Jerusalem, 20 December 1998

CABINET COMMUNIQUE

(Communicated by the Cabinet Secretariat)

At the weekly Cabinet meeting today (Sunday), 20.12.98:

1. The Cabinet was briefed on security matters by the defense minister and the head of IDF intelligence, following the end of the attacks on Iraq.

2. The prime minister said that, in recent days, the Palestinian Police had stood on the sidelines and allowed the burning of U.S. flags and the trampling of pictures of U.S. President Bill Clinton. The prime minister added that, once again, the underlying closeness and true partnership between Israel and the United States has been underscored.

3. The prime minister informed the Cabinet of the resignation of Ya’akov Ne’eman as finance minister; the resignation went into effect on Friday. The prime minister said that Ya’akov Ne’eman was a loyal minister to the government’s policy and that, with honesty and devotion, he did his utmost to realize the government’s economic policy.

4. The Cabinet held a political discussion on the Wye River Memorandum and passed the following resolution:

A. Israel seeks peace with the Palestinians and the advancement of final status agreements with them. Israel is committed to the continuation of the peace process, subject to the principle of reciprocity. Israel will complete implementation of its commitments in the process when the Palestinian Authority fulfills its commitments.

B. The Palestinian Authority must abandon its intention to unilaterally declare the establishment of a Palestinian state, as well as its intention to unilaterally declare Jerusalem the capital of the Palestinian state.

C. The Palestinian Authority must halt the violence and the incitement to violence.

D. Israel will not release murderers and prisoners with blood on their hands.

E. The Palestinian Authority must collect and remove the illegal weapons held by the PA and by civilians, arrest the murderers in the area under its responsibility, maintain full cooperation with Israel in combating terrorism and honor the rest of its commitments according to the agreement.