  right  of  peoples  to  exercise  them. 

ARTICLE  25 
To  realize  the  aims  of  this  Covenant  and  its  principles  the  Palestine  Liberation  Organization  will 
undertake  its  full  role  in  liberating  Palestine. 

ARTICLE  26 
The  Palestine  Liberation  Organization,  which  represents  the  forces  of  the  Palestinian  revolution, 
is  responsible  for  the  movement  of  the  Palestinian  Arab  people  in  its  struggle  to  restore  its  homeland, 
liberate  it,  return  to  it  and  exercise  the  right  of  self-determination  in  it  This  responsibility  extends  to  all 
military,  political  and  financial  matters,  and  all  else  that  the  Palestine  issue  requires  in  the  Arab  and 
international  spheres. 

ARTICLE  27 
The  Palestine  Liberation  Organization  will  cooperate  with  all  Arab  states,  each  according  to  its 
capacities,  and  will  maintain  neutrality  in  their  mutual  relations  in  the  light  of,  and  on  the  basis  of,  the 
requirements  of  the  battle  of  liberation,  and  will  not  interfere  in  the  internal  affairs  of  any  Arab  state. 

ARTICLE  28 
The  Palestinian  Arab  people  insists  upon  the  originality  and  independence  of  its  national 
(Wataniyya)  revolution  and  rejects  every  manner  of  interference,  guardianship  and  subordination. 

ARTICLE  29 
The  Palestinian  Arab  people  possesses  the  prior  and  original  right  in  liberating  and  restoring  its 
homeland  and  will  define  its  position  with  reference  to  all  states  and  powers  on  the  basis  of  their  positions 
with  reference  to  the  issue  [of  Palestine]  and  the  extent  of  their  support  for  [the  Palestinian  Arab  people] 
in  its  revolution  to  realize  its  aims. 

ARTICLE  30 
The  fighters  and  bearers  of  arms  in  the  battle  of  liberation  are  the  nucleus  of  the  Popular  Army, 
which  will  be  the  protecting  arm  of  the  Palestinian  Arab  people. 

ARTICLE  31 
This  organization  shall  have  a  flag,  oath  and  anthem,  all  of  which  will  be  determined  in 
accordance  with  a  special  system. 

ARTICLE  32 
To  this  Covenant  is  attached  a  law  known  as  the  Fundamental  Law  of  the  Palestine  Liberation 
Organization,  in  which  is  determined  the  manner  of  the  organization's  formation,  its  committees, 
institutions,  the  special  functions  of  every  one  of  them  and  all  the  requisite  duties  associated  with  them 
in  accordance  with  the  Covenant 

ARTICLE  33 
This  Covenant  cannot  be  amended  except  by  a  two-thirds  majority  of  all  the  members  of  the 
National  Council  of  the  Palestine  Liberation  Organization  in  a  special  session  called  for  this  purpose. 


ALFONSE  M   0  AMATO 
NEW  TORX 


327 


Idnited  States  Senate 

WASHINGTON.  DC  205  10-3202 


June  12,  1995 


Dear  Colleague: 

I  am  writing  to  ask  for  your  support  and  co-sponsorship  of  the  Middle  East  Peace 
Compliance  Act  of  1995. 

This  Act  is  intended  to  bolster  peace  in  the  Middle  East  by  making  any  U.S.  assistance  to  the 
Palestinians  in  Gaza  and  Jericho  contingent  upon  the  strict  compliance  of  the  Palestine 
Liberation  Organization  (PLO)  with  both  the  letter  and  spirit  of  the  commitments  it  has  made 
since  the  signing  of  the  Declaration  of  Principles  (DoP). 

I  believe  that  the  U.S.  has  a  national  security  interest  in  the  promotion  of  peace  and 
stability  in  the  Middle  East.  A  secure,  lasting  and  verifiable  peace  benefits  the  United  States,  the 
Palestinians,  and  the  closest  U.S.  ally  in  the  region,  Israel. 

It  is  the  purpose  of  this  legislation  to  ensure  that  the  chance  for  peace  in  the  Middle  East  is 
strengthened  through  the  strict  adherence  by  the  PLO  to  the  succession  of  legally  binding 
commitments  made  pursuant  to  the  Declaration  of  Principles  as  well  as  subsequent  pledges  to  the 
President  and  Vice-President  of  the  United  States. 

The  Administration  is  seeking  authority  from  Congress  which  would  permit  the  President  to 
provide  the  balance  of  $500  million  in  U.S.  assistance  to  the  Palestinian  Authority.  It  is  our 
strong  belief  that  it  may  do  so  even  without  substantial  PLO  compliance  with  its  commitments 
and  without  effective  U.S.  Government  oversight. 

The  Middle  East  Peace  Compliance  Act  of  1995  would  grant  temporary  authority  to  the 
President  to  waive  certain  provisions  of  U.S.  law  which  currently  prohibit  U.S.  assistance  from 
supporting  activities  of  the  PLO.  The  Act  would  replace  the  Middle  East  Peace  Facilitation  Act 
of  1993,  as  amended,  which  is  set  to  expire  at  the  end  of  this  month. 

Key  provisions  of  the  new  Compliance  Act  would: 

*  Require  that  U.S.  assistance  be  used  only  for  humanitarian  projects  to  benefit  Palestinians 
living  under  the  control  of  the  Palestinian  Authority.  All  assistance  must  be  channeled  only 
through  U.S.  Government  agencies  or  private  voluntary  organizations  (PVO's); 

*  Condition  any  U.S.  assistance  to  the  Palestinians  living  in  Gaza  and  Jericho  upon  full 
financial  and  managerial  accountability; 


328 


*  Require  the  President  to  certify  that  no  aid  will  go  to  individuals  suspected  of  having 
harmed  American  citizens,  while  requiring  that  the  PLO  assist  in  the  apprehension  of,  and 
extradition  to  the  U.S.,  of  all  such  individuals  now,  or  previously  under  its  control; 

*  Direct  the  President  to  provide  specific  counter-terrorism  technology  and  technical 
assistance  to  Israel;  and 

*  Require  that  the  PLO  pay  compensation  to  U.S.  victims  of  terrorism  committed  with  PLO 
support  and  under  its  direction. 

While  Israel  has  made  strenuous  efforts  to  live  up  to  its  commitments  under  the  DoP,  the 
PLO  has  not.  I  believe  that  under  these  circumstances,  the  PLO  should  not  be  rewarded  with 
U.S.  assistance.  Its  flagrant  violations  of  both  the  DoP  and  its  pledges  to  U.S.  Government 
officials,  as  well  as  its  apparent  unwillingness,  or  inability,  to  meet  even  the  most  minimal 
standards  of  compliance,  should  make  the  PLO  and  the  Palestinian  Authority  ineligible  to 
receive  U.S.  support.  Only  a  significant  change  in  the  level  of  compliance,  as  detailed  in  the 
Middle  East  Peace  Compliance  Act  of  199S,  would  qualify  the  Palestinian  Authority  to  obtain 
further  U.S.  assistance. 

Indeed,  since  the  signing  of  the  DoP,  there  have  been  651  casualties  due  to  terrorism  in 
Israel,  more  the  twice  the  number  killed  and  injured  during  a  similar  period  prior  to  the  signing. 

Once  again,  in  order  to  ensure  that  only  PLO  compliance,  not  terrorism,  is  rewarded  with 
American  dollars,  we  ask  that  you  support  our  efforts  to  seek  the  swift  enactment  of  the  Middle 
East  Peace  Compliance  Act  of  1995  and  hope  that  you  will  consider  becoming  a  co-sponsor  of 
this  vitally  important  legislation. 

If  you  wish  to  co-sponsor  this  legislation,  please  contact  Gregg  Rickman  of  my  staff  at 
x  4-8358  for  additional  information  to  or  join  as  a  co-sponsor  to  the  Middle  East  Compliance  Act 
of  1995. 

Sincerely, 


Qtfru  9&«J5 


Alfonse  M.  D'Amato 
United  States  Senator 


AMD:gjr 


329 


Y2%-  01WS 


PEACE  WATCH    W^J   017BO  B30 


fam  gaJBMfi  •  17  October  1995 

Report  on  Financial  Issues  Facing  PA  and  Donors  Reveals  Erosion  of 
Standards  for  PA's  Economic  Decisionmaking  and  Accountability 

A  number  of  to  initial  demands  made  by  lbs  doner  nations  that  ftaandal  decisions  of  to  Pukaduam 

Autbority(PA)bom^ootoUiUofeconooik:coo«lA3ilkw 

or  abandoned  bi  recent  roomhs.  according  *»  ■  *"*■»  Watch  report  released  axiny,  oo  to  eve  tf  to  donors' 

to  be  bcM  Id  hdi  on  11-19  October. 

Accadbig  to  to  noon,  to  Palestinian  Bcooonric  Council  for  Devtkprnant«ndB«ooniaao»aa 
(PBCDAR),  which  was  established  according  to  crueria  art  by  to  World  Bank  and  to  cbnw  aalkaiL  san  been 
reduced  to  ■  ihadow  of  its  Intended  role  PECDAR  m  supposed  to  dlsham  hundreds  of  nllloM  in 
dollars  In  tn«  last  two  years  oa  iarrattrectare  development,  whereas  callaiataa  lor  the  total 
ecteaBy  spent  ruga  oety  fwn  $18  million  to  MO  million.  PBCDAR/s  rain  In  disbuxsiag  money 
hen  to  World  Bank's  Hobt  Pond  tat  P A  operating  expenses  wfll  be  axnsienedtotoPAsMiiu^efFanmca, 
beaded  by  Mohammad  NashasaibL  It  was  also  reported  this  menm  tot  to  PA  plena  to  srt  u*M  sw  Pasestisian 
BeenonfcCraudl,wafchwiUotooYere^ 

The  Wodd  Bank1!  HolttFiavl  nu  encoumered  otor  dlfflcuulet  bj  rceentiaonto  AfttntawofBaropan 

nations  now  cootribw  money  Tor  the  PA'«  operating  expenses  cU/eelly  to  P A  nibiflriM,  and  Wcrid  Bank  offldUU 
no  longar  racal  ve  cooipbia  reports  of  ihaaa  aansfen.  Doe  hi  part  to  pre*len«  rt  to  Hcto  Fund,  to  PA  took  out 
afcowOOrnmkm  in  loans  from  Palesdiu^ 
to  Hoist  Rind  has  subsequently  forwarded  to  money,  to  PA  har,  n«  prepaid  to  toen  to  to  banks. 

At  to  meeting  to  be  held  in  Paris  asmorrow  and  Thursday,  18-19C<tot«.orxaf  toprtocif^bmmstofce 
discassod  is  to  special  "potiee  fund,"  whfch  channels  to  dorwnauona'cooliftutkwvlaW^WAtonayBsLBto 
of  to  Palestinian  Police.  In  tight  of  the  planned  expansion  of  Palestinian  ■ecnrUj  fortes  In  the 
wake  of  the  Oslo  3  accords,  Palestinian  economic  sonrccs  told  Pence  Watch  that  the  PA  plana 
to  ask  for  an  increase  of  $15  allien  a  month  In  the  donors'  subsidies  for  police  salaries.  A 
more  optimistic  view  presented  to  Peace  Welch  by  otor  pcnn»  indkUted  the  PA"i  bud^  wwld  urn  firo  $444 
million  in  1995  10  $590  million  in  1996,  but  tot  to  operating  deficit  which  to  donor  oatloos  would  hava  to  co«r 
would  shrink  due  lo  higher  estimated  receipts  Ctora  taxes. 

A»>»e<iUU»M««wr»<>^i>fc»dt^Ma.a»ns%ibioe^uaa»MW><4«ei»«>»tAtiMe^*»«Wq«w 

Bank/PBCDAR  report  on  this  subject  obtained  by  Peace  Watch,  TndusJrWBltab«artdBMbli^ 
Private  Sector  Development  lor  to  We*  Bank  and  Gaza."  tor*oJcawMcostai»ttIof  WMe^Ulo^ofwelcb 
pnvaiettvostxs  arc  cj^im  10  pmmsvua  Bullion,  ine  concw- ratiocs  wa  ami toiu  «o«  Wcalfl  Bank  S37  rnillk», 
and  to  PA  $83  mufiun,  to  heict  mostly  h  to  form  of  real  estate.  The  projea  fc  c<^  held  uo,  emce^  ctor 
reason*,  by  objectioni  from  PA  minisen  Including  Arafat,  endtyrelucur^cntoparttf  PsJesitasantav 


P«  oopia  of  *«  neon,  «  fe. '-MliWl  eculW,  till  MoU  tnbori  »  (QZ)  M7T24,  or  »U  b»cpor,  2946W.  tM9fT 

eras  j»i«  jopo  .oremzn  frs  nw  trveri'  ,24  snip  put 

Wl»BsnSt.JensMUMeit24T»l;(0a)«lT726P«:(CO)6333» 


330 


A  second  issue  expected  to  be  discussed  in  Paris  is  the  industrial  parks  project 
According  to  a  World  Bank/PECDAR  report  on  this  subject  obtained  by  Peace 
Watch,  "Industrial  Estates  and  Enabling  Environment  for  Private  Sector 
Development  for  the  West  Bank  and  Gaza,"  the  project  will  cost  a  total  of  $920 
million,  of  which  private  invartors  are  expected  to  put  in  $705  million,  the  donor 
nations  $95  million,  the  World  Bank  $37  million,  and  the  PA  $83  million,  the  latter 
mostly  in  the  form  of  real  estate.  The  project  is  being  held  up,  among  other  reasons, 
by  objections  from  PA  minister!  including  Arafat,  and  by  reluctance  on  the  part  of 
Palestinian  inv« 


ffer  asfto*  at  the  report,  or  for  additional  details,  call  Moti  Inbari  at  (02)  617726,  or  via  beeper,  294666, 


331 


PEACE 
WATCH 
REPORT 


Economic  Issues 

Facing  the  Palestinian  Authority 

and  the  Donor  Nations 

ISSUED  OCTOBER  17,  1995 


332 


PEACE  WATCH 


An  independent  non-partisan  organization  monitoring  the  implementation 
of  the  agreements  signed  by  Israel  and  the  PLO. 

Board  of  Directors 

Natan  Sharansky,  Prof.  Aviezer  Ravitslcy,  Rabbi  Shlomo  Riskin,  Rabbi  Yoel  Bin-Nun,  Prof.  Aharon  Klieman, 
Prof.  Gavriel  Moked,  Aryeh  Nehamkin,  Dan  Schueftan,  Elisha  Shapira,  Mookie  Tsur 

Executive  Director 

Dan  Polisar 

Report  Authors 

Pinhas  Inbari,  Ziv  Hellman 

Report  Editing  and  Translation 

Dan  Polisar,  Joshua  Schwarcz,  Tamir  Sorek 

Peace  Watch  Staff 

Yakov  Avram,  Michael  Freund,  Ziv  Hellman,  Eli  Hirsch,  Moti  Inbari, 
Pinhas  Inbari,  Bob  Lang,  Arnon  Regular,  Joshua  Schwarcz,  Tamir  Sorek 

Layout  and  Design: 
i^yfrgaman  Communications 

PEACE  WATCH 

24  Ibn  Ezra  Street 

Jerusalem,  92424,  Israel 

Tel:  972-2-617726 

Fax:  972-2-633326 

e-mail:  peace@actcom.co.il 

Copyright  ©  1995  by  Peace  Watch.  All  rights  reserved. 


333 


CONTENTS 


Introduction 3 

1.  Significant  Recent  Developments 5 

The  Two  Principal  Schools  of  Thought 5 

The  Decline  of  the  World  Bank/US  Position 7 

Conclusion 1 1 

2.  Issues  to  be  Addressed  by  the  Donor  Conference  in  Paris 13 

A.  Addressing  differences  between  the  US  and  European  positions 

on  priorities  for  development 13 

B.  The  Industrial  Parks  Project 15 

C.  The  Palestinian  Authority  Budget  Deficit 19 

D.  The  Effects  of  the  Israeli  Closure 22 


INTRODUCTION 


The  "Oslo  euphoria"  that  swept  through  much  of  the  world  in  the  days  immediately  following 
the  signing  of  the  Declaration  of  Principles  between  the  PLO  and  Israel  in  September  1993 
found  its  economic  expression  in  the  first  "donor  nation  conference"  which  was  held  in  Wash- 
ington on  1  October  1993.  At  that  inaugural  conference,  at  Israel's  urging  and  under  the 
leadership  of  the  US,  the  major  industrial  nations  of  the  world  pledged  to  grant  or  loan  the 
soon-to-be  created  Palestinian  Authority  (PA)  a  total  of  $2.4  billion  over  five  years.  This  mon- 
etary assistance  was  meant  to  provide  the  PA  with  the  money  to  finance  a  major  infrastructure 
campaign  in  the  territories,  with  the  goal  of  creating  a  rapidly  growing  economy  which,  together 
with  other  anticipated  "fruits  of  peace,"  would  bring  the  Palestinian  population  squarely  behind 
a  reconciliation  with  Israel. 

Now,  two  years  later,  the  donor  nations  are  holding  a  conference  on  18-19  October  1995  in 
Paris  to  discuss  the  future  of  financial  assistance  to  the  PA,  in  light  of  the  extension  of  Palestinian 
autonomy  to  the  West  Bank.  The  present  moment  is  therefore  an  appropriate  time  to  assess  the 
state  of  the  aid  effort  to  the  Palestinians  to  date,  and  to  analyze  what  the  central  issues  are  which 
will  shape  this  conference  and  the  aid  effort  expected  to  come  from  it. 

Peace  Watch,  as  part  of  its  mandate  to  monitor  the  implementation  of  the  accords  between  Israel 
and  the  PLO.  has  published  comprehensive  reports  on  the  financial  condition  of  the  Palestinian 
Authority  in  November  1994  and  March  1995,  as  well  as  a  number  of  updates.  These  reports 
placed  special  emphasis  on  the  evolution  of  the  competing  conceptions  which  various  donor 
nations  and  organizations  developed  regarding  the  disbursement  of  financial  assistance  to  the 
Palestinian  Authority,  as  well  as  on  the  different  schools  of  thought  among  Palestinian  political 
figures  and  economists.  The  reports  analyzed  the  conflicts  which  developed,  and  the  effects  they 


335 


Peace  Watch  Report,  October  17,  1995 


had  on  the  financial  situation  of  the  PA,  the  failure  of  the  full  aid  package  to  arrive,  and  the 
abandonment  of  many  of  the  initial  goals. 

This  report  continues  along  similar  lines  of  analysis.  Chapter  One  describes  the  two  principal 
schools  of  thought,  and  explains  how  in  the  last  several  months  the  view  shared  by  Yasser  Arafat, 
a  number  of  ministers  in  the  Palestinian  Authority,  and  several  key  European  nations  has  gained 
the  upper  hand  against  the  competing  conception  of  the  World  Bank,  the  US,  and  the  Palestin- 
ian Economic  Council  for  Development  and  Reconstruction  (PECDAR).  Chapter  Two  de- 
scribes the  major  issues  facing  the  donor  nations  as  they  meet  in  Paris. 

This  report  is  based  on  material  collected  from  highly-placed  sources  in  the  Palestinian  Author- 
ity, Israel,  and  among  the  donor  nations,  from  careful  monitoring  of  press  reports  which  have 
appeared  in  Palestinian  papers,  from  World  Bank  publications,  and  from  published  and  unpub- 
lished documents. 


336 


CHAPTER  ONE 

SIGNIFICANT  RECENT 
DEVELOPMENTS 


Several  of  the  key  assumptions  underlining  the  October  1993  donors'  conference  have  not  been 
realized  in  the  intervening  two  years.  Although  there  are  numerous  disputes  concerning  the 
details,  there  is  wide  agreement  concerning  two  points:  not  all  of  the  money  which  was  pledged 
was  given;  and  the  overwhelming  majority  of  the  money  which  was  received  has  been  used  for 
meeting  the  operating  expenses  of  the  Palestinian  Authority  and  its  police  force,  rather  than  for 
infrastructure  and  development. 

One  of  the  central  claims  of  this  report,  which  is  not  yet  accepted  by  all  observers,  concerns  a 
third  key  development:  the  goal  of  establishing  a  system  of  donations  and  investments  which 
would  operate  according  to  economic  considerations  has  essentially  been  abandoned,  and 
accountability  and  transparency  are  playing  a  decreasingly  significant  role.  Understanding  all 
three  of  these  points  requires  a  brief  analysis  of  the  two  major  schools  of  thought. 


The  two  principal  schools  of  thought 

The  United  States  and  the  World  Bank,  who  took  the  initial  lead  in  the  donation  effort,  empha- 
sized their  political  and  economic  views  in  shaping  donation  policy.  They  supported  private 
enterprise  over  massive  government  projects  and  demanded  the  establishment  of  organizations 
composed  of  professional  economists  to  oversee  the  disbursement  of  donor  funds  in  accordance 


337 

Peace  Watch  Report,  October  17,  1995 


with  high  standards  of  "transparency  and  accountability."  Out  of  concern  that  PLO  and  PA 
Chairman  Yasser  Arafat  would  divert  donor  funds  to  further  his  political  aims  rather  than  make 
use  of  the  money  for  economic  development,  the  World  Bank  and  the  US  insisted  on  the 
establishment  of  PECDAR,  the  Palestinian  Economic  Council  for  Development  and  Recon- 
struction, a  professional  body  that  would  ensure  "transparency  and  accountability."  Under  their 
conception,  PECDAR  was  to  become  the  principal  economic  address  in  the  Palestinian  Author- 
ity, handling  the  disbursement  of  the  foreign  donations,  running  major  infrastructure  projects, 
and  assisting  international  investors  interested  in  identifying  Palestinian  enterprises  for  invest- 
ment purposes. 

Even  before  PECDAR  s  establishment  in  November  1993,  a  comprehensive  five-year  plan  for 
the  development  of  the  Palestinian  economy  was  prepared  by  a  team  of  prominent  Palestinian 
economists  headed  by  Dr.  Yusuf  Sayegh.  The  plan  called  for  relatively  liberal  and  decentralized 
PA  economic  policies,  and  received  World  Bank  backing.  PECDAR's  Operational  Management 
Team  was  headed  by  Abu  Alaa,  who  supported  the  basic  approach  of  the  US  and  the  World 
Bank,  and  who  later  became  the  Palestinian  Minister  of  Economics  as  well.  Under  his  direction, 
PECDAR  attempted  to  carve  out  a  role  for  itself  largely  independent  of  the  other  ministries  in 
the  PA  and  of  Yasser  Arafat. 

PECDAR  received  an  additional  boost  in  June  1994  with  the  creation  of  the  World  Bank's  Hoist 
Fund,  whose  purpose  was  to  assist  the  PA  in  meeting  its  operating  expenses.  The  Hoist  Fund 
collects  funds  from  the  donor  nations  and  passes  them  on  to  PECDAR,  which  then  disburses 
them  to  pay  the  salaries  of  PA  employees.  Although  the  initial  donor  nation  pledges  were 
intended  to  cover  infrastructure  and  development,  the  Hoist  Fund  was  established  at  the  urging 
of  Israeli  Foreign  Minister  Shimon  Peres  after  it  became  apparent  that  the  PA  would  not  be 
capable  of  covering  its  operating  expenses  through  tax  revenues,  and  would  need  foreign  assis- 
tance in  closing  a  very  large  budget  deficit.  A  separate  "Police  Fund"  was  established  through  the 
United  Nations  Relief  Works  Agency  (UNRWA)  to  pay  the  salaries  of  Palestinian  policemen. 

The  semi-independence  of  PECDAR  from  the  PLO  and  the  PA  provoked  efforts  to  limit  and 
neutralize  its  authority,  chiefly  from  Yasser  Arafat  and  from  Nabil  Shaath,  the  PA  Minister  of 
International  Cooperation  and  Planning.  Arafat  complained  repeatedly  about  having  to  answer 
to  Western  demands  of  accountability,  which  he  said  was  a  demeaning  limitation  of  his  author- 


338 

Economic  Issues  Facing  tho  Palestinian  Authority  and  the  Donor  Nations 


ity.  In  addition,  Arafat  preferred  large-scale  projects  which  created  symbols  of  Palestinian 
sovereignty  over  the  less  ambitious,  private  enterprise  projects  backed  by  the  US  and  the  World 
Bank.  After  substantial  efforts,  Arafat  and  Sha'ath  persuaded  many  of  the  European  nations  to 
back  them  in  setting  priorities  and  disbursement  channels  different  from  those  of  the  World 
Bank. 

Over  the  past  two  years,  two  competing  "conceptual  camps"  have  emerged.  The  US,  the  World 
Bank,  Abu  Alaa  and  PECDAR  have  a  joint  concept  on  the  disbursement  of  monetary  aid  to  the 
Palestinian  Authority.  On  the  other  side,  Yasser  Arafat,  Nabil  Sha'ath,  Palestinian  Finance 
Minister  Muhammad  Nashashibi,  and  European  nations,  compose  the  opposing  camp.  For  the 
purposes  of  this  report,  "European  nations"  refers  to  the  leading  members  of  the  EU,  such  as 
France,  Germany  and  Italy.  The  UK  has  generally  followed  the  lead  of  the  US,  and  the  Scandi- 
navian nations  have  their  own  separate  approach. 


The  decline  of  the  World  Bank/US  position 

In  this  struggle,  the  US  and  the  World  Bank  have  in  effect  yielded  to  the  competing  side. 
World  Bank  officials  have  officially  denied  the  correctness  of  this  assessment,  but  sources  within 
the  World  Bank  and  the  PA  have  confirmed  it  in  not-for-attribution  conversations  with  Peace 
Watch.  The  assessment  is  also  supported  by  four  recent  developments,  as  detailed  below. 

/.  Reduced  Role  far  PECDAR 

PECDAR  has  effectively  been  reduced  to  a  shadow  of  its  intended  role  and  position.  Accord- 
ing to  Nabil  A-Shariff,  deputy  director  of  PECDAR,  quoted  in  an  article  which  recently  ap- 
peared in  Al-Quds,  PECDAR  has  financed  a  total  of  only  $18  million  in  projects  since  its 
inception.1  It  should  be  noted  that  this  figure  relates  only  to  projects  contracted  and  managed  by 
PECDAR,  and  not  money  that  was  funneled  through  PECDAR,  such  as  Hoist  Fund  transfers. 
Other  high  ranking  Palestinian  sources  contradict  this  and  claim  that  the  correct  total  is  over 
560  million. 

'  Al-Quds.  8  October  1995.  page  4. 


339 

Peace  Watch  Report,  October  17,  1995 


In  any  event,  either  figure  is  a  small  sum  of  money  relative  to  initial  expectations,  and  under- 
scores the  extent  to  which  PECDAR  has  been  neutralized  as  a  force  in  Palestinian  economics. 
The  projects  currently  being  managed  by  PECDAR  include:  public  cleaning  projects  in  Gaza, 
public  gardening,  material  and  manpower  supplies  to  municipalities,  school  and  hospital 
maintenance,  and  sidewalk  construction.  Even  PECDAR  officials  quoted  by  Al-Quds  admit  that 
some  of  these  projects  are  "make-work"  in  intent — i.e.,  they  add  little  to  the  development  of  the 
local  economy,  and  aim  primarily  to  keep  down  unemployment  rates.2 

Yusuf  Sayegh's  long-term  plans  have  been  permanendy  shelved,  and  Arafat  has  consistently 
blocked  attempts  to  grant  Dr.  Sayegh  the  role  of  director  of  PECDAR  Instead,  Arafat  has  placed 
Nabil  Shaath  on  PECDAR's  Board  of  Directors.  According  to  Palestinian  economic  sources, 
World  Bank  and  PA  representatives  agreed  in  July  1995  to  a  proposal  put  forward  by  Yasser 
Arafat  that  in  the  near  future  money  disbursed  by  the  Hoist  Fund  would  be  handled  by 
Nashashibi  s  Ministry  of  Finance,  rather  than  PECDAR,  as  was  the  past  custom.  This  is  an 
additional  reduction  in  PECDAR's  status,  and  indicates  a  retreat  from  past  donor  demands  that 
standards  of  transparency  and  accountability  be  maintained,  since  they  argued  that  keeping 
PECDAR  involved  in  disbursements  was  the  best  method  to  insure  that  such  standards  would 
be  met.  High-ranking  officials  in  the  World  Bank,  it  should  be  stressed,  have  vehemently  denied 
this  report.  Hoist  Fund  and  World  Bank  officials  argue  further  that  "PECDAR  was  meant  to  be 
a  temporary  organization  all  along,  until  the  PA's  ministries  proved  established  enough  to  take 
on  its  roles" — although  these  officials  deny  that  the  transition  away  from  PECDAR  has  already 
occurred.3 

Significantly,  there  were  no  PECDAR  representatives  in  the  recent  preparatory  donor  conference 
held  in  Washington,  DC.  In  contrast  to  past  sessions,  Nabil  Shaath  was  also  noteworthy  in  his 
absence.  Instead,  those  attending  on  the  Palestinian  side  were  Yasser  Arafat  and  Muhammad 
Nashashibi. 


'AJ-QuJt.  8  October  1995.  page  4. 

'  Peace  Watch  interview  with  World  Bank  sources  on  1 5  September  1995. 


340 
Economic  Issues  Facing  the  Palestinian  Authority  and  the  Donor  Nations 

2.  Establishment  of  a  Palestinian  Economic  Council 

In  a  recent  development,  according  to  AI-Quds,  the  PA  announced  on  9  October  1995  its  intent 
to  establish  a  new  Palestinian  Economic  Council.  This  seems  to  confirm  reports  of  the  imminent 
demise  of  PECDAR  Abu  Alaa  is  officially  named  as  the  director  of  the  new  council,  but  he  is 
directly  subordinate  to  Yasser  Arafat,  in  contrast  to  the  partial  independence  he  enjoyed  at 
PECDAR.  According  to  Al-Quds,  PA  officials  openly  admit  that  political  considerations  will  be 
taken  into  account  in  the  new  council's  activities,  in  accordance  with  Yasser  Arafat's  discretion.4 

3.  Problems  at  the  Hoist  Fund 

Palestinian  economic  sources  have  told  Peace  Watch  that  some  European  nations  have  stopped 
donating  money  to  the  Hoist  Fund,  and  are  donating  money  directly  to  the  ministries  of  the 
Palestinian  Authority  without  going  through  either  the  World  Bank  or  UN  agencies.  The 
Europeans  also  insist  that  more  money  go  to  investment  projects  rather  than  towards  operating 
expenses.  Senior  World  Bank  officials  have  told  Peace  Watch  that  they  no  longer  receive 
complete  reports  on  direct  European  monetary  transfers  to  PA  ministries,  which  effectively 
means  that  there  is  no  one  body  which  can  coordinate  or  control  such  monetary  assistance.  In 
contrast,  the  US  is  still  committed  to  supporting  PA  operating  expenses.  It  is  hoped  by  the  US 
that  Saudi  Arabia  can  make  up  for  some  of  the  lost  European  donations  to  the  Hoist  Fund. 

Saudi  Arabia  has  emerged  lately,  at  least  on  paper,  as  an  increasingly  important  player  among  the 
donor  nations.  In  addition  to  supplying  major  funds  to  the  Hoist  Fund,  Saudi  Arabia  has 
pledged  to  be  the  lead  donor  in  covering  the  salaries  of  the  Palestinian  Police  Force,  alongside 
Norway  and  Denmark,  via  a  special  fund  managed  by  UNRWA.  However,  Peace  Watch  has 
learned  that  the  Saudis  have  not  been  giving  the  full  sum  of  money  pledged  to  cover  police 
salaries  since  April  1995,  which  has  caused  difficulties  with  the  payment  of  these  salaries.  The 
Netherlands  has  been  called  in  to  make  up  the  difference  in  the  meanwhile. 

Odin  Knudsen,  director  of  the  World  Bank,  has  invested  substantial  efforts  in  strengthening  the 
tics  between  the  Hoist  Fund  and  the  Gulf  states,  conducting  a  comprehensive  tour  of  Saudi 

*Al-Qiub,  10  October  1995.  page  3. 


341 


Peace  Watch  Report,  October  17,  1995 


Arabia  and  the  Gulf  states  in  September  1995.  The  US  has  also  been  trying  to  persuade  the 
Saudis  to  release  a  fund,  estimated  to  be  as  high  as  $200  million,  which  had  been  raised  by  Faisal 
Al-Husseini  last  year,  for  the  most  part  to  support  Palestinian  projects  in  Jerusalem.  The  fund 
was  frozen  at  Arafat's  insistence,  and  none  of  the  money  has  been  disbursed.  The  Americans  are 
in  favor  of  the  frozen  money  being  granted  to  the  PA,  but  the  Saudis  are  apparently  still  demur- 
ring over  the  matter.  In  the  meantime,  the  "Jerusalem  Fund"  money  is  frozen  in  an  account  in 
the  Islamic  Bank  in  Jiddah,  Saudi  Arabia. 

As  revealed  in  previous  Peace  Watch  releases,  according  to  Palestinian  economic  sources,  the 
Hoist  Fund  was  temporarily  frozen  during  part  of  the  month  of  June  due  to  the  PA's  insistence 
that  PECDAR  no  longer  be  responsible  for  the  disbursement  of  its  funds.  This  was  denied  by 
high-ranking  officials  in  the  World  Bank,  but  reconfirmed  by  Peace  Watch  via  its  sources.  The 
Hoist  Fund's  operations  are  dependent  on  a  formal  agreement  between  the  PLO  and  the  World 
Bank,  and  the  fund  could  not  be  fully  operated  in  June  because  the  renewal  of  the  agreement 
was  delayed. 

During  this  time,  some  of  the  salaries  paid  by  the  PA  to  its  employees  were  covered  by  about 
$30  million  in  loans  that  the  PA  took  from  Palestinian  and  Jordanian-owned  banks  in  the  West 
Bank,  according  to  banking  sources  in  the  West  Bank.  It  was  only  after  the  World  Bank  agreed 
in  principle  that  Muhammad  Nashashibi's  Finance  Ministry  take  over  PECDAR  s  role  that  the 
fund  was  reactivated,  and  June  payments,  which  had  been  in  arrears,  were  covered.  The  PA,  it 
should  be  noted,  has  not  yet  repaid  the  loans  it  initially  took  to  pay  the  salaries  that  were 
eventually  covered  by  Hoist  Fund  payments,  and  it  is  unclear  to  what  use  the  loan  money  has 
been  put  in  the  meanwhile.  Banking  sources  have  told  Peace  Watch  that  the  PA  has  indicated  it 
will  "repay"  the  loans  by  reducing  future  tax  levies  on  the  banks  by  the  amount  of  the  loans. 

Palestinian  economists  have  privately  expressed  doubts  to  Peace  Watch  over  whether  the  Finance 
Ministry  is  properly  organized  to  take  on  the  task  of  disbursing  Hoist  Fund  transfers.  Represen- 
tatives of  the  International  Monetary  Fund  have  been  working  intensively  with  staff  members  of 
the  Finance  Ministry  to  prepare  them  for  their  new  responsibilities.  It  is  not  clear  whether  the 
IMF  and  World  Bank  are  yet  satisfied  with  the  progress  made. 

Following  the  decision  last  June  to  transfer  responsibility  for  Hoist  Fund  disbursements  from 
PECDAR  to  Muhammad  Nashashibi's  Ministry  of  Finance,  it  was  also  agreed,  at  the  insistence 


10 


342 
Economic  Issues  Facing  the  Palestinian  Authority  and  the  Donor  Nations 


of  the  donor  nations,  that  the  Finance  Ministry  and  the  Hoist  Fund  would  undergo  an  audit 
managed  by  the  international  accounting  firm  Touche- Ross-Saba.  Tbe  delay  in  waiting  for  the 
completion  of  this  audit  is  one  reason  among  many  that  the  transfer  of  responsibility  for  Hoist 
Fund  disbursement  is  being  held  up. 

4.  Shift  Away  From  Private  Enterprise  to  Large-Scale  Projects 

Grandiose  projects,  such  as  the  construction  of  a  port  in  Gaza  City,  are  being  given  serious 
consideration  by  the  donor  nations,  and  arc  even  gathering  the  interest  of  the  US.  This  is  a 
significant  shift,  because  the  US  and  World  Bank  were  long  opposed  to  such  projects,  consider- 
ing them  to  be  less  desirable  than  channeling  assistance  to  smaller  private  enterprises.  Dennis 
Ross,  the  US  State  Department  official  coordinating  Middle  East  peace  efforts,  told  the  Israeli 
daily  Ha'aretz  on  27  September  1995  that  with  respect  to  the  Palestinian  economy:  "The  donor 
nations  have  learned  a  lesson.... The  experience  we  gained  over  the  past  year  and  a  half  served  to 
improve  our  understanding  as  to  the  best  use  of  the  money  ...  instead  of  concentrating  on  small 
projects,  we  will  deal  from  now  on  mainly  in  large  projects."5  It  is  also  noteworthy  that  Nabil 
Shaath  is  the  main  political  patron  of  the  port  project,  which  is  competing  for  attention  and 
funds  with  another  proposed  project,  the  industrial  parks  initiative,  patronized  by  Abu  Alaa. 


Conclusion 

In  the  months  leading  up  to  the  October  18-19  meeting  of  the  donor  nations  in  Paris,  there  has 
been  an  erosion,  though  not  a  collapse,  of  the  positions  which  have  been  championed  by  the 
United  States,  the  World  Bank,  and  the  Palestinian  economists  and  politicians  involved  in 
PECDAR.  This  erosion,  as  detailed  above,  has  been  expressed  in  a  number  of  areas.  As  the  next 
chapter  makes  clear,  however,  a  number  of  points  of  dispute  remain  between  the  two  competing 
camps,  and  the  addressing  of  these  issues  is  likely  to  play  a  prominent  role  in  the  Paris  confer- 
ence. 

'  Ht'trrtz,  28  September  1993.  page  A3. 


11 


343 


CHAPTER  TWO 

ISSUES  TO  BE  ADDRESSED 

BY  THE  DONOR 

CONFERENCE  IN  PARIS 


A.  Addressing  differences 

between  the  US  and  European  positions 

on  priorities  for  development 

The  upcoming  donor  conference  in  Paris  is  expected  to  be  only  the  first  of  a  series  of  three 
conferences,  all  to  be  held  in  Paris.  In  addition  to  the  October  conference,  which  begins  tomor- 
row, further  conferences  are  scheduled  for  November  and  December  of  this  year,  according  to 
Palestinian  economic  sources. 

In  preparation  for  the  October  18-19  conference  in  Paris,  officially  entided  the  conference  of 
"the  Consultative  Group-CG,"  the  "Ad-Hoc  Liaison  Commktee-AHLC"  of  the  donor  nations 
held  a  conference  in  Washington,  DC.  immediately  after  the  signing  of  the  Oslo  2  agreement  on 
28  September  1995.  The  Ad  Hoc  Liaison  Committee  is  a  smaller  forum  of  representatives  of  the 
donor  nations,  which  meets  more  frequently  than  the  full  plenum  of  the  Consul  tive  Group. 
Although  the  Ad  Hoc  Committee  only  debates  issues  and  does  not  make  formal  decisions,  its 
sessions  serve  as  important  indicators  of  the  thinking  of  the  larger  group. 

On  the  basis  of  the  AHLC  conference  in  Washington,  it  appears  likely  that  the  rift  between  the 
two  camps  will  continue  to  play  a  major  role  in  the  Paris  deliberations.  Although  the  World 


13 


344 

Poace  Watch  Report,  October  17,  1995 


Bank,  as  noted  in  Chapter  One,  has  partially  conceded  to  Arafat's  point  of  view  on  the  concep- 
tual level,  there  arc  still  differences  of  opinion  in  at  least  two  respects.  First,  the  US  issued  a 
statement  re-affirming  its  commitment  to  both  the  general  "donor  group  goal"  of  assisting  the 
PA  with  $2.4  billion  in  aid  over  five  years,  and  the  specific  US  promise  of  $500  million.  The 
Europeans  pointedly  refrained  from  joining  in  such  a  statement.  The  Clinton  Administration 
has  asked  that  the  Europeans  be  made  aware  that  Congressional  support  for  foreign  aid  to  the 
PA,  which  is  currently  a  subject  of  debate,  will  waver  further  if  Congressional  members  sense 
that  the  US  is  being  asked  to  bear  more  of  a  relative  burden  than  it  originally  undertook 

Second,  US  hopes  that  the  Europeans  would  adopt  a  number  of  World  Bank  development 
initiatives  were  not  realized,  with  the  Europeans  sticking  to  plans  of  their  own.  The  World 
Bank's  projects  are  an  updated  version  of  EIP  (Emergency  Implementation  Program),  a  set  of 
projects  initially  composed  in  the  winter  and  spring  of  1995,  which  was  further  divided  into 
EAP  (Emergency  Assistance  Program)  and  ERP  (Emergency  Rehabilitation  Program),  the  latter 
of  which  was  slated  to  provide  $128  million  for  what  the  World  Bank  felt  were  most  urgently 
needed  projects  such  as  roads,  schools,  hospitals  and  water  supplies.  Some  new  emphases  have 
been  added,  particularly  on  developing  tourism  in  the  Middle  East.  Indeed,  on  29  September 
1995,  an  agreement  was  reached  among  various  panics  to  form  a  new  Middle  East/Mediterra- 
nean Travel  and  Tourism  Association. 

According  to  an  Al-Quds  article  which  appeared  on  24  September  1995,  among  other  projects  to 
be  discussed  at  the  conference  are:  (1)  water  supply  projects,  particularly  desalination  programs 
and  water  pipe  supply  and  maintenance;  (2)  independent  electric  power  provision  for  the  PA; 
(3)  waste  disposal  projects;  (4)  road  construction  and  maintenance,  especially  Route  4  in  the 
Gaza  Strip;  (5)  construction  of  a  large  public  port  along  the  seashore  in  Gaza;  (6)  establishment 
of  industrial  parks;  (7)  assistance  to  Palestinian  municipalities;  (8)  encouraging  banking  in  the 
PA;  (9)  projects  to  encourage  Palestinian  economic  experts  living  abroad  to  assist  in  efforts  to 
develop  the  PAs  economy. 

Yasser  Arafat  listed  his  preferred  projects  during  the  AHLC  meeting,  indicating  that  the  Palestin- 
ians view  the  construction  of  sea  and  air  ports  in  Gaza,  industrial  parks,  an  independent  Pales- 
tinian electricity  grid,  water  development  and  housing  development  as  their  top  priorities. 


14 


345 
Economic  Issues  Facing  the  Palestinian  Authority  and  the  Donor  Nations 


Regarding  one  European-backed  project,  the  sea  port  in  Gaza,  American  opposition  seems  to 
have  disappeared  for  the  most  part.  The  idea  of  constructing  a  sea  port  in  Gaza  has  long  been 
favored  by  Arafat,  in  large  part  because  the  symbolism  of  sovereignty  and  independence  that 
would  come  with  such  a  port  is  attractive.  The  US  and  World  Bank  have  in  the  past  been 
opposed,  considering  it  an  expensive  project  which  would  not  grant  as  much  economic  benefit 
as  other  projects. 

Lately,  however,  the  US  has  come  around  to  agreeing  with  the  importance  of  such  a  project,  in 
part  because  of  Palestinian  claims  that  an  independent  Palestinian  outlet  for  exports  is  necessary 
in  light  of  the  frequent  Israeli  closures  of  the  Gaza  Strip.  There  arc  indications  that  the  US  might 
even  ask  that  American  firms  be  involved  as  contractors  in  the  project. 

With  a  US  green  light  in  place,  feasibility  studies  have  been  executed  regarding  the  construction 
of  the  port,  and  some  European  contractors  have  been  lined  up,  including  the  firms  of  Balast 
Nipam,  Spie  Batingolls,  and  Hochtip.  An  initial  budget,  covering  only  the  first  stage  of  studies, 
preparatory  work,  and  initial  groundbreaking,  has  been  set  at  $72  million.  On  29  September 
1995,  a  meeting  was  held  involving  the  major  players  in  the  project,  representing  Germany,  the 
Netherlands,  France,  several  European  banks,  and  the  Palestinian  Ministry  of  Planning  and 
International  Cooperation.  According  to  Ali  Shaath,  chairman  of  the  project,  groundbreaking 
could  take  place  as  early  as  next  March.6 


B.  The  industrial  parks  project 

An  American-backed  project  almost  certain  to  be  discussed  in  Paris  is  the  industrial  parks.  Until 
now,  the  sea  port  in  Gaza,  backed  by  Nabil  Shaath,  and  the  establishment  of  "industrial  parks," 
pushed  by  Abu  Alaa,  have  been  viewed  as  mutually  exclusive  projects,  with  the  expectation  being 
that  one  or  the  other  would  be  adopted.  Although  American  opposition  to  the  Gaza  sea  port  has 
effectively  been  dropped,  the  projects  are  still  likely  to  compete  for  the  same  resources.  By  way  of 
example,  there  are  two  competing  plans  to  invest  resources  in  repaving  roads  around  the  pro- 

*MKh*j*tM]sitti,  29  September  1995.  page  3. 


15 


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Peace  Watch  Report,  October  17,  1995 


posed  site  of  the  Gaza  sea  port,  or  to  reactivate  the  old  railroad  line  between  the  Israeli  port  town 
of  Ashdod  and  the  Gaza  Strip.  Paving  roads  around  the  port  would  make  the  construction  of  the 
port  itself  more  viable,  while  reactivating  the  rail  line  could  obviate  the  need  for  such  a  port, 
since  Palestinian  import  and  export  needs,  the  latter  stemming  from  Gaza-based  industrial  parks, 
could  be  served  by  the  rail  link  with  the  Ashdod  port. 

The  need  to  divide  resources  between  the  Gaza  sea  port  and  the  industrial  parks  is  among  the 
many  reasons,  some  of  which  are  detailed  at  the  end  of  this  section,  why  the  industrial  parks 
project  is  likely  to  encounter  opposition  in  Paris. 

A  report  on  industrial  parks,  entitled  "Industrial  Estates  and  Enabling  Environment  For  Private 
Sector  Development  For  The  West  Bank  And  Gaza,°  has  been  composed  by  the  World  Bank 
with  the  assistance  of  PECDAR.  The  report  details  the  need  for  industrial  parks,  and  sets  out 
their  general  structure.  The  idea  behind  them  is  that  the  parks  will  be  "islands"  of  stability  and 
trade  within  the  PA,  unaffected  by  security  and  economic  conditions  outside  themselves.  The 
report  foresees  the  potential  employment  of  between  20,000  and  100,000  persons  in  the  indus- 
trial parks. 

Three  types  of  industrial  parks  are  envisioned:  "border  estates,"  located  on  the  border  between 
Palestinian  areas  and  Israel,  "local  estates"  located  entirely  in  Palestinian  territory,  and  smaller 
"municipal  industrial  complex  workshops"  in  cities. 

The  border  estates  would  be  built  on  large  tracts  of  land  abutting  Israel,  effectively  creating  a  free 
trade  zone  between  Israel  and  the  PA.  The  idea  behind  this  is  to  enable  joint  Israeli-Palestinian 
ventures  to  operate  in  an  environment  where  Israelis  and  Palestinians  could  work  together  with 
minimal  concerns  about  physical  security.  An  important  component  of  the  planning  is  that 
security  forces  other  than  the  Palestinian  police  would  be  responsible  for  security  in  these  estates, 
in  order  to  allay  Israeli  fears.  In  addition,  maximal  conditions  of  freedom  of  movement  will  have 
to  be  ensured.  The  border  estates  would  be  export-oriented,  but  involve  many  Israeli  and 
Palestinian  subcontractors. 

Local  estates  would  concentrate  on  producing  for  the  internal  Palestinian  markets,  and  would  be 
smaller  than  the  border  estates.  Municipal  industrial  complexes  would  be  built  on  municipal 
land  and  meant  for  small  workshops  and  light  industries. 


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Economic  Issues  Facing  the  Palestinian  Authority  and  the  Donor  Nations 


Particular  emphasis  is  placed  on  the  industrial  park  to  be  situated  in  Jenin,  a  city  in  the  northern 
West  Bank.  Jenin  is  located  40  kilometers  from  the  international  sea  port  in  Haifa  and  30 
kilometers  from  the  Jordanian  border,  making  it  an  ideal  spot  for  three-way  Israeli,  Palestinian 
and  Jordanian  export-oriented  operations.  In  anticipation  of  the  construction  of  an  industrial 
park  in  Jenin,  enterprising  investors,  including  Jordanians,  have  already  purchased  tracts  of  land 
in  Jenin.  The  Jordan  Bank  and  the  Islamic  Bank  have  expressed  interest  in  the  Jenin  project  and 
have  agreed  to  raise  $80  million  in  investments  to  that  end. 

The  main  border  estate  in  the  Gaza  Strip  would  be  located  in  Karnei.  PAOICO,  a  Palestinian- 
owned  company  with  ties  to  Abu  Alaa,  is  slated  to  be  the  main  contractor  involved  in  the 
project.  An  alternative  site  for  a  border  estate  could  be  the  Erez  checkpoint.  A  Karnei  industrial 
park  would  likely  be  tied  to  any  future  Gazan  port,  while  a  park  at  the  Erez  checkpoint  would 
naturally  be  inclined  to  make  use  of  the  Israeli  port  at  Ashdod. 

The  "Estates"  report  cites  two  conditions  for  the  success  of  the  project:  the  establishment  of  an 
autonomous  directorate  for  the  industrial  parks,  and  the  provision  of  guarantees  and  incentives 
for  investors.  The  report  also  details  solutions  for  these  two  problems,  as  follows. 

An  independent  directorate  called  PIEA  (the  Palestinian  Industrial  Estates  Authority)  is  envi- 
sioned. The  independence  of  the  directorate  is  important  in  order  to  guarantee  investors  that 
economic  considerations  rather  than  political  ones  play  the  major  role  in  the  industrial  parks, 
with  dear  and  stable  rules  established  by  PIEA. 

As  an  extra  "insurance  policy,"  the  establishment  of  MIGA  (Multilateral  Investment  Guarantee 
Agency)  is  also  envisioned,  to  ensure  that  proper  conditions  exist  to  protect  investors  from  large 
losses.  According  to  a  poll  conducted  by  the  World  Bank  among  potential  investors  in  the  PA, 
the  main  subjects  of  anxiety  investors  indicate  are:  administrative  corruption,  personal  security, 
political  considerations  crowding  out  economic  ones  and  taxation  issues.  PIEA  and  MIGA  are 
meant  to  reduce  these  anxieties.  Particular  emphasis  would  be  placed  on  ensuring  that  the 
industrial  parks  enjoy  substantial  VAT  and  customs  reductions. 

Initial  outlays,  for  the  establishment  of  parks  in  Jenin  and  Karnei,  as  well  as  a  park  in  Nablus,  are 
estimated  at  $200  million.  Total  costs  for  the  establishment  of  nine  border  estates  and  six  local 


17 


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Peace  Watch  Report,  October  17,1 995 


estates  would  run  to  $920  million.  Initial  start-up  funds  would  be  divided  as  follows: 
$20  million  from  donor  nations;  $10  million  from  the  World  Bank;  $150  million  in  private 
capital;  and  $20  million  from  the  Palestinian  Authority,  mostly  in  the  form  of  real  estate.  For  the 
full  plan,  the  division  is  planned  as  follows:  donors,  $95  million;  World  Bank,  $37  million; 
private  capital  investments,  $705  million;  and  the  PA,  $83  million,  again  mostly  in  real  estate. 
Israel  will  obviously  also  be  required  to  be  heavily  involved  in  coordinating  funding  and  plan- 
ning. 

Despite  the  World  Bank's  optimism  and  the  strong  backing  given  to  the  project  by  Israel  and  the 
US,  Peace  Watch  sources  report  that  the  industrial  parks  project  is  likely  to  run  into  serious 
opposition  from  within  the  PA  itself,  which  will  impact  on  the  chances  of  its  being  adopted  in 
Paris.  This  opposition  has  a  number  of  sources,  and  rationales. 

Establishing  zones  in  which  substantial  tax  and  customs  reductions  are  granted  to  large  indus- 
trial concerns  is  unpopular  among  many  governmental  decisionmakers,  who  fear  the  loss  of 
revenue.  Placing  security  in  parks  located  within  the  PA  in  the  hands  of  security  forces  indepen- 
dent of  the  Palestinian  police  is  likewise  problematic  for  the  PA,  as  it  impinges  on  sovereignty. 
Finally,  an  independent  PIEA,  managed  by  Abu  Alaa,  would  run  into  the  same  constellation  of 
opposing  forces  which  have  nearly  succeeded  in  scuttling  PECDAR.  Sources  within  the  PA 
indicate  that  only  a  serious  show  of  political  muscle  by  the  US  can  ensure  that  the  World  Bank's 
industrial  parks  project  be  implemented  in  accordance  with  plans. 

An  additional  problem  with  the  industrial  parks  project  is  that  they  are  slated  to  be  funded  in 
large  part  by  private  investors — $705  million  out  of  $920  million,  according  to  the  report  cited 
above.  For  this  money  to  be  raised,  Palestinian  investors  would  almost  certainly  have  to  play  a 
major  role,  and  to  date  they  have  shown  reluctance  to  do  so.  Foreign  investors,  as  well  as  govern- 
ments, are  likely  to  follow  the  lead  of  the  Palestinian  investors,  and  will  be  loathe  to  commit 
funds  if  the  Palestinians  themselves  are  not  forthcoming. 

Relations  between  Palestinian  investors  and  Arafat  have  in  general  been  strained,  because  of  the 
businessmen's  complaints  that  Arafat  has  not  been  doing  enough  to  encourage  a  climate  of 
investment  in  the  PA.  They  are  generally  in  favor  of  World  Bank  standards  of  economic  opera- 
tions, and  at  a  minimum  insist  that  the  PA  pass  orderly  legislation  regulating  trade  and  capital 


18 


349 

Economic  Issues  Facing  the  Palestinian  Authority  and  the  Donor  Nations 


investment  practices,  along  Western  standards,  for  their  own  protection  under  the  law.  A 
meeting  held  between  Palestinian  businessmen  and  Arafat  in  May  1995  in  Amman,  Jordan  did 
not  go  well,  as  the  businessmen  pressed  Arafat  to  pass  a  law  for  the  encouragement  of  invest- 
ments that  will  answer  their  needs.  Arafat  pointed  to  difficulties  he  faced  with  the  donor  nations 
and  the  World  Bank  in  asking  for  their  patience. 

A  special  committee  to  follow-up  on  what  was  said  at  the  meeting  was  established,  including 
Abd  Ai-Majid  Shuman,  the  owner  of  the  Arab  Bank,  Munir  Al  Masri,  Hasib  Al  Masri  (of 
PAOICO),  Faisal  Al-Husseini,  Abu  Alaa,  Mahmoud  Zuhadi,  and  Muhammad  Nashashibi.  A 
draft  law  for  the  encouragement  of  investment  has  been  composed,  but  it  has  not  yet  been 
passed  by  the  PA.  There  have  been  recent  signs  of  a  reconciliation  between  Arafat  and  an 
important  contingent  of  businessmen  from  Nablus,  who  are  hoping  that  the  industrial  parks 
project  takes  off,  although  it  is  still  too  early  to  be  able  to  ascertain  what  consequences  will  flow 
from  this.  According  to  Palestinian  sources,  PADICO,  a  leading  Palestinian  investment  corpora- 
tion, is  now  inclined  to  cooperate  with  Arafat  and  is  interested  in  participating  in  ventures  such 
as  the  industrial  park  in  Karnei,  housing  projects,  electric  power  production  and  telecommunica- 
tions ventures. 

According  to  Palestinian  economic  sources,  discussions  on  implementing  the  fust  planned 
industrial  park  projects,  in  Karnei,  are  currently  being  conducted  between  Abu  Alaa  and  Uri 
Savir,  the  Director-General  of  the  Israeli  Foreign  Ministry.  Israeli  sources  indicate,  however,  that 
the  industrial  parks  project  is  not  proceeding  at  full  speed. 


C.  The  Palestinian  Authority  budget  deficit 

An  additional  topic  of  discussion  at  the  donor  nation  conference  will  be  the  continuation  of 
donor  nation  subsidies  for  the  Palestinian  Authority  budget,  and  in  particular  the  role  that  the 
Hoist  Fund  will  play  in  1996.  The  PA  is  not  expected  to  present  a  full  1996  budget  proposal  at 
the  CG  conference  in  Paris,  because  it  is  understood  that  the  issue  of  the  PA's  tax  collection  is 
currently  in  flux  as  the  PA  prepares  to  take  greatly  expanded  responsibilities  in  the  West  Bank.  A 


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350 


3  9999  05983  868  8 


Peace  Watch  Report,  October  17,  1995 


preliminary  draft  outlining  expected  expenses  and  revenues  has  been  circulated  among  partici- 
pants in  the  preliminary  consultations  held  in  Gaza  in  the  week  preceding  the  CG  conference, 
according  to  Palestinian  economic  sources.  The  donor  nations  do,  however,  expect  a  full  budget 
PA  1996  proposal  sometime  in  November  of  1995. 

According  to  figures  supplied  by  the  PA  Ministry  of  Finance  and  the  World  Bank,  the  PAs 
expenses  for  1995  will  total  some  $444  million,  balanced  by  only  $216  million  in  direct  rev- 
enues, leaving  a  budget  deficit  of  $228  million  which  requires  subsidy.  World  Bank  officials 
insist,  however,  that  despite  this  deficit  the  PA  has  proved  capable  of  working  within  the  bounds 
of  a  set  budget,  and  has  increased  the  efficiency  of  its  tax  collection  in  the  West  Bank.  They 
point  to  initial  expectations  of  total  tax  revenues  of  $1 12  million  in  1995,  which  have  been 
revised  upwards  to  $164  million,  including  taxes  collected  by  Israel  from  Palestinian  workers  in 
Israel,  which  have  been  regularly  transferred  to  the  PA  in  accordance  with  Israeli-Palestinian 
agreements.  The  official  statement  of  the  Ad  Hoc  Liaison  Committee  summary  of  its  28  Sep- 
tember 1995  meeting  also  stated  that  "the  AHLC  was  favorably  impressed  with  the  efforts  by  the 
Palestinian  Authority  at  revenue  collection." 

In  contrast  to  this  optimism,  it  should  be  noted  that  Peace  Watch  sources  in  the  Gaza  Strip 
indicate  that  tax  collection  there  has  actually  decreased  drastically,  and  is  down  to  only  some 
$300,000  per  month,  as  compared  to  an  estimated  $1  million  quoted  in  a  report  issued  by  Peace 
Watch  in  March  1995.  Most  of  this  income  tax  revenue  is  apparently  taken  from  the  salaries  of 
PA  employees,  and  not  from  private  businesses.  These  sources  express  concern  that  reliance  on 
West  Bank  tax  revenues  to  the  virtual  exclusion  of  the  Gaza  Strip  could  potentially  lead  to 
political  strains  in  the  West  Bank. 

For  1996,  however,  the  PAs  budget  is  expected  to  grow  rapidly  due  to  the  expansion  of  its  role 
into  major  segments  of  the  West  Bank.  The  PA  has  had  responsibility  for  health  and  education 
expenses  in  the  West  Bank  since  late  1994,  which  are  the  most  resource-intensive  areas  of  civilian 
control,  and  this  responsibility  is  already  reflected  in  the  1995  budget.  The  addition  of  thou- 
sands of  policemen  and  extensive  equipment  to  the  West  Bank  will  constitute  the  most  signifi- 
cant addition  to  the  1996  budget,  since  most  of  the  redeployment  of  troops  is  expected  by  the 
end  of  1995. 


20 


351 

Economic  Issues  Facing  the  Palestinian  Authority  and  the  Donor  Nations 


Tax  revenues  are  expected  to  climb,  as  well,  since  although  the  PA  has  had  responsibility  for 
direct  taxation  in  the  West  Bank  since  1  December  1994,  it  should  now  be  able  to  increase 
revenues  there  as  the  deployment  of  Palestinian  police  in  the  major  cities  of  the  West  Bank 
increases  its  effectiveness. 

Overall,  however,  it  is  likely  that  the  increase  in  spending  will  outstrip  the  anticipated  rise  in  tax 
revenues.  US  Secretary  of  State  Warren  Christopher  said  in  an  official  statement  released  after 
the  last  AHLC  meeting  in  Washington  that  the  IMF  is  already  preparing  plans  for  the  additional 
resources  needed  in  1996.  Peace  Watch  has  learned  that  the  PA  is  planning  to  ask  the  donor 
nations  to  increase  by  $15  million  a  month  their  subsidy  of  Palestinian  police  salaries,  over 
and  above  the  current  coverage  of  salaries  provided  by  the  donors.  The  increase  in  salaries  is 
meant  to  enable  the  PA  police  force  to  expand  by  21,000  employees.  The  Gaza-Jericho  Agree- 
ment of  4  May  1994  permitted  the  PA  to  maintain  a  force  of  9,000,  whereas  the  interim  agree- 
ment of  28  September  1995  permits  a  total  PA  police  force  of  30,000.  (It  should  be  noted, 
however,  that  in  practice,  the  PA  deployed  at  least  18,000  policemen  even  before  the  interim 
agreement  was  signed).  In  addition,  the  PA  will  ask  for  large  grants  of  equipment  for  its 
growing  police  force,  especially  for  motor  vehicles  and  a  fleet  of  police  helicopters. 

A  contrasting  view  presented  to  Peace  Watch  by  Palestinian  economic  sources  reported  that  first 
estimates  indicate  the  1996  PA  budget  will  involve  around  $590  million  in  expenditures  and 
$515  million  in  total  revenues,  leaving  a  deficit  of  only  $75  million  if  the  most  optimistic 
expectations  of  West  Bank  taxation  revenues  (including  VAT  transfers  from  Israel)  are  met. 

Indeed,  one  Palestinian  economic  source  indicated  to  Peace  Watch  that  there  is  talk  among  the 
parties  involved  in  financial  aid  to  the  PA  to  effect  a  gradual  change  in  the  mechanism  of  aid 
disbursement.  Instead  of  collecting  all  of  the  donor  moneys  in  the  hands  of  the  World  Bank  to 
be  disbursed  to  cover  PA  recurrent  costs  via  the  World  Bank's  subsidiary  funds,  individual  donor 
states  will  grant  money  on  a  bilateral  basis  directly  to  PA  ministries,  which  would  then  make  use 
of  it  to  support  private  sector  initiatives.  Full  implementation  of  these  plans  would  involve 
closing  down  the  Hoist  Fund  in  1996  and  phasing  out  the  special  "police  salary  fund"  as  well, 
which  would  not  please  some  elements  in  the  PA,  including  Arafat.  However,  all  of  this  is 
tentative,  and  is  dependent  on  the  PA  actually  meeting  the  optimistic  goal  of  collecting  over 


( 


21 


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Peace  Watch  Report,  October  17, 1995 


$500  million  in  revenues.  It  should  be  noted  that  this  would  require  the  Palestinian  Authority  to 
collect  about  twice  as  much  in  taxes  as  the  Israeli  Civil  Administration  in  the  West  Bank  and 
Gaza  Strip  ever  did. 


D.  The  effects  of  the  Israeli  closure 

Palestinian  sources  in  the  Gaza  Strip  have  informed  Peace  Watch  that  the  deleterious  economic 
effects  of  the  Israeli  closures  of  the  territories  will  also  be  a  topic  of  discussion  at  the  Paris 
conference.  These  sources  indicate  that  they  have  succeeded  in  persuading  the  donor  nations  to 
treat  the  issue  seriously. 

The  Palestinians  in  particular  complained  to  the  donor  nations  that  they  were  unable  to  obtain 
an  Israeli  agreement  to  include  concrete  promises  to  ease  the  closure  in  the  Oslo  2  agreement. 

According  to  the  Israeli  daily  Ha'aretz,  the  donor  nations,  especially  the  US,  Japan,  Norway  and 
the  EU  nations,  have  already  begun  raising  the  issue  with  Israel,  at  preparatory  meetings  leading 
to  the  Paris  conference,  and  have  expressed  concern  that  continued  closure  would  strangle  all 
expectations  for  economic  growth  in  the  PA,  which  they  term  "the  cornerstone  of  progress  in  the 
peace  process.''  The  Worid  Bank's  Odin  Knudsen  and  Terje  Larsen,  who  coordinates  the  UN's 
economic  programs  for  Palestinians,  also  personally  expressed  their  disappointment  with  the 
continued  closure. 

Although  the  closure  has  not  significantly  reduced  the  flow  of  goods  into  the  Gaza  Strip,  it  has 
seriously  hurt  export-oriented  industries,  especially  the  garment  industry,  which  is  the  second 
largest  employer  in  the  Gaza  Strip.7 


'  Hatrtu,  15  October  1995.  page  A3. 


22 

o