it

14 Friday, March 30,1919

NEWS

Military Begins to Move Sinai Installations

TEL AVIV (JTA) — The
Israeli army has begun
dismantling its installa-
tions in Sinai in preparation

for the first stage of its
withdrawkl from the penin-
sula to be completed nine
months after the peace

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treaty with Egypt is
ratified. Acting on direct
orders from Defense Minis-
ter Ezer Weizman who is in
Washington, army units are
loading ammunition and
equipment on trucks and
taking down pre-fabricated
buildings.
The activity is concen-
trated in northern Sinai be-
cause Israel has agreed to
return the administrative
capital of Sinai, El Arish, to
the Egyptians at an earlier
date than originally con-
templated. This will be
within the first two months
of the initial nine-month
withdrawal stage. The
army stressed that the work
just begun is preparatory.
The full-scale evacuation
will begin only after
Passover.
All movable items will be
transferred to the new line
that extends from east of El
Arish on the Mediterranean
to Ras Mohammed on the
Red Sea. The bulk of the
equipment will be stored in
the Negev where the Israeli
army is to be redeployed and
a massive new-military in-
frastructure built. It was

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learned that the redeploy-
ment will take into consid-
eration that the main mili-
tary threat to Israel in the
future will be on its eastern
front rather than from
Egypt.
The evacuation moves
have engendered bitter
feelings among the
Jewish settlers in Sinai,
particularly those in
Yamit, the largest town-
ship, who will be moved
out of the territory dur-
ing the final stages of
withdrawal. The Yamit
settlers are furious with
the government for its
failure to consult or keep
in touch with them.
So far the government
has not set up the machin-
ery or even an official body
to deal with their problems.
Yamit residents blocked the
main Sinai road with trac-
tors and piles of burning
tires on Wednesday. They
want a meeting with
President Anwar Sadat of
Egypt to see if they can ar-
range to stay in Yamit as
Israeli citizens after all of
Sinai is returned to Egyp-
tian sovereignty.
Meanwhile, Mayor Gad
Katz of Eilat has asked the
mayor of the adjoining town
of Aqaba in Jordan to open
the boundaries between the
two towns in the interests of
increased tourism. Eilat,
which is Israel's third-
largest sea port, seems to
have a bleak future because
the Suez Canal will soon be
open to Israeli ships. The
cut-off of oil shipments from
Iran has deprived 'Eilat of
its importance at the south-
ern end of the oil pipeline to
the Mediterranean. The
town's future appears to lie
in its growth as a tourist re-
sort.

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NEW YORK — Israel
Discount Bank's wholly-
owned Netherlands Anti-
lles subsidiary, IDB Inter-
national N.V., plans a $30
million Eurodollar issue of
five-year guaranteed float-
ing rate notes.
The notes will be fully
guaranteed by Israel Dis-
count Bank and will bear
interest at 25 percent above-
the London Interbank
Eurodollar offered rate,
fixed every six months, with
a minimum rate of seven
,percent. The issue is ex-
pected to be completed in
April and the notes will be
used to expand the bank's
international operations.

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Criticism Hit

JERUSALEM (ZINS) —
World Zionist Organization
and Jewish Agency Execu-
tive Chairman Leon Dulzin
has reacted angrily to criti-
cism of the Zionist move-
ment by Housing Minister
David Levy.
Levy had referred to the
"bankruptcy of Zion."
Dulzin said aliya would
improve dramatically if
low-cost housing were pro-
vided. "How can there be
mass aliya," Dulzin asked,
"if you have to be a mil-
lionaire to afford a home?"

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