on the "SITUATION IN THE MIDDLE EAST"

(Agenda Item 38)

49th Session of the General Assembly
United Nations

30 November 1994
New York

Mr. President,

Far-reaching changes are reshaping the Middle East. The speed and extent of this transformation are unmatched in the world today.

Israel and its neighbors have established relations through various tracks of the peace process: with the Palestinians, with Jordan, and with states of the Persian Gulf and North Africa. The multilateral negotiations are bearing fruit as a framework for regional cooperation. We continue to look forward to progress with Syria and Lebanon.

In one short year, the Declaration of Principles signed on 13 September 1993 by Israel and the PLO has turned from concept to dynamic reality. On 4 May 1994, the Agreement on the Gaza Strip and the Jericho area was signed by the parties in Cairo. It began the Declaration of Principles' implementation on the ground. On 13 May 1994, the Israel Defense Forces withdrew from Jericho. Five days later, on 18 May 1994, they completed their withdrawal from the Gaza Strip. The Palestinian Police immediately assumed responsibility for the security of Palestinians in these areas. Three months later, on 29 August 1994, we signed the Agreement on Preparatory Transfer of Powers and Responsibilities. This early empowerment agreement transfers from the Israeli military government and its Civil Administration to the Palestinian Authority powers and responsibilities in five spheres: education, welfare, tourism, health and direct taxation.

Jordan and Israel successfully completed the process begun in Madrid. A step towards this end was taken on 25 July 1994, with the signing of the Washington Declaration. This agreement ended the state of war between the two countries. It was soon followed by one of the crowning achievements of the peace process: the treaty of peace signed on the Israeli-Jordanian border on 26 October 1994.

Progress towards peace and cooperation has also been made in relations between Israel and other Arab states. On 1 September 1994, Israel and Morocco signed an agreement to open liaison offices in each other's country. On 3 October 1994, Israel and Tunisia agreed to exchange liaison officers. The Gulf States further paved the way for regional economic cooperation by declaring an end to the secondary and tertiary Arab boycott.

The Economic Summit that recently convened in Casablanca, Morocco reflected the desire of countries in the region to establish economic cooperation amongst them. There was consensus among the conference participants that boycotts are incompatible with this goal. As was stated in the Casablanca Declaration: "The participants... explored how best to accelerate the development of the region and overcome, as soon as possible, obstacles, including boycotts and all barriers to trade and investment. All agreed that there is a need to promote increased investment from inside and outside the region. They noted that such investment requires free movement of goods, capital and labour across borders in accordance with market forces, technical cooperation based on mutual interest, openness to the international economy, and appropriate institutions to promote economic interaction.... In this context, the participants noted favourably the decision of the Council for the Cooperation of the Gulf States regarding the lifting of the secondary and the tertiary aspects of the boycott of Israel." The boycott is an obsolete economic weapon whose main casualty is regional prosperity. We hope soon to see it abolished in its entirety.

The Casablanca Conference ensured that both the public and private sectors would have a voice in shaping new economic arrangements for the region. Representatives of sixty governments and the Palestinian Authority participated in the Summit. They were joined by over eleven hundred business leaders from around the world, including hundreds of Israelis and Arabs. The Casablanca Conference broke down walls of mistrust. In their place it cemented the foundations of economic cooperation in the Middle East. Arab and Israeli businessmen met each other face to face. They exchanged ideas and discussed proposals.

All these developments represent a dramatic turning point for the Middle East, for the relations between Israel and her neighbors, and for the creation of a better future that all people of the region can enjoy.

Mr. President,

We are witnessing important steps towards peace. But at the same time, we see an opposing trend towards radicalization, fanaticism and violence. It imperils the entire region.

Today we witnessed yet another act of terrorism against innocent Israeli citizens. A terrorist affiliated with Hamas, and armed with an axe, brutally murdered a young woman in northern Israel several hours ago. Liat Gabai died of her wounds on the way to the hospital. She was nineteen years old.

Radical fundamentalist organizations threaten the stability of governments and states, terrorizing innocents without distinction. Hamas, Islamic Jihad, and Hizballah have raised the cry of "jihad," holy war, against all so-called "infidels". They, together with similar organizations, are active in every corner of the Middle East and beyond: In Algeria, Sudan, Egypt, Morocco, Tunisia, Jordan, Syria, Lebanon, in the areas controlled by the Palestinian Authority, in Israel, and even in Argentina, the United Kingdom and the United States. Their primary goal is to establish a radical religious empire, in their own words, "from the Atlantic Ocean to China."

In the meantime, they focus on the elimination of peace. For this, they enlist financial support from backers in the United States, Europe, and other places. But they rely primarily upon Iran. Yet even though this fact is well-known, many countries still maintain elaborate ties with the Iranian regime, including the sale of arms and other military equipment, as well as technological, economic and financial assistance.

Mr. President,

Will the region move towards peace and cooperation, as the peacemakers desire? Or will it be drawn backward into the shadows of conflict and bloodshed, as promised by the radical fundamentalists? Political agreements are the first steps to ensure peace. Then, all peoples of the region must be able to enjoy the great social and economic potentials it offers.

A peaceful environment will enable all countries in the Middle East to divert their human energies and economic resources away from conflict and towards social and economic development. The combined cost of defense in our region is about $70 billion dollars annually. Of this, it is estimated that $30 billion could be saved each year if there is peace. This money could then be invested in education, health, human progress, science, technology and more if there is peace. The result would be a higher standard of living and a better quality of life.

I believe there is no other solution but genuine cooperation in our region. Partnerships in the fields of health and technology, joint ventures in industrial and resource development these are just two of the possibilities which peace can make a reality. Eventually, regional cooperation could pave the way for a Middle East Common Market.

Mr. President,

The dream of regional cooperation is steadily becoming a reality. Having signed a peace treaty with Jordan, we are now seeking to bring the benefits of peace to both peoples. We are working with Jordan to find ways of jointly developing shared resources.

The opportunities are enormous: exploitation of mineral resources in the Dead Sea, agricultural development in the Arava valley, and integration of infrastructures in the sister cities of Eilat and Aqaba, which meet on the Red Sea. As a first step, we have begun work on linking electricity grids in certain areas, saving money and increasing efficiency.

Israel and Jordan have also agreed to establish an Eilat/Aqaba Free Tourism Zone. The area lends itself to joint development of sites blending the arid desert climate with water-based recreational facilities and the natural wonders of the Gulf of Aqaba. Development of the region for tourism could serve as a basis for cooperation between Israel, Jordan, Egypt, and eventually Saudi Arabia. The inspiring contrast of red desert mountains, pale blue skies and indigo waters could make the Red Sea riviera a favorite escape for vacationers from around the world.

In Eilat and Aqaba, Israel and Jordan are also exploring the creation of a Free Trade Zone, based on the principle of free flow of goods between countries. Such a free trade zone could eventually be expanded to include all of Israel, Jordan, the Palestinian Authority and nearby countries.

Progress is also being made in the multilateral negotiations. These talks bring together Israel and many other countries in the Middle East to encourage regional cooperation in five fields: environmental protection, development of water resources, economic cooperation, arms control and regional security, and refugees.

The road before us is long, but our destination is clear: Peace and reconciliation, cooperation and prosperity. This is the key to a better future for the people of the Middle East. It is the only key to ending the suffering and loss of human life. It is the key to a new hope in the hearts of all.

Now is the time to resolve the plight of the four Israeli soldiers who remain missing in action: Tzvi Feldman, Zachariah Baumel, Yehuda Katz and Ron Arad. We call upon those countries and organizations holding them to abide by international law and to display humanitarian sensitivity in order to prevent further suffering by the soldiers and their families.

Mr. President,

The international community bears a solemn responsibility: To assist in bringing about this profound change. It can do this by supporting the states and parties which are turning towards the future, and by stopping those who would destroy the great opportunity that has opened before us.

This is an historic opportunity, and a momentous challenge. May we all rise to the occasion.

Thank you. Mr. President.