ISRAEL

Compiled from the September 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
State of Israel

PROFILE

Geography

Area: 20,330 sq. km.¹ (7,850 sq. mi.); about the size of New Jersey.

Cities: Capital—Jerusalem.² Other cities—Tel Aviv, Haifa.

Terrain: Plains, mountains, desert, and coast.

Climate: Temperate, except in desert areas.

People

Population: 6.7 million (November 2003 estimate).

Annual population growth rate: 1.39% (2003 estimate).

Ethnic groups: Jews, 80.1% (slightly less than 5 million), non-Jews (mostly Arab), 19.9% (approximately 1.3 million) (estimates).

Religions: Judaism, Islam, Christianity, Druze.

Languages: Hebrew (official), Arabic (official), English, Russian.

Education: 11 years compulsory. Literacy—95.4% (female 93.6%; male 97.3%).

Health: Infant mortality rate—4.9/1,000, (2002 estimate). Life expectancy

¹Including Jerusalem
²Israel proclaimed Jerusalem as its capital in 1950. The United States, like nearly all other countries, maintains its embassy in Tel Aviv.

at birth—79.02 years; female, 81.19 years, male 76.95 years.

Work force: (2.3 million) (1Q 2003) Manufacturing—16.8%; commerce—12.8%; education—2.8%; other business services—12.9%; health and social services—10.2%; community services—4.7%; construction—5.5%; transportation—6.3%; public administration—5.7%; hotels and restaurants—4%; banking and finance—3.4%; agriculture—1.7%; electricity and water—less than 1%. other—less than 2.2%.

Government

Type: Parliamentary democracy.

Independence: May 14, 1948.

Constitution: None, however, the Declaration of Establishment (1948), the Basic Laws of the parliament (the Knesset) and the Israeli citizenship law fill many of the functions of a constitution.

Branches: Executive—president (chief of state); prime minister (head of government). Legislative—unicameral, Knesset. Judicial—Supreme Court.

Political parties: Labor, Likud, and various other secular and religious parties, including some wholly or predominantly supported by Israel's Arab citizens. A total of 12 parties are represented in the 16th Knesset, elected January 2003. Next election in 2006.

Suffrage: Universal at 18.

Economy (2002)

GDP: $117.4 billion (2002 estimated).

Annual growth rate: 1.2% (2003).

Per capita GDP: (2002) $19,500.

Currency: Shekel, (4.56 shekels = 1 U.S. dollar) (2003 estimate)

Natural resources: Copper, phosphate, bromide, potash, clay, sand, sulfur, bitumen, manganese.

Agriculture: Products—citrus and other fruits, vegetables, beef, dairy, and poultry products.

Industry: Types—high-technology projects—including aviation, communications, computer-aided design and manufactures, medical electronics—wood and paper products, potash and phosphates, processed foods, chemicals, diamond cutting and polishing, metal products.

Trade: Exports—$28.1 billion (2002). Exports include polished diamonds, electronic communication, medical and scientific equipment, chemicals and chemical products, electronic components and computers, machinery and equipment, transport equipment, rubber, plastics, and textiles. Imports (excluding defense imports)—$30.8 billion: (2002) raw materials, diamonds, energy ships and airplanes, machinery, equipment, land transportation equipment for investment, and consumer goods. Major partners—U.S., UK, Germany Imports: U.S., Germany, Italy.

PEOPLE

Of the approximately 6.4 million Israelis in 2001, about 5.2 million were counted as Jewish, though some of those are not considered Jewish under Orthodox Jewish law. Since 1989, nearly a million immigrants from the former Soviet Union have arrived in Israel, making this the largest wave of immigration since independence. In addition, almost 50,000 members of the Ethiopian Jewish community have immigrated to Israel, 14,000 of them during the dramatic May 1991 Operation Solomon airlift. Thirty-six percent of Israelis were born outside Israel.

The three broad Jewish groupings are the Ashkenazim, or Jews who trace their ancestry to western, central, and eastern Europe; the Sephardim, who trace their origin to Spain, Portugal, southern Europe, and North Africa; and Eastern or Oriental Jews, who descend from ancient communities in Islamic lands. Of the non-Jewish population, about 73% are Muslims, about 10.5% are Christian, and under 10% are Druze.

Education is compulsory from age 6 to 16 and is free up to age 18. The school system is organized into kindergartens, 6-year primary schools, 3-year junior secondary schools, and 3-year senior secondary schools, after which a comprehensive examination is offered for university admissions. There are seven university-level institutions in Israel, a number of regional colleges, and an Open University program.

With a population drawn from more than 100 countries on 5 continents, Israeli society is rich in cultural diversity and artistic creativity. The arts are actively encouraged and supported by the government. The Israeli Philharmonic Orchestra performs throughout the country and frequently tours abroad. The Jerusalem Symphony and the New Israel Opera also tour frequently, as do other musical ensembles. Almost every municipality has a chamber orchestra or ensemble, many boasting the talents of gifted performers from the countries of the former Soviet Union.

Israel has several professional ballet and modern dance companies, and folk dancing, which draws upon the cultural heritage of many immigrant groups, continues to be very popular. There is great public interest in the theater; the repertoire covers the entire range of classical and contemporary drama in translation as well as plays by Israeli authors. Of the three major repertory companies, the most famous, Habimah, was founded in 1917.

Active artist colonies thrive in Safed, Jaffa, and Ein Hod, and Israeli painters and sculptors exhibit works worldwide. Israel boasts more than 120 museums, including the Israel Museum in Jerusalem, which houses the Dead Sea Scrolls along with an extensive collection of regional archaeological artifacts, art, and Jewish religious and folk exhibits. Israelis are avid newspaper readers, with more than 90% of Israeli adults reading a newspaper at least once a week. Major daily papers are in Hebrew; others are in Arabic, English, French, Polish, Yiddish, Russian, Hungarian, and German.

HISTORY

The creation of the State of Israel in 1948 was preceded by more than 50 years of efforts to establish a sovereign nation as a homeland for Jews. These efforts were initiated by Theodore Herzl, founder of the Zionist movement, and were given added impetus by the Balfour Declaration of 1917, which asserted the British Government's support for the creation of a Jewish homeland in Palestine.

In the years following World War I, Palestine became a British Mandate and Jewish immigration steadily increased, as did violence between Palestine's Jewish and Arab communities. Mounting British efforts to restrict this immigration were countered by international support for Jewish national aspirations following the near-extermination of European Jewry by the Nazis during World War II. This support led to the 1947 UN partition plan, which would have divided Palestine into separate Jewish and Arab states, with Jerusalem under UN administration.

On May 14, 1948, soon after the British quit Palestine, the State of Israel was proclaimed and was immediately invaded by armies from neighboring Arab states, which rejected the UN partition plan. This conflict, Israel's War of Independence, was concluded by armistice agreements between Israel, Egypt, Jordan, Lebanon, and Syria in 1949 and resulted in a 50% increase in Israeli territory.

In 1956, French, British, and Israeli forces engaged Egypt in response to its nationalization of the Suez Canal and blockade of the Straits of Tiran. Israeli forces withdrew in March 1957, after the United Nations established the UN Emergency Force (UNEF) in the Gaza Strip and Sinai. This war resulted in no territorial shifts and was followed by several years of terrorist incidents and retaliatory acts across Israel's borders.

In June 1967, Israeli forces struck targets in Egypt, Jordan, and Syria in response to Egyptian President Nasser's ordered withdrawal of UN peacekeepers from the Sinai Peninsula and the buildup of Arab armies along Israel's borders. After 6 days, all parties agreed to a cease-fire, under which Israel retained control of the Sinai Peninsula, the Golan Heights, the Gaza Strip, the formerly Jordanian-controlled West Bank of the Jordan River, and East Jerusalem. On November 22, 1967, the Security Council adopted Resolution 242, the "land for peace" formula, which called for the establishment of a just and lasting peace based on Israeli withdrawal from territories occupied in 1967 in return for the end of all states of belligerency, respect for the sovereignty of all states in the area, and the right to live in peace within secure, recognized boundaries.

The following years were marked by continuing violence across the Suez Canal, punctuated by the 1969-70 war of attrition. On October 6, 1973—Yom Kippur (the Jewish Day of Atonement), the armies of Syria and Egypt launched an attack against Israel. Although the Egyptians and Syrians initially made significant advances, Israel was able to push the invading armies back beyond the 1967 cease-fire lines by the time the United States and the Soviet Union helped bring an end to the fighting. In the UN Security Council, the United States supported Resolution 338, which reaffirmed Resolution 242 as the framework for peace and called for peace negotiations between the parties.

In the years that followed, sporadic clashes continued along the cease-fire lines but guided by the U.S., Egypt, and Israel continued negotiations. In November 1977, Egyptian President Anwar Sadat made a historic visit to Jerusalem, which opened the door for the 1978 Israeli-Egyptian peace summit convened at Camp David by President Carter. These negotiations led to a 1979 peace treaty between Israel and Egypt, pursuant to which Israel withdrew from the Sinai in 1982, signed by President Sadat of Egypt and Prime Minister Menahem Begin of Israel.

In the years following the 1948 war, Israel's border with Lebanon was quiet relative to its borders with other neighbors. After the expulsion of Palestinian fighters from Jordan in 1970 and their influx into southern Lebanon, however, hostilities along Israel's northern border increased and Israeli forces crossed into Lebanon. After passage of Security Council Resolution 425, calling for Israeli withdrawal and the creation of the UN Interim Force in Lebanon peacekeeping force (UNIFIL), Israel withdrew its troops.

In June 1982, following a series of cross-border terrorist attacks and the attempted assassination of the Israeli Ambassador to the U.K., Israel invaded Lebanon to fight the forces of Yasser Arafat's Palestine Liberation Organization (PLO). The PLO withdrew its forces from Lebanon in August 1982. Israel, having failed to finalize an agreement with Lebanon, withdrew most of its troops in June 1985 save for a residual force which remained in southern Lebanon to act as a buffer against attacks on northern Israel. These remaining forces were completely withdrawn in May 2000 behind a UN-brokered delineation of the Israel-Lebanon border (the Blue Line). Hizballah forces in Southern Lebanon continued to attack Israeli positions south of the Blue Line in the Sheba Farms/Har Dov area of the Golan Heights.

The victory of the U.S.-led coalition in the Persian Gulf War of 1991 opened new possibilities for regional peace. In October 1991, the United States and the Soviet Union convened the Madrid Conference, in which Israeli, Lebanese, Jordanian, Syrian, and Palestinian leaders laid the foundations for ongoing negotiations designed to bring peace and economic development to the region. Within this framework, Israel and the PLO signed a Declaration of Principles on September 13, 1993, which established an ambitious set of objectives relating to a transfer of authority from Israel to an interim Palestinian authority. Israel and the PLO subsequently signed the Gaza-Jericho Agreement on May 4, 1994, and the Agreement on Preparatory Transfer of Powers and Responsibilities on August 29, 1994, which began the process of transferring authority from Israel to the Palestinians.

On October 26, 1994, Israel and Jordan signed a historic peace treaty, witnessed by President Clinton. This was followed by Israeli Prime Minister Rabin and PLO Chairman Arafat's signing of the historic Israeli-Palestinian Interim Agreement on September 28, 1995. This accord, which incorporated and superseded previous agreements, broadened Palestinian self-government and provided for cooperation between Israel and the Palestinians in several areas.

Israeli Prime Minister Yitzhak Rabin was assassinated on November 4, 1995, by a right-wing Jewish radical, bringing the increasingly bitter national debate over the peace process to a climax. Subsequent Israeli governments continued to negotiate with the PLO resulting in additional agreements, including the Wye River and the Sharm el-Sheikh memoranda.

A summit hosted by President Clinton at Camp David in July 2000 to address permanent status issues—including the status of Jerusalem, Palestinian refugees, Israeli settlements in the West Bank and Gaza, final security arrangements, borders, and relations and cooperation with neighboring states—failed to produce an agreement.

Following the failed talks, widespread violence broke out in Israel, the West Bank, and Gaza in September 2000. In April 2001 the Sharm el-Sheikh Fact Finding Committee, commissioned by the October 2000 Middle East Peace Summit and chaired by former U.S. Senator George Mitchell, submitted its report, which recommended an immediate end to the violence followed by confidence-building measures and a resumption of security cooperation and peace negotiations. The United States has worked intensively to help bring an end to the violence between Israelis and Palestinians and bring about the implementation of the recommendations of the Mitchell Committee as a bridge back to political negotiations. In April 2003, the Quartet (the U.S., U.N., E.U., and the Russian Federation) announced the "roadmap," a performance-based plan to bring about two states, Israel and a democratic, viable Palestine, living side by side in peace and security. Both the Israelis and Palestinians have affirmed their commitment to the roadmap, but continuing Israeli-Palestinian violence has led to a continuing crisis of confidence between the two sides.

Despite the promising developments of spring 2003, violence continued and in September 2003 the first Palestinian Prime Minister, Mahmoud Abbas (Abu Mazin), resigned after failing to win true authority to restore law and order, fight terror, and reform Palestinian institutions. In response to the deadlock, in the winter of 2003-2004 Prime Minister Sharon put forward his Gaza disengagement plan, proposing the withdrawal of Israeli settlements from Gaza as well as parts of the northern West Bank. President Bush endorsed this initiative in an exchange of letters with Prime Minister Sharon on April 14, 2004, viewing the Gaza disengagement initiative as an opportunity to move towards implementation of the two-state vision and begin the development of Palestinian institutions. The Quartet endorsed the initiative in a meeting in May 2004 and since then the United States has been working intensively with the parties to the conflict, regional partners, and the broad international community to make Gaza disengagement a reality.

GOVERNMENT

Israel is a parliamentary democracy. Its governmental system is based on several basic laws enacted by its unicameral parliament, the Knesset. The president (chief of state) is elected by the Knesset for a 5-year term.

The prime minister (head of government) exercises executive power and has in the past been selected by the president as the party leader most able to form a government. Between May 1996 and March 2001, Israelis voted for the prime minister directly. (The legislation which required the direct election of the prime minister was rescinded by the Knesset in March 2001.) The members of the cabinet must be collectively approved by the Knesset.

The Knesset's 120 members are elected by secret ballot to 4-year terms, although the prime minister may decide to call for new elections before the end of the 4-year term. Voting is for party lists rather than for individual candidates, and the total number of seats assigned each party reflects that party's percentage of the vote. Successful Knesset candidates are drawn from the lists in order of party-assigned rank. Under the present electoral system, all members of the Knesset are elected at large.

The independent judicial system includes secular and religious courts. The courts' right of judicial review of the Knesset's legislation is limited. Judicial interpretation is restricted to problems of execution of laws and validity of subsidiary legislation. The highest court in Israel is the Supreme Court, whose judges are approved by the President.

Israel is divided into six districts, administration of which is coordinated by the Ministry of Interior. The Ministry of Defense is responsible for the administration of the occupied territories.

Principal Government Officials

Last Updated: 1/26/05

The Prime Minister automatically assumes any ministerial position vacated until the official appointment of another minister.

President: Moshe KATZAV
Prime Minister: Ariel SHARON
First Dep. Prime Min.: Shimon PERES
Dep. Prime Min.: Ehud OLMERT
Dep. Prime Min.: Silvan SHALOM
Min. of Agriculture: Yisrael KATZ
Min. of Communications: Dalia ITZIK
Min. of Construction & Housing: Yitzhak HERZOG
Min. of Defense: Shaul MOFAZ
Min. of Education, Sport, & Culture: Limor LIVNAT
Min. of Environment: Shalom SIMHON
Min. of Finance: Binyamin NETANYAHU
Min. of Foreign Affairs: Silvan SHALOM
Min. of Health: Danny NAVEH
Min. of Immigrant Absorption: Tzipi LIVNI
Min. of Industry & Trade: Ehud OLMERT
Min. of Infrastructure: Binyamin BEN ELIEZER
Min. of Interior: Ophir PINES-PAZ
Min. of Internal (Public) Security: Gideon EZRA
Min. of Justice: Tzipi LIVNI
Min. of Labor & Social Affairs: Ariel SHARON
Min. of Science & Technology: Ariel SHARON
Min. of Tourism: Abraham HERSCHSON
Min. of Transportation: Meir SHEETRIT
Min. Without Portfolio: Tzachi HANEGBI
Min. Without Portfolio: Haim RAMON
Min. Without Portfolio: Matan VILNAI
Min. Without Portfolio Responsible for Diaspora Affairs: Natan SHARANSKY
Attorney General: Menachem MAZUZ
Governor, Bank of Israel (Acting): Meir SOKOLOV
Ambassador to the US: Danny AYALON
Permanent Representative to the UN, New York: Danny GILLERMAN

Israel maintains an embassy in the United States at 3514 International Drive NW, Washington DC, 20008 (tel. 202-364-5500). There also are consulates general in Atlanta, Boston, Chicago, Houston, Los Angeles, Miami, New York, Philadelphia, and San Francisco.

POLITICAL CONDITIONS

From the founding of Israel in 1948 until the election of May 1977, Israel was ruled by successive coalition governments led by the Labor alignment or its constituent parties. From 1967-70, the coalition government included all of Israel's parties except the communist party. After the 1977 election, the Likud bloc, then composed of Herut, the Liberals, and the smaller La'am Party, came to power forming a coalition with the National Religious Party, Agudat Israel, and others. As head of Likud, Menachem Begin became Prime Minister. The Likud retained power in the succeeding election in June 1981, and Begin remained Prime Minister. In the summer of 1983, Begin resigned and was succeeded by his Foreign Minister, Yitzhak Shamir.

After losing a Knesset vote of confidence early in 1984, Prime Minister Shamir was forced to call for new elections, held in July of that year. The vote was split among numerous parties and provided no clear winner, leaving both Labor and Likud considerably short of a Knesset majority. Neither Labor nor Likud was able to gain enough support from the small parties to form even a narrow coalition. After several weeks of difficult negotiations, they agreed on a broadly based government of national unity. The agreement provided for the rotation of the office of Prime Minister and the combined office of Vice Prime Minister and Foreign Minister midway through the government's 50-month term.

During the first 25 months of unity government rule, Labor's Shimon Peres served as Prime Minister, while Likud's Yitzhak Shamir held the posts of Vice Prime Minister and Foreign Minister. Peres and Shamir switched positions in October 1986. The November 1988 elections resulted in a similar coalition government. Likud edged Labor out by one seat but was unable to form a coalition with the religious and right wing parties. Likud and Labor formed another national unity government in January 1989 without providing for rotation. Yitzhak Shamir became Prime Minister, and Shimon Peres became Vice Prime Minister and Finance Minister.

The national unity government fell in March 1990 in a vote of no confidence precipitated by disagreement over the government's response to U.S. Secretary of State Baker's initiative in the peace process. Labor Party leader Peres was unable to attract sufficient support among the religious parties to form a government. Yitzhak Shamir then formed a Likudled coalition government, including members from religious and right-wing parties.

Shamir's government took office in June 1990, and held power for 2 years. In the June 1992 national elections, the Labor Party reversed its electoral fortunes, taking 44 seats. Labor Party leader Yitzhak Rabin formed a coalition with Meretz (a group of three leftist parties) and Shas (an ultra-Orthodox religious party). The coalition included the support of two Arab-majority parties. Rabin became Prime Minister in July 1992. Shas subsequently left the coalition, leaving Rabin with a minority government dependent on the votes of Arab parties in the Knesset.

Rabin was assassinated by a right-wing Jewish radical on November 4, 1995. Peres, then Deputy Prime Minister and Foreign Minister, once again became Prime Minister and immediately proceeded to carry forward the peace policies of the Rabin government and to implement Israel's Oslo commitments, including military redeployment in the West Bank and the holding of historic Palestinian elections on January 20, 1996.

Enjoying broad public support and anxious to secure his own mandate, Peres called for early elections after just 3 months in office. (They would have otherwise been held by the end of October 1996.) In late February and early March, a series of suicide bombing attacks by Palestinian terrorists took some 60 Israeli lives, seriously eroding public support for Peres and raising concerns about the peace process. Increased fighting in southern Lebanon, which also brought Katyusha rocket attacks against northern Israel, also raised tensions and weakened the government politically a month before the May 29 elections.

In those elections—the first direct election of a Prime Minister in Israeli history (a practice now discontinued)—Likud leader Binyamin Netanyahu won by a narrow margin, having sharply criticized the government's peace policies for failing to protect Israeli security. Netanyahu subsequently formed a predominantly right-wing coalition government publicly committed to pursuing the peace process, but with an emphasis on security and reciprocity. His initial coalition included Likud, allied with the Tsomet and Gesher parties in a single list, three religious parties, and two centrist parties. The Gesher Party withdrew from the coalition in January 1998. In 1999, facing increasing difficulty passing legislation and defeating no-confidence motions, Netanyahu dissolved parliament and called for new elections. This time, the Labor candidate—Ehud Barak—was victorious. Barak formed a mixed coalition government of secular and religious parties. Likud served in the opposition. In May 2000, Barak fulfilled one of his major campaign promises by withdrawing Israeli forces from Southern Lebanon. However, by midautumn, with the breakdown of the Camp David talks and the worsening security situation caused by the new intifada, Barak's coalition was in jeopardy. In December, he resigned as Prime Minister, precipitating a new prime ministerial election.

In a special election on February 6, 2001, after a campaign stressing security and maintaining Israeli sovereignty over Jerusalem, Likud leader Ariel Sharon defeated Barak by over 20 percentage points. As he had promised in his campaign, Sharon formed a broad unity government that included the Labor and Likud parties, the far-right parties, some smaller secular parties, and several religious parties. The unity government collapsed in late 2002, and new elections were held in January 2003. Sharon again won, and formed a new government consisting of his own Likud party, the right-wing National Religious Party and National Union party, and centrist Shinui.

The summer of 2004 saw renewed instability in the government, as divisions over the Gaza disengagement plan resulted in Sharon's firing two ministers of the National Union Party and accepting the resignation of a third from the National Religious Party in order to secure cabinet approval of the plan (it was endorsed on June 6, 2004).

As of September 2004, Sharon is governing with a minority coalition and facing near-daily votes of no-confidence. To counter this, Sharon has initiated coalition discussions with Labor and the religious parties Shas and United Torah Judaism (UTJ) in an effort to regain a majority in the Knesset and advance Gaza disengagement.

ECONOMY

Israel has a diversified, technologically advanced economy with substantial but decreasing government ownership and a strong high-tech sector. The major industrial sectors include high-technology electronic and biomedical equipment, metal products, processed foods, chemicals, and transport equipment. Israel possesses a substantial service sector and is one of the world's centers for diamond cutting and polishing. It also is a world leader in software development and, prior to the violence that began in September 2000, was a major tourist destination.

Israel's strong commitment to economic development and its talented work force led to economic growth rates during the nation's first two decades that frequently exceeded 10% annually. The years after the 1973 Yom Kippur War were a lost decade economically, as growth stalled and inflation reached tripledigit levels. The successful economic stabilization plan implemented in 1985 and the subsequent introduction of market-oriented structural reforms reinvigorated the economy and paved the way for rapid growth in the 1990s.

A wave of Jewish immigration beginning in 1989, predominantly from the countries of the former U.S.S.R., brought nearly a million new citizens to Israel. These new immigrants, many of them highly educated, now constitute some 13% of Israel's 6.7 million inhabitants. Their successful absorption into Israeli society and its labor force forms a remarkable chapter in Israeli history. The skills brought by the new immigrants and their added demand as consumers gave the Israeli economy a strong upward push and in the 1990s, they played a key role in the ongoing development of Israel's high-tech sector.

During the 1990s, progress in the Middle East peace process, beginning with the Madrid Conference of 1991, helped to reduce Israel's economic isolation from its neighbors and opened up new markets to Israeli exporters farther afield. The peace process stimulated an unprecedented inflow of foreign investment in Israel, and provided a substantial boost to economic growth in the region over the last decade. The onset of the intifada beginning at the end of September of 2000, the downturn in the high-tech sector and Nasdaq crisis, and the slowdown of the global economy—particularly the U.S. economy—have all significantly affected the Israeli economy during the past three years.

Israeli companies, particularly in the high-tech area, have in the past enjoyed considerable success raising money on Wall Street and other world financial markets; Israel ranks second to Canada among foreign countries in the number of its companies listed on U.S. stock exchanges. Israel's tech market is very developed, and in spite of the pause in the industry's growth, the high-tech sector is likely to be the major driver of the Israeli economy. Almost half of Israel's exports are high tech. Most leading players, including Intel, IBM, and Cisco have a presence in Israel, and it is worth noting that even during the downturn in the macroeconomic situation in Israel these large players as well as others did not withdraw from the Israeli market.

Growth was an exceptional 6.2% in 2000, due in part to a number of onetime high tech acquisitions and investments. This exceptional year was followed by two years of negative growth of ?0.9% and ?1%, respectively, in 2001 and 2002. As a result of the security situation, and associated downturn in the economy, there has been a significant rise in unemployment and wage erosion. This led to a decline in private consumption in 2002, the first time that there had been negative private consumption since the early 1980s. The economy grew marginally in 2003 at a rate of 1.2%. The change in the geopolitical situation as a result of the successful completion of the War in Iraq, combined with the potential for some progress in the political situation, as well as the approval of a GOI economic recovery plan, and approval of U.S. loan guarantees are likely to have positive effects on the economy.

The United States is Israel's largest trading partner. In 2002, two-way trade totaled some $19.66 billion, and Israel had approximately a $5.88 billion trade surplus with the U.S. The principal U.S. exports to Israel include civilian aircraft parts, telecommunications equipment, semiconductors, civilian aircraft, electrical apparatus, and computer accessories. Israel's chief exports to the U.S. include diamonds, pharmaceutical preparations, telecommunications equipment, medicinal equipment, electrical apparatus, and cotton apparel. The two countries signed a free trade agreement (FTA) in 1985 that progressively eliminated tariffs on most goods traded between the two countries over the following 10 years. An agricultural trade accord signed in November 1996 addressed the remaining goods not covered in the FTA but has not entirely erased barriers to trade in the agricultural sector. Israel also has trade and cooperation agreements in place with the European Union, Canada, Mexico, and other countries.

Best prospect industry sectors in Israel for U.S. exporters are electricity and gas equipment, defense equipment, medical instruments and disposable products, industrial chemicals, telecommunication equipment, electronic components, building materials/construction industries (DIY and infrastructure), safety and security equipment and services, non-prescription drugs, travel and tourism services, and computer software.

FOREIGN RELATIONS

In addition to seeking an end to hostilities with Arab forces, against which it has fought five wars since 1948, Israel has given high priority to gaining wide acceptance as a sovereign state with an important international role. Before 1967, it had established diplomatic relations with a majority of the world's nations, except for the Arab states and most other Muslim countries. The Soviet Union and the communist states of eastern Europe (except Romania) broke diplomatic relations with Israel during the 1967 war, but those relations were restored by 1991.

Today, Israel has diplomatic relations with 161 states. Following the signing of the Israel-PLO Declaration of Principles on September 13, 1993, Israel established or renewed diplomatic relations with 35 countries. Most important are its ties with Arab states. Israel has full diplomatic relations with Egypt and Jordan.

On October 1, 1994, the Gulf States publicly announced their support for a review of the Arab boycott, in effect abolishing the secondary and tertiary boycotts against Israel. Israel has diplomatic relations with nine non-Arab Muslim states and with 32 of the 43 Sub-Saharan states that are not members of the Arab League. Israel established relations with China and India in 1992 and with the Holy See in 1993.

DEFENSE

Israel's ground, air, and naval forces, known as the Israel Defense Force (IDF), fall under the command of a single general staff. Conscription is universal for Jewish men and women over the age of 18, although exemptions may be made on religious grounds. Druze, members of a small Islamic sect living in Israel's mountains, also serve in the IDF. Israeli Arabs, with few exceptions, do not serve. During 1950-66, Israel spent an average of 9% of GDP on defense. Real defense expenditures increased dramatically after both the 1967 and 1973 wars. The 2002 defense budget of $8.97 billion represented about 19.9% of the total government budget, which is equivalent to 8.75% of GDP.

The United States provides approximately $2 billion per year in security assistance.

In 1983, the United States and Israel established the Joint Political Military Group, which meets twice a year. Both the U.S. and Israel participate in joint military planning and combined exercises, and have collaborated on military research and weapons development.

U.S.-ISRAELI RELATIONS

Commitment to Israel's security and well being has been a cornerstone of U.S. policy in the Middle East since Israel's creation in 1948, in which the United States played a key supporting role. Israel and the United States are bound closely by historic and cultural ties as well as by mutual interests. Continuing U.S. economic and security assistance to Israel acknowledges these ties and signals U.S. commitment. The broad issues of Arab-Israeli peace have been a major focus in the U.S.-Israeli relationship. U.S. efforts to reach a Middle East peace settlement are based on UN Security Council Resolutions 242 and 338 and have been based on the premise that as Israel takes calculated risks for peace, the United States will help minimize those risks.

UNSC resolutions provided the basis for cease-fire and disengagement agreements concerning the Sinai and the Golan Heights between Israel, Egypt, and Syria and for promoting the Camp David accords and the Egyptian-Israeli Peace Treaty.

The landmark October 1991 Madrid conference also recognized the importance of Security Council Resolutions 242 and 338 in resolving regional disputes, and brought together for the first time Israel, the Palestinians, and the neighboring Arab countries, launching a series of direct bilateral and multilateral negotiations. These talks were designed to finally resolve outstanding security, border, and other issues between the parties while providing a basis for mutual cooperation on issues of general concern, including the status of refugees, arms control and regional security, water and environmental concerns, and economic development.

On a bilateral level, relations between the United States and Israel have been strengthened in recent years by the establishment of cooperative institutions in many fields. Bilateral foundations in the fields of science and technology include the Binational Science Foundation and the Binational Agricultural Research and Development Foundation. The U.S.-Israeli Education Foundation sponsors educational and cultural programs.

In addition, the Joint Economic Development Group maintains a high-level dialogue on economic issues. In early 1993, the United States and Israel agreed to establish a Joint Science and Technology Commission. In 1996, reflecting heightened concern about terrorism, the United States and Israel established a Joint Counterterrorism Group designed to enhance cooperation in fighting terrorism.

Principal U.S. Embassy Officials

TEL AVIV (E) Address: 71 Hayarkon; APO/FPO: APO AE 09830; Phone: 972-3-519-7575; Fax: 972-3-517-3227; INMARSAT Tel: 683133445, 683133446; Workweek: M–F / 0800-1630; Website: 194.90.114.5

JERUSALEM (CG) Address: 18 Agron Rd., Jerusalem 91002; 27 Nablus Rd., Jerusalem 97200 (Consular/PD Sections); APO/FPO: PSC 98, Box 0039, APO AE 09830; Phone: +972-2-622-7230; Fax: +972-2-625-9270; Workweek: Mon–Fri. 0800-1630; Website: http://jerusalem.usconsulate.gov

TRAVEL

Consular Information Sheet

July 7, 2004

Country Description: The State of Israel is a parliamentary democracy with a modern economy. Tourist facilities are widely available. Israel occupied the West Bank, Gaza Strip, Golan Heights, and East Jerusalem as a result of the 1967 War. Pursuant to negotiations between Israel and the Palestinians, an elected Palestinian Authority now exercises jurisdiction in parts of Gaza and the West Bank. Palestinian Authority police are responsible for keeping order in those areas and the Palestinian Authority exercises a range of civil functions. The division of responsibilities and jurisdiction in the West Bank and Gaza between Israel and the Palestinian Authority is complex. Definitive information on entry, customs requirements, arrests, and other matters in the West Bank and Gaza is subject to change without prior notice or may not be available.

Entry/Exit Requirements: Israel: A valid passport, an onward or return ticket, and proof of sufficient funds are required for entry. A no-charge, three-month visa may be issued upon arrival and may be renewed. Travelers carrying official or diplomatic U.S. passports must obtain visas from an Israeli embassy or consulate prior to arrival in Israel. Anyone who has been refused entry or experienced difficulties with his/her visa status during a previous visit, or who has overstayed a visa, should consult the Israeli Embassy or nearest Israeli Consulate before attempting to return to Israel. Anyone seeking returning resident status must obtain permission from Israeli authorities before traveling. Occasionally, the Government of Israel has not admitted individual American citizens or groups who have expressed sympathy with the Palestinian cause, sought to meet with Palestinian officials, or intended to travel to areas in the West Bank or Gaza.

West Bank and Gaza: Except during periods of heightened security restrictions, most U.S. citizens may enter and exit the West Bank on a U.S. passport with an Israeli entry stamp. The Government of Israel now requires persons wishing to enter Gaza via the Erez checkpoint to have written permission from the Government of Israel first. U.S. citizens planning on traveling to Gaza should submit a request for entry in person at the Erez Border Crossing at least five working days in advance of their visit. It is not necessary to obtain a visitor's permit from the Palestinian Authority to travel to the West Bank or Gaza. Private vehicles may not cross from Israel into Gaza and may be stopped at checkpoints entering or leaving the West Bank.

The Allenby Bridge crossing from the West Bank into Jordan and the Rafah crossing from Gaza into Egypt are under the jurisdiction of the Israeli Government, which also controls entry and exit via the Gaza International Airport. This may have special ramifications for Palestinian Americans and other Arab Americans.

Palestinian Americans: American citizens of Palestinian origin may be considered by Israeli authorities to be residents of the West Bank or Gaza, especially if they or their parents were issued a Palestinian ID number. Any American citizen whom Israel considers to be a resident is required by Israel to hold a valid Palestinian passport to enter or leave the West Bank or Gaza via Israel, the Gaza International Airport, or the Rafah or Allenby Bridge border crossing. American citizens in this category who arrive without a Palestinian passport will generally be granted permission to travel to the West Bank or Gaza to obtain one, but may only be allowed to depart via Israel on a Palestinian passport rather than on their U.S. passport.

Persons carrying a Palestinian identity number will not be permitted to enter Israel through Ben Gurion International Airport if their last departure was through the Allenby Bridge or Rafah border crossings. Such persons who arrive at Ben Gurion will be turned back by Israeli officials and required to re-enter through Allenby or Rafah. Anyone who last departed Israel through Ben Gurion Airport may return via the airport or any border crossing.

During periods of heightened security restrictions, Palestinian Americans with residency status in the West Bank or Gaza may not be allowed to enter or exit Gaza or the West Bank, even if using their American passports. Persons with residency status in the West Bank or Gaza must apply to the Government of Israel for a transit permit in order to depart via Ben Gurion airport. This permit must be applied for at least three Israeli working days prior to departure, although Israeli authorities may take considerably longer to render a decision. Except in humanitarian or special interest cases, Israeli authorities are unlikely to grant this permit. In this event, Palestinian Americans must exit the West Bank via the land crossing at Allenby Bridge and from Gaza via the Rafah land crossing. Specific questions may be addressed to the nearest Israeli Embassy or Consulate.

Israel-Jordan Crossings: International crossing points between Israel and Jordan are the Arava crossing (Wadi al-'Arabah) in the south, near Eilat, and the Jordan River crossing (Sheikh Hussein Bridge) in the north, near Beit Shean. American citizens using these two crossing points to enter either Israel or Jordan need not obtain prior visas, but will have to pay a fee at the bridge. Visas should be obtained in advance for those wanting to cross the Allenby Bridge between Jordan and the occupied West Bank. (Note: The Government of Israel requires that Palestinian Americans with residency status in the West Bank or Gaza only enter Jordan by land by means of the Allenby Bridge.) Procedures for all crossings into Jordan are subject to frequent changes. Persons with residency status in the West Bank or Gaza should contact the Jordanian authorities before traveling to the Allenby Bridge for information concerning special clearance procedures for Palestinian ID holders. Palestinian-Americans who depart via the Allenby Bridge may encounter lengthy processing times at the bridge. For further information on entry requirements, travelers may contact the Embassy of Israel at 3514 International Drive NW, Washington, D.C. 20008, telephone (202) 364-5500, or the Israeli Consulates General in Atlanta, Boston, Chicago, Houston, Miami, New York, Philadelphia or San Francisco.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian if the parent is not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

Dual Nationality: Israeli citizens naturalized in the United States retain their Israeli citizenship, and their children usually become Israeli citizens. In addition, children born in the United States to Israeli parents usually acquire both U.S. and Israeli nationality at birth. Israeli citizens, including dual nationals, are subject to Israeli laws requiring service in Israel's armed forces. U.S.-Israeli dual nationals of military age who do not wish to serve in the Israeli armed forces should contact the Israeli Embassy in Washington, D.C. to learn more about an exemption or deferment from Israeli military service before going to Israel. Without this document, they may not be able to leave Israel without completing military service or may be subject to criminal penalties for failure to serve. Israeli citizens, including dual nationals, must enter and depart Israel on their Israeli passports.

Palestinian Americans whom the Government of Israel considers residents of the West Bank or Gaza may face certain travel restrictions (see Entry/Exit Requirements above). These individuals are subject to restrictions on movement between Israel, the West Bank and Gaza and within the West Bank and Gaza imposed by the Israeli Government on all Palestinians for security reasons. During periods of heightened security concerns these restrictions can be onerous. Palestinian American residents of Jerusalem are normally required to use laissez-passers (documents issued by the Israeli Government) which contain re-entry permits approved by the Israeli Ministry of Interior.

All U.S. citizens with dual nationality must enter and depart the U.S. on their U.S. passports.

Safety and Security: Israel has strict security measures that may affect visitors. Prolonged questioning and detailed searches may take place at the time of entry and/or departure at all points of entry to Israel, including entry from the West Bank and Gaza. Travelers with Arabic surnames, those who ask that Israeli stamps not be entered into their passports, and unaccompanied female travelers have been delayed and subjected to close scrutiny at points of entry. Security-related delays or obstacles in bringing in or departing with cameras or electronic equipment are not unusual. Laptop computers and other electronic equipment have been confiscated from travelers leaving Israel from Ben Gurion Airport during security checks. While most are returned prior to departure, some equipment has been damaged, destroyed or lost as a result.

Americans who have had personal property damaged due to security procedures at Ben Gurion can contact the Commissioner of Complaints at the airport for redress. During searches and questioning, Israeli authorities have denied American citizens access to U.S. consular officers, lawyers, or family members. Palestinian Americans have been arrested on suspicion of security crimes when attempting to enter or leave Israel, the West Bank and Gaza. The Israeli National Police have monitored, arrested and deported members of religious groups who they believe intended to commit violent or disruptive acts in Israel.

Terrorism: U.S. citizens, including tourists, students, residents, and U.S. mission personnel, have been injured or killed in past terrorist actions in Israel, Jerusalem, the West Bank, and Gaza. Attacks have occurred in highly frequented shopping and pedestrian areas and on public buses. U.S. Embassy and Consulate employees and their families have been prohibited from using public buses. American citizens should exercise extreme caution and avoid, to the extent possible, shopping and market areas, pedestrian walkways, malls, public buses and bus stops as well as crowded areas and demonstrations.

American citizens should use caution in the vicinity of military sites, areas frequented by off-duty soldiers, contentious religious sites, and large crowds. Travelers should remain aware of their immediate surroundings, and should not touch any suspicious object.

Demonstrations and Civil Unrest: In the West Bank, Gaza and Jerusalem, demonstrations or altercations can occur spontaneously and have the potential to become violent without warning. If such disturbances occur, American visitors should leave the area immediately. In Jerusalem's Old City, where exits are limited, American visitors should seek safe haven inside a shop or restaurant until the incident is over. Demonstrations are particularly dangerous in areas such as checkpoints, settlements, military areas, and major thoroughfares where protesters are likely to encounter Israeli security forces.

Demonstrations by Arab Israelis in northern Israel have occurred on Land Day (March 30) and on Israeli Independence Day (date varies). These demonstrations have generally been peaceful, but on occasion Embassy staff has been told to avoid certain areas on those dates.

Areas of Instability: U.S. Government personnel in Israel, Jerusalem, the West Bank and Gaza are under tight security controls and occasionally may be prohibited from traveling to sections of Jerusalem and parts of Israel depending on prevailing security conditions.

Jerusalem: In Jerusalem, travelers should exercise caution at religious sites on holy days, Fridays, Saturdays, and Sundays, and dress appropriately when visiting the Old City and ultra-orthodox Jewish neighborhoods. Most roads into ultra-orthodox Jewish neighborhoods are blocked off on Friday nights and Saturdays. Assaults on secular visitors, either for being in cars or for being "immodestly dressed," have occurred in these neighborhoods. Isolated street protests and demonstrations can occur in the commercial districts of East Jerusalem (Salah Eddin Street and Damascus Gate areas) during periods of unrest. U.S. Government American employees are authorized to travel to the Old City, commercial districts of East Jerusalem and the Mount of Olives during daylight hours. Although no security incidents have occurred recently within the Old City, visitors are urged to exercise caution and be aware of their surroundings at all times. This is especially true when entering or exiting the city itself, when the volume of pedestrian traffic could create difficulties.

There have been increased reports of harassment of tourists by vendors in many tourist areas of Jerusalem, including, in particular, the Mount of Olives.

West Bank and Gaza: The U.S. Government currently prohibits U.S. Government American employees, officials, and dependents from traveling to the West Bank, except for mission essential business, and currently prohibits any travel to Gaza. Private American citizens should avoid travel to these areas at this time. Embassy staff have also been prohibited from using Rt. 443 (the Modi'in Road) in Israel to travel to Jerusalem.

During periods of unrest, access to the West Bank and Gaza is sometimes closed off by the Israeli Government and those areas may be placed under curfew. All persons in areas under curfew should remain indoors or risk arrest or injury. Americans have been killed, seriously injured, detained and deported as a result of encounters with Israeli Defense Forces operations in Gaza and the West Bank. Travel restrictions may be imposed with little or no warning. Strict measures have frequently been imposed following terrorist actions, and the movement of Palestinian Americans with residency status in the West Bank or Gaza as well as foreign passport holders has been severely impaired. Due to current limitations on travel by U.S. Government employees to the West Bank and Gaza made necessary by the unrest and uncertain conditions, the ability of consular staff to offer timely assistance to American citizens in need in these areas is considerably reduced at present.

Golan Heights: There are live land mines in many areas and visitors should walk only on established roads or trails. Near the northern border of Israel, rocket attacks from Lebanese territory can occur without warning.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet website at http://travel.state.gov where the current Worldwide Caution Public Announcement, Middle East and North Africa Public Announcement, Travel Warning for Israel, and other Travel Warnings and Public Announcements can be found.

Up-to-date information on security can also be obtained by calling 1-888-407-4747 toll free in the United States, or, for callers outside the United States and Canada, a regular toll line at 1-317-472-2328. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Standard Time, Monday through Friday (except U.S. federal holidays).

Crime: The crime rate is moderate in Israel, Jerusalem, the West Bank and Gaza. The loss or theft of a U.S. passport abroad should be reported immediately to local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

U.S. citizens may refer to the Department of State's pamphlets, A Safe Trip Abroad and Tips for Travelers to the Middle East and North Africa, for ways to promote a trouble-free journey. The pamphlets are available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, via the Internet at http://www.gpoaccess.gov, or via the Bureau of Consular Affairs home page at http://travel.state.gov.

Medical Facilities: Modern medical care and medicines are available in Israel. Some hospitals in Israel and most hospitals in the West Bank and Gaza, however, fall below U.S. standards. Travelers can find information in English about emergency medical facilities and after-hours pharmacies in the "Jerusalem Post" and English language "Ha'aretz" newspapers.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties, whereas travelers who have purchased overseas medical insurance have, when a medical emergency occurs, found it life-saving. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or whether you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page.

Other Health Information: Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below is provided for general reference only, and may not be totally accurate in a particular location or circumstance:

Israel:
Safety of Public Transportation: Good*
Urban Road Conditions/Maintenance: Good
Rural Road Conditions/Maintenance: Good
Availability of Roadside Assistance: Good

*U.S. Embassy and Consulate American employees and their families have been prohibited from using public buses.

Israeli roads and highways tend to be crowded, especially in urban areas. Aggressive driving is a serious problem and few drivers maintain safe following distances. Drivers should use caution, as there is a high rate of fatality from automobile accidents.

For specific information concerning Israeli driver's permits, vehicle inspection, road tax and mandatory insurance contact the Israeli Ministry of Tourism office in New York via the Internet at http://www.goisrael.com.

West Bank and Gaza:
Safety of Public Transportation: Poor
Urban Road Conditions/Maintenance: Poor
Rural Road Conditions/Maintenance: Poor
Availability of Roadside Assistance: Poor

Crowded roads and aggressive driving are common in the West Bank and Gaza. During periods of heightened tensions, cars with Israeli license plates have been stoned and fired upon. Emergency services may be delayed by the need for Palestinian authorities to coordinate with Israeli officials. Seat belt use is required outside of cities, drivers may not drink alcohol, and travel by motorcycle is not allowed. Individuals involved in accidents resulting in death or injury may be detained by police pending an investigation.

For additional general information about road safety, including links to foreign government sites, see the Department of State, Bureau of Consular Affairs home page at http://travel.state.gov/road_safety.html. For specific information concerning either Israeli driving permits, vehicle inspection, road tax and mandatory insurance, contact the national tourist organization offices in New York via the Internet at http://www.goisrael.com.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Israel's Civil Aviation Authority as Category 1—in compliance with international aviation safety standards for oversight of Israel's air carrier operations. For further information, travelers may contact the Department of Transportation within the U.S. at 1-800-322-7873, or visit the FAA's website at http://www.faa.gov/avr/iasa/index.cfm.

Customs Regulations: Video cameras and other electronic items must be declared upon entry to Israel. It is advisable to contact the Embassy of Israel in Washington or one of Israel's consulates in the United States for specific information regarding customs requirements. Definitive information on customs requirements for the Palestinian Authority is not available. In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines. A current list of those countries with serious problems in this regard can be found at http://www.ustr.gov/reports/2003/special301.htm.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Individuals traveling to the West Bank and Gaza through Israel or Israeli-controlled entry points are also subject to Israeli law and jurisdiction. Persons violating Israel's or the Palestinian Authority's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Israel are strict and convicted offenders can expect jail sentences and heavy fines. The Palestinian Authority also has strict penalties for the possession, use, or trafficking in illegal drugs by persons visiting or residing in its jurisdiction.

Under the PROTECT Act of April 2003, it is a crime, prosecutable in the United States, for a U.S. citizen or permanent resident alien, to engage in illicit sexual conduct in a foreign country with a person under the age of 18, whether or not the U.S. citizen or lawful permanent resident alien intended to engage in such illicit sexual conduct prior to going abroad.

Under the Protection of Children from Sexual Predators Act of 1998, it is a crime to use the mail or any facility of interstate or foreign commerce, including the Internet, to transmit information about a minor under the age of 16 for criminal sexual purposes that include, among other things, the production of child pornography. This same law makes it a crime to use any facility of interstate or foreign commerce, including the Internet, to transport obscene materials to minors under the age of 16.

Arrests and Detention: U.S. citizens arrested by the Israeli National Police (INP) in Israel and charged with crimes are entitled to legal representation and consular notification and visitation. In most cases the INP notifies the Embassy or Consulate General within two days of arrest, and consular access is normally granted within four days. This procedure may be expedited if the arrested American shows a U.S. passport to the police, or asks the police to contact the U.S. Embassy or Consulate.

U.S. citizens arrested by the Israeli Security Police for security offenses, and U.S. citizens arrested in the West Bank or Gaza for criminal or security offenses may be prevented from communicating with lawyers, family members, or consular officers for lengthy periods. The U.S. Consulate General and the Embassy are often not notified of such arrests, or are not notified in a timely manner. Consular access to the arrested individual is frequently delayed. U.S. citizens have been subject to mistreatment during interrogation and pressured to sign statements in Hebrew which have not been translated. Under local law they may be detained for up to six months at a time without charges. Youths over the age of 14 have been detained and tried as adults. When access to a detained American citizen is denied or delayed, the U.S. Government formally protests the lack of consular access to the Israeli Government. The U.S. Government also will protest any mistreatment to the relevant authorities as well.

U.S. citizens arrested by the Palestinian Authority (PA) Security Forces in the West Bank or Gaza for crimes are entitled to legal representation and consular notification and access. The PA Security Forces normally notify the Embassy (for Gaza) or Consulate General (for West Bank) within two days of arrest and consular access is normally granted within four days. This procedure may be expedited if the arrested American shows a U.S. passport to the police, or asks the police to contact the U.S. Embassy or Consulate.

U.S. citizens arrested by the PA Security Forces in the West Bank or Gaza for security offenses may be prevented from communicating with lawyers, family members, or consular officers for lengthy periods. In addition, they may be held in custody for protracted periods without formal charges or before being taken in front of a judge for an arrest extension. The U.S. Consulate General is often not notified by the PA of the arrests in a timely manner, and consular access to arrestees is occasionally delayed. The U.S. Government does not have a formal mechanism for protesting these delays in notification or access to the Palestinian Authority; however, our concerns are pursued with local PA officials.

Court Jurisdiction: Civil courts in Israel actively exercise their authority to bar certain individuals, including nonresidents, from leaving the country until monetary and other legal claims against them can be resolved. Israel's rabbinical courts exercise jurisdiction over all Jewish citizens and residents of Israel in cases of marriage, divorce, child custody and child support. In some cases, Jewish-Americans who entered Israel as tourists have become defendants in divorce cases filed by their spouses in Israeli rabbinical courts. These Americans have been detained in Israel for prolonged periods while the Israeli courts consider whether they have sufficient ties to Israel to establish rabbinical court jurisdiction. Jewish American visitors should be aware that they might be subject to involuntary and prolonged stays in Israel if a case is filed against them in a rabbinical court, even if their marriage took place in the U.S. and/or their spouse is not present in Israel.

Children's Issues: For information on the international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/children's_issues.html or telephone Overseas Citizens Services at 1-888-407-4747. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Standard Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Registration/Embassy and Consulate Locations: Americans living in or visiting Israel, the West Bank or Gaza are encouraged to register at the Consular Section of the U.S. Embassy in Tel Aviv or the U.S. Consulate General in Jerusalem and obtain updated information on travel and security. E-mail registration for the U.S. Embassy is possible at [email protected] and for the U.S. Consulate General at [email protected].

The U.S. Embassy in Tel Aviv, Israel, is located at 71 Hayarkon Street. The U.S. mailing address is PSC 98, Box 0001, APO AE 09830. The telephone number is (972)(3) 519-7575. The number after 4:30 p.m. and before 8:00 a.m. local time is (972)(3) 519-7551. The fax number is (972)(3) 516-4390. The Embassy's e-mail address is [email protected] and its Internet web page is http://consular.usembassy-israel.org.il.

The Consular Section of the U.S. Embassy should be contacted for information and help in the following areas: Israel, the Gaza Strip, the Golan Heights and ports of entry at Ben Gurion Airport, Gaza International Airport, Haifa Port, and the northern (Jordan River) and southern (Arava) border crossings connecting Israel and Jordan.

The Consular Section of the U.S. Consulate General in Jerusalem is located at 27 Nablus Road. The U.S. mailing address is Unit 7228, Box 0039, APO AE 09830. The telephone number is (972)(2) 622-7200. The number after 4:30 p.m. and before 8:00 a.m. local time is (972)(2) 622-7250. The fax number is (972)(2) 627-2233. The Consulate's e-mail address is [email protected] and its Internet web page is http://jerusalem.usconsulate.gov.

The U.S. Consulate General should be contacted for information and help in the following areas: West and East Jerusalem, the West Bank, and the Allenby Bridge border crossing connecting Jordan with the West Bank.

There is a U.S. Consular Agent in Haifa at 26 Ben Gurion Boulevard, telephone (972)(4) 853-1470, who reports to the Embassy in Tel Aviv. The Consular Agent can provide routine and emergency services in the north.

Travel Warning

November 26, 2004

This Travel Warning is being issued to update information on threats to American citizens and interests in Israel, the West Bank and Gaza. Terrorist attacks have occurred in Israel and in areas frequented by Israeli tourists across the Israeli border with Egypt, and there are ongoing concerns regarding locations associated with American interests in Israel. Revised prohibitions regarding the use of public transportation within Israel by American government employees have also been issued. In addition, instability related to the death of Yasser Arafat and upcoming Palestinian Authority elections remains a possibility. This replaces the Travel Warning for Israel, the West Bank and Gaza issued August 3, 2004.

The Department of State continues to warn U.S. citizens to depart Gaza immediately and to defer travel to Israel, the West Bank and Gaza due to current safety and security concerns.

General Concerns: Since August 3, 2004, suicide bombings have caused deaths on two buses in Be'er Sheva, at a bus stop in the French Hill neighborhood of Jerusalem, and in a crowded public market frequented by tourists in Tel Aviv. In addition, lethal car and truck bombings at Taba and other resort hotels across the border from Israel in Egypt, underscore the danger to American citizens of terrorist attacks.

Within Israel, terrorist violence since the beginning of the present Intifada (Palestinian uprising) in September 2000 has caused over 6,000 civilian casualties. More than 40 Americans, including tourists, students, and residents, have died as a result of having been present at the places and times of terrorist attacks. The potential for further violence remains high.

The U.S. Government has information indicating that American interests could be the focus of terrorist attacks, including within Israel. American citizens are cautioned to be alert to the possibility of heightened threats in the area of restaurants, businesses, and other places associated with U.S. interests and/or located near U.S. official buildings such as the U.S. Embassy in Tel Aviv and the American Consulate General in Jerusalem.

In addition, American citizens should stay away from any demonstrations and generally avoid public places, such as restaurants and cafes, shopping and market areas and malls, pedestrian zones, public transportation of all kinds, including buses and trains and their respective stations/terminals, and all other crowded venues and the areas around them. American employees of the U.S. Embassy in Tel Aviv and the American Consulate General in Jerusalem are expressly prohibited from using all public transportation, including buses, trains and their respective stations/terminals.

The death of Palestinian Authority (PA) Chairman Yasser Arafat and the upcoming elections to determine his successor also may create unstable conditions that would affect the security of American citizens. During the 40-day traditional period of mourning, large unpredictable crowds may gather for prayers on the Haram al Sharif/Temple Mount in the Old City of Jerusalem, as well as at local mosques throughout Israel, the West Bank, and Gaza. Both before and after Palestinian Authority elections, the possibility of mass demonstrations and unrest will continue to exist.

In addition, ongoing efforts by Palestinian militants to commit acts of terrorism against Israelis, operations by the Israeli Defense Forces in Gaza and the West Bank, and targeted assassinations of Palestinian militant leaders by Israel could incite new levels of violence.

U.S. Government personnel in Israel, the West Bank and Gaza are under tight security controls, including prohibition of non-official travel to the West Bank and Gaza, except for specific operational needs and under the auspices of U.S. Government security personnel. The use of expedient routes that traverse these areas is also prohibited. Occasionally, U.S. Government personnel are prohibited from traveling to sections of Jerusalem, depending on prevailing security conditions.

Throughout Jerusalem, American citizens are urged to remain vigilant while traveling, especially within the commercial and downtown areas of West Jerusalem and City Center. The Old City of Jerusalem is off-limits to American employees of the U.S. Consulate General in Jerusalem and the U.S. Embassy in Tel Aviv after dark all week and between the hours of 11:00 am and 2:00 pm on Fridays. Spontaneous or planned protests within the Old City are possible, especially after Friday prayers, and, in the past, such protests have led to violent clashes.

The majority of reported security incidents occur in the vicinity of the main entrances into the Old City. As throughout Israel, the West Bank, and Gaza, large crowds and public gatherings should be avoided to the extent possible, as should the ever-present street vendors who often aggressively harass tourists. In addition, due to reported increases in criminal activity, American citizens should avoid the outlying villages that surround East Jerusalem.

American citizens in Gaza should depart immediately, as the State Department has urged since the lethal attack on U.S. Embassy security personnel in a roadside bombing in Gaza on October 15, 2003. Overall conditions of lawlessness prevail; Israeli military operations continue; and areas of violent conflict shift rapidly and unpredictably. Since October 2003, militants on several occasions have temporarily abducted Western personnel, and spokesmen for the Hamas terrorist organization have made statements threatening attacks against U.S. interests.

Israeli Defense Forces have declared sections of Gaza and the West Bank to be closed. In both Gaza and the West Bank, as part of constant wide-ranging military operations, Israeli forces frequently launch ground and air incursions, with intense shelling and firing, while enforcing with deadly force closed military zones, curfews, and area closures.

Innocent bystanders have been killed or seriously injured as a result of violent confrontations between the Israeli Defense Forces and Palestinian militants in Gaza and the West Bank. Roads designed for Israeli settlers have been the sites of frequent shooting attacks and roadside explosions, sometimes resulting in death or injury. In some instances, Americans have been wounded and their property damaged. Some American citizens have been detained or deported for being present at such encounters.

Major cities in the West Bank are often placed under Israeli military curfew. All persons in areas under curfew must remain indoors or risk arrest or injury. Travel restrictions may be imposed with little or no warning, and travelers run the risk of finding themselves stranded as a result. Due to the closures and fighting, provision of medical and humanitarian care has been severely delayed in those areas. The Department of State has noted conditions of increasing lawlessness in the West Bank's northern regions.

In September and October 2004, American citizens involved in pro-Palestinian partisan volunteer efforts were severely assaulted in the West Bank by Israeli settlers and harassed by the Israeli Defense Forces. Those taking part in such efforts, including through demonstrations, non-violent resistance, and "direct action", are urged to cease such activity for their own personal safety.

Additional considerations: American citizens who remain in or travel to Israel, the West Bank and Gaza despite this and earlier warnings are urged continually to review their personal security situations and take those actions they deem appropriate to ensure their well-being. Private Americans are encouraged to follow the precautions detailed below and remain in close communication with the American Embassy in Tel Aviv and the American Consulate General in Jerusalem for more detailed information (see below).

The Government of Israel may deny entry at Ben Gurion Airport or at a land border to persons it believes might travel to "closed" areas in the West Bank or Gaza or to persons the Israeli authorities believe may sympathize with the Palestinian cause and are seeking to meet with Palestinian officials. In addition, dual Palestinian-American citizens, along with anyone suspected of planning activity deemed political in nature, may encounter difficulties, or be barred from, entering and/or departing Israel, the West Bank and Gaza, especially during times of Israeli closures. Palestinian ID holders, who are also American citizens, should consult the Embassy or Consulate for the most recent information before attempting to cross relevant borders. These restrictions can change frequently and without any advance notice. Travelers who seek to appeal decisions to bar their entry should be aware that immigration hearings may not occur for several weeks, during which time they will be held in detention.

During times when the closures and curfews are lifted, in order to depart Israel via Ben Gurion Airport, Palestinian-Americans must obtain an Israeli transit permit. Except in humanitarian or special interest cases, Israeli authorities are unlikely to issue this permit. Because of the restrictions mentioned above, travelers who are unable to obtain a transit permit must depart via land crossings and may experience lengthy delays.

All travelers who enter or travel in Gaza or the West Bank should expect delays and difficulties at Israeli military checkpoints located throughout those areas and should exercise particular care when approaching and traveling through checkpoints. Travelers should also be aware they might not be allowed passage through the checkpoints.

From time to time, the Embassy and Consulate General may temporarily suspend public services to review their security posture. Due to the current limitations on official travel by U.S. Government employees to the West Bank and Gaza, the ability of consular staff to offer timely assistance to U.S. citizens in need in these areas is considerably reduced at present. U.S. citizens who require emergency services may telephone the Consulate General in Jerusalem at (972) (2) 622-7250 or the Embassy in Tel Aviv at (972) (3) 519-7355.