3000 GT

Privatization Could Stumbling Block
Produce $5.8 Billion To Trade Talks

The remaining Israeli govern-
ment companies being privatized
could bring $5.8 billion to the
Treasury's coffers, outgoing Gov-
ernment Companies Authority
director Yossi Nitzani said.
Mr. Nitzani said the proceeds
from four companies — Bezek, Is-
rael Chemicals (ICL), El Al and
Zim — can be expected to reach
\/ between $1.6 and $1.8 billion,
and the sale of banks Hapoalim,
Leumi, Discount and Mizrahi
could bring another $3.7 billion.
In addition, Mr. Nitzani said, the
government should be able to get
$320 million for Israel Oil Refiner-
ies.
In his calculations, Mr. Nitzani
did not include the privatization of
the Israel Electric Corporation,
Mekorot and the defense industries.
/-)
Asked how long it will take to
complete the government's pri-
vatization program, Mr. Nitzani
responded, "You can't stand with
a stopwatch if you want privati-
zation to succeed."
Since 1991, the government
has sold $1.6 billion in state-
owned firms and $1.4 billion in
banks.

R&D Slash
Concerns Scientist

Israeli industries face tougher cri-
teria to qualify for government
research and development funds
as a result of a cut in this year's
R&D budget, Industry and Trade
Ministry chief scientist Shuki
Gleitman said.
Mr. Gleitman said research
funds were slashed by 17 percent
in real terms, from NIS 950 mil-
lion last year to NIS 920 million.
He asked the Treasury to in-
crease the budget by NIS 200 mil-
Ion to keep up with projected
requirements.
"This is a blow to industry,
which gives the economy a chance
to compete," Mr. Gleitman said.

`V Indicator
Up 1.1 Percent

The Bank of Israel's "S" (state of
the economy) indicator jumped
1.1 percent in February, pushed
by steep increases in imports and
consumer spending.
The central bank says the in-
dex rise points to an expansion in
economic activity driven by grow-
ing demand.

Publicity Deadlines

The normal deadline for local news and
publicity items is noon Thursday, eight
days prior to issue date. The deadline
for birth announcements is 10 a.m.
Monday, four days prior to issue date;
out-of-town obituaries, 10 a.m. Tues-
day, three days prior to issue date.

London (JTA) — A last-minute'
stumbling block has threatened
hopes for a swift end to negotia-
tions on a trade agreement be-
tween Israel and the European
Union.
The final-stage talks — which
the two sides began last year and
had hoped would be completed
by now — appear likely to drag
on for several more months as of-
ficials try to come to an agree-
ment.
The dispute has centered on
an E.U. demand that Israel lim-
it import duties on European food
products.
In return, the Israelis have
called for more favorable terms
for their export of grapes, flow-
ers, oranges and meat to the E.U.
But according to sources in
Jerusalem, the Israeli request
has been rejected.
Israeli official Zvi Alon said the
talks had been held in "an at-
mosphere that was not good." He
accused the E.U. negotiators of
lacking the will to conclude the
talks successfully.
'The Europeans have good rea-
sons to improve terms for our ex-
ports. They get a fair deal from
us for their goods, and if they
don't reciprocate, a real crisis will
erupt," he said.
A E.U. spokesman denied that'
the talks were at a crisis point'
and said E.U. countries were al-
ready "wide open" to Israeli im-
ports.
But he added, "Eventually,
with sufficient flexibility we will
get over the problem."
The argument over agricul-
tural issues has frustrated Israeli
officials, who feel favorably about
the agreement. A new pact would
replace a 1975 agreement with
the 15-nation European bloc.
The E.U. decided to strength-
en its relations with Israel after
the Palestinian self-rule accord
was signed in September 1993.
Israel is currently suffering a
$5 billion trade deficit with the
E.U., which is its main trading
partner.
In an effort to cut that deficit,
Israel is hoping to gain greater
access to European agricultural
markets and as well as to re-
search and development pro-
grams. It is also hoping to
stimulate European investment
in Israeli companies.
Israeli Foreign Ministry
sources have said they support
the agreement in its current
state, despite objections from
the Agriculture and Trade min-
istries.
An Israeli official said that
apart from the financial aspects,
the agreement would repre-
sent a "leap forward" in diplo-
matic relations between the two
sides.

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