World Bank, which will provide
the control, determine the
needs, oversee the cash flow and
project performance. Such pro-
grams have been implemented
in undeveloped countries, and
the Palestinians will have to go
though a similar process.
JP: Do you have an estimate
of the cost of the agreement with
the Palestinians? Will you have
to raise taxes or the deficit to fi-
nance those costs? Will you ask
the Americans to pay for it?
AS: We still don't have the
numbers. We don't know what
the redeployment of the army
will cost or other security con-
cerns, such as the protection of
the Israeli residents in the ter-
ritories. Since we don't have the
estimates, it is too early to de-
termine how and who has to
pay.
JP: When will we have a bet-
ter idea?
AS: The defense establish-
ment is currently working on
its redeployment, and the po-
lice and other authorities are
preparing what they have to
and in a matter of weeks we will
have a picture.
JP: Everyone is talking about
investments in the autonomous
region. What will be the gov-
ernment's policy regarding in-
vestments in the Jewish
settlements in the territories?
AS: We have already lowered
the extent of our investment in
the territories. It's not a secret
that we're not investing in hous-
ing and we have stopped build-
ing roads. I believe it will be
part of our dilemma, but I don't
think we will be making signif-
icant investments there, ab-
solutely not.

Numbers are being
bandied about, in
large sums and for
terms longer than
two years.

JP: Does Israel have an in-
terest in supporting the PLO in
the territories so that it can take
over? If so, how will we finance
PLO activities there?
AS: It is in Israel's interest
that there should be an element
which will take the lead in im-
plementing the agreement. We
signed with the PLO with clear
knowledge that the PLO is the
one which will have to take the
lead. It is strange how history
changes, and how we want the
PLO to be strong, to be able to
manage things and to be able
to meet the agreement's condi-
tions.
JP: But are we going to give
them financial support?
AS: I don't think we have to
give them financial support. I

think they will have resources
from their own taxes, partly
from the agreement and, I as-
sume, there will be interna-
tional assistance. The world at
large must finance this busi-
ness.
JP: But we're not talking of
money for projects like the type
financed by the World Bank.
We're talking about money to oil
the political process in the terri-
tories.
AS: No. It has to be their self-
government; they will have to
sustain themselves from their
own resources. I assume there
will be a gradual phasing out of
our involvement, but we will not
finance the normal activities in
Gaza and Jericho, or later in the
rest of the areas.
JP: American businessmen
behind the Free Export Pro-
cessing Zone (FEPZ) are saying
that if you do not include off-
shore financial services in the
law, there won't be an FEPZ.
Why did you change the origi-
nal proposal, which included
offshore financial services?
AS: First, I must point out —
and the Americans know this
— I took the lead on the FEPZ
against professional advice and
have followed it through.
Throughout the process the is-
sue of offshore financial services
did not surface as a major issue.
On the contrary, I received a list
of companies interested in lo-
cating in the FEPZ which did
not include a single financial
services firm.
When it became clear that it
became a central issue, both the
Bank of Israel and domestic fi-
nancial concerns said it raised
a lot of questions about whether
it could do damage to Israel's fi-
nancial system. We therefore
included section 68 of the law
which says that I, as finance
minister, am authorized with
the approval of the Knesset fi-
nance committee to permit
things of this nature following
their review.
JP: According to outgoing Is-
rael Bonds president Meir
Rosenne, a statement by a Trea-
sury official that the bonds are
not essential have hurt sales
abroad. Are you planning to ad-
dress the issue in this trip?
AS: I am for the existence of
the bonds. It is important for
raising capital and maintaining
connections with the Jewish
communities in the United
States.
I value very much Meir
Rosenne's work during the past
five years. He did an excellent
job. As a sign of our continuing
commitment to the bonds, I re-
cently appointed Nati Sharoni,
who is very talented and who
will take over at the beginning
of next year. 0
Jerusalem Post
Foreign Service

THE '94s HAVE
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At Rinke Cadillac!

The Newly Designed
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If traveling west on 1-696, exit Hoover, follow Service Drive to RINKE.
If traveling east on 1-696, exit Van Dyke; take second bridge past Van Dyke over expressway to RINKE.

41