Prepared for the
Conference of Presidents of Major American Jewish Organizations

in association with the Fairness Project
by the Jerusalem Center for Public Affairs
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June 21, 2002

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In-Depth Issue:

How EU Aid Goes for War

Newly translated documents captured during Operation Defensive Shield describe how the PA diverts foreign aid money for terrorism and corruption.

Follow the Money: $6 Million a Month for War     Each month the PA receives millions of dollars in foreign aid. The EU provides $9 million and the Arab states $45 million, according to a decision by the Arab League of October 2000.
    A part of these funds goes directly to the armed militias of Fatah. The salaries of all PA workers -- from clerks to police and security forces -- are listed in dollars but paid in shekels. The official exchange rate is 16% lower than the going market rate. The PA pockets the difference, to use however it wishes, without the donor states realizing that their funds are being diverted for other purposes.
    The PA pays $40 million in salaries each month -- half goes to the security forces. The exchange rate difference brings in an estimated $6.4 million every month, which is believed to go directly to the Al-Aqsa Brigades and the local, Fatah-run, weapons and ammunition industries.
    The EU is aware of these financial irregularities and has asked the PA to allow the International Monetary Fund to supervise its finances.

Top PA Officials Enjoy Perks

  • Palestine Legislative Council chairman Abu Alla recently completed construction of his new villa in Jericho, at a cost of $1.5 million.
  • Yasser Arafat used PA funds for a wedding gift of $50,000 to the son of his friend, Nabil Amro, former minister of parliamentary affairs.
  • The son of Planning and International Cooperation Minister Nabil Sha'at, studying in France, had his stipend doubled.
  • A deputy of Information Minister Yasser Abed Rabo received $100,000 to help build a house.
  • In Hebron, the police levy a "protection" tax of $50 a month on grocers in the shuk.
  • In Tulkarm, a businessman paid $100,000 to one of the intelligence services after his brother was arrested on suspicion of cooperation with Israel. After the payment, the brother was still not freed.
  • A gas station owner in Jericho reports that security personnel fill up at his station and never pay.
  • Representatives of the PA have taken over land belonging to the Orthodox Church in Bethlehem, forging ownership documents.
  • A senior Tanzim activist who raped and murdered a young girl in Bethlehem was freed thanks to his friends and sufficient cash.
  • Arafat's economic advisor, Muhammad Rashid, controls gasoline and concrete interests, has partial ownership of the Jericho casino, owns a flour mill in Gaza, and is involved in other projects in industry and tourism. (Maariv)

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    Back Issues

  • News Resources - USA and Europe:

  • Mother, 3 Children, Murdered in Their Home
    Two Palestinian terrorists entered the home of a Jewish family in Itamar, in Samaria, and shot dead the mother, three sons -- 15, 12, and 5 -- and a neighbor who tried to save them. Two children, a 10-year-old boy and his 13-year old sister, were hospitalized with serious gunshot wounds, while two other children hid under their beds and escaped injury. Two border policemen were also wounded. On May 29, a terrorist infiltrated Itamar and attacked a high school, killing three Israeli teenagers who were playing basketball. 30 Israelis have been murdered in Palestinian terror attacks in the last 3 days. (FOX News)
  • Bush Waiting for Arafat to Act
    Arafat's call for an end to attacks on Israel was found to be insufficient by the White House. ''The president is still waiting for him to act," White House spokesman Ari Fleischer said. (Washington Post)
  • Unlike Victims, Bomber Died without Pain
    When an average, garage-made bomb is exploded in a contained space, such as a city bus, the heat and pressure generated by the blast will melt iron. "For the exposed part of the body, the side facing the blast, it would be like falling off a building," says Dr. Pekka Sinervo, a physics professor at the University of Toronto. "No, actually it would be worse." (Toronto Star)
  • Changing Demographics of Suicide Bombers
    Previously, the attackers were strictly from the fundamentalist Hamas and Islamic Jihad, envisioning a covey of virgins and automatic passes to paradise. But since early spring, most of the attacks have been by more secular groups linked to Arafat's Fatah organization. The broader cultural phenomenon of suicide bombing may prove difficult to restrain, experts say. (New York Times)
        See also Israeli Defense Minister Meets with Failed Suicide Bombers (Ha'aretz)
  • Israel Widens Military Operations in West Bank
    Israel has begun calling up reserve soldiers in response to the latest wave of murderous Palestinian Authority terrorism. Troops backed by armored vehicles have taken up positions in or near most major Palestinian cities. "Until there is a change of behavior on the other side, until they can take responsibility for areas under their jurisdiction, we have no choice but to move into certain areas that will improve our ability to prevent infiltrations into Israel," said government spokesman Dore Gold. (Voice of America)
  • News Resources - Israel and Mideast:
  • Woman Loses Mother and Daughter in Bombing
    The last thing Penina Eisenmann remembers before the terrorist attack that murdered seven in Jerusalem on Wednesday is holding her 5-year-old daughter's hand, crossing the street. Ahead of them is her 60-year-old mother, wheeling her 18-month-old grandson in a baby carriage. "My mother caught the brunt of the blast, so she was able to protect me. My daughter was so small it destroyed her," Eisenmann said. (Jerusalem Post)
  • Prime Minister Weighs Expulsion of Terror Leaders
    Prime Minister Ariel Sharon has asked the attorney general, the state attorney, legal advisors to the Shin Bet, and the Judge Advocate General for legal opinions on expelling terrorists and their families and demolishing terrorist's homes in the West Bank and in Gaza. The High Court of Justice has ruled in the past that individuals may be expelled if their presence in the territories could result in disruptions to law and order, and oversaw the establishment of a legal appeals process for candidates for expulsion. (Ha'aretz)
  • Palestinian "Journalist" Leads Police to Hidden Explosives
    A Palestinian pretending to be a journalist, arrested Thursday night at the Erez checkpoint in Gaza, told his captors where he had hidden an explosive belt and 7 kg. of TNT in the Erez industrial zone. The man is one of 3,700 Palestinians who work at Erez in some 200 factories, which have remained open during the fighting in order to provide sustenance for Palestinian families. (Yediot Ahronot)
  • Sharp Increase in Terror Involvement of Israeli Arabs
    Israel's security services have been discussing the sharp rise in involvement of Israeli Arabs in terrorist attacks. The homicide bomber who murdered 19 Israelis on a Jerusalem bus may have spent the night in the city's Arab Beit Safafa neighborhood. While the trend is expected to worsen, the government has sought to minimize publicity in order not to sharpen tensions with the Israeli Arab community. (Maariv)
  • The Commander Has Fallen
    Nahshon Brigade company commander Maj. Shlomi Cohen, 26, of Rehovot, led the soldiers who entered the house of the local head of Palestinian intelligence in Kalkilya on Wednesday, when gunmen opened fire and threw grenades at the troops at close range. Cohen was to have been discharged from the army a month ago, but delayed his leave until a replacement was found. (Jerusalem Post)
  • Global Commentary and Think-Tank Analysis (Best of U.S., UK, and Israel):

  • The Speech that was Never Delivered - Aluf Benn
    The postponement of President Bush's address on the Middle East provides an excellent opportunity for shelving the speech altogether. The details that have leaked out on its content assign the address a distinguished place on the junk-pile of previous American plans. When Secretary of State Powell raised the idea of a temporary Palestinian state without first examining the notion's meaning, legal experts in both the State Department and the White House were caught completely off guard.
        The diplomatic moves are light-years removed from the reality in the field. The chief result of the U.S. initiative was that Israel's determination to achieve a decisive victory on the battlefield has been intensified. (Ha'aretz)
  • Expel Arafat and Eradicate His Regime - Binyamin Netanyahu
    Israelis wake up each morning to Russian roulette. Whose turn is it today? How many were murdered? Where? This has to stop, now, and it can be stopped within a short time by doing the following three things, all together: cleansing the PA of fighters and weapons; surrounding Palestinian population centers with a physical barrier; eradication of Arafat's regime of terror. (Maariv)
  • Why Pollard is Still in Prison - Edwin Black
    Award-winning researcher and author investigates why Pollard's case was so poorly handled. Legal technicalities and his own provocative conduct appear to be why freedom eludes Jonathan Pollard. (Jewish Week - NY)
  • The Palestinian State Mistake - Fred Barnes
    Even the prospect of a significant shift by Bush in their favor [the awaited speech on a Palestinian state] did not prompt better Palestinian behavior. Terrorism against Israel is an ingrained part of Palestinian conduct. Concessions are seen as a sign of weakness and thus act as a spur to more terrorism that might produce more concessions. (Weekly Standard)
  • Point Man in Israel's Information War - Haim Handwerker
    Israeli Consul General Alon Pinkus discusses Israel's information efforts and the American media. Camera, ADL, and a PLO representative in the U.S. add their views. (Ha'aretz)
  • Talking Points:

    Iran Will be Nuclear by the End of the Decade

    In a recent briefing in Jerusalem, Col. Miri Eisen, head of doctrine in the IDF's Combat Intelligence Corps, offered the following assessments:

    • Iran presently has missiles that can reach Israel and India. By the end of the decade, Iran's nuclear-tipped missiles will be able to reach the rest of the world.
    • Terrorism is not spontaneous, it requires ideology, people, weapons, and money -- a lot of money. The money given by Saudis to Hamas has gone mainly for explosives.
    • Most terrorists are trained in Syria, in which 13 terrorist organizations are headquartered.
    • Over the past 4 months, the IDF has uncovered 82 explosive labs in six cities and has arrested 27 suicide bombers who did not explode.
    • Of 44,000 light weapons given to the Palestinians as part of the Oslo agreement, the IDF has recovered 5,000. (Jerusalem Post)

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