Jerusalem 18 August 1997

TREASURY TO TRANSFER 42 MILLION SHEKELS TO PALESTINIAN AUTHORITY

(Communicated by Finance Ministry Spokesman)

Finance Ministry Director-General Shmuel Slavin today (Monday) 18.8.97, informed the Financial Director within the Palestinian Authority, Mohammed Nashashibi, that the Ministry of Finance will transfer NIS 42 million, which are 30% of the funds frozen following the terrorist attack in Mahane Yehuda, to the Palestinian Authority.

Israel froze the payments to the Palestinian Authority (VAT, fuel levies, income taxes, etc.) following the attack in Mahane Yehuda, making all money transfers conditional on the Palestinian Authority taking action against terrorism.

Today, the Finance Ministry Director-General, wrote Mr. Nashashibi, to inform him that as a result of the Palestinian Authority taking a number of measures against terrorism, a portion of the funds will be transferred.