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CAPITOL REPORT WOLF BLITZER U.S. Jewish-Arab business group will promote West Bank project BY WOLF BLITZER The Jewish News Washington Correspondent Washington - American liberalizing Israel's West Bank Jewish members of the Business policies. Group for Middle East Peace and Beyond accepting the notion of Development have confirmed that the new bank on the West Bank, Israeli Prime Minister Shimon the Israeli leader informed Shultz Peres quietly gave them the green that Israel's military government light to promote the establish- would also permit new indus- ment of a development bank on trialization projects, the estab- the West Bank and other projects aimed at improving the quality of life for Palesinians living there. The group will focus They also claim Peres authorized that the group undertake some on long-term ways to new initiatives aimed at advanc- improve Israeli ing the overall Arab-Israeli peace process. productivity, reform The private group, organized by Prof. Steve Cohen of Queens Col- structural problems lege in New York, includes some in the economy and of the wealthiest and most politi- cally active American Jews and increase exports. American Arabs. All are Ameri- can citizens. The State Department as well lishment of more hospitals and as Jordan's King Hussein are also other social services and the re- known to have quietly endorsed opening of the universities. the concept. Palestinians returning to the Among the Jews in the group West Bank would be permitted to are Lester Crown of Chicago, the bring $5,000 with them rather chief executive of General than the former sum of $3,500. Dynamics; Jay Pritzker of The Prime Minister promised to Chicago, the owner of the Hyatt allow most of the West Bank hotel chain and other businesses; towns and villages to again have New York banker Steve Shalom; Palestinian mayors, rather than businessmen Rober Arnow, Israeli civilian administrators as Robert Steinberg and Larry Tisch has been the case in recent years. of New York; Henry Kaufman, A delegation of five well-known the influential Wall Street West Bankers involved in quietly economist; Washington attorney cooperating with the scheme Alfred Moses; former B'nai B'rith came to New York and Washing- Anti-Defamation League Execu- ton earlier in October, having ob- tive Director Arnold Forster; tained travel permits from the Is- American Jewish Congress raeli government. President Howard Squadron; and According to informed sources, former World Jewish Congress U.S., Israeli and Jordanian offi- President Philip Klutznick. cials agree that this business There is an equally impressive group, composed of private Ame- group of Arab Americans in the rian citizens, may be able to group, including former Pan undertake certain delicate dip- American" Airlines President lomatic responsibilities which Najeeb Halaby, who is King Hus- none of the governments is yet sein's father-in-law; Bill Baroody, prepared to do. In the short-run, the head of the American Jewish members of the group, Enterprise Institute in Washing- backed by the Israeli government, ton; and Zahi Khouri and Joe also want to promote the estab- Jacobs, both extremely wealthy lishment of a new and indepen- businessmen. dent West Bank political leader- Behind the scenes, several ship which would not necessarily prominent American statesmen, take its cue from the PLO. including former Secretary of But the entire project is still ex- State Cyrus Vance and Middle tremely sensitive and controver- East neotiator Philip Habib, have sial. Individuals involved in also endorsed the operation. promoting it have refused to ad- The group is also attempting to dress the matter publicly, prefer- encourage King Hussein and ring instead to speak about it only other Arabs to join the peace proc- privately. They clearly fear that ess with Israel. Well-informed too much public discussion could sources said that while Hussein undermine its overall effective- privately supports the group, he is ness. taking an extremely low profile The newly-formed U.S.-Israeli out of fear of angering radical joint economic committee is ex- Arabs. pected to open its meetings The long-standing proposal for shortly, hoping to reach some the West Bank Development specific conclusions about improv- Bank was opposed by the former ing the Israeli economy by Likud-led government. But Peres, January. backed by Defense Minister Yit- U.S. and Israeli officials in- zhak Rabin, has changed the Is- volved in preparing for this first raeli attitude, in part in order to session in Washington said the demonstrate to Secretary of State group will primarily focus on George Shultz that Israel, too, long-term ways to improve Israeli wants to improve the quality of productivity, reform some long- life on the West Bank. standing structural problems in Peres's position has reportedly the Israeli economy and increase angered Foreign Minister Yit- exports. The Israeli delegation zhak Shamir and other Likud will be led by Emmanuel Sharon, partners in the national unity Director General of the Finance government. They are said to fear Ministry. The U.S. team will be that he may be going too far in chaired by Under Secretary of