Jerusalem, 19 May 1996

CABINET COMMUNIQUE

(Communicated by Cabinet Secretariat)

At its weekly meeting today (Sunday), 19.05.96:

1. The Cabinet, sitting as the Ministerial Committee for National Security Affairs, was briefed by the Chief of staff on security matters, and by the Coordinator of Government Activities in the Territories on the economic situation in Judea, Samaria and Gaza, and various joint ventures with the Palestinian Authority concerning economic matters.

2. The Cabinet approved an amendment to its decision of last week, concerning reconstruction and strengthening economically the Confrontation Line communities in the north, deciding that:

a. Nahariya residents will receive an additional 5% tax reduction

(instead of 2%), with a total tax reduction of 15% (instead of 12%).

b. Additional assistance of NIS 20,000 (of which NIS 10,000 is a grant) for purchasing apartments, will also be made available to Nahariya residents.

c. The additional welfare benefits which were allocated will be used to place children in day care centers in Nahariya, in addition to communities already included in the original decision.

d. Starting in April, Nahariya residents will also receive a reduction of three fee levels (without going below fee level three) for parents who pay for their children’s day care, in accordance with the fee schedule determined by the Ministry of Labor and Social Affairs.

e. The Cabinet also granted the communities of Arab-Alaramshe, Fasuta Mayilya, and Rajar the status of Confrontation Line communities in all respects.

3. Minister of Labor and Social Welfare, Ora Namir, gave notice of her intention to resign from the government in accordance with the Basic Law: The Government, and she tendered her letter of resignation to the prime minister, at the end of the meeting.