Jerusalem, 18 August 1997

ISRAEL TO RELEASE PALESTINIAN TAX RECEIPTS

(Communicated by PM’s Media Advisor)

Prime Minister Benjamin Netanyahu decided today (Monday), 18.8.97, after consulting with Foreign Minister David Levy and Defense Minister Yitzhak Mordechai, to release approximately 30% of the funds Israel has withheld and transfer them to the Palestinian Authority. This decision was reached following the partial cooperation by the Palestinian Authority regarding the investigation of the Mahane Yehuda Market attack, and in consideration of the cooperation in the case of the murder of the [Israeli] taxi driver in Jericho.

The Prime Minister’s Media Advisor emphasized, however, that this is a partial step in exchange for the partial steps taken by the Palestinian Authority, and that Israel expects intensive Palestinian efforts in the war against the terrorist infrastructure, which has not yet occurred.

The Israeli government will continue its policies whereby Israel will ease its actions regarding the Palestinian Authority in the event that the Palestinian Authority will take security measures against terrorism.