(Communicated by the Cabinet Secretariat)

At the weekly Cabinet meeting today (Sunday), 24 June 2007:

1. The Cabinet decided as follows:

In light of developments on the Palestinian side, including the 14 June 2007 dissolution of the Palestinian unity government and the 17 June 2007 establishment of the Palestinian emergency government, the Government of Israel will continue to work with Palestinian Authority Chairman Abu Mazen and will resume working with the Palestinian government, with its recognition of the principles of the international Quartet.

In this context, Israel will resume the transfer of tax funds, which have been collected as per agreements between Israel and the PLO and which are being held in Israel, according to a format and a timetable to be agreed upon with the emergency government and upon verification that these funds do not reach terrorist elements.

In continuation of the Cabinet’s decisions of 19 February 2006 and 11 April 2006, the Government of Israel will continue not to hold contacts with Hamas elements; as per the aforementioned decisions, Israel will continue humanitarian assistance to the Palestinian population in the Gaza Strip, including electricity, water, food, medicines and medical services.

2. The Cabinet decided to strengthen the north, Haifa and Ashkelon by establishing, upgrading and/or developing area hospitals.

3. The Cabinet discussed its contacts with Government companies under the authority of Construction and Housing Minister Meir Shetrit.

4. The Cabinet discussed measures to increase efficiency in egg production.

5. Pursuant to the 1959 Civil Service Law (Appointments), the Cabinet decided to extend the tenure of the Israel Tax Authority Acting Director by three months or until a new director is appointed, whichever comes first.

6. Pursuant to the 1959 Civil Service Law (Appointments) and in accordance with the Civil Service committee, the Cabinet decided to exempt from public tender the position of Registrar of Contractors.

7. Pursuant to the 1959 Civil Service Law (Appointments) and in accordance with the Civil Service committee, the Cabinet decided to exempt from public tender the position of Sports Authority Director in the Science, Culture and Sports Ministry.

8. Pursuant to the 1968 State Commission of Inquiry Law, the Cabinet decided to permit public study of the protocols of the open discussions of the State Commission of Inquiry Regarding the Safety of Structures and Places that Serve the Public.

9. The Cabinet discussed the interministerial staff report on the provision of medical services to Israel Prison Service inmates.

10. The Cabinet authorized NIS 10 million for sewage infrastructure for the slated Halutzit 1 and Halutzit 4 communities.

11. The Cabinet decided to encourage and strengthen community development in Zikim, Karmiya, Yad Mordechai and Gavaram (communities adjacent to the Gaza Strip) by subsidizing infrastructure costs for independent construction, at a rate of NIS 56,000 per lot, from the Construction and Housing Ministry budget.

12. The Cabinet amended previous decisions regarding structural changes at the Education Ministry and the Science, Culture and Sports Ministry.

13. The Cabinet amended previous decisions regarding the issuing of passports to new immigrant Israeli citizens the center of whose lives are not in the State of Israel.

14. The Cabinet decided to allocate NIS 65 million to the Construction and Housing Ministry in 2007 for infrastructure development regarding the preparation of approximately 700 lots for construction in Nitzanim.