Q. We hear some of the following things about the economic scene and I would like your comments. Is it accurate that: - the West Bank and Gaza saw economic progress during what economic progress that occurred was based not on indigenous economic activity but was based on externally-generated money, remittances from Palestinians working in the Persian Gulf and from Palestinians working in Israel; - in 1986 the West Bank and Gaza were the second largest importers of Israeli goods after the United States, but West Bank and Gazan goods that compete with Israeli goods cannot be sold in Israel; - in the last few years there has been a net - since 1977 the Israelis have sought to subordinate and integrate the West Bank and Gazan economies into Israel; - Israeli land and water policies have exacerbated problems, as Israeli settlers have had far more access to resources on a per capital basis than have Palestinians. How serious are these issues in your view? How important is it to address these problems in autonomy talks? Is it still accurate that Palestinian businessmen in the - Why can't the Israelis be persuaded to change these regulatory practices? - 3 Regarding the comment on net financial flows between the territories and Israel, it is difficult to comment on the figure cited from available statistics. Regarding land and water policies, it is correct that the settlements have greater access to these resources than the Palestinian residents. We have raised this issue with the Government of Israel on several occasions. Although it will be up to the parties to decide on the substance of an agreement on transitional arrangements, we believe such arrangements should afford greater Palestinian control over political and economic decisions that affect their own lives. This includes greater control over the natural resources of the occupied territories, including land and water. It is accurate that Palestinians wishing to carry out virtually any business activity must first obtain permission from the occupation authorities. Although the authorities maintain that these controls are necessary on security grounds, Israeli business interests are also a factor in the restrictions imposed on Palestinian commercial activities. addition, some Israeli political groups oppose any reduction in In controls on Palestinians in the occupied territories. Particularly in the current environment, it is difficult to secure Israeli agreement to ease these restrictions. Q. The European Communities and Israel are currently having a dispute over whether Palestinian farmers in the West Bank and Gaza should have the right to export their products Er scael directly, instead of through state-run Israeli marketing companies. The EC threatens to end preferential access for Israeli flower exporters if the Israelis do not agree.. - - Where does this dispute stand today? Does the United States support the EC in this dispute? A. The European Communities has granted preferential access to direct exports of Palestinian agricultural goods. Israel has insisted that these goods should continue to be marketed through established Israeli marketing organizations. On March 9, the European Parliament remanded for renegotiation protocols on trade and finance between the European Communities and the Government of Israel. Reportedly, the dispute over Palestinian marketing was one of the reasons the protocols were not approved. No action by the European Communities on the Israeli protocols is anticipated in the near future. The United States has not taken a stand on the EC-Israel dispute, but we de support improved access by Palestinians to overseas markets in order to stimulate indigenous economic development and improve the quality of life of Palestinians in the territories. We have conveyed this view to the Government of Israel on a number of occasions. Q. You testified in December that a few Palestinians from East Jerusalem have opened accounts at the new Cairo-Amman Bank in the West Bank but that many Palestinian applications to open accounts have been turned down by Israeli authorities. - Why is this happening and what are you doing about it? Why does the resistance to this bank on the part of the Israelis continue despite the approvals which have been obtained by the authorities? A. We know of only a few applications that have been approved. We do not know how many applications have been turned down. Those applicants who have opened accounts are businessmen operating in the West Bank. We support access by East Jerusalemites to the Cairo-Amman Bank and have conveyed this view to the Israeli authorities on a number of occasions. |