CABINET COMMUNIQUE Sunday, September 01, 2002 [Warning Syria, Israeli
pressure yielding results w/reduction in Palestinian attacks, Israeli-Indian
space agrreement

(Communicated by the Cabinet Secretariat)

At the weekly Cabinet meeting today (Sunday), 1.Sept.2002:

1. Prime Minister Ariel Sharon announced his decision to appoint Mossad
Director Ephraim Halevy as the Chairman of the National Security
Council.

Prime Minister Sharon thanked outgoing National Security Council
Chairman Uzi Dayan for his services in this post, as well as for his
many excellent years in the IDF.

2. Defense Minister Binyamin Ben-Eliezer briefed ministers on current
security matters and noted that after four months of relative quiet,
Hizballah had attacked IDF posts in the Mt. Dov sector last Thursday.

Defense Minister Ben-Eliezer said that Israel was fully aware of the
possibility that Hizballah might continue its provocations and added
that Israel was using various channels to clearly warn Syria, Lebanon
and Hizballah that they were 'playing with fire.' The Defense Minister
said that in the Palestinian arena, there had been a drop in the scope
of attacks and impressive, successful, counter-terrorist actions. The
pressure that Israel is applying on the ground has led to fewer attempts
to carry out attacks, including suicide attacks, inside Israeli
territory. While there is the growing impression that Israel's
deterrent measures against suicide-terrorism are bearing fruit, the
situation on the ground is still not quiet. The Defense Minister added
that in addition to operational activities, Israel is making a
comprehensive effort in the civil-humanitarian sphere.

Defense Minister Ben-Eliezer expressed his regret over mishaps in which
civilians, including children, have been killed, and added that the IDF
is inquiring into these events.

3. Transportation Minister Ephraim Sneh briefed ministers on traffic
accidents in general, and the recent spate of serious accidents in
particular. The Transportation Minister discussed several aspects of
the war on traffic accidents.

4. The Cabinet decided to approve the signing of a cooperation agreement
on the peaceful uses of outer space between the Israeli and Indian space
agencies. The goal of the agreement is to provide a framework to
facilitate bilateral cooperation on the uses of outer space for research
purposes and practical civilian applications in the areas of satellite
imagery and measurements, ground imagery, the use of ground stations,
and student and scientific exchange programs.

5. The Cabinet decided to adopt the operative recommendations in the
interim report of the State Commission of Inquiry that was appointed
regarding the safety of structures and public places following the
Versailles disaster in Jerusalem: No new construction according to the
Pal-Kal method will be permitted, a professional engineering team will
be appointed to design a national project for dealing with the various
issues related to existing Pal-Kal structures, and the Attorney-General
will appoint an inter-ministerial legal committee to map out the
legislative changes that will be necessary in order to implement the
actions called for in the aforementioned interim report.