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Israeli-Egyptian relations soften | December 08, 2004

By Barbara Slavin

In the boldest sign of a thaw following the death of Yasser Arafat, Egypt will collaborate with Israel in new industrial zones and may soon return its ambassador to Israel.

Israeli and Egyptian officials are expected to sign a deal on the zones next week in Cairo, their ambassadors in Washington say.

Although he has given no date, Egyptian President Hosni Mubarak also is expected to send an ambassador back to Israel soon. Egypt has had no senior envoy there since shortly after the outbreak of the Palestinian uprising in 2000.

The moves come as Palestinians prepare for Jan. 9 elections that both countries hope will produce a new leadership able to stop attacks on Israel and coordinate a promised Israeli withdrawal from Gaza.

Daniel Ayalon, Israeli ambassador to the United States, says creating the industrial zones will "enhance significantly" the relations between Israel and Egypt.

A dozen similar zones exist in Jordan, but the four new ones would be the first in Egypt. Egyptian Ambassador Nabil Fahmy says Egyptian companies using Egyptian employees and some Israeli materials would produce at factories there. Goods could enter the U.S. without facing import tariffs.

Ned Walker, a former U.S. ambassador to both Israel and Egypt, called the new agreement "really good news. There have been a lot of steps in the last few weeks which herald a new relationship."

• Last Thursday, Mubarak praised Israeli Prime Minister Ariel Sharon as a man "capable of pursuing peace." Only a year ago, Mubarak said Sharon had no "intention to start working for peace."

• Over the weekend, Egypt released an Israeli imprisoned for espionage, and Israel freed six Egyptian students jailed after sneaking across the border.

• The two countries are negotiating an agreement under which Egypt will station 750 troops on the border between Egypt and Gaza to guard the frontier after Israeli withdrawal from Gaza.

Egypt is trying to mediate a cease-fire among Palestinian factions and has promised to retrain several hundred Palestinian security officers.

Walker said the gestures were also directed at the White House and Congress, which have criticized Egypt for its lack of democracy and for official media that is often stridently anti-U.S. and anti-Israel.

Source: USA Today

Posted by admin at December 8, 2004 04:59 PM


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