1. The Cabinet discussed the situation of religious services and religious
structures, and local authorities’ debts to religious councils.  Ministers
heard briefings on the these issues, according to which there has been a
complete freeze since January 2004 on the renovation and construction of
religious structures (ritual baths and synagogues).  Prime Minister Ariel
Sharon summarized the briefings and subsequent discussion by saying that the
situation regarding religious structures will be fully resolved by this
summer, and that the synagogues will - upon completion of their
construction - be delivered to the local authorities.  The Prime Minister
instructed that the issue of the renovation and construction of ritual baths
be finished as soon as possible even as the issue is examined in accordance
with the proposal of Prime Minister’s Office Director-General Ilan Cohen,
Construction and Housing Ministry Director-General Shmuel Abuav and Attorney
General Meni Mazuz.

Prime Minister Sharon emphasized the major importance of providing religious
services to the population.  He said that while the issue of religious
council reforms will be submitted to the Cabinet this month, the
implementation of the reforms taking several months, during which time the
local authorities will have to transfer some of the religious councils’
budgets.  The Prime Minister said there cannot be a situation in which
ritual bath attendants and rabbis go unpaid and in which religious services
are not provided due to the non-payment of salaries.  Israel must have
proper religious services.

2. Health Minister Danny Naveh and the Health Ministry Director-General
briefed ministers on the plight of Israel’s hospitals vis-?-vis
hospitalization during the current winter, the situation at internal
medicine wards and the immediate steps being taken by the Health Ministry to
alleviate the situation.  Minister Naveh also discussed the costs of the
steps necessary in order to overcome the hospitals’ plight.

3. Ministers were briefed on current security matters.  Defense Minister
Shaul Mofaz said that the upcoming Sharm el-Sheikh summit is at the focus of
developments and is likely to accelerate the process between Israel and the
Palestinians (if the summit is a success).

Defense Minister Mofaz said that in order to establish the recent positive
momentum, the Palestinians must vigorously, effectively and continuously
expand and advance their dealing with terrorism.  The Palestinian Authority
(PA) must take a more active line against terrorist elements and in
counter-terrorist activities, and enforce calm on all organizations and
elements in the field.

Defense Minister Mofaz said that the past week had been characterized by an
upsurge in activity by the terrorist organizations in order to disrupt the
calm.

In order to exhaust the opportunity in the Palestinian sphere, Israel
intends to increase security coordination and continue easing restrictions
on the population in order to support Palestinian efforts to prevent
terrorism.  The Defense Minister emphasized that such a fragile and delicate
period requires great sensitivity in the use of force, according to
developments on the ground and the negotiations.  He added that there is a
continuous dialogue in the field in the Gaza Strip.

Defense Minister Mofaz discussed both the situation in Iraq following the
recent elections and the Iranian situation.

Foreign Minister Silvan Shalom briefed ministers on diplomatic issues..  On
the Palestinian issue, he noted that in recent days there has been a
considerable trend towards change in the character of broadcasts on
Palestinian television.  This has found expression in the halt to
inflammatory broadcasts, which had been an integral part of broadcasts in
the Arafat era.  Also, praises and a personality cult of the PA Chairman,
which had been a staple in the Arafat era, are completely absent.  These
measures to change the face of the Palestinian media are welcome steps by
Abu Mazen in changing the PA’s social-civil agenda.  However, the changes
must be far-reaching and must include dealing with the formation of
Palestinian social consciousness, especially by the educational system and
the universities, where tangible changes in inflammatory content have yet to
be made.

Foreign Minister Shalom discussed Abu Mazen’s visits to Jordan, Egypt and
Russia.  Abu Mazen’s main messages on his trips dealt with his desire to
enhance regional security.

Foreign Minister Shalom briefed ministers on Syria’s efforts in Lebanon in
the face of increasing pressure to implement UN Security Council Resolution
#1559 which calls for a Syrian withdrawal from
Lebanon, and in light of the expected May parliamentary elections in
Lebanon.

Foreign Minister Shalom said that Israel is continuing its diplomatic
operation to have Hezbollah included on the terrorism list.

4. The Cabinet approved the QIZ agreement with Egypt.

5. The Cabinet approved the principles of the draft of the 2005 Security
Service Law (Emergency Directive) (Stationing IDF veterans in the Prison
Service) and authorized the Ministerial Committee on Legislation to both
approve the final draft and present it to the Knesset.  The draft law seeks
to regulate the stationing of IDF soldiers who have completed their
compulsory service with the Prison Service in order to guard and secure
prison installations in which security prisoners are held.

6. The Cabinet approved the 2005 Security Service Order (Recognized Service
for Achieving National Security Goals).  The Order determines that the
Defense Minister, in right of his authority under law, and in consultation
with the Education, Culture and Sports Minister, the Immigrant Absorption
Minister, the Health Minister and the Justice Minister, and in light of
current relevant circumstances, if the activities specified below are not
are not carried out by those who have completed their compulsory IDF
service, that national security goals will not be properly achieved, and
with the approval of the Government and the Knesset Foreign Affairs and
Defense Committee; the Defense Minister so orders that the following
activities be qualify as recognized service according to law: A) In
education - education, instruction, supervision and community service in the
frameworks of the education Ministry, the Industry, Trade and Employment
Ministry, the Social Welfare Ministry, the Immigrant Absorption Ministry,
the Defense Ministry, community centers, the JNF, the Israel Nature and
National Parks Protection Authority, the Society for the Protection of
Nature, Neot Kedumim, Sde Boker College, the “Latet” non-profit Association,
the Independent Education Center, the Ma’ayan Center for Torah Education in
the Land of Israel, the Association for the Restoration and Development of
the Rosh Pina Heritage National Site and Yad Vashem; B) in health - nursing
and support staff positions in hospitals under the supervision of the
Ministry of Health and in which soldiers and security establishment
personnel are hospitalized; C) in activities on behalf of IDF soldiers -
support staff positions at the Soldiers Welfare Association.  This order
shall be valid for one year from the date of its publication.

7. The Cabinet decided, in accordance with the 1959 Civil Service Law, to
exempt from public tender, positions for judges’ legal assistants on
condition that a collective pool is established from which judges will
select their assistants.  This decision abrogates previous relevant Cabinet
decisions.

8. The Cabinet approved the new composition of the Ministerial Committee on
the Release of Palestinian Prisoners.  Prime Minister Sharon will chair the
committee.  The other members are: Vice Premier Shimon Peres, Foreign
Minister Shalom, Defense Minister Mofaz, Public Security Minister Gideon
Ezra, Justice Minister Tzipi Livni and Minister Haim Ramon.  Attorney
General Meni Mazuz will be invited to attend all meetings.

The Committee will deal with the release of Palestinian prisoners according
to the circumstances which prevailed at the time and in relation to the
Palestinians honoring their commitments - all according to the criteria and
guidelines that have been approved by Attorney General Mazuz.