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Labor Minister Ora Namir said after last week's lengthy Cabinet session that when the closure is even- tually lifted, the number of Palestinians employed in- side Israel proper will not exceed 70,000. Prime Minister Yitzhak Rabin said he wants to use the crisis created by the closure to help solve the high employment among Israelis by transferring jobs formerly held by Palestinians to Jews. However, the past two weeks have shown that the vast majority of the 150,000 - Israelis registered as unemployed are still unwill- ing to take on jobs that Pa- lestinians from the ter- ritories regularly hold. Many Israeli employers, who are used to hiring Pa- lestinians at salaries below the minimum wage, have demanded that the closure be eased. Under pressure by Israeli employers, the closure has been relaxed slightly in the past week, allowing a few thousand workers each day to reach jobs in Israel. Government sources said policy will be directed toward replacing Palestin- ians in the construction in- dustry as rapidly as possible, while adopting a more le- nient attitude toward agricultural work. In parallel efforts to create more jobs for Palestinians inside the territories them- selves, the government resolved to encourage in- vestment, local and foreign, in the industrial infrastruc- ture there. But Cabinet ministers caution that a major change in the economic situation in- side the territories, with its chronic shortage of jobs, will not occur overnight. For years, the Israeli government did little to en- courage investment in the territories. Meanwhile, military and security experts reportedly gave conflicting assessments to the Cabinet over when to lift the closure. The continued closure of the territories means the loss of critical income to - many Palestinian families and is creating a tense and dangerous situation in the territories, some senior army officers warned. But Mr. Rabin made clear, even before the Cabinet met, that he would not favor an lifting of the closure. Mr. Rabin's position appears to be in sync with the broad swathe of public opinion. The fact that the wave - of killings has stopped since the closure was imposed has served to strengthen a mood Israelis registered as unemployed are still unwilling to take on jobs that Palestinians hold. , in the country that the "separation," as Mr. Rabin calls it, is the only effective way of combatting terror. The wave of killings sapped public confidence in the Labor-led government, but the current mood favor- ing "separation" appears to have shored up support for Mr. Rabin. - If translated into long- term political positions, "separation" poses an awkward problem for the Likud, the main opposition party, which is ideologically committed to a Greater Israel with continued control of the territories. • By contrast, Labor and its coalition allies favor an eventual territorial com- promise on the West Bank and total withdrawal from the Gaza Strip. While the closure has con- tinued, the security forces have stepped up efforts to capture wanted Palestinian gunmen from the territories. Four gunmen were cap-