Statement by the Government Secretary, Mr. Israel Maimon, at the conclusion of the Cabinet Meeting on July 18, 2004:

A.  At the opening of the meeting, the Prime Minister referred to the terror attack against the Jewish community building in Argentina, 10 years ago. 
The Prime Minister said:
“Exactly ten years ago today (at 9 o’clock in the morning), a booby-trapped car exploded, with a suicide bomber inside, in front of the Jewish community Amia Building in Argentina.
It was a murderous and abominable attack, aimed at killing Jews merely for being Jewish.  The attack claimed the lives of 85 people, and 230 were injured – citizens of Argentina, Jews and non-Jews.  Due to this despicable act which claimed so many lives, the Jewish Community building collapsed, as well as the buildings adjacent to it, and it thus serves as testimony to the cruelty of terror, and its initiators and perpetrators are still free.
Today, the Government of Israel sends its condolences to the bereaved families, and conveys its solidarity with those who were wounded in the attack and with the entire Jewish community in Argentina.
Today, at a special ceremony in Buenos Aires, the community will mark a decade to this dreadful attack.
Israel commends the decision of the President of Argentina, Nestor Kirshner, to participate in the ceremony, and views it as another indication of the positive treatment of the Jewish community in Argentina, and the commitment of the Government of Argentina to fully investigate the circumstances of the attack, to find those responsible, and bring them to trial.
There can be neither pardon nor forgiveness for this terrible crime and for the terrorists, who belong to international terrorist organizations and receive instructions from extremist countries.
During the day, a ministerial committee will be assembled, headed by Minister Nathan Sharansky, which will discuss, inter alia, the ways in which the State of Israel will commemorate the appalling attack in Amia.
Israel continues to act determinedly against the terror directed at the Jewish people and the State of Israel, and is committed to paying tribute to all the victims of terrorist attacks”.
Following the Prime Minister’s statement, Minister Natan Sharansky briefed the Government on his visit to Argentina and his talks there which addressed, inter alia, the local authorities’ investigation following the murderous attack.
B.  The Government approved the Prime Minister’s proposals regarding change in the division of tasks in the Government and the addition of another minister to the Government, as follows:
In accordance with the Basic Law: The Government, Minister Eliezer Zandberg will be appointed Minister of National Infrastructures, in place of his position as Minister of Science and Technology.  This decision will be submitted to the Knesset for approval. 
And in accordance with the aforementioned law, on the basis of the Prime Minister’s proposal, a decision was made to add Knesset Member Ilan Shalgi to the Government as Minister of Science and Technology.  An announcement on the addition of this minister, and his duties, will be submitted to the Knesset for approval.
C.  The Government decided to recommend to the President the appointment of the following candidates to serve as members of the National Council for Civilian Research & Development, on the basis of the Law of the National Council for Civilian Research & Development 2002, for a period of 4 years:
• Prof. Dan Zaslevsky – Chairman of the Council (in accordance with article 4(b)(1) of the Law).
•  Prof. Yehudit Birk (in accordance with article 4(b)(2) of the Law).
• Prof. Miriam Faust (in accordance with article 4(b)(3) of the Law).
• Prof. Uri Sivan (in accordance with article 4(b)(3) of the Law).
• Prof. David Horn (in accordance with article 4(b)(3) of the Law).
• Dr. Itzhak Pishov (in accordance with article 4(b)(3) of the Law).
• Mr. Elisha Yanai (in accordance with article 4(b)(4) of the Law).
• Mr. Uzia Galil (in accordance with article 4(b)(4) of the Law).
• Dr. Orna Berry (in accordance with article 4(b)(4) of the Law).
• Mr. Yigal Erlich (in accordance with article 4(b)(4) of the Law).
• Dr. Lea Bam (in accordance with article 4(b)(5) of the Law).
• Prof. Hermona Sorek (in accordance with article 4(b)(5) of the Law).
• Mr. Moshe Oron (in accordance with article 4(b)(5) of the Law).
• Prof. Michele Ravel (in accordance with article 4(b)(5) of the Law).
• Mr. Doron Kochavi (in accordance with article 4(b)(6) of the Law).
• Mr. Uzi Eilam (observer) (in accordance with article 4(c) of the Law).
The duties of the National Council for Civilian Research & Development are:
• Advise the Government on the planning, organization and arrangement of civilian research & development, as well as budgets for its advancement. 
• Recommend to the Government guidelines for an overall national policy, yearly and multi-yearly, in the field of civilian research & development.
• Recommend to the Government with regard to fields of national priority concerning civilian research & development.
• Recommend to the Government on the establishment of infrastructures for research & development, and the implementation of projects in the field of science & technology.
• Advice to the Government – as well as to the Ministerial Committee for Science & Technology, the Forum of the Chief Scientists of Government Ministries or other bodies which fulfil a similar capacity – on issues relating to government research & development, including the establishment and maintenance of government research institutes.  Also, recommend to the Government professional criteria for the appointment of Chief Scientists for government ministries and the appointment of heads of government research institutes.
• Advice to the government, at its request, on any other issue relating to research & development.
D.  The Government decided, further to its prior decisions on this issue, not to set a date for the conclusion of the activity of the Netivei Ayalon Company Ltd.  The company will be entitled to operate, in every field of its activity, in the Tel Aviv metropolis.  Furthermore, the Ministers of Transportation and Finance will be entitled to assign the company tasks and missions in the fields of planning, implementation, operation and maintenance of transportation infrastructures for public and general transportation – with direct connection to the Tel Aviv metropolis.
Furthermore, the Government decided that the continuation of paving of the northern part of the road, which abuts the nature reserves, will be reconsidered.
The Netivei Ayalon Company is a government company, co-owned by the Government and the Tel Aviv Municipality (50%).
The company is the executive body of the Ministry and the Tel Aviv Municipality for the implementation of transportation projects in the Tel Aviv metropolis, in conjunction with other authorities in the metropolis.
The Government now decided that the company will be entitled to perform every task assigned to it by the Ministers of Transportation and Finance, in the fields of planning, implementation, operation and maintenance of transportation infrastructures – both general and public transportation – with a direct connection to the Tel Aviv metropolis.
E. The Government decided to authorize the Ministerial Committee for Legislation to discuss and decide, with the Government’s consent, on the draft of the Security Service Law (amendment no. 7, temporary provision) (service for the police and recognized service) (amendment no.), 2004, and to submit it immediately to the Knesset.
Article 24a of the Security Service Law [integrated version] 1996 defines the authority of the Minister of Defense, in consultation with the Minister of Public Security, to instruct that those who served in the army will serve in Israel Police units – with the exception of the Border Police – which are engaged mainly in the defense of the country and its citizens.
Article 24a was intended originally as a temporary provision for a period of two years from the date of its publication (the law was first published on August 10, 1995).
The temporary provision has been extended from time to time by the Knesset, to August 10, 2004.  The existing security situation demands special efforts by the Israel Police in lifting the burden of responsibility for preventing terror attacks and ensuring the internal security of the country.  It should be noted that the stationing of the Israel Police is with the agreement of the soldier.
F.  Regarding the strike in the seaports, the Government resolved the following:
• To authorize the Minister of Finance to use the additional royalties in accordance with clause 65 to the Shipping and Ports Authorities Law 2004, in order to enable the proper implementation of Israel’s foreign trade, inter alia, via the continental border-crossings of the State and the regional seaports.
• For each container which will be transferred through the land border crossings instead of the seaports which are on strike, a sum will be paid of up to $700, by the customs department in return for the shipping documents; this is in accordance with the measures which will be publicized.  The amount to be paid will be determined, inter alia, according to the aforementioned measures, including the route taken, the type of load transferred and its size.
• As such, the Government resolved to authorize the Head of Customs and VAT, and the Head of Budgets to increase the aforementioned amount in the aforementioned article, in accordance with the circumstances and various shipping routes.
• Without minimizing the aforementioned, the Minister of Finance is authorized to make use of the aforementioned funds detailed, in order to preserve the standard existence of external trade of the State of Israel.
• The Government authorizes the Ministers of Finance and Transportation to re-allocate unused budget surpluses from the framework designated for the realization of this Resolution for use at the ports.
In light of the strike declared by the port employees, due to the Government Resolution to carry out reform in the Port Authority, the majority of trade routes in the country were, in fact, blocked.  As a result, serious harm to the economy, industry and primarily Israeli exports, is expected.
As such, in light of the serious significance and damage expected to the Israeli economy, the Government is preparing to create alternatives which will allow the continuation of trade in a limited scope, through other ports in the area, and through other means.  Since the alternatives proposed by the Government are expected to increase the cost of the merchandise, the Government resolved to support those who use the ports with the additional costs involved in using the proposed alternatives.
G.  The Minister of Defense reviewed ongoing security matters, while indicating that Israel’s pressure on terrorist centers has begun to show results, and a tiredness is being felt in the Palestinian population which, on its part, is exerting pressure on the terrorists.  At the same time, “the hard core” which continues to engage in terror is increasing its efforts to harm Israel.
The level of warnings and efforts to carry out terror attacks has increased.  The Minister of Defense referred to the political crisis in the Palestinian Authority, that while Arafat is attempting to create the illusion of reform, in fact no reforms have been carried out.
The phenomenon of anarchy on the Palestinian side is continuing to increase.  The Minister of Defense detailed the principal events in the Palestinian Authority, while discussing their significance.  Moreover, the Minister of Defense mentioned the recent warfare against terror on the Israeli side, while emphasizing that the policy of Israel is to maintain continuous pressure on the terrorist centers and maintain, as much as possible, the policy of distinguishing between terror and the innocent population.  Israel is implementing this policy with increasing success in Judea, Samaria and Gaza, and the result is evident.
The Minister of Defense also said that, despite the decision of the International Court of Justice at The Hague, the construction of the Security Fence will continue, while coordinating its path with the principles determined by the High Court of Justice.
H.  The Minister of Foreign Affairs reviewed ongoing political matters, while focusing attention on the situation in the Palestinian Authority, the Security Fence and activities regarding the UN.  The Palestinians are attempting to incite the international agenda away from the effort to renew the political process and the demands for reform and the war against terror.
The Minister of Foreign Affairs mentioned that the United States is acting to halt Palestinian moves – United States embassies around the world were directed to present their host countries with the U.S. reservations of the process which brought about the opinion of the International Court of Justice at The Hague and its content.  The Americans are resolved on the matter, and the Congress is mobilizing to the struggle.
The Minister of Foreign Affairs reviewed his latest visit to the United States, and his meetings there with the Secretary of State and the National Security Adviser, and with the congressional leaders of the two parties.
The Minister of Foreign Affairs emphasized that his impression from conversations and political contacts was that there is very broad international support for the Disengagement Plan, and a great desire, especially by Europe and the UN, to fit into the effort on the ground to ensure its success.
The Minister of Foreign Affairs referred also to the crisis between Israel and New Zealand by saying that he regrets the New Zealand decision, and the present situation in the relations of the two countries.  The Minister of Foreign Affairs said that Israel will act vigorously to reinstate the relations of the two countries to their previous level.
I.  The Vice Prime Minister and Minister of Industry, Trade and Labor reviewed his visit to Europe and Turkey, while detailing the issues raised with his hosts on these visits.
J.  The Government resolved, in accordance with article 5 of the Citizenship and Entry to Israel Law (temporary provision) of 2003 (hereafter – the Law), to extend, by 6 months, until February 5, 2005, the validity of the law, and to bring for Knesset approval the extension, by injunction, of the aforementioned Law.
As such, the Government resolved that the Ministry of Interior, in accordance with the Ministry of Justice, will prepare, as soon as possible, an amendment to the Law which will expand the limits of the coming into effect of the Law of Additional Population, which represents an existing security risk.  The amendment  will be discussed at a ministerial committee for the Population Registry and the Government, and then will move to legislation in the Knesset.
The aforementioned Law became valid in August 2003, and was legislated in accordance with a Government Resolution regarding treatment of illegal immigrants, and the policy of reuniting families in regard to residents of the Palestinian Authority and foreigners of Palestinian ancestry.
In the Law, it was determined that for the duration of its validity, despite the aforementioned, in every judgement, the Minister of Interior will not grant citizenship or permits to reside in Israel to residents of Judea, Samaria and the Gaza Strip, and the commander of the area will not allow the aforementioned residents a permit to stay in Israel according to the security legislation.  In the Law, limits were determined which allow a stay in Israel by a resident of the area for a fixed time for the purpose of work or medical treatment or for any other temporary purpose – for an accumulated period which will not exceed 6 months.  The Law does allow the granting of a permit of stay in Israel to prevent the separation of a child under the age of 12 from his parents who are legally staying in Israel.  As such, the Law determines transitional instructions for the continuation of handling requests to receive status in Israel for those who requested it before the Government Resolution of May 2002, and for extending authorizations and permits which were granted to residents of the area before the Law came into effect.
It was further resolved that the Law will remain valid for one year, after which time the Government is authorized, with the approval of Knesset, to legally extend its validity, from time to time, for a period which at no time will be more than one year.
A year following the Law becoming valid, the position of the security bodies is that, due to the present security reality, there still exists a crucial need to continue the existence of the Law, and accordingly the Government resolved to extend its validity by an additional 6 months.
In the framework of the discussion on extending the validity of the aforementioned Law, the head of the GSS reviewed the issue of reuniting families of residents of the Palestinian Authority from a security aspect, while pointing out the involvement of those with permits for reuniting families in acts of terror.
K.  The Government discussed, at the appeal of the Minister of Interior, the decision of the Ministerial Committee for Legislative Affairs to support the proposed Bill for entry to Israel (amendment – authority of the Minister of Interior) of 2004, of MK Moshe Kalhon.  The Government resolved to support the proposed Bill in a first reading, when MK Moshe Kalhon will commit to holding off on the continuation of the legislation for a Bill, the topic of which will be chosen by the Government and which is on the table at the Knesset.
L.  The Government resolves to amend articles 1(a) and 1(d) of Government Resolution no. 134 of March 25, 2003, as Government Resolution no. 792 of September 15, 2003 was amended, and to assign the Minister of Education, Culture and Sport, in consultation with the Attorney General, to immediately fix the criteria for supporting religious educational institutions, in accordance with article 3a of the Basic Law of Budgets of 1985, which will be valid for the coming school year, as follows:
• Beginning with the upcoming school year, support will be given only to religious schools which have at least 15 students, and to Yeshivas of higher learning (with the exception of Hesder Yeshivas) which have at least 40 students.
• This article will become valid only after a transitional period which will be determined by the new criteria determined by the Minister of Education, Culture and Sport – pertinent to the support of the Ministry in religious institutions.
• The support in religious educational institutions will be granted in accordance with reports received four different times during the year in which support is requested.  Support will not be granted to an institution which has not provided the aforementioned reports.