CABINET COMMUNIQUE [Israel drops demanding performance before concessions]
(Communicated by the Cabinet Secretariat)
Sunday, August 17, 2003

[IMRA: To the credit of the Sharon Administration, the text of the cabinet
communique makes no attempt to cover over the fact that the very same
politicians who were transferring the control of additional cities to the PA
out of hope that the Palestinians might honor commitments in the future were
well aware that the Palestinians had not yet honored their obligations in
the areas already transferred to their control. This will spare future
analysts from spending time on the question of whether the decisions of
these politicians can be explained by a lack of information rather than a
lack of judgement.

Thus, these analysts will not have to ponder if DM Mofaz, when he announced
the transfer of security control to additional cities and at the same time
stated that "Israel has no intention of making concessions on its security
needs and demands" it could be argued that anyone sitting at the table
actually believed him. ]

At the weekly Cabinet meeting today (Sunday), 17.8.2003:

1. Defense Minister Shaul Mofaz and OC Intelligence Maj.-Gen. Aharon Zeevy
Farkash briefed ministers on security issues; Foreign Minister Silvan Shalom
briefed ministers on diplomatic issues.

Defense Minister Mofaz discussed the fragility of the process with the
Palestinians, which was underscored last week by the attacks in Rosh Ha'ayin
and Ariel. He said that behind the escalation are terrorist bodies that have
accepted the hudna but which have formulated dangerous rules-of-the-game.
Every perceived Israeli violation of the ceasefire is subject to one-time
terror. Tanzim elements in Judea and Samaria, which do not consider
themselves bound by the hudna, are constantly trying to perpetrate attacks
against Israel, most of which do not succeed. Arafat is giving signals that
are being interpreted by those around him and the Tanzim as hidden
encouragement of terror and support for Iranian-backed terror by Hizballah
and others. The Defense Minister stressed that Israel's operative behavior
is prudent and determined and added that there is no intention of changing
it. In the events in both Nablus and Hebron, in which Hamas and Islamic
Jihad terrorists were killed, Israel was acting against "ticking bombs" in
areas that have not been handed over to Palestinian security control. The
Defense Minister said that Israel's reaction to the Rosh Ha' ayin and Ariel
attacks concentrated on the Nablus-Jenin area and stepped up its
counter-terrorist and preventive activity there.

The Defense Minister asserted that lately the PA has been passive given the
security situation and its security activity has been partial, localized and
far from satisfactory.

Regarding the transfer of Palestinian cities to the PA, the Defense
Minister emphasized that he views the issue as important and not a
concession on Israel's part. It entails assigning the PA with responsibility
of dealing with terror infrastructures. To this end, he met twice with PA
Minister Muhammad Dahlan and acquainted him with the severity of the
security situation and stressed that if the PA fails to assume
responsibility and deal with terror, it would then bear responsibility for
the security escalation, possibly entailing the collapse of the process.

Defense Minister Mofaz said that after a pointed discussion, it was agreed
in principle that Israel would transfer security responsibility for Jericho
and Kalkilya to the PA, and in a second stage, Ramallah and Tulkarm as well.
The handover of these cities will be conditional on a resolution of the
problem of the fugitives in each city; the Defense Minister will monitor
their implementation. The Defense Minister gave concrete security demands to
the Palestinian side; the security establishment will monitor their
implementation. Defense Minister Mofaz said that the aforementioned
agreement is important at a critical moment in the process and added that
the ball is now in the Palestinians' court. He added that it must be
emphasized that progress in this process will be cautious and gradual, and
conditioned on a series of approvals on Israel's part; nothing is automatic
and Israel has no intention of making concessions on its security needs and
demands. Whenever and wherever the PA fails to deal with terror, Israel will
do so. At the same time, Israel intends to continue easing restrictions on
the population in conformity with security needs. The population is already
feeling the change and - for the first time - has become a restraining
factor against terror.

Defense Minister Mofaz and OC Intelligence Maj.-Gen. Aharon Zeevy Farkash
commented on the growing tension on the northern front, which stems from
Hizballah's and Syria's being ill at ease with the Israeli-Palestinian
process.

Defense Minister Mofaz said that Israel is holding not only Hizballah
accountable for what happens in the north, but the Lebanese and Syrian
governments as well, and added that deterrent messages to this effect have
been passed on to Beirut and Damascus.

Foreign Minister Silvan Shalom discussed events in the north and said that
they were a focal point for wide-ranging diplomatic activity. The Foreign
Minister reported that he has instructed the Israeli Ambassador to the UN to
submit a complaint regarding the Hizballah attacks, and is initiating
discussions with several fellow foreign ministers, including US Secretary of
State Colin Powell. In addition, he has instructed Israeli embassies abroad
to emphasize in the seriousness with which Israel views the terror attacks
in Ariel and Rosh Ha'ayin in particular and the continuation of terror in
general. The Foreign Minister also emphasized the importance of dismantling
the terrorist infrastructure, as is demanded by the road map.

Foreign Minister Shalom described Nabil Shaath's comments as extremely grave
and harsh, and that Israel has responded to them in the strongest possible
terms. The Foreign Minister further commented that European countries are
putting pressure on Iran regarding the nuclear issue.

Prime Minister Sharon commented on the various briefings and said that all
contacts and agreements reached between Defense Minister Mofaz and Muhammad
Dahlan were done so with his full knowledge and approval. The Prime Minister
added that Israel's central aim has been and continues to be achieving
security and peace for the State of Israel and noted that the implementation
of the road map has not yet reached beyond the initial stages. Following
remarks by Attorney General Elyakim Rubinstein and in recognition of the
fact that there is no legal system in the Palestinian Authority, the Prime
Minister instructed that a senior Israeli legal representative (the Justice
Ministry Director-General or another senior official) attend all meetings
with Palestinian security officials.

2. The government decided to renew the activities of the ministerial team on
confirming the Holy Synod of the Greek-Orthodox Patriarchate's 13.8.2003
choice of Metropolitan Eirinaios as Jerusalem's Greek Orthodox Patriarch.