World Watch Report

CONFIDENTIAL

WORLD WATCH® REPORT --ON-- Israel

Date: 12/20/2010 15:45:35 GMT / UTC

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World Watch® Report from ASI Group Israel

Executive Summary for Israel Israel’s foreign policy stances shifted under the Benyamin Netanyahu-led government, embracing a more hard-line approach than that of the previous government. Efforts exerted to obtain peace with the Palestinians have largely failed to yield progress, while controversial government decisions regarding construction in the West Bank and East Jerusalem and other developments have proven counterproductive to the peace process while at the same time exacerbating Muslim-Jewish tensions. Direct peace negotiations between the Palestinians and Israelis resumed in September 2010, rounds of which were scheduled to be held every few weeks. However, numerous obstacles remain, and the September 2010 expiration of a building moratorium in the West Bank resulted in tensions grinding to a halt. The U.S. later attempted to persuade Israel to adopt a temporary building freeze so as to allow peace talks to continue; however, following staunch opposition from within the Israeli government, the U.S. in December 2010 abandoned its efforts and peace talks remain stalled. A product of the renewed and now-stalled talks is an increase in the threat of terrorism; some elements on both the Israeli and Palestinian side remain opposed to advancements along the Palestinian-Israeli front, and Hamas has previously stated that it and other militant groups would cooperate to attack Israeli targets.

Israel is a diverse land embroiled in regional conflicts, and tensions remain between Israel and the Palestinians as well as between Israel and Lebanon and Israel and Iran. Security issues, such as the ongoing threat of terrorism, remain Israeli’s primary concern and developments along the Israeli-Palestinian front over the past year may increase this risk in the long-term. Despite a lack of major terrorist attacks in Israel over the past several years, other security-related incidents have occurred, demonstrating that concerns persist in the country. On two occasions in 2010, rockets originating from outside Israeli territory were believed to have targeted Eilat; the rockets failed to cause damage in Eilat, but nevertheless highlight threats posed by elements outside the country. Plots have also reportedly been foiled. Demonstrations occur periodically; Jerusalem experienced a high degree of unrest in mid-late 2009 as well as in mid-2010 among the Haredi (ultra-orthodox) community as well as unrest related to Muslim-Jewish tensions on several occasions in 2010 and late 2009. Crime is not a major concern for travelers to Israel, and overall crime rates decreased slightly in 2009. The West Bank (located in the Palestinian Authority) continues to experience a high degree of unrest, while Jerusalem has experienced bouts of disturbances on several occasions since late 2009; the majority of disturbances have been concentrated in East Jerusalem and the Old City (Muslim quarter).

The Israel-Gaza Strip border has overall been relatively quiet since Israel's military campaign ended in early 2009; however, the situation there remains fluid and incidents, including attempted attacks against Israeli interests and personnel along the border as well as rocket/mortar attacks, do continue to occur. In recent months, there has been an uptick in incidents along the border, which may further rise given the resumption of peace negotiations (which are opposed by Hamas and other groups in Gaza). No long-term truce has been reached, and a deterioration along the border could occur in the future, particularly in the event of a future conflict with Iran or even Hizballah, or especially in the event of a third intifada; however, another major confrontation would not be advantageous for Hamas or Israel at present.

Travelers should avoid the immediate areas near the Lebanon border due to military operations and security concerns there. The situation along the northern front is said to the most tense since the 2006 conflict, and an incident in August 2010 in which Israeli and Lebanese soldiers engaged each other briefly after Israeli personnel began a tree-clearing operation underscores just how fragile the situation is. While neither Hizballah nor Israel desire another conflict at this time, one could quickly escalate from relatively minor or unintentional events. Tensions with Iran are also a long-term concern, and this issue is one of the primary foreign policy/security concerns for the Israeli government. Rhetoric and threats are common. Israel Information Country Facts

World Watch® Report from ASI Group Current Analysis Official Country State of Israel Name l The Israeli-Palestinian peace process is an important issue; long- stalled direct negotiations that resumed in September 2010 have Type Of Parliamentary since stalled, and the overall likelihood of a deal being in the Government Democracy foreseeable future reached is low. Leadership President Shimon l Israel and Hamas continue to observe separate unilateral Peres; Prime ceasefires, though violations have occurred. No long-term truce has Minister Benyamin yet been declared. Netanyahu l Terrorism and the risk of attacks remain a concern in Israel. Capital Tensions remain between Israel and Hizballah and Israel and Iran. Jerusalem

l Economically, Israel is a strong performer and offers an attractive Official Hebrew and business environment for foreign firms. Language Arabic

Political Issues Population 7.4 million (2010) Ethnic Divisions Jewish (76.4%), Israeli-Palestinian Relations Non-Jewish (23.6%) In a significant development, direct negotiations between the Israelis and Palestinians resumed in September 2010. This followed efforts by Growth 0.5% (2009) the U.S. and the International Quartet (which includes the U.S., Inflation Russia, the United Nations and the European Union) to push for a 3.9% (2009) resumption of the long-stalled talks. The first round was held in Unemployment 7.4% (2009) Washington, D.C., and was relatively low-key compared to past meetings; little was officially accomplished, but Palestinian and Israeli Currency New Shekel leaders agreed to meet every 2-3 weeks and engage in talks for a Religion Jewish (76%), period of one year with an overarching goal of reaching a peace Muslim (16%), agreement during this period. While this was a positive development, it Arab Christians should continue be met with cautious optimism, as previously (1.7%), Druze engagements in talks (whether they be direct or indirect) have proven (1.6%), Other unsuccessful, and the main obstacles that have long impeded a peace (4.3%) deal continue to be highly contentious. Talks have now stalled and are in jeopardy of breaking down. Among the main obstacles, particularly Business Hours 0800-1300 and in regards to “final status” issues, include the status of Jerusalem, 1600-1900 borders for a future Palestinian state, and the rights of Palestinian Sunday-Thursday refugees. Other obstacles include the ongoing Israeli construction in the West Bank and East Jerusalem and security provisions for Israel. Time Zone Offset UTC+2 (UTC+3 These issues and the positions of the Israeli and Palestinian during daylight governments are discussed in further detail below. saving time) Country Phone 972 Prime Minister Benyamin Netanyahu’s government gravitates more Code toward hard-line policies, resulting in a noticeable shift in Israeli foreign policy since its March 2009 inauguration, and the Capital City 2 predominantly right-wing composition influences its policy trends. The Phone Code United States remains Israel’s strongest ally, but the administrations Nationwide 100 (police), 102 sometimes clash on their views, specifically in regard to the peace Emergency (fire), 101 process with the Palestinians and Israeli settlements in the West Bank Number (medical) and East Jerusalem. While it is a positive development that peace talks -- and in particularly direct talks -- resumed, a combination of the AT&T Calling 1-80-949-4949; 1- composition of the Israeli government, the fractured status of inter- Card Access 80-922-2222 Palestinian relations between Hamas and Fatah and the highly Codes (Bezeq) contentious nature of the main obstacles to a peace deal remarkably decrease the likelihood of a final peace deal being reached in 2011. Verizon Calling 1-800-9494-108 Card Access The issue that is currently the most pressing on the peace talks Codes agenda is settler construction in the West Bank territory; Israel in Sprint Calling 1-800-920-2010 2009 imposed a 10-month long building moratorium as a goodwill Card Access gesture to jumpstart talks. That construction freeze expired without Codes renewal in late September, and efforts by the U.S. to pressure Israel

World Watch® Report from ASI Group to reach some sort of compromise regarding another freeze have Electricity 220 volts, 50 Hz been unsuccessful. In mid-November, the U.S. proposed a temporary AC 90-day curb on settlement construction in the West Bank as an effort for the Israelis to use as a gesture to resume talks, which the Plug Styles round two-pin Palestinians had threatened to withdraw from completely unless the plugs Israeli government imposes a total halt on construction. Netanyahu is under pressure from his hard-line coalition, which was a contributing factor as to why he let the previous moratorium expire without renewal in September, and the proposed temporary freeze was not approved. Due to staunch resistance against U.S. pressure, the U.S. in December 2010 abandoned efforts for a temporary freeze, raising serious concerns regarding the ability of the U.S. to achieve a peace deal. The peace negotiations have stalled and no progress is in sight. Settlers in the West Bank, meanwhile, have in some areas begun construction, which only serves as a source of frustration for the Palestinians and undermines the peace process. In a late October 2010 development, Palestinian officials indicated that they may soon seek U.N. recognition of an independent state unilaterally; it is not known if a new temporary settlement curb would impact this initiative or how much impact it will have on jumpstarting peace talks.

As briefly mentioned above, the main issues that need to be resolved in order for a peace deal to be achieved are the status of Palestinian refugees, the status of East Jerusalem and the borders of a Palestinian state. In regard to East Jerusalem, which was captured by Israel in the 1967 war and later annexed, the Palestinians seek to make it a capital of a future Palestinian state. Netanyahu has previously emphasized that no part of Jerusalem would be ceded as part of a peace deal, but Defense Minister Ehud Barak recently indicated that portions of East Jerusalem that are predominantly Arab could be ceded to the Palestinians. No official proposal has yet been made, and it remains unknown whether the Israeli government would make such an offer or if the Palestinians would accept it. Regardless, it remains a highly sensitive issue. Another primary issue is the status of Palestinian refugees, of which hundreds of thousands currently reside in neighboring countries, specifically in Jordan, Syria and Lebanon. Because Israel wants recognition of a Jewish state as a condition to peace, it would likely impede the ability of refugees to return. The borders of a Palestinian state is also a contentious issue; the Palestinians seek to obtain a state with the borders that were in place prior to the 1967 war.

Netanyahu is not completely inflexible on some issues in order to achieve a lasting peace, but he has made his position clear on several issues that remain key obstacles in the peace process. Netanyahu -- who has traditionally opposed any further territorial concessions (especially in regard to any withdrawal to borders that existed prior to the 1967 war) to achieve peace -- has since becoming prime minister again demonstrated some degree of flexibility. Nevertheless, a peace deal for Netanyahu would be contingent upon such tenets as the Palestinians recognizing Israel as the state of the Jewish people, Jerusalem remaining the undivided capital (although there have been some indications that he may be willing to divide East Jerusalem, which the Palestinians want as the capital of a future state), the Palestinian Authority being demilitarized and Israel maintaining defensible borders. Netanyahu also expects that some areas of the West Bank will remain under Israeli control even after the implementation of a peace deal. It is also important to note that while Netanyahu may be taking a more moderate stance on issues regarding the Palestinians and a peace deal, he likely faces opposition from within his own coalition. Although the center-left Labor Party, led by Ehud Barak (who maintains the defense minister position), is part of Netanyahu's coalition, the remainder is comprised primarily of right- wing and ultranationalist groups such as Yisrael Beteinu, Shas and Jewish Home.

Additionally, it has to be considered that a deal agreed to by Netanyahu and the Israeli government may not necessarily be accepted by the Palestinian government. Inter-Palestinian relations are uncertain at present, as the Hamas and Fatah factions have not reconciled their relations. Fatah controls the West Bank territory, while Hamas controls the Gaza Strip since ousting Fatah in 2007. A deep mistrust remains between the two factions, and Hamas staunchly opposes the peace negotiations; the group, along with other militant groups in Gaza, have threatened to launch attacks against Israel in an effort to disrupt the negotiations. Therefore, it is plausible that even if Abbas agrees to a deal, he would be unable to implement it given his weakened state of power. Moreover, there are indications that popular opinion in the Palestinian territories is presently against a peace deal with Israel; Abbas stated in an interview in early September that he will not compromise on the major issues of East Jerusalem and borders. These factors add to the complexity of the peace process and further weaken the potential of a deal being implemented.

It overall remains highly unlikely that all parties involved will be able to reach an agreement that satisfies the demands and concerns of both the Israelis and Palestinians. It remains possible that any further controversial developments along the Palestinian-Israeli front could inflame tension and cause one of the parties to suspend or

World Watch® Report from ASI Group sever talks prematurely. Additionally, the threat of terrorism may increase in Israel, as some elements are opposed to the negotiation of a peace deal.

Other Issues

Due to issues discussed above, Netanyahu’s coalition will face challenges during the remainder of its tenure, particularly given the major differences in the various coalition members' ideologies; in order to form his coalition, for example, Netanyahu had to create a large government, leading to some degree of dissatisfaction among some parties, including his own. The coalition may prove weak over time and no doubt faces some degree of opposition during its four-year tenure. A March 2010 study indicated the majority of Israelis now favor having a more centrist government. Overall, security and foreign policy issues will remain of utmost concern and priority to the Netanyahu administration. This concern includes the issue of Iran’s nuclear program (see below). Netanyahu’s position will be challenged, as he will struggle to maintain a delicate balance of appeasing the United States in its push for a peace deal while at the same time maintaining a stable coalition whose agenda involves pushing through conservative and right-wing policies. At times, clashes of ideologies will occur, testing the stability of the coalition.

Israel halted its military campaign in the Gaza Strip in January 2009 after declaring a unilateral ceasefire. Hamas followed suit shortly thereafter with the declaration of its own unilateral and temporary ceasefire, and there have since been few significant changes in the status quo. Egypt attempted to broker a long-term truce, but those efforts stalled and a durable, long-term ceasefire remains a distant goal. Although unilateral truces remain in effect and the situation along the border has been relatively calm, the situation overall is fluid. Violations, including Israeli air strikes, rocket attacks by Palestinian militants in Gaza (though the frequency and scale of rocket attacks decreased significantly since early 2009), and attempted attacks by militants against Israeli military personnel or border crossings, continue to occur and have increased since late 2009; attacks may further increase in light of the September 2010 resumption of peace talks and associated frustrations with the overall lack of progress. The Gaza developments affected the entire region, and anti-Israeli sentiment spiked throughout much of the Arab world. Numerous and near-daily protests against Israel and in support of the Palestinians as well as some to support Israel, occurred worldwide for several weeks, including inside Israel (particularly in locations with mixed populations such as Jerusalem). The campaign affected Israel in the diplomatic realm as well, resulting in several countries breaking off relations with Israel and a strain in relations with others. However, the political damage was not catastrophic and most relations that Israel has with other countries were largely unchanged. For additional information regarding the ceasefire and relations between Hamas and Israel, please see the Country Overview – Security section.

An incident in May 2010 in which Israel raided a protest flotilla attempting to break the Gaza Strip blockade also resulted in another political backlash for Israel. Aside from prompting a series of anti-Israel protests in many locations worldwide, the incident strained Israeli relations with some members of the international community, most notably Turkey. Turkey, with whom Israel once had good diplomatic relations with, was the most outspoken critic of Israel’s actions. Relations between Israel and Turkey remain stained, but there are also some indications that they are not completely unsalvageable (though the dynamic of Turkish-Israeli relations has undoubtedly changed). This split has been accompanied by economic impacts as well, as seen in the dramatic decrease in the number of Israelis visiting Turkey and Turks visiting Israel. Moreover, Additionally, anti-Israeli sentiment is believed to remain elevated in the Middle East region. Domestically, the events resulted in a series of pro-government (and at times anti-Turkish) protests; the overall backlash posed little threat to the stability of the Netanyahu-led government. In the larger political arena, Israel is now believed to be trying to make inroads with, and better relations with another Mediterranean country, Greece. This is likely based on strategic interests in light of the fracture in the Israeli-Turkish relationship; Netanyahu in late August 2010 made a first-ever visit to Greece by an Israeli prime minister.

The threat of terrorism remains a concern in Israel, as evidenced by several security-related incidents and foiled plots over the past several years. Overall, major attacks have declined in recent years, but there has been an apparent trend in isolated, small-scale incidents. Security measures continue to be strictly enforced throughout Israel in an effort to prevent potential attacks, but travelers should nevertheless exercise caution, especially as tensions in the region remain high. Concerns over the potential outbreak of a third intifada have eased as Palestinian officials have only advocated a peaceful resistance against Israel. However, the existing concerns that frustrations stemming from any potential further delays in the peace process (especially if little progress is made in the medium-term or if talks were to be suspended) combined with the emergence of controversial developments (regarding Israeli settlements or excavation work or Palestinian evictions) could eventually prompt such a development in the future. Additional information regarding the threat of terrorism in Israel can be found

World Watch® Report from ASI Group in the Country Overview – Security section.

Tensions between Iran and Israel remain a concern, and harsh rhetoric (particularly on the part of Iranian officials) is common. Ascertaining whether an armed conflict between the two countries is imminent is difficult at present, but such a development would have far-reaching and widespread ramifications. At this time, it appears that a conflict would not be advantageous for either country, but a development such as an Israeli strike against Iran is not likely to be pre-announced. Ultimately, unless a diplomatic solution is reached to resolve tensions between the U.S., Israel and Iran, some type of confrontation in the future is a very real concern. This issue is discussed in further detail in the Country Overview – Current Analysis section in the Iran country files.

Tensions between Israel and the Lebanese militant group Hizballah also remain very high, and this is evident in the tense calm that prevails along the Lebanon-Israel border. Several developments over the past year have escalated the situation in addition to various developments since early 2008; while a large-scale military confrontation or war is not anticipated in the immediate future, there are very serious concerns that such a development could occur with little notice and even unintentionally. Rhetoric between the two parties has also increased of late. Please see the Security – Israeli-Lebanese (Hizballah) Tensions section for additional information.

In other foreign affairs issues, indirect peace talks between Israel and Syria remain suspended; they were initially revived and brokered by Turkey beginning in May 2008. Several rounds were held before Syria suspended them in response to Israel’s military actions in the Gaza Strip; Syria indicated on several occasions in 2009 that it wants to resume the talks, but no further developments have occurred. Even if indirect (or direct talks) were to resume in the near future, many obstacles remain, particularly the status of the Golan Heights and Syria's relationship with Iran and Hizballah.

Economic Information

Overall, Israel remains politically and economically stable (and economically is a strong performer). However, the global crisis affected Israel -- though to a lesser extent than the U.S. or the U.K. -- and the economy slowed in 2009; economic growth has risen thus far in 2010. Unemployment rose in 2009, averaging more than 8 percent, but has since declined marginally in 2010. The government is pursuing policies it expects to help foster greater economic and political stability, including via the introduction of a 2009 rescue plan presented by Netanyahu to stimulate the economy; it consisted of five components, including two options to address credit, methods to increase exports, reducing layoffs and combating unemployment. The plan's first two components were curbing actions, while the remaining three focus on creating and fostering growth through structural reforms and tax policies, etc. Netanyahu’s experience as Israel’s finance minister from 2003-2005 has aided him in reviving the country’s economy; however, any instability that may arise in the governing coalition could hinder his policy plans. Thus far, Israel was praised for its strong policies adopted in light of the global downturn, and the economy has fared relatively well.

In a significant in mid-2010 development, a major gas reserve was discovered off the coast of Haifa, located in northern Israel in the Levantine Basin area; energy firms involved in the find estimate that the reserves may contain as much as 25 trillion cubic feet or more. This find could help Israel transform its economy, for in addition to guaranteeing that the country would have sufficient energy security for the several decades, it may allow Israel to eventually become a natural gas exporter for the first time in its history. However, at present, Israel lacks the necessary infrastructure to capitalize on the find. While the find is significant, the location of the reserves is a potential source of contention between Lebanon and Israel; the reserve is said to be located at least partly in Lebanon’s territorial waters, raising claims that Israel would be “stealing’ Lebanon’s natural gas. Lebanon is taking steps to initiate exploration as well, though Israeli infrastructure is far more advance and will allow the latter to make advancements that Lebanon is not currently capable of achieving. Nevertheless, this is an issue that warrants monitoring.

Israel’s business environment remains attractive to foreign firms, and the World Economic Forum ranked Israel 29th out of 121 countries in its 2009 Global Enabling Trade Report, which examined various measures, institutions and policies in place to highlight a given country’s strengths and weaknesses and make it an enabling environment for global trade. Additionally, the World Economic Forum ranked Israel 24th out of 139 countries in its 2010-2011 Global Competitiveness Index (GCI), an improvement from its previous year ranking (127th); additionally, Israel was ranked as one of the most competitive countries in the region. The 2009 Index of Economic Freedom study ranked Israel 42nd out of 183 countries and second in the Middle East and North Africa region. Additionally, the issue of corruption does not appear to be a prominent issue for firms and

World Watch® Report from ASI Group individuals; Transparency International ranked Israel 30th out of 178 countries in its 2010 Corruption Perception Index (a slight improvement from its 2009 report). Israel's ranking was among the strongest in the region. While Israel is well known for its advanced technologies, high education standards, strong institutions and enabling business environment, Israel is facing the growing challenge of competing with other countries in the region that are increasingly providing similar attractive business environments. Other regional players continue to improve such sectors as tourism, manufacturing and retail, which pose a risk to Israel, which is vulnerable to being economically affected in the event of a future conflict with Hizballah or Iran; this will prove a long-term concern for Israel's business environment. Security Issues

l Tensions remain between Israel and the Palestinians as well as between Israel and Lebanon.

l The ongoing threat of terrorism is the primary security concern in Israel. As such, travelers should observe stringent security measures.

l Crime is not a serious concern for travelers, but it does occur. In addition, violence related to organized crime has on occasion affected bystanders.

l Strikes and demonstrations occur periodically in Israel.

Israeli-Palestinian and Israeli-Lebanese Tensions

Israeli-Palestinian Situation

Hamas and Israel continue to observe separate and individual (but unofficial) ceasefires that were unilaterally declared by both after Israel ended its military campaign in the Gaza Strip in January 2009. Both ceasefires were supposed to be only temporary until a durable, long-term Egyptian-brokered truce could be implemented. However, efforts stalled and no such development was achieved or is is expected to occur anytime soon. At this time, the situation remains relatively fluid but relatively calm along the Israel-Gaza Strip border, though incidents such as sporadic rocket attacks and attempted attacks and/or infiltrations by Palestinian militants continue to occur; shooting attacks targeting Israeli interests also occur. However, such incidents are less frequent now than prior to Operation Cast Lead (Israel’s campaign in Gaza), as Hamas continues to use the ceasefires as a means to rebuild its capabilities, and the group is not seeking to provoke another major Israeli incursion at this time. It was demonstrated during the conflict that militants in Gaza possess rockets capable of reaching deeper into Israel. Rockets struck Ashdod, a major port city located approximately 23 mi/38 km from the Gaza Strip and Beersheba, the largest city in southern Israel. This was significant, as Ashdod and Beersheba were previously unaffected and the range is nearly twice as far as other rockets had traveled. It was not previously believed that Hamas was capable of striking central Israel, but the group stated that it possesses longer-range rockets in its arsenal that can strike such locations as Rehovot, Rishon LeTzion and Tel Aviv should another conflict arise in the future. The veracity of the claim was somewhat substantiated by the Israeli government in mid-November 2010, when senior military officials stated that Hamas possesses rockets capable of travelling as far as 50 mi/80 into Israel; this distance places the Tel Aviv metropolitan area in the range of Hamas rockets. Also of concern were public acknowledgement in October 2010 by Israeli officials that Hamas may possess anti-aircraft missiles that would, in the event of a future conflict, allow the group to target aircraft traveling in airspace near the Gaza Strip. Netanyahu expressed the concerns in the context that it would pose a threat in the long-term, specifically if a viable peace agreement between the Israelis-Palestinians is not reached or in the event of a future conflict involving Hamas. At present, there is no indication that -- if Hamas does in fact have anti-aircraft missiles -- that the group would use the technology in the near future to target an aircraft traveling through Israeli airspace. Moreover, while Hamas may advocate an increase in attacks targeting Israel in light of the recently resumed (and now stalled) peace talks and periodically launches rockets toward Israeli territory, Hamas would not be inclined to attempt an attack against aircraft at present as doing so would undoubtedly prompt a quick and heavy-handed Israeli military response.

Israel’s military operations in Gaza further inflamed already high levels of anti-Israeli sentiment and prompted numerous near-daily protests worldwide; although the protest actions have long since subsided, the effects of the incursion continue to be felt. The military action in Gaza raised security concerns for Israel, specifically regarding the threat of terrorism. Militants have sought, and may continue to seek, retaliation for the developments (past incidents, including at least one that occurred in Israel, were in response to Israel’s actions in Gaza). Israel continues to implement strict security measures and restrict the travel of Palestinians in the West Bank and Gaza Strip. A peace agreement between the Palestinians and Israel remains a distant goal, and at present there are many issues that remain unresolved (such as the status of Jerusalem and Palestinian refugees among other things). A major breakthrough in relations is not anticipated in the short-medium term.

World Watch® Report from ASI Group Additionally, the Palestinian factional divide between Hamas and Fatah also adversely affects any future efforts to achieve a lasting peace. Hamas and Fatah were already at odds following Hamas’ takeover of the Gaza Strip in June 2007, and Israel’s operations in the Gaza Strip deepened the levels of mistrust between the two Palestinian factions. Multiple rounds of unity talks were held in Cairo in 2009, but many obstacles remain in this arena as well. The U.S. and allies have tried on several occasions to jumpstart peace talks, and despite direct peace talks having resumed in September 2010 (and later stalling) many issues remain unresolved and Palestinians complain about provocative Israeli actions, including ongoing construction in the West Bank and East Jerusalem. Other developments, such as the February 2010 decision to place two disputed shrines in the West Bank on Israel's national heritage list, remain controversial. This particular development prompted disturbances in the West Bank, which had already been experiencing an increase in the frequency of violent incidents, as well as an increase in tensions in Jerusalem. There are concerns regarding the potential for a third intifada, or uprising, among the Palestinians if developments do not occur in the foreseeable future; this is due to the lack of progress in the peace process, perceived Israeli provocations such as the heritage site development and other developments, particularly in regards to Israeli settlements in the West Bank and East Jerusalem. Overall tensions remain very high, and a sensitive and highly provocative event could potentially prompt a new uprising. While such a development is not believed to be imminent, particularly as Palestinian officials continue to advocate only peaceful resistance against Israel rather than violence, it would have security and political repercussions for Israel if an uprising were to occur. However, improved security measures on the part of the Israelis in recent years (such as the West Bank security barrier and upgraded fencing along the Gaza border) would likely minimize the frequency of successful attacks inside Israeli territory. Political implications would include further major setbacks to Arab-Israeli relations.

Israeli-Lebanese (Hizballah) Tensions

Tensions between Israel and Hizballah remain elevated, and the current situation along the border can described as an uneasy and tense calm. In a significant development on 3 August 2010, Israeli and Lebanese troops exchanged fire along the border. The incident occurred in the Lebanese border village of Aadassi; Israel forces – who had notified UNIFIL officials prior – began clearing trees in an area of Israeli territory located very close to the blue line. Lebanese forces opened fire first, prompting return fire and shelling by Israeli forces. The incident resulted in several deaths, including a Lebanese journalist. The U.N. has urged Israel and Lebanon to exercise “maximum restraint” to avoid a further escalation of tensions, but the incident underscores just how delicate the situation is along the border. The incident also demonstrates how slight of a development could potentially spark a wider conflict. Hizballah later threatened involvement should any further incidents occur.

Several other developments in recent months have prompted increases in rhetoric and sharp increases in concerns regarding the potential for another conflict. In April 2010 Israel accused Syria of supplying Hizballah with Scud missiles, which if true is a blatant violation of U.N. resolutions. It would also alter the dynamic of a future conflict by allowing Hizballah to strike nearly any location inside Israel; in another possibly game- changing development, Iran was accused in July 2010 of having transferred an advanced radar system to Syria. This is of concern given the likelihood that if true, it could provide Hizballah with knowledge of the radar system that could be used to the group's development. Israel in July 2010 declassified several photographs detailing locations in villages where Hizballah has allegedly hidden and amassed weapons; this is significant because in the previous conflict Hizballah primarily used rural areas rather than populated civilian areas from which to hide and fire weapons. Hizbalah has also been accused by Israel of tunneling underneath the border. Hizballah denied the allegations, but also issued threats to Israel that it has a detailed list of targets that would be struck in the event of another conflict.

Other incidents in the summer of 2009 involving explosions at alleged Hizballah arms depots or outposts in southern Lebanon prompted a sudden increase in tensions, as the explosions may have confirmed that Hizballah is violating the U.N. resolution that ended the 2006 conflict. Incidents of alleged Israeli spying and the arrests of individuals in Lebanon accused of spying for Israel have also increased tensions. Since mid-2009, both Lebanon and Israel have reported various troop movements and security increases along the border; although an uneasy calm continues to prevail, the situation is believed to be at its most tense since the 2006 conflict. It has also been alleged that Hizballah may possess chemical weapons, a concern in and of itself.

The tensions that persist between Hizballah and Israel have been compounded by various developments over the years, particularly the February 2008 assassination of a high-ranking Hizballah official (Imad Mugniyah) in Syria and Israel’s military campaign against Hamas in the Gaza Strip in late 2008-early 2009. Hizballah issued warnings and harsh rhetoric, which Israel continues to take very seriously. Hizballah was pressured to avenge Mugniyah's death, and alleged attempts have reportedly occurred. It is believed that an attack would be

World Watch® Report from ASI Group conducted in such a manner that the militant group can have plausible deniability (and thus prevent a harsh Israeli response such as that which occurred in 2006). There are factors in play that make the potential for Hizballah to stage an outright attack against Israel low, and the group has stated that it does not seek a new war for Lebanon at this time; the fact that Hizballah did not act during the August 2010 incident lends weight to this belief. However, concerns remain. Hizballah’s leader, Sheikh Hassan Nasrallah, modified the group’s manifesto in late November 2009, toning down the Islamist rhetoric but maintaining its tough stance against Israel. Despite its new political aspirations, Hizballah intends to keep its arms (a contentious issue in Lebanon) and continues to increase its capabilities and arsenal. It is believed that Hizballah now possesses a significantly higher number of rockets and missiles than prior to the 2006 conflict, and the reports of Hizballah obtaining Scud missiles or other advanced weaponry are alarming.

It is important to note that although neither Israel nor Hizballah seems willing to provoke a conflict, the situation remains fluid and the potential for a further escalation of tensions remains. There are also concerns that other groups in Lebanon may attempt to undermine the uneasy calm and provoke a confrontation; this was evidenced on several occasions in September, February and January 2009, when rockets were launched from Lebanon into Israel. The potential for additional incidents remains, and rockets ready for launch have been found near the border on several other occasions in 2009. Travel to areas in close proximity to the northern border should continue to be avoided as a precaution, particularly given the military presence there.

Israel conducts low-altitude flyovers in southern Lebanon, an issue that prompts criticism from Lebanon and the international community and also keeps tensions elevated. Hizhallah has stated that the group has a right to an air defense system, which has raised concerns that it may be seeking or may have already acquired such a system. If Hizballah were to obtain an air defense system, it would "tip the balance" during any future conflict with Israel. A U.N. peacekeeping force is deployed near the Lebanon-Israel border, where isolated incidents sometimes occur. Travelers should remain abreast of current developments and should avoid travel to the border area with Israel as a precaution; overall, foreign visitors should avoid all travel south of the Litani River to the extent possible.

Terrorism

The threat of terrorism is a long-standing concern in Israel. However, there are various factors that appear to be somewhat altering the nature of this threat. In recent years, Israel has experienced an overall decline in major terrorist attacks, and 2009 was the calmest since the start of the Second Intifada (uprising) in 2000, according to the Shin Bet. This trend is attributed to Israeli security measures in place, which include the construction of a security barrier separating Israel proper from the West Bank and security raids/crackdowns among other things, as well as to efforts by Palestinian Authority officials to decrease violence and the end of the Second Intifada in 2004 or 2005 (the end date is disputed and was never an officially declared date). Despite the decline, the threat of terrorism remains a very relevant concern in Israel, as evidenced by incidents that have occurred in recent years. These incidents include August and April 2010 incidents in which rockets launched from outside Israeli territory landed near Eilat, a March 2009 failed car bombing attack at a shopping mall in Haifa, a September 2008 attack by a Palestinian using a vehicle and two July 2008 attacks by Palestinian construction workers using bulldozers in central Jerusalem, a March 2008 shooting attack in West Jerusalem and a February 2008 attack in the southern town of Dimona. The attacks were the first successful incidents in Israel since January 2007, when a bomber killed four people at a bakery in the resort town of Eilat. Other plots have been disrupted, including attempts by militants to infiltrate Israeli territory via the Gaza Strip or from Gaza via Egypt.

In the absence of major attacks of late, there has been a notable increase in the number of smaller-scale incidents perpetrated by individuals acting alone. The majority of such incidents have occurred in Jerusalem and its environs and in the West Bank territory especially and include the throwing of stones and/or Molotov cocktails at vehicles or security checkpoints/security forces and the arrests of Arabs in possession of knives or other items while preparing to attack security personnel. The very nature of these types of incidents make them more difficult to prevent due to their spontaneity and the fact that individuals not acting on the behest of a group are not as easy to track and apprehend prior to an incident occurring. Higher profile examples of these types of attacks include the several attacks referenced above in which Palestinians used construction equipment to attack pedestrians and vehicles on various occasions in Jerusalem. Even more worrying is the fact that those specific attacks were perpetrated by residents of East Jerusalem rather than individuals who infiltrated or traveled to Israel from the Palestinian territories. Such residents have Israeli identification cards and are able to move about freely and without the restrictions that other Palestinians (such as those based in the West Bank or Gaza) face.

Given the intense political climate and the current state of relations between the Israelis and Palestinians, further

World Watch® Report from ASI Group sporadic and isolated attacks are possible in Israel in the future, especially in Jerusalem given the city’s large Palestinian population. Palestinian resentment can arise from various factors, including Israeli military actions such as the May 2010 raid on a Gaza Strip-bound protest flotilla; this incident prompted a swell in anger against Israel among the international community, raised tensions between Israel and its longtime ally Turkey and sparked a series of anti- Israeli protests in many locations. Another major event that continues to affect Israeli security is Israel’s 2008-2009 Operation Cast Lead in the Gaza Strip; this event caused anti-Israeli sentiment to spike significantly and raised long- term security concerns for Israel. The lack of progress in the long-stalled Israeli-Palestinian peace talks, continued Israeli settlement construction in the West Bank and East Jerusalem, Israeli air strikes in Gaza and even the perception of how Israel treats Arab residents inside the country, could all be catalysts for future attacks. Such acts can be directed against any target of opportunity and therefore reinforce the need for strong personal security precautions when visiting Israel. Individuals who undertake travel to Israel should take adequate security precautions when arranging accommodations, transportation and business activities. In addition to the potential for relatively minor incidents, the potential for organized militant groups to attempt attacks inside Israel proper in the foreseeable future remains a relevant concern; the lack of recent major attacks is not due to a lack of initiative or trying on the part of militants, as evidenced by thwarted and foiled plots. In August 2010 the Islamic Jihad militant group announced its intentions to resume suicide bombing attacks against Israel by operatives originating it the West Bank; it is unclear whether the militants, estimated at around 200 or so in the territory, maintain the capabilities to infiltrate Israel proper given current stringent security measures in place.

The most common targets have historically been public transportation nodes and entertainment/restaurant venues (the March 2009 Haifa attack targeted a commercial shopping center). Trend analysis has indicated that the threat of terrorism in Israel increases during times of developments in peace negotiations between the Palestinians and Israel as well as during Jewish holidays. U.S. authorities are pushing for a Israeli and Palestinians to participate in direct talks, which could motivate elements to make attempts at derailing advancements in the peace process.

The Israeli government continues to recognize the seriousness of threats facing the country, and measures such as heavy security forces deployment, the ongoing construction of the West Bank security barrier and more plans to partially fence off the border with Egypt in two places (one fence along the Gaza Strip border and another near Eilat in southern Israel) are in place.

In regard to a more encompassing outlook, the potential for an outbreak of a third Palestinian uprising is currently considered to be relatively low; however, a continued lack of progress in the peace process or even a major event such as an attack on the al-Aqsa Mosque in Jerusalem or other controversial events could lead to such a development.

Crime

Crime rates in Israel are generally low-moderate, and most visits to the country pass without major incident. The majority of crimes in urban centers consist of petty crimes (such as theft) and vehicle thefts and break-ins. Residential burglaries are not uncommon, but do not typically affect short-term travelers. Overall crime rates decreased slightly in 2009. Although there was a marginal increase in homicides, auto theft and residential break-ins declined markedly. Violent crimes also decreased

Organized crime has long been an issue in Israel, and underworld activities have reportedly been on the rise in recent years. Much of the violent crime that occurs in Israel is organized crime-related; violence in these cases is intentional and is usually directed at specific targets. Despite this, an increasing number of incidents are occurring in public locations when innocent bystanders are present, thus raising collateral concerns for those who find themselves in the wrong place at the wrong time. Although rare, several fatalities have occurred in recent years. Overall, the chance of being affected during an incident of violence is low, and crime does not pose a major concern to travelers to Israel.

Strikes and Demonstrations

Strikes and demonstrations occur in Israel relatively frequently. Most demonstrations that take place are not large in scale and do not generally pose a major threat to a traveler or expatriate’s physical well-being. However, demonstrations and protests can be disruptive, and there have been a series of go-slow protests in which protesters drive slowly in convoys on major thoroughfares, causing traffic congestion in order to press their demands.

Jerusalem in particular has experienced an increase in demonstrations, including both violent and disruptive actions, in 2010 and since 2009. The majority of unrest is concentrated among the Haredi (ultra-Orthodox community) and occurred in response to a variety of issues. Jewish-Muslim tensions also manifested in unrest that occurred in late 2009 early 2010 at and near the al-Aqsa Mosque in Jerusalem’s Old City.

World Watch® Report from ASI Group Strikes have the potential to cause disruptions to services such as public transportation, as well as disruptions at Tel Aviv's international airport.

Customs/Immigration The Entry Requirements section reflects the most correct and up-to-date information to the best knowledge of ASI Group. Setting requirements for entry into the country is the sole prerogative of each country’s government, and requirements may change, sometimes with little or no prior notice. Travelers should always contact the diplomatic representation of the country prior to departure to verify entry requirements.

Passports and Visas

A passport is required for entry into Israel except for travelers who hold one of the following: Expired passport issued to nationals of Israel; laissez-passer issued by Israel; laissez-passer issued by the United Nations; military identity card issued to U.S. military personnel stationed in Europe; Seaman Book (traveling on duty); laissez-passer issued to stateless persons and refugees.

Non-Israeli nationals must hold passports that are valid for at least six months beyond intended length of stay.

Nationals of the following countries do not need a visa for a maximum stay of three months: Argentina, Austria, Australia, Bahamas, Barbados, Belgium, Bolivia, Brazil, Bulgaria, Canada, Chile, Colombia, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, El Salvador, Estonia, Fiji, Finland, France, Greece, Grenada, Guatemala, Haiti, Hungary, Iceland, Ireland, Italy, Jamaica, Japan, Republic of Korea (South Korea), Latvia, Lesotho, Liechtenstein, Luxembourg, Malawi, Malta, Mauritius, Mexico, Monaco, Mongolia, Netherlands, Norway, New Zealand, Panama, Paraguay, Philippines, Poland, Portugal, San Marino, Singapore, Slovenia, Spain, Swaziland, Sweden, Switzerland, Trinidad and Tobago, United Kingdom, United States of America, Uruguay, Vanuatu.

Nationals of the following countries do not need a visa for a maximum stay of three months if holding a diplomatic or service passport: Albania, Bulgaria, Burkina Faso, Honduras, Latvia, Liberia, Madagascar, Nicaragua, Peru, Sierra Leone, Slovak Republic, Thailand, Turkey, Ukraine, Venezuela.

Nationals of Germany born after 1 January 1928 also do not need a visa for a maximum stay of three months. Those born before that date may enter with an expired visa stamped on a valid passport.

There are some countries in the Middle East and Africa that refuse entry to travelers whose passports carry an Israeli visa entry stamp. Travelers who may be affected by this should ask the Israeli immigration officer at the point of entry to issue a tourist visa on a separate piece of paper which should be kept with the passport. Sometimes Israeli immigration officials may deny this request.

Health

No vaccinations are required to enter Israel from any country.

Departure Taxes

There are no entry or departure taxes levied on international travelers at Israeli airports.

Exports and Imports

Travelers can import the following tax-free: 250 cigarettes or 250 grams of other tobacco products; 2 liters of wine and 1 liter of other alcoholic beverages; gifts with a value of up to US$125; 0.25 liter of eau de Cologne.

Travelers can bring into the country one video camera, one photo camera, one movie camera, one tape

World Watch® Report from ASI Group recorder and films and video cassettes with a value of up to US$250 for personal use. The red and green clearance system operates at the Ben Gurion International Airport in Tel Aviv, which is the main point of entry for most visitors. Travelers must use the red lane if bringing electronic equipment into Israel. These articles are subject to high deposits that are payable in cash or Visa credit card only.

It is prohibited to import perishable food items, particularly fruits and vegetables from Africa. Travelers intending to carry firearms and ammunition into Israel must notify security authorities at Ben Gurion International Airport prior to arrival. Upon arrival, an airline representative must present the weapons and ammunition to security authorities, who will then interview the traveler.

There are no limits on the amount of tobacco or alcoholic products that travelers can export tax-free. An export permit is required for antiquities. Authorities place loaded cameras in a sealed box, which is returned to the passenger upon arrival at the destination.

Non-resident travelers to Israel may import local and foreign currencies in unlimited amounts. Upon departure, residents can export foreign currencies up to the amount they brought into the country on arrival. Local currency can be re-converted to foreign currency up to $US500. Currency Israel’s currency is called the new shekel and is made in denominations of 20, 50, 100 and 200. Travelers can exchange money at such locations as licensed banks, currency exchanges and hotels; travelers cheques can be used in Israel. All major international credit cards are widely accepted throughout Israel, and travelers should have little difficulty locating an ATM. ATMs are abundant in Israel, especially in urban centers. In the West Bank and Gaza Strip, both the Israeli shekel and the Jordanian dinar are acceptable legal tender. Depending on the location, travelers may encounter some degree of difficulty locating an ATM or using credit cards. This is more so true for the Gaza Strip than urban centers in the West Bank.

Communications

Israel has the most highly developed telephone system in the Middle East. Public pay phones are common and operate with magnetic telephone cards (telecard), which are sold at post offices, news stands and kiosks, as well as at some hotel reception desks. International calls can be made using a telecard from a public pay phone. Mobile phone service is widely available throughout the country, and travelers should encounter little difficulty finding cell phone or Internet services, especially in larger urban centers.

Toll-free numbers in Israel begin with 177. For local and out of town directory assistance, dial 144 (there is a small charge for this service). When calling out of town, you must dial the zero that begins every area code.

Israel Country Code: 972 Tel Aviv Area Code: 03 Jerusalem Area Code: 02

Calling card access codes: Sprint: 1-800-920-2010, 1-800-949-4102 or 1-800-938-7000 AT&T: 1-80-949-4949 or 1-80-922-2222 Verizon: 1-800-9494-108

Cultural Information Language

Hebrew and Arabic are Israel’s two official languages. However, many people speak English, which is considered semi-official. In the West Bank and Gaza Strip, Arabic is the primary spoken languages. English and French are also spoken there to a lesser extent.

Cultural Tips

General

l Israeli culture is informal and casual, and animated hand gestures are commonly used by Israelis in conversation.

l Additionally, dress standards are relatively informal in Israel as well.

World Watch® Report from ASI Group l Most cosmopolitan areas (such as Tel Aviv, Haifa, Eilat and Netanya) are similar to other Western cities in terms standards of behavior and dress codes. However, visitors to more traditional/rural areas or religious locations (such as Jerusalem) should dress more modestly.

l In Islamic areas, visitors should not use or be in possession of alcohol, drugs, sexually explicit materials and pork products.

l It is customary to leave a tip of between 10 and 15 percent at restaurants and cafes when a service charge is not already included. Visitors should check their bill to ensure the gratuity is not already added before leaving a tip.

l It is not very common to tip taxi drivers (unless they carry luggage or other items for you), but it is customary to tip such service providers as tour guides and tour bus drivers.

l A 5-10 percent tip is customary for guides, tour bus drivers and chauffeurs.

l Most hotels include a 15 percent service charge, but small tips should be given to bell boys who assist in carrying a visitor’s luggage.

Gay and Lesbian

l Israel is one of the most liberal countries in the region when it comes to LGBT rights, and there are laws in effect protecting the rights of homosexuals.

l Homosexuality is legal in Israel, and Tel Aviv has a reputation as being the gay capital of the region.

l Despite the openness toward the gay and lesbian community, certain elements of Israeli society do not approve of homosexuality. The presence of this sentiment carries a risk of isolated and sporadic incidents of violence directed toward persons or venues frequented by the LGBT community.

Tips for Female Travelers

Female travelers are often seen by criminals as particularly vulnerable targets. In highly conservative cultures, foreign women may be perceived as promiscuous, inviting unwelcome or violent advances. Female travelers, in turn, are likely to encounter cultural mores that may initially seem startling or offensive. The purpose of this section is to apprise female travelers of such attitudes and customs, offer means to respond without giving offense, and promote a heightened sense for security among female travelers. The information offered below is not intended as advice, nor is it necessarily comprehensive in presenting the challenges female travelers may face. ASI Group encourages female travelers to thoroughly research the areas to which they travel to determine what precautionary measures to take and what to do should they become victims of crime while traveling.

l Women are usually able to travel throughout Israel with little-to-no restrictions; there are no specific security risks for women in Israel.

l In general, cultural norms for Israeli women are very similar to those in other Western countries.

l Casual standards of dress are the norm, particularly in urban and tourist areas. Travelers can wear shorts and t-shirts, but more modest of attire is recommended to avoid attracting unwanted attention.

l Women visiting both Muslim areas and ultra-Orthodox Jewish areas should dress conservatively (long sleeved shirts, ankle-length loose-fitting skirts, knee-length pants or long and even a headscarf if entering a religious institution). Travelers should keep shoulders covered.

l Various forms of catcalls are not uncommon, but the majority are harmless. When encountered, one should avoid eye contact and refrain from engaging in conversation.

Recent Events for Israel (9/21/2010 - 12/20/2010)

TWO FOREIGN NATIONALS ATTACKED WHILE HIKING NEAR JERUSALEM 12/18/2010

On 18 December 2010 two foreign nationals were attacked while hiking in a forested area southwest of Jerusalem; the survivor of the attack, a British national residing in Israel, stated that she and her friend, a U.S. national visiting Israel, were approached by two Arab men while hiking. The men asked the women a question in Hebrew and then attacked, stabbing them multiple times before fleeing the area. The lone survivor reportedly played dead until the

World Watch® Report from ASI Group assailants left, at which time she walked to a parking area and called the police. The body of her companion was discovered several hours later, and an investigation into the attack is currently underway. Israeli authorities stated that the attack was likely politically motivated, but it is not known if the attackers mistook the two women for Israeli nationals. The incident occurred near the community of Mata, located approximately 12 mi/20 km outside of Jerusalem and near the border with the West Bank.

SUSPICIOUS OBJECT FLYING OVER DIMONA REACTOR SHOT DOWN 12/16/2010

On 16 December 2010 the Israeli military dispatched aircraft to shoot down a suspicious object that was detected flying over the country’s nuclear reactor in Dimona, located in the Negev. The object has yet to be officially identified, but officials have indicated that it may have been an unmanned, engine-powered balloon. No further information is available.

WINTER WEATHER CONDITIONS CAUSE DISRUPTIONS IN MIDDLE EAST REGION 12/13/2010

Severe weather conditions have affected the Middle East region since late 10 December 2010, resulting in disruptions to flight operations and ground transportation as well as power outages in some locations. Weather conditions over the past several days have included cold fronts, heavy rains, strong winds, sand storms and snow, and these conditions persist on 13 December.

In Lebanon, heavy rains have affected Beirut, causing flooding and rendering many streets impassable. Flights disruptions have been reported at Beirut’s Rafik Hariri International Airport (OLBA/BEY) on several occasions in recent days; the facility has also been impacted by high winds, which on 11 December forced the airport’s closure and damaged several small training aircraft. Mountainous areas of Lebanon have experienced heavy snowfall. Weather-related damage was also reported in the northern city of Tripoli and in the southern port city of Sidon. Meanwhile, snow forced the closure of roads in the Syrian capital city of Damascus; storms also forced the country’s main port of Tartous to halt operations. Additionally, weather conditions caused travel disruptions at Lebanon-Syria border crossings, including near the main crossing point in the al-Masnaa area.

In Egypt, Red Sea and Mediterranean ports have for the most part halted operations, though operations may be resuming as of 13 December. A cruise ship en route to the northern city of Alexandria on 12 December was affected by high winds, resulting in injuries to several passengers. Rain and high winds also caused a high degree of damage in Alexandria, where several dozen buildings collapsed. Over the past several days, Egypt was also affected by sand storms, which reduced visibility and rendered ground travel dangerous. There were no immediate reports of major airport disruptions in Egyptian cities, but delays have likely occurred.

In Israel, strong storms on 11-12 December caused power outages in several locations as well as road closures. Flights were disrupted on several occasions at Tel Aviv’s Ben Gurion International Airport (LLBG/TLV), where outgoing flights experienced delays on 12 December, and several incoming flights diverted to other countries such as Cyprus. Israeli port operations were affected, including Tel Aviv, Caesarea, Haifa, Jaffa and Ashdod ports; damage was reported at maritime facilities in Tel Aviv, Jaffa and Caesarea. A Moldovan ship sank offshore near Ashdod port in southern Israel. Meanwhile, weather conditions also affected the Gaza Strip territory.

Jordan experienced several sand storms on 12 December. Additionally, parts of the country have been affected by storms, while northern Jordan, including the capital city of Amman, experienced relatively heavy snowfall. Flight disruptions occurred at airports in Amman on 12 December.

Weather conditions in the region are expected to improve later on 13 December; however, similar severe weather and storms are forecast to move through the region later this week, raising the potential for similar travel disruptions to occur in the coming days.

ISRAEL AFFECTED BY HEAVY RAINS AND WIND 12/11/2010

Inclement weather affected parts of Israel on 11 December 2010, causing power outages and travel disruptions. Weather conditions included heavy rains and strong winds in Jerusalem, Acre, Kiryat Shmona, Bnei Brak and Eilat. Meanwhile, sandstorms affected parts of the Negev in southern Israel. Poor visibility was reported in many areas, rendering driving dangers and many roads were blocked due to high waters or fallen debris. It is not known if Israeli airports, including Ben Gurion International Airport (LLBG/TLV) near Tel Aviv, were affected.

ISRAELI AND PALESTINIAN OFFICIALS TO MEET WITH U.S. OFFICIALS 12/10/2010

World Watch® Report from ASI Group Israeli and Palestinian officials were due to hold separate meetings with U.S. officials in Washington, D.C., on 10 December 2010; the development comes amid collapsing peace talks between the two, particularly as the U.S. recently announced it was abandoning efforts to persuade Israel to impose a new settlement freeze in the West Bank in an effort to jumpstart peace talks; Palestinian officials in turn stated that no talks would resume until construction, including that in East Jerusalem as well, was halted. Direct talks between the Palestinians and Israelis only recently resumed in September 2010, but began faltering shortly thereafter; the late September expiration of a building moratorium in the West Bank was a major factor in the stalling talks. U.S. Secretary of State Hillary Clinton will take part in the 10 December talks, but it is not known if U.S. officials will be able to persuade all parties involved to resume talks.

ISRAELIS WARNED OF POTENTIAL ATTACKS ABROAD 12/10/2010

The Israeli government is warning its nationals that they may face an increased threat of attack or kidnapping attempt; Israel on 10 December warned Israelis abroad to remain vigilant due to concerns that Hizballah or Iran may seek to retaliate against recent attacks targeting nuclear scientists in Iran. Iran has accused Western and/or Israeli spy organizations of perpetrating the attacks in an effort to harm the country’s nuclear program. The warning appears to be general, and there were no indications that specific threats had been identified. Israel has on several occasions in recent years issued warnings to its nationals abroad that Hizballah may attempt revenge attacks in retaliation for a 2008 assassination of a high-ranking Hizballah official in Syria; Israel is also accused of that incident.

THOUSANDS PARTICIPATE IN TEL AVIV MARCH 12/10/2010

Thousands of people participated in a march held in Tel Aviv on 10 December 2010 to mark International Human Rights Day. Demonstrators converged on Habina Theater at 1130 local time and marched to Rabin Square, where a large rally was held. Activists from various organizations participated in the rally, and despite a counter- demonstration by right-wing Israeli groups there were no reports of violence.

ABBAS SAYS NO FURTHER TALKS UNTIL SETTLEMENT CONSTRUCTION HALTED 12/9/2010

On 9 December 2010 Palestinian President Mahmoud Abbas stated that the Palestinian Authority will engage in no further peace talks with Israel until construction in the West Bank territory as well as East Jerusalem is halted. The statement follows an 8 December development in which the U.S. indicated that it was abandoning its attempts to persuade Israel to impose a new, temporary construction freeze in the West Bank. The U.S. has pushed Israel to agree to a new freeze to jumpstart stalling peace talks, which broke down following the September 2010 expiration of a building moratorium in the West Bank; however, Israel has opposed the efforts and has been reluctant to agree to any new freezes, particularly one that would apply to construction in East Jerusalem.

MILITANTS FIRE ROCKET INTO SOUTHERN ISRAEL 12/6/2010

On 6 December 2010 Palestinian militants based in the Gaza Strip fired a rocket into southern Israel; the rocket landed in an open area just south of the port city of Ashkelon. The incident resulted in no damage or injuries, and the Popular Front for the Liberalization of Palestine (PFLP) claimed responsibility.

MAJOR FOREST FIRE NEAR HAIFA FINALLY EXTINGUISHED 12/5/2010

A major forest fire that broke out in the Carmel hills south of Haifa on 2 December 2010 has finally been extinguished as of 5 December 2010. Israeli firefighters as well as international crews worked to bring the fire under control and prevent it from spreading to Haifa, a major port city in northern Israel. The blaze caused more than 40 fatalities -- many of whom were killed in a bus accident while fleeing the fire -- as well as a high-ranking Haifa police official. The forest fire was believed to have been started by a 14-year old youth who discarded a hot coal from a water pipe, damaged a large area of land and dozen of buildings in the Carmel hills area; the blaze also prompted evacuations of local residents from nearby villages.

FOREST FIRE CONTINUES IN NORTH 12/3/2010

A major forest fire that began on 2 December 2010 continues to burn in northern Israel on 3 December. The fire broke out shortly before 1200 local time in the Carmel Hill forest area, located south of the port city of Haifa, and quickly spread, prompting evacuations in nearby areas and villages. Firefighters continue to work to contain the fire and prevent it from spreading north to Haifa; there have thus far been no reports of major evacuations from the city, but some streets in Denya -- a neighborhood located in far southeastern Haifa -- have been evacuated as a

World Watch® Report from ASI Group precautionary measure. Many roads in the vicinity of the fire remain closed on 3 December. The international community is also lending assistance to Israel, as aircraft from such countries as Bulgaria, Greece, the U.K., Jordan, Turkey, Cyprus and Russia have been dispatched. Israeli officials are hopeful that the fire -- said to be the largest forest fire to impact Israel -- will be contained by 4 December. There have been more than 40 fatalities, the majority of which occurred when a bus full of evacuees from a local prison overturned. The cause of the fire remains under investigation, but authorities have not ruled out arson.

MAJOR FIRE PROMPTS EVACUATION IN NORTHERN ISRAEL 12/2/2010

A major forest fire broke out in northern Israel on 2 December 2010, prompting many residents to evacuate and flee. The fire originated in the Carmel forest area, which is located near Haifa, but prompted evacuations in such areas as the village of Beit Oren, located southeast of Haifa. Officials estimate that the fire has resulted in at least 40 fatalities in northern Israel.

UPDATE: CELL PHONE SERVICE RESTORED FOLLOWING OUTAGE 12/2/2010

According to reports on 2 December 2010, full cell phone communications have been restored in Israel, one day after a major network collapsed. The incident affected millions of mobile phone users in the country for approximately 12 hours before the network operator Cellcom, one of Israel’s largest, was able to resolve the issue and restore services. The cause of the network collapse was not immediately clear.

BORDER SHOOTING INCIDENT REPORTED 12/1/2010

A shooting incident was reported along the Israel-Lebanon border on 1 December 2010; according to reports, Israeli troops opened fire toward a Lebanese border post. The incident, which is currently being investigated by U.N. officials, reportedly occurred near the disputed Shebaa Farms area; however, it was unclear what prompted the shooting or if Lebanese forces returned fire. No fatalities were reported.

The Israel-Lebanon border remains very tense, and there is a large military presence on both sides. Shooting incidents have occurred on several past occasions, and an incident in August 2010 in which Lebanese forces opened fire on Israeli forces performing a tree-clearing exercise sharply stoked tensions and underscored the delicate situation along the border.

CELLULAR NETWORK COLLAPSE AFFECTS MOBILE PHONE COMMUNICATIONS 12/1/2010

A major cellular phone network collapsed on 1 December 2010, causing major disruptions to mobile phone communications in Israel. The Cellcom network is one of three networks in Israel, and officials at the company have not disclosed the cause of the crash. Efforts are underway to repair the network, but disruptions persist on 2 December, and millions of cell phone users are being impacted. It is not yet known when the repairs will be completed.

VIOLENCE FOLLOWS HOUSE DEMOLITION IN EAST JERUSALEM 11/30/2010

Violence occurred in the predominantly Arab East Jerusalem neighborhood of Issawiya on 30 November 2010 after Israeli officials demolished an illegally-built home in the area. Local Palestinian residents protested against the demolition and clashed with security personnel who had been dispatched to the neighborhood to protect demolition workers. At least five Palestinians were injured in the protest, during which security forces used rubber bullets to disperse demonstrators. Demolitions of illegal structures periodically prompt protests and disturbances in East Jerusalem, and Issawiya has previously been the site of violence between Palestinian protesters and security forces. There is a threat of further disturbances.

PALESTINIANS AND SYRIANS REACT TO REFERENDUM LAW 11/23/2010

Syrian and Palestinian officials on 23 November 2010 reacted to the Israeli approval on 22 November of a national referendum law that would require a referendum prior to the country ceding any territory in a future peace deal. Officials in Syria rejected the parliamentary decision and criticized the law; Palestinian officials alleged that the law’s approval was a “mockery of international law.” The basis of future peace deals with either the Palestinians or the Syrians would likely have to include Israeli withdrawals from East Jerusalem or the Golan Heights, but the referendum would allow the Israeli populace to block territorial concessions, which would likely cause a peace deal with either to falter.

World Watch® Report from ASI Group PARLIAMENT APPROVES CONTROVERSIAL REFERENDUM LAW 11/22/2010

On 22 November 2010 the Israeli Parliament approved a highly controversial referendum law that would make it obligatory for the government to conduct a national referendum prior to any future withdrawal from annexed lands such as the Golan Heights. The law was intensely debated in the Parliament, but was approved in a vote of 65-33 and is not in effect. The requirement of a referendum could prove a hindrance in the peace process, particularly if Israel were to ever reach a deal with the Palestinians or Syria because even if a deal were approved by the government it could be overturned (or at least the tenets regarding land withdrawals) by the populace. A loophole in the referendum requirement is if the land withdrawal decision were to be approved by a two-thirds majority (or 80 lawmakers) in the Parliament.

SETTLERS PROTEST IN JERUSALEM AGAINST U.S. PROPOSAL 11/21/2010

Thousands of Jewish settlers participated in a protest in Jerusalem on 21 November 2010 against a U.S. proposed construction freeze in the West Bank territory. The protest was staged outside Prime Minister Benyamin Netanyahu’s office as the Israeli Cabinet met, and demonstrators called on the government to decide against accepting the U.S.’ proposal to temporarily suspend construction in the West Bank in order to jump-start stalling peace talks. There were no reports of violence or major disturbances during the demonstration; further protest actions against the issue are possible in the near-term.

Meanwhile, the Israeli government has confirmed that the United States has formulated as requested a letter detailing its proposals for jump-starting the peace talks. The Cabinet will soon review the letter and vote on whether to approve the 90-day construction freeze in the West Bank. The Palestinians have previously stated that talks will not continue until construction is halted in the territory; however, it is not presently known if the Palestinians would accept the temporary freeze if it is approved, as some reports indicate that Palestinian officials are now wanting Jerusalem included in the temporary freeze. The Israelis have been adamant about Jerusalem not being included in construction freezes. At present, the peace process remains stalled.

WORK ON SINAI BORDER BARRIER TO COMMENCE ON 22 NOVEMBER 11/21/2010

Construction on a barrier fence separating Israel and Egypt’s Sinai Peninsula is scheduled to commence on 22 November 2010. The project has been anticipated for quite some time, and the Israeli Cabinet in November 2010 officially approved it, paving the way for construction to begin in the coming weeks. Authorities state the fence is necessary to combat immigration, smuggling and terrorism issues. It was not specified where construction would begin, but the fence -- which will be topped with electronic sensors -- is expected to stem from near the Gaza Strip to near the Israeli resort town of Eilat in the south. The project is currently anticipated to take one year to complete, though it is possible that officials will be unable to meet this deadline given the massive cost associated with the fence's construction

SPATE OF ROCKET ATTACKS TARGET ISRAEL 11/19/2010

A spate of rocket and mortar attacks targeted Israel from 18-19 November 2010. According to reports, militants based in the Gaza Strip fired numerous Qassam rockets during the overnight hours and continued launching both rockets and mortars on 19 November. Militants also fired a longer-range Grad-type Katyusha rocket into Israel, the first such occurrence in recent months; the rocket landed just north of Ofakim, a city located in southern Israel just west of Beersheba. There were no reports of damage or injuries as a result of the attacks.

Analyst Comment: The violence follows several recent developments in the Gaza Strip, including two targeted assassinations by Israel against militants belonging to the Army of Islam group who were allegedly plotting attacks inside Egypt’s Sinai Peninsula. In response to the assassinations, another militant group known to operate in Gaza issued on 18 November a threat against Israel warning of ongoing rocket attacks. It is possible that this most recent spate of attacks is related to the aforementioned developments. Although rocket and mortar attacks against Israel have continued to occur since Israel’s Gaza campaign ended, the frequency of such attacks had declined. It is too soon to determine whether the uptick in attacks will be a sustained trend, but further attacks originating from the Gaza Strip nevertheless remain possible. Militants may also attempt to plant explosive devices or infiltrate Israel proper. Israel typically responds to attacks with air strikes and smaller-scale incursions; a major military operation into Gaza is unlikely at this time.

AIRCRAFT COLLISION AVERTED OVER BEN GURION AIRPORT 11/18/2010

World Watch® Report from ASI Group A collision between two passenger aircraft over Ben Gurion International Airport (LLBG/TLV) was narrowly averted on 18 November 2010. An Air Berlin aircraft had reportedly taken off from the facility, but veered off course as an El Al aircraft was preparing to land; an air traffic controller noticed the Air Berlin flight had left its course and contacted both aircraft, allowing them to change course and avoid a collision.

HAMAS CELL ARRESTED FOR PLANNING ATTACKS IN WEST BANK AND 11/18/2010 JERUSALEM

It was announced on 18 November 2010 that a group of Hamas members were arrested by Palestinian security forces in the West Bank for plotting attacks there and in Jerusalem. The cell operated in Nablus, located in the northern West Bank, and reportedly coordinated actions with Hamas members in the Gaza Strip. The cell reportedly planned to assassinate the governor of Nablus, kidnap Israelis in the West Bank and carry out at least one attack on “Israeli targets” in Jerusalem; officials did not provide specific details regarding the plots or how advanced they were, but weapons, money and a vehicle filled with explosives were seized during the arrest operation.

MILITANT GROUP ISSUES WARNING AGAINST ISRAEL 11/18/2010

On 18 November 2010 a militant group known to operate in the Gaza Strip posted an audio message online in which it warns Israel that it will experience further attacks. The threat was posted in Hebrew by Jemaa Ansar al-Sunna and warned that unless Israel leaves “the land of Palestine” rocket attacks will continue occurring.

ISRAEL VOTES TO WITHDRAW FROM NORTHERN HALF OF GHAJAR 11/17/2010

The Israeli Cabinet on 17 November 2010 approved a unilateral withdrawal from the northern part of Ghajar, a village strategically located along the Lebanese-Israeli border in the Golan Heights area. The village is currently controlled by Israel, though the international border between Israel and Lebanon as demarcated by the U.N. in 2000 (following Israel’s withdrawal from southern Lebanon) essentially splits Ghajar in two; Israel then seized the northern half of Ghajar during the 2006 conflict with Hizballah and has since controlled the village. Residents are unhappy about the Israeli decision, as the more than 2,000 villagers are originally Syrian (as Syria used to control the village until Israel seized the Golan Heights in 1967) and have no real ties to Lebanon.

Israel has not specified a time-line for when it would withdraw from northern Ghajar, but will do so after consultations with the U.N. peacekeeping mission in southern Lebanon, as the force will take over in the absence of Israeli forces. Presently, the village is enclosed by a security fence but is not divided into northern and southern sectors; it is unclear whether such a segregation of the village will occur after Israel’s withdrawal. As previously stated, villagers are not satisfied with the unilateral decision and may stage protests in response. However, such actions would likely remain confined to the village and its immediate environs.

STUDENTS PROTEST AGAINST STIPEND BILL IN TEL AVIV 11/17/2010

Hundreds of students gathered in front of the Tel Aviv Museum of Art on the evening of 17 November 2010 to protest against a proposed stipend bill for Yeshiva students. Students have staged several demonstrations against the issue, which would provide stipends for full-time, married Yeshiva students; the most recent protest action on 17 November turned violent, as some disturbances occurred when students attempted to block a road and clashed with deployed police officers. Security forces eventually dispersed the demonstrators, some of whom also threw smoke grenades.

VOTE ON WEST BANK SETTLEMENT CURB DELAYED 11/17/2010

The Israeli Cabinet has decided to delay a vote on a new U.S.-proposed settlement freeze in the West Bank territory; the building freeze was requested during a recent meeting between U.S. Secretary of State Hillary Clinton and Israeli Prime Minister Benyamin Netanyahu in an effort to jump-start the stalling peace process with the Palestinians. However, the proposal has not been well-received by the hard-line Israeli government, which is now stating that it wants to first have ideas about the peace process expressed in writing prior to agreeing to a new building freeze in the West Bank.

HEAVY FOG CAUSES DELAYS AT TEL AVIV’S AIRPORT 11/16/2010

Heavy fog caused disruptions to flight operations at Tel Aviv’s Ben Gurion International Airport (LLBG/TLV) during the early morning hours of 16 November 2010. The weather conditions began at around 0200 local time, prompting the

World Watch® Report from ASI Group delay of outgoing flights and forcing the diversion of incoming flights to nearby airports in Jordan, Greece, Turkey and Cyprus. The foggy conditions dissipated around 1100 local time, allowing flight operations to resume; however, disruptions were expected to persist for much of the day.

ISRAEL TO BEGIN CONSTRUCTION ON WALL ALONG SINAI BORDER IN 11/16/2010 NOVEMBER 2010

Israeli Prime Minister Benyamin Netanyahu has announced that construction of a security fence along the border with Egypt’s Sinai Peninsula is due to commence before the end of November 2010. The Israeli Cabinet gave the final approval for the barrier’s construction in March 2010, but no exact timeline of when it would be constructed was provided at the time. The fence is due to be constructed along the 250 mi/240 km-long border beginning near Kerem Shalom (by the Gaza Strip) to Eilat and will feature such elements as radar to detect movement or disturbances. Israeli officials have stated that the security barrier is necessary to counter illegal immigration into the country, though it is likely to serve a dual purpose in securing the Israeli border as well as curbing smuggling activities. The project will likely take several years to complete.

MOST ISRAELIS IGNORING WARNING AGAINST TRAVEL TO SINAI 11/15/2010

Recent reports indicate that the majority of Israelis are ignoring an urgent warning issued on 11 November 2010 by the Israeli government to defer travel to Egypt’s Sinai Peninsula. The government warned that it had credible intelligence regarding possible kidnapping attempts or attacks targeting Israelis in the Sinai, and warned its nationals to leave the area immediately and avoid travel there. However, despite the warning and other reports indicating that more than two dozen suspected militants were arrested in the Sinai for plotting attacks against Israelis, it appears that Israelis are undeterred in their decisions to remain in the Sinai or travel there.

U.S.-PROPOSED SETTLEMENT FREEZE TO PASS SECURITY CABINET 11/14/2010

Israeli Prime Minister Benyamin Netanyahu accepted a U.S.-proposed 90-day settlement freeze in the West Bank territory and it is anticipated that the proposal will narrowly pass a vote by his Security Cabinet. The temporary settlement freeze was proposed by U.S. Secretary of State Hillary Clinton during a 14 November 2010 meeting with Netanyahu in New York; it calls for a one-time extension of the currently expired construction moratorium in the West Bank so as to allow the Israelis and Palestinians a short period of time to restart the now-stalled direct peace negotiations. The freeze would apply to the West Bank only and not controversial construction activities in East Jerusalem. While direct talks began in September 2010, they stalled early in October 2010 following the expiration of a 10-month long construction moratorium in the West Bank, and the Palestinians have refused to renew talks unless construction in the territory is halted. It is not known if the Arab League will approve of a resumption of talks by Palestinian Authority officials, and it is also not known if Palestinian officials will agree to re-engage the Israelis in peace talks in light of the proposed ban given that it will only be in effect for 90 days and would not be renewed. At present, peace talks remain stalled.

ISRAEL WARNS ISRAELIS TO LEAVE SINAI PENINSULA IMMEDIATELY 11/11/2010

The Israeli Counter-Terror Bureau (CTB) on 11 November 2010 issued an urgent warning for all Israelis in the Sinai Peninsula to leave immediately, citing intelligence regarding a possible threat to Israelis there. The CTB stated that it had received credible intelligence suggesting that militants were plotting to kidnap and/or attack Israelis visiting the Sinai and called on Israelis to postpone any travel plans to the area for the time being. Authorities have stated that Jaish al-Islam (Army of Islam) militants may have infiltrated the Sinai with the intention of abducting Israelis. The group is known to operate in the Gaza Strip and was recently in the headlines when one of its militants -- who was plotting an imminent attack against Israeli, and possibly U.S., interests in the Sinai -- was the subject of a targeted killing by Israel on 3 November.

Meanwhile, Egyptian authorities announced the arrest of a cell consisting of 25 people who were allegedly planning attacks on Israelis. The individuals lived in the Egyptian towns of el-Arish, Sheikh Zuwaid and Rafah; authorities did not specify if the members were linked to the Army of Islam militant group referenced above or if the arrests were connected to the urgent warning issued by the Israelis.

Analyst Comment: It is not uncommon for Israel to issue such warnings, though the urgency of this most recent warning lends greater credibility to the situation. In light of this most recent warning, Israeli travelers should be especially vigilant; moreover, while the threat is directed specifically at Israelis, all travelers in the area face a heightened risk of attack and/or abduction given this unusual situation. All travelers in the Sinai Peninsula should

World Watch® Report from ASI Group carefully evaluate their security situation and, if choosing to remain, should limit their travel outside the secure areas of hotels.

BOMBS PLANTED ALONG GAZA FENCE TARGET IDF 11/10/2010

Militants based in the Gaza Strip on 10 November 2010 planted three explosive devices along the fence with Israel; two of the devices exploded as an Israel Defense Forces (IDF) patrol passed by, prompting IDF helicopters to deploy and open fire on unspecified targets inside the Gaza Strip. A third device was discovered along the fence shortly after, but sappers neutralized the bomb. No fatalities were reported in the attacks. Israeli officials did not specify along what area of the border the incidents occurred.

ISRAEL PLANS UNILATERAL WITHDRAWAL FROM NORTHERN GHAJAR 11/9/2010

Israeli Prime Minister Benyamin Netanyahu has reportedly stated his intention for an Israeli withdrawal from the northern sector of Ghajar, a village that straddles the Israel-Lebanon border. The U.N.-designated international border essentially splits Ghajar into two, but the U.N. resolution that ended the 2006 conflict requires Israel to withdraw from the northern sector. Israel has on previous occasions indicated that it would withdraw from the village and turn over authority to the U.N. peacekeeping force, but abandoned those plans over alleged lack of coordinated disengagement plans with Lebanese officials. Netanyahu has stated that he will convene his security Cabinet upon his return to Israel from a current U.S. trip and will undertake a unilateral withdrawal from northern Ghajar. A timeline for the withdrawal was not specified.

CHILEAN TOURIST MISTAKEN FOR ARAB, ATTACKED IN JERUSALEM 11/8/2010

A group of Israeli youths physically assaulted a Chilean tourist in Jerusalem after mistaking him for an Arab; the incident occurred at or near Independence Park as the tourist cut through the park to return to his hotel. As many as seven Israeli youths, including five who resided in ultra-orthodox areas, attacked him and began beating him after mistaking his nationality. Several of the attackers were arrested following the assault. The incident was reported on 8 November 2010, though it was unclear if it actually occurred on that date.

Analyst Comment: Physical assaults involving foreign travelers and tourists are not common occurrences in Israel; however, Muslim-Jewish tensions remain elevated and there are frequent incidents reported involving clashes or stone-throwing between Arabs and Israelis. The mistaking of the Chilean’s appearance as that of an Arab was likely an isolated incident and not indicative of a trend.

ISRAEL RANKED 29TH IN DOING BUSINESS REPORT 11/8/2010

Israel has been ranked 29th out of 183 countries in the World Bank’s 2011 Doing Business Report; the report ranks countries on the ease of doing business in nine regulatory categories, including starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. Israel’s ranking improved slightly from the 2010 report in which it ranked 30th globally; the country performs best in the getting credit (6th) and protecting investors (5th) categories, but is not among the top performers in the categories of dealing with construction permits (121st) and registering property (147th). Israel also performs very well in the Middle East and in the North Africa Region.

BEDOUINS CLASH WITH ISRAELI POLICE OFFICERS IN RAHAT 11/7/2010

Early on 7 November 2010 a group of Bedouins clashed with Israeli police officers in the town of Rahat as they razed a condemned mosque. Approximately 1,000 Bedouins who live near the mosque threw rocks at the police officers during the demolition, prompting the use of tear gas to disperse the crowd. Five of the Bedouins were arrested, although there were no reports of injuries.

PIPE BOMB AND GRENADE AMONG ITEMS FOUND IN JERUSALEM 11/5/2010

Jerusalem authorities on 5 November 2010 discovered a bag containing a pipe bomb, a grenade and a handgun in the Geula neighborhood; the items were left on the corner of Eli Cohen Street, and police sappers neutralized the grenade and bomb without incident. Although an investigation is ongoing, authorities stated that the incident was believed to be criminal in nature and not terrorism-related.

FARMERS PLANNING GENERAL STRIKE 11/4/2010

World Watch® Report from ASI Group Israeli farmers have announced their intention to launch a labor strike in the coming weeks, which if materializes would result in a shortage of produce available to consumers in the country. The Israeli Farmers Federation (IFF) is planning the labor action to protest the government’s refusal to allow several thousand immigrant workers to travel to Israel to work in the farming industry; the IFF is scheduled to meet in the coming days to select the strike date, which some reports indicate will begin on 18 November 2010. The strike will be a two-day action, during which time farmers intend to block all agricultural products from reaching local markets.

ISLAMIC STATE OF IRAQ SAYS ALL MIDDLE EAST CHRISTIANS ARE POSSIBLE 11/3/2010 TARGETS

The Islamic State of Iraq (ISI) militant umbrella group stated on 3 November 2010 that all Christians in the Middle East regions are now viewed as desirable targets. ISI is affiliated with al-Qaeda in Iraq and claimed responsibility for an attack and hostage-taking incident that resulted in more than 50 deaths at a Catholic church in Baghdad on 31 October; the group had claimed that the attack was against the Coptic church in Egypt’s alleged holding of two Muslim female converts against their will, though Coptic Christian officials in Egypt stated that the women were wives of priests who were being held at a monastery for their own good. ISI set a deadline of 3 November for the church in Egypt to release the women, after which it stated that all Christians in the region were viable targets for attacks.

Analyst Comment: The ISI’s ability to launch attacks is primarily limited to Iraq, where in recent years there has been a trend in attacks targeting the Christian population. This most recent threat has been met with concern in Iraq, and authorities have reportedly bolstered security at churches and Christian areas as a precaution. However, it is not believed that ISI is capable of launching attacks against Christians elsewhere in the region; the primary threat in other countries derives from the potential for the ISI’s calls to resonate among sympathizers or other militant groups. In Egypt, for example, authorities have bolstered security at Coptic churches due to concerns that individuals may heed the ISI’s calls for attacks and perpetrate isolated incidents that could stoke sectarian tensions. While caution is warranted, the ISI’s call is not believed to have significantly increased existing security concerns for Christians in the region.

ISRAEL BOLSTERS AIRPORT SECURITY FOLLOWING YEMEN DEVELOPMENTS 11/3/2010

It has been reported that Israeli aviation authorities have bolstered security screening measures at Ben Gurion International Airport (LLBG/TLV) in response to late October 2010 developments in which parcel bombs originating in Yemen were discovered on U.S. bound flights in the U.K. and the U.A.E. Israeli airports employ some of the most stringent security measures in the world, and authorities stated that those measures are continuously reviewed and modified as needed; officials did not indicate what steps were being taken in response to the Yemen terrorism- related developments.

COMPROMISE REACHED TO AVERT GENERAL STRIKE 11/2/2010

The Ministry of Finance and the Histadrut labor federation reached a last-minute agreement late on 1 November 2010 to avert a general strike planned to begin on 2 November. The labor federation was demanding a 3.5 percent annual pay raise for the 2009-2011 period (a total of 10.5 percent in raises), while the Ministry of Finance was only offering a 1.5 percent annual raise; the parties reached an agreement on a 6.25 percent total raise over the three- year period. Histadrut represents union members in a variety of sectors in Israel, and if the strike had materialized many industries (including the aviation sector) would have experienced disruptions.

EMERGENCY DRILL TO TAKE PLACE AT BEN GURION AIRPORT ON 1 NOVEMBER 11/1/2010

An emergency response drill is scheduled to take place at Ben Gurion International Airport (LLBG/TLV) on 1 November 2010; authorities are planning to simulate a major aircraft crash with multiple casualties, and as a result there will be a large number of emergency services vehicles in the vicinity of Route 1 and Route 40. The drill was planned to help prepare authorities for dealing with such an event.

GENERAL STRIKE POSSIBLE IF TALKS FAIL 11/1/2010

Representatives of the Histadrut labor federation and the Ministry of Finance are holding last-ditch talks on 1 November 2010 to resolve a dispute of public sector salary raises; Histadrut is demanding a 3.5 percent increase in salaries for its union members, while the Ministry of Finance is currently offering a 0.5 percent raise. Talks are expected to continue late into the evening, and if unsuccessful will likely result in a large-scale public sector general strike beginning on the morning of 2 November. If the strike materializes, it would impact a variety of public services

World Watch® Report from ASI Group and all government ministries as well as operations at Tel Aviv’s Ben Gurion International Airport (LLBG/TLV) and train services. Travelers and businesses with interests in Israel should monitor local developments so as to minimize the affects of the potential general strike.

STUDENTS MARCH THROUGH JERUSALEM 11/1/2010

More than 10,000 university students from various locations in Israel traveled to Jerusalem on 1 November 2010 to participate in a protest march against the approval of stipends for married full-time yeshiva students. The Knesset (Israeli Parliament) approved the stipends as part of its 2011-2012 draft state budget, but many university students are opposed to the stipends. The protesters marched from Kikar Tzarfat located near the residence of Prime Minister Benyamin Netanyahu to Kikar Zion; the rally passed without major incident. Meanwhile, a small protest consisting of several dozen demonstrators was staged outside Netanyahu’s residence.

SETTLERS ATTACK CHRISTIAN CHURCH IN JERUSALEM 10/29/2010

On 29 October 2010 a group of settlers set fire to an old Christian church in Jerusalem; the settlers caused significant damage to the two-story structure, as they broke windows and threw Molotov cocktails that destroyed the lower level. The motive for the attack was unclear, but Israeli authorities issued calls for calm due to the potential that the incident could stoke tensions and provoke retaliatory violence.

ARAB RESIDENTS OF UMM AL-FAHM CALL GENERAL STRIKE 10/28/2010

Arab residents of the northern town of Umm al-Fahm called a general strike on 28 October 2010 in response to what they allege was police brutality on the previous day. Residents on 27 October protested and clashed with Israeli authorities ahead of a planned march by a right-wing Jewish group; several protesters were injured and others were arrested. The strike was organized to demand Israeli authorities to investigate the use of force displayed when security forces dispersed the 27 October protest.

VIOLENCE OCCURS DURING MARCH IN UMM AL-FAHM 10/27/2010

Clashes between Arab-Israelis and Israeli security forces occurred in the predominantly Arab town of Umm al-Fahm on 27 October 2010 after the Arab residents gathered to protest a planned march by members of a right-wing Jewish group. Arab protesters reportedly began throwing stones at police officers, who responded with tear gas and baton charges; at least 10 protesters were arrested and several others were injured. Meanwhile, the march organized by Our Land of Israel proceeded as scheduled through the town, located in northern Israel. The demonstrators called for the Islamic Movement, which is based in Umm al-Fahm, to be made illegal and for Israel to be “cleansed” of Palestinians. The march coincided with the 20th anniversary of the assassination of a prominent right-wing Jewish rabbi who called for the expulsion of Palestinians from Israel.

Israeli authorities were on a heightened state of alert in predominantly Arab towns in northern Israel on 27 October in anticipation of the Jewish group’s march in Umm al-Fahm and possible violence in response to it. There have been no reports of disturbances outside of Umm al-Fahm, which is the second largest Arab town in Israel and was the site of violence related to a similar march held in 2009.

TRANSPARENCY INTERNATIONAL RELEASES CORRUPTION PERCEPTIONS INDEX 10/26/2010

Transparency International has released the 2010 edition of its Corruption Perceptions Index, the index uses a variety of different assessments and business opinion surveys to assess the level of perceived corruption in 178 countries. Several Middle East countries showed very positive rankings, while others were ranked among the most corrupt countries in the world. The region’s ranking are as follows: Bahrain (48th), Egypt (98th), Iran (146th), Iraq (175th), Israel (30th), Jordan (50th), Kuwait (54th), Lebanon (127th), Qatar (19th), Saudi Arabia (50th, tied with Jordan), Syria (127th) and United Arab Emirates (28th).

FIVE MORTAR SHELLS LAUNCHED TOWARD ISRAEL 10/24/2010

Militants on 24 October 2010 fired five mortar shells toward Israel proper; two of the shells landed in an open area of the Eshkol region, while the other three shells fell short and landed inside the boundaries of the Gaza Strip. No damage or injuries were reported in the attacks.

ISRAEL PREPARES FOR POSSIBLE SECURITY HANDOVER IN WEST BANK 10/24/2010

World Watch® Report from ASI Group The Israeli military is reportedly drawing up plans for a potential transfer of security in Israeli-controlled areas of the West Bank to the Palestinian Authority. The plans, requested by the defense ministry, would still require approval by both the Israeli government and the military’s Central Command, and there has been no announcement that the defense ministry intends to implement a proposed transfer plan anytime soon. The plans are for a potential future transfer of power in the event that the now-stalled but recently resumed direct peace negotiations with the Palestinians results in a viable peace agreement. Under the Oslo Accords, the West Bank territory was split into three zones: the Palestinians are responsible for Zone A, the Israelis are responsible for Zone C and Zone B is administered jointly but with Israel controlling security.

PEACE TALKS REMAIN STALLED 10/24/2010

Despite direct negotiations having only recently resumed in September 2010, the talks process is now stalled due to disagreements over controversial Israeli construction in the West Bank territory. Construction was halted under a 10- month long moratorium, but the ban expired without renewal in late September and the Palestinians continue to assert that they will not participate in talks until some new agreement is reached. Israel, however, remains defiant and has not yet agreed to a construction halt. Meanwhile, reports on 24 October indicate that West Bank construction is sharply increasing, as Israeli settlers have already begun construction on more than 500 new housing units since the moratorium expired on 26 September. Building rates are reportedly four times higher than those recorded prior to the moratorium being imposed in late 2009. Settlement construction is presently one of the most contentious issues in the peace process; a lack of consensus on the issue will be to the detriment of talks.

SURVEY SHOWS 49 PERCENT OF PALESTINIANS WOULD RECOGNIZE JEWISH 10/24/2010 STATE

A recently conducted survey has indicated that 49 percent of Palestinians residing in East Jerusalem, the Gaza Strip and the West Bank would be willing to recognize Israel as a Jewish state as part of a viable peace agreement between the Israelis and Palestinians. The study was conducted by a professor at Hebrew University in Jerusalem in October 2010 and polled 1,270 Palestinians and 610 Israelis. Results from an earlier survey in June 2010, however, revealed at the time that 58 percent of Palestinians would recognize Israel as a Jewish state, indicating that willingness had declined as direct peace talks resumed.

Of the Israelis polled, it was discovered that 78 percent of Israelis supported the recently renewed peace talks; this figure was in comparison to only about 30 percent of Palestinians supporting the talks. Opinions among both the Israelis and Palestinians that the talks would be highly successful were very similar, with only around 6 percent of Palestinians and 5 percent of Israelis believing this.

The study also focused on the potential for violence if peace talks falter. Of the Palestinians surveyed, 51 percent of respondents indicated that they would support non-violent resistance against Israel. A total of 54 percent of Israelis surveyed indicated that they feared Arab violence in the event that talks collapse.

VIOLENCE REPORTED IN EAST JERUSALEM NEIGHBORHOOD 10/24/2010

Renewed incidents of violence were reported in the East Jerusalem neighborhood of Silwan on 24 October 2010 after city inspectors arrived in a nearby area to circulate eviction notices to residents in al-Bustan, a neighborhood located near the Old City of Jerusalem. When inspectors neared Silwan, Palestinian youths began throwing stones and rocks, prompting security forces to deploy and respond with tear gas and stun grenades. The violence subsided shortly thereafter, but underscores the fluid security situation in Silwan, which has been a flashpoint for violence of late.

ISRAEL CONDUCTING EXPLORATORY DRILLING OFF COAST 10/20/2010

According to recent reports, Israel is currently in the process of conducting exploratory drilling off its northern coast where huge natural gas reserves were recently discovered. The location is controversial, however, as it lies along the ill-defined Israeli-Lebanese maritime border and Lebanon claims that at least a portion of the reserves lie in its territorial waters. The issue could be a potential source of conflict, as the reserves are estimated to hold as much as 16 trillion cubic feet of gas and were described as being sufficient to “last a century;” it would be a major economic benefit to the country that exploits the reserves.

NEW BUSES INAUGURATED IN JERUSALEM 10/20/2010

World Watch® Report from ASI Group The city of Jerusalem has inaugurated a new fleet of public buses as part of a wider campaign to improve public transportation services. The Egged bus company is operating the new buses, 10 of which are now in operation; the buses are high-volume, providing larger passenger capacities and greater accessibility for disabled persons. The company plans to inaugurate 20 more new buses by the end of November, and 150 new buses are planned in all (though the timeline of launch was not provided). The new buses are scheduled to operate in rapid-transit lanes.

RABIN MEMORIAL RALLY SCHEDULED FOR 30 OCTOBER 10/20/2010

The annual memorial rally to commemorate the 4 November 1995 assassination of former Prime Minister Yitzhak Rabin is scheduled to be held in Tel Aviv on 30 October 2010. The rally will reportedly be the last of its kind officially held, as organizers are prepared to discontinue the rally after 2010; the event will take place at Rabin Square and is expected to attract thousands of participants. Traffic congestion is possible around the event venue.

GRENADE KILLS ONE IN KAFR RAMA VILLAGE 10/18/2010

On 18 October 2010 an unidentified assailant threw a grenade near a car in Kafr Rama, an Arab-Christian village located in northern Israel near Carmiel. One person, an employee at the car wash, was killed in the incident, but there were no reports of additional fatalities; authorities are investigating the incident, the motive of which is unknown.

NETANYAHU WARNS THAT HAMAS MAY HAVE ANTI-AIRCRAFT MISSILES 10/18/2010

Israeli Prime Minister Benyamin Netanyahu has expressed concern that Hamas may now possess anti-aircraft missiles that would, in the event of a future conflict, allow the group to target aircraft traveling in airspace near the Gaza Strip. It has previously been suspected that the group may possess this technology, but Netanyahu’s comments are reportedly the first time it has been openly reported by an Israeli official.

ASI Comment: Netanyahu expressed the concerns in the context that it would pose a threat in the long-term, specifically if a viable peace agreement between the Israelis-Palestinians is not reached or in the event of a future conflict involving Hamas. At present, there is no indication that -- if Hamas does in fact have anti-aircraft missiles -- that the group would use the technology in the near future to target an aircraft traveling through Israeli airspace. Moreover, while Hamas may advocate an increase in attacks targeting Israel in light of the recently resumed (and now stalled) peace talks and periodically launches rockets toward Israeli territory, Hamas would not be inclined to attempt an attack against aircraft at present as doing so would undoubtedly prompt a quick and heavy-handed Israeli military response.

LARGE MARCH AGAINST LOYALTY BILL STAGED IN TEL AVIV 10/16/2010

On 16 October 2010 a large protest march was staged in Tel Aviv against the recent approval of a controversial amendment to Israel’s Citizenship Law; thousands of people marched from Gan Meir park to the Kirya Defense Ministry headquarters to condemn the policy change, but the march passed without incident. The new policy change would require non-Jews to first pledge loyalty to Israel as both a democratic and Jewish state before becoming naturalized citizens; it was approved last week by the Cabinet in a vote of 22 to eight; further protest actions against this development are possible.

ISRAEL APPROVES NEW CONSTRUCTION IN EAST JERUSALEM 10/15/2010

On 15 October 2010 the Israeli Housing Ministry approved the construction of 238 homes in Ramot and Pisgat Zeev, two Jewish neighborhoods in East Jerusalem. The announcement ends an unofficial freeze on new building in East Jerusalem. East Jerusalem was not officially included in a settlement construction freeze that the Israeli government imposed in November 2009 and which expired on 26 September, but the Israelis had effectively halted building in the eastern part of the city. A Palestinian official condemned the announcement as an act that harms attempts to resume direct negotiations.

ISRAELI FLIGHTS TO NIGERIA BANNED 10/15/2010

Recent reports indicate that Israeli officials have barred the Israeli national carrier El Al from operating in Nigeria over terror concerns. Israeli officials made the decision to ban flights over concerns that the aircraft and crew could become the target of attacks. The flight cancellations are expected to affect thousands of travelers, including approximately 28,000 Christians who were planning to travel from Abuja to Israel in the next several months on El Al aircraft that were being arranged through the Nigerian firm TAT. The El Al aircraft would have operated without the

World Watch® Report from ASI Group carrier's symbols or codes, a security measure that Israeli officials evidently deemed insufficient. It is not yet known whether a foreign airline will take over the pilgrimage flights.

CABINET APPROVES CONTROVERSIAL LOYALTY BILL 10/10/2010

On 10 October 2010 the Israeli Cabinet approved a controversial amendment to its Citizenship Law that would require non-Jews to take an oath of loyalty to Israel as a Jewish and democratic state. Recognizing Israel as a democratic state has not proved controversial, but requiring non-Jews -- especially Arabs -- to recognize Israel as a Jewish state is major issue and one that has been an obstacle in the Palestinian-Israeli peace process. The Cabinet approved the bill in a vote of 22-8; however, it will not become law until approved by the Israeli Parliament (Knesset). If approved, the legislation would not affect current Arab citizens, but would be a requirement for non-Jews to become naturalized Israeli citizens. The development, as previously stated, is highly controversial and is likely prompt demonstrations.

ISRAELI AIR STRIKES TARGET HAMAS TRAINING CAMP IN GAZA STRIP 10/7/2010

On 7 October 2010 Israel’s military carried out two air strikes targeting a Hamas training camp in the Gaza Strip. The air strikes appear to be in retaliation for the launching of a rocket from the training camp on 6 October. Authorities indicated that the air strikes did not cause any casualties.

JORDAN POSTPONES APPOINTING AMBASSADOR TO ISRAEL 10/6/2010

The Jordanian government has postponed appointing an ambassador to Israel, reportedly now for the third time. Ministers have been unable to decide on an ambassador, and King Abdullah II is reportedly said to be awaiting the results of peace talks before allowing an appointment. Jordan and Israel maintain official diplomatic relations, but the overall state of relations between the Israelis and Palestinians as well as several controversial developments in recent years regarding Israel (including the May 2010 Gaza flotilla incident and the 2008-2009 Gaza military campaign) have resulted in relations reaching an all-time low.

TWO QASSAM ROCKETS LAUNCHED TOWARD ISRAEL 10/6/2010

On 6 October 2010 militants inside the Gaza Strip launched two Qassam rockets toward Israel; however, only one rocket landed inside Israeli territory (near a kibbutz in the Eshkol region), while the other fell short of the border and landed inside Gaza near the border. There were no reports of damage or injuries as a result of the attack.

SETTLERS ATTACK PALESTINIAN MOSQUE IN WEST BANK 10/4/2010

Security forces investigated an alleged attack by settlers in the West Bank against a Palestinian mosque in Kfar Beit Fajar on 4 October 2010. Suspected settlers burned Korans, sprayed graffiti on the walls of the mosque, and engaged in an isolated skirmish with local Palestinian residents. Numerous such attacks against Palestinian property have taken place over the past several months in an attempt to incite anger among the local populace and derail peace talks. No instances of Palestinian retaliation have taken place thus far.

ISRAEL MAKING SECURITY PREPARATIONS FOR AHMADINEJAD'S VISIT TO 10/3/2010 LEBANON

Israel is reportedly evaluating security measures and making preparations in the north ahead of a planned two-day visit to Lebanon by Iranian President Mahmoud Ahmadinejad beginning on 13 October 2010. Ahmadinejed is reportedly planning to visit south Lebanon, including the Israel-Lebanon border area, which Israel deems a provocative act. Israeli officials gave no further details regarding what measures are being taken.

POLICE KILL PALESTINIAN WHO ILLEGALLY INFILTRATED ISRAEL 10/3/2010

Israeli police officers on 3 October 2010 shot and killed a Palestinian man who illegally entered East Jerusalem by climbing over a security fence separating Israel proper from the West Bank. Authorities attempted to apprehend the man, who was described as violently resisting arrest; he reportedly attempted to grab a police officer’s weapon, at which time he was shot. The Palestinian was a resident of Hebron; it is not known why he had infiltrated Israeli territory. The killing could prompt anti-Israeli protests in the West Bank and/or East Jerusalem.

PALESTINIANS HALT DIRECT TALKS OVER WEST BANK CONSTRUCTION 10/2/2010

World Watch® Report from ASI Group On 2 October 2010 Palestinian Authority officials announced they were halting direct peace negotiations with Israel over the latter’s recently resumed construction in the West Bank territory. The development is not unexpected, as the Palestinians have previously stated that they would suspend the talks -- which only resumed on 2 September -- if Israel did not renew a building moratorium in the West Bank that expired on 26 September; however, Palestinian President Mahmoud Abbas did not immediately withdraw from talks so as to allow U.S. negotiations additional time to secure an Israeli compromise over construction. U.S. Middle East envoy George Mitchell traveled to the region, where he met with officials in Cairo on 2 October; but failed to reach an agreement.

UPDATE: BOOK CONTAINING PROPHET CARTOONS PUBLISHED AS PLANNED IN 9/30/2010 DENMARK

A book containing cartoons depicting the Prophet Muhammad was published as expected on 30 September 2010 in Denmark; the 12 cartoons were initially published in 2005 and sparked widespread unrest in many locations well into 2006. The cartoons are controversial and provocative to the Islamic world, and there are concerns that the most recent publication may motivate unrest, demonstrations or raise anti-Danish and/or anti-Western sentiment. The reaction in the Muslim world has thus far been muted, and no major developments have occurred. It is very possible that this most recent development will not cause the same level of violent backlash and controversy as the 2005 publication, but the situation should nevertheless be monitored to gauge any changes in the overall security situation of a given location.

SYRIA EXPRESSES INTEREST IN RESTARTING PEACE TALKS WITH ISRAEL 9/29/2010

Syrian officials on 28 September 2010 expressed interest in restarting peace talks with Israel. Syria’s foreign minister made comments regarding the country’s interest in re-engaging Israel during an address to the U.N. General Assembly in New York; however, the minister stated that Syria would only do so if Israel proved itself to be a “partner committed to the terms of reference of peacemaking.” Israel has not responded to the statement. A peace agreement between Israel and Syria is not likely to be reached in the foreseeable future; longstanding issues remain unresolved, and even while the two engaged in several rounds of talks since May 2008 they were indirect talks mediated by Turkey rather than direct negotiations. Any peace deal approved by Syria would entail a return of the Golan Heights.

TWO DRUZE CHARGED WITH SPYING FOR SYRIA 9/29/2010

Two Druze residents of the Golan Heights have been charged with allegedly spying for Syria; the two men resided in the village of Majdal Shams and had reportedly made contact with Syrian Intelligence. Israeli authorities did not specify how long the two were suspected of spying or what, if any, information had been passed along to Syria.

ISRAELI NAVY INTERCEPTS GAZA-BOUND SHIP 9/28/2010

On 28 September 2010 the Israeli navy intercepted a Gaza Strip-bound aid ship; the ship departed Cyprus on 26 September carrying 10 left-wing Jewish activists who were attempting to break the Israeli blockade on Gaza and deliver aid to the territory. The Israeli navy took control of the vessel without incident, and towed it to an Israeli port.

U.S. MIDDLE EAST ENVOY TRAVELS BACK TO REGION FOR EMERGENCY TALKS 9/28/2010

U.S. envoy to the Middle East George Mitchell traveled back to the region late on 27 September 2010 to hold urgent meetings with Palestinian and Israeli officials. The development comes as the recently resumed direct peace talks were placed in jeopardy by Israel’s non-renewal of a building moratorium in the West Bank and the Palestinian’s indications that they may withdraw from talks in light of it. Talks are ongoing, but no major breakthrough has been reported as of 28 September.

U.S. EMBASSIES ISSUE WARDEN MESSAGE 9/27/2010

U.S. diplomatic facilities in Tel Aviv and Jerusalem, Israel; Amman, Jordan; and Cairo, Egypt, issued a Warden Message on 27 September 2010 that reads in part as follows: "The U.S. Government has lifted restrictions on the travel of official personnel to the Taba-Eilat-Aqaba region. As always, U.S. citizens are reminded to maintain a high level of vigilance and to take appropriate steps to increase their security awareness. ..."

CONSTRUCTION FREEZE ENDS; TALKS IN JEOPARDY 9/26/2010

World Watch® Report from ASI Group A 10-month long construction moratorium in the West Bank territory expired without renewal on 26 September 2010, placing in jeopardy the recently restarted Palestinian-Israeli peace negotiations. Palestinian officials had previously indicated that a non-renewal of the freeze would result in a withdrawal from talks, and Israeli Prime Minister Benyamin Netanyahu resisted international pressure to extend the freeze. The Palestinians have not yet suspended talks, but will wait until at least 4 October before making a final decision so as to allow the United States additional time to pressure Israel to seek a compromise.

Meanwhile, settlers in the West Bank gathered in various locations on 26 September to mark the end of the construction freeze. Thousands of people took part in gatherings, releasing thousands of blue and white balloons into the area.

CONTROVERSIAL PROPHET CARTOONS TO SOON BE PUBLISHED IN BOOK 9/23/2010

According to reports on 22 September 2010, the cultural editor of Danish newspaper Jyllands-Posten is poised to publish controversial cartoons depicting the Prophet Muhammad in a new book. The new book -- titled “Tyranny of Silence” -- is reportedly due to be published on 30 September and will include all 12 drawings of the Prophet.

ASI Comment: There has been little reaction from the Muslim world, but the development is potentially significant and could be a catalyst to stoke anti-Western sentiment and motivate demonstrations. The initial 2005 publication of the drawings touched off widespread violence through early 2006 and prompted a boycott of Danish goods in some locations; consequently, it was also believed to have increased the risk of terrorism in Denmark, and the artist who drew the cartoons received death threats and has been the target of several plots since that time. Sources report that this new book is not intended to be controversial, but rather to tell the story of how such drawings can be offensive. Several developments that could have been highly inflammatory, such as the release of a film by a Dutch politician that was critical of Islam, have occurred since the cartoons were published in 2005 and have failed to incite similar levels of violence; it is not yet known how controversial this most recent development – and the alleged impending release of a book by the artist who drew the Prophet cartoons that may include the images as well – will prove to be. Nevertheless, it may be offensive to the Muslim world and may very well inspire protests and/or violence in some locations. Developments regarding the book’s publication and international reaction should be monitored.

SITUATION IN JERUSALEM TENSE BUT RELATIVELY CALM 9/23/2010

The situation in Jerusalem was reported to be tense but relatively calm on 23 September 2010. Disturbances motivated by the 22 September shooting death of a Palestinian in the Silwan neighborhood continue, but reports indicate that violence has for the most part subsided for the time being. The majority of disturbances involved stone throwing in both East Jerusalem and the Old City, as well as several incidents in which Palestinians threw Molotov cocktails in East Jerusalem.

ASI Comment: A heavy security presence remains in place in Jerusalem, particularly in the Old City near the Temple Mount complex. Although violence has abated at present, Jewish-Arab tensions remain elevated, and there is a strong potential for further disturbances to occur, including both in the Old City and in East Jerusalem (especially in the Silwan neighborhood, which remains restive). There is a propensity for violence to occur during the late night/overnight hours; moreover, the likelihood for disturbances to occur following Friday afternoon prayer services remains high as well. This adds to pre-existing concerns related to the fact that Israel is currently observing the Sukkot holiday and to the recent resumption of peace talks. As a result of these combined factors, security will likely remain heightened in Jerusalem for the time being. Travelers and expatriates in Jerusalem should continue to exercise caution and be cognizant of the potential for violence.

UPDATE: SECURITY BOLSTERED AS VIOLENCE SPREADS TO OLD CITY 9/22/2010

Additional security personnel were deployed in the Old City area of Jerusalem on 22 September 2010 after violence that began in the Silwan neighborhood of East Jerusalem spread. A more prominent security presence was put in place around the Temple Mount complex following several stone-throwing incidents directed at Jews near the Western Wall. Separately, at least one incident in which Palestinians attacked and overturned an Israeli vehicle in the Mount Scopus area was also reported.

The Jewish Sukkot holiday begins at sundown on 22 September and will continue until sundown on 29 September; security will likely remain bolstered in Jerusalem given lingering -- and elevated at present-- Arab-Jewish tensions and the propensity for violence.

World Watch® Report from ASI Group VIOLENCE REPORTED IN SILWAN NEIGHBORHOOD OF EAST JERUSALEM 9/22/2010

A confrontation between a settlement security guard and a group of Palestinian residents that resulted in the deaths of two Palestinians sparked rioting in the Silwan neighborhood of East Jerusalem early on 22 September 2010. The situation began as an Israeli guard drove through the neighborhood, which is predominantly Palestinian and has of late been a flashpoint for violence; a group of residents reportedly began throwing stones and tried to attack the guard’s jeep, prompting him to open fire. Israeli security forces deployed to the area, where other Palestinian residents gathered to protest the deaths that resulted from the initial confrontation. Protesters threw stones and Molotov cocktails at security forces and rioted in the immediate area; authorities used tear gas and flash grenades to disperse rioters. The violence remained confined to the outskirts of the Silwan neighborhood, but tensions are still very high and further incidents are likely to occur there in the near-term, especially during the overnight hours, when disturbances often take place.

Significant Dates for Israel

Purim 2/28/2011

Land Day (Protests by Israeli Arabs against alleged expropriation of Arab property; violent protests 3/30/2011 against Israelis sometimes occur on this day.)

Passover (Pessah) 4/19/2011

Yom Ha'Atzmaut (Israel Independence Day) 4/20/2011

Yom HaShoah (Holocaust Remembrance Day; entertainment businesses closed) 5/2/2011

Yom HaAtzmaut (Independence Day; public holiday) 5/10/2011

Anniversary of the creation of the State of Israel (Possibility for violence and overall increase in 5/14/2011 tensions, especially in the Palestinian territories.)

Shavuot (Pentecost) 5/19/2011

Yom Yerushalaim (Jerusalem Day) 6/1/2011

Anniversary of the unification of Jerusalem (Violent incidents, including terrorism, are possible) 6/7/2011

Rosh Hashanah (New Year) 9/9/2011

Yom Kippur (Day of Atonement) 9/23/2011

Rosh Hashana (Jewish New Year) 9/29/2011

Simchat Torah 10/1/2011

Sukkot (Harvest) 10/13/2011

Anniversary of the assassination of former Prime Minister Yitzhak Rabin (1995). Rallies likely 11/4/2011 throughout Israel.

Chanukah (Festival of Lights) 12/2/2011 Diplomatic Contacts Australian Embassy in Tel Aviv

l Street Address: Discount Bank Tower (28th Floor) 23 Yehuda Halevi St. (cnr Herzi St)

l City: Tel-Aviv

l Postal Code: 65136

l Phone Number(s): (972 3) 693 5000

l Fax Number(s): (972 3) 693 5002

l Email: [email protected]

l Website: http://www.israel.embassy.gov.au/

World Watch® Report from ASI Group l Embassy Type: Australian Embassy in Tel Aviv Canadian Embassy in Tel Aviv

l Street Address: 3/5 Nirim Street

l City: Tel-Aviv

l Postal Code: 67060

l Phone Number(s): (972) 3636 3300

l Fax Number(s): (972) 3636 3383

l Email: [email protected]

l Website: http://www.canadainternational.gc.ca/israel/index.aspx?lang=eng

l Embassy Type: Canadian Embassy in Tel Aviv Chinese Embassy in Tel Aviv

l Street Address: 222 Ben Yehuda Street P.O. Box 6067

l City: Tel-Aviv

l Postal Code: 61060

l Phone Number(s): (972) 3 544 2638

l Fax Number(s): (972) 3 546 7311

l Email: [email protected]

l Website: http://il.china-embassy.org

l Embassy Type: Chinese Embassy in Tel Aviv French Consulate in Jerusalem

l Street Address: 5 rue Paul Emile Botta

l City: Jerusalem

l Phone Number(s): (972) (2) 629-8500

l Fax Number(s): (972) (2) 629-8501

l Email: [email protected]

l Website: http://www.consulfrance-jerusalem.org/france_jerusalem/

l Embassy Type: French Consulate in Jerusalem French Embassy in Tel Aviv

l Street Address: 112 Promenade Herbert-Samuel

l City: Tel-Aviv

l Postal Code: 93572

l Phone Number(s): (972) (3) 520-8300

l Fax Number(s): (972) (3) 520-8340

l Email: [email protected]

l Website: http://www.ambafrance-il.org/

l Embassy Type: French Embassy in Tel Aviv German Embassy in Tel Aviv

l Street Address: 3 Daniel Frisch Street, 19th Floor

l City: Tel-Aviv

l Postal Code: 64731

l Phone Number(s): (972-3) 693 1313

World Watch® Report from ASI Group l Fax Number(s): (972-3) 696 9217

l Email: [email protected]

l Website: http://www.tel-aviv.diplo.de

l Embassy Type: German Embassy in Tel Aviv Mexican Embassy in Tel-Aviv

l Street Address: 25 Hamared St. Trade Tower 5

l City: Tel-Aviv

l Postal Code: 68125

l Phone Number(s): (972-3) 516-3532

l Fax Number(s): (972-3) 516-3711

l Email: [email protected]

l Website: http://www.sre.gob.mx/israel/

l Embassy Type: Mexican Embassy in Tel-Aviv Russian Embassy in Tel Aviv

l Street Address: 120 Hayarkon Street

l City: Tel-Aviv

l Postal Code: 63573

l Phone Number(s): (972) 3 510 1020

l Fax Number(s): (972) 3 510 1093

l Email: [email protected]

l Website: http://www.russianembassy.org.il

l Embassy Type: Russian Embassy in Tel Aviv U.K. Consulate-General in Jerusalem

l Street Address: 19 Nashashibi Street Sheikh Jarrah Quarter

l City: Jerusalem

l Postal Code: 97200

l Phone Number(s): (972) 2 541 4100

l Website: http://www.britishconsulate.org/

l Embassy Type: U.K. Consulate-General in Jerusalem U.K. Embassy in Tel Aviv

l Street Address: 192 Hayarkon Street

l City: Tel-Aviv

l Postal Code: 63405

l Phone Number(s): (972) 3 725 1222

l Fax Number(s): (972) 3 510 1167

l Website: http://ukinisrael.fco.gov.uk/en

l Embassy Type: U.K. Embassy in Tel Aviv U.S. Embassy in Tel Aviv

l Street Address: 71 Hayarkon Street

l City: Tel-Aviv

l Postal Code: 63903

World Watch® Report from ASI Group l Phone Number(s): (972) 3-519-7575

l Fax Number(s): (972) 3-517-3227

l Embassy Type: U.S. Embassy in Tel Aviv Hospital Information In general, Israel has a very good health care system, with an extensive network of hospitals and doctors covering even the most remote areas of Israel. Israel’s hospitals are typically well staffed by highly-trained physicians, are equipped with up-to-date technology, and offer comfortable accommodations. There are nearly 50 general hospitals and more than 2,000 community-based primary care clinics distributed throughout the country. The best care is available in Tel Aviv and Jerusalem, though most other cities have good quality referral hospitals that cover the full range of specialties. Most hospitals in the West Bank and Gaza areas, however, are below international standards. Hospital Name No hospital information was found for this location. "The information contained in this section was developed by MEDEX Global Solutions in collaboration with Harvard Medical International. Copyright 2010 This information is intended to provide accurate and helpful health information for the general public. The information should not be considered complete. It should not be used in place of a call or visit to a medical, health or other competent professional, who should be consulted before adopting any of the suggestions contained or drawing inferences from it. MEDEX Global Solutions specifically disclaim all responsibility for any liability, loss or risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any of the material in this section." Jerusalem, Israel City Facts

l Status: Capital

l Population: 1 million

l Crime Rate: 2

l Threat Level: 4 City Overview Jerusalem has been a unified city since June 1967, when Israel, which already controlled West Jerusalem, wrested control of East Jerusalem from Jordan. Contrary to the rest of the West Bank, which Israel acquired at the same time, the eastern section of Jerusalem was fully incorporated into Israel. Israel has never wavered in its position that the entire city of Jerusalem is its eternal and undivided capital. Although one single city, West Jerusalem, East Jerusalem and the Old City exhibit certain differences.

Government offices, the Israeli Parliament (Knesset) and other official institutions are located in West Jerusalem. In West Jerusalem, Jews make up approximately 95 percent of the population. Palestinians make up approximately 75 percent of East Jerusalem’s population, although there are also Jewish neighborhoods in and around this section of the city. Several important Israeli institutions are located in East Jerusalem, including the Hadassah Hospital and the Medical School of the Hebrew University on Mount Scopus, the General Attorney's office and the headquarters of the Israeli National Police. East Jerusalem is also the site of some hotels, including the Intercontinental Hotel. The Old City, located in the eastern part of Jerusalem, is divided into four quadrants: Armenian, Christian, Muslim and Jewish. Most holy sites are located in the Christian, Armenian and Jewish quarters. Israeli law provides for the full autonomy of each quarter in religious matters, with each religious group designating the regulations and visiting hours for its holy sites.

Jerusalem is a holy city for the world’s three largest monotheistic religions: Judaism, Christianity and Islam, giving it a high profile status. This factor and the overlapping Israeli and Palestinian claims in the city make the status of Jerusalem arguably the most difficult issue standing in the way of a final agreement between Israel and the Palestinians. Due to its high profile, Jerusalem has been the scene of terrorist attacks in the past and remains a potential target. There is a very heavy security presence in Jerusalem, especially the Old City. Tensions between the various populations remain elevated, and disturbances occur on a relatively frequent

World Watch® Report from ASI Group basis. Muslim-Jewish tensions appear to be on the rise due to a combination of developments and an overall lack of progress in the peace process. Should tensions continue to escalate, the potential for an outbreak of a third intifada is a concern. Such a development, or even a further deterioration in the political situation that stops short of an intifada, would affect the security situation in Jerusalem, as its location and status make it a flashpoint for disturbances. Travelers who plan to visit Jerusalem should stay abreast of local developments. Security Issues

l As one of the most sensitive locations within Israel, political tensions remain a concern in Jerusalem.

l Regional and domestic developments have the potential to prompt unrest and/or protests in Jerusalem.

l The threat of terrorism remains a concern in Jerusalem. No major incidents have occurred recently, but several smaller-scale attacks have taken place in recent months.

l Jerusalem is divided into three major sections, and security concerns can vary in each sector.

l Crime rates are moderate in Jerusalem and are unlikely to pose a significant concern to foreign travelers.

Political Tensions / Unrest

As the most sensitive location in Israel, domestic and regional issues and political tensions can affect security conditions in Jerusalem. There exists a deep mistrust between Palestinians and Israelis in Jerusalem, and tensions between the populations were further stoked by Israel's military operations in the Gaza Strip in early 2009 as well as by recent incidents in 2010 and late 2009. Disturbances have occurred on several occasions since mid-2010; in incidents in early 2010, rumors in February of an impending Jewish takeover of the al-Aqsa Mosque located at the Temple Mount as well as anger over Israel's decision to add two disputed shrines in the West Bank to its national heritage list prompted Arab youths to hole up in the mosque and subsequent clashes with security forces followed. Tensions were already heightened from other disturbances that occurred in late September-early October 2009; much of this unrest also stemmed from rumors that Jewish settlers were going to takeover the al-Aqsa Mosque. Other developments inflamed the tensions and certain elements incited further unrest in the area. The tensions have not abated and it has been demonstrated that relatively small-scale developments can spark larger-scale unrest. Other developments in 2009, including a June visit to the Temple Mount by an Israeli official and a Israeli court decisions to demolish Palestinian homes in East Jerusalem, also keep tensions high and further developments may serve as a catalyst for unrest in the Jerusalem area. Travelers should avoid any gatherings that may occur, particularly in the Old City given its limited number of entrances and exits. Other long-standing attributing factors to potential unrest include construction near holy sites and plans for future settlements and new housing projects in disputed areas of Jerusalem. The factors can prompt protests with little or not notice. As discussed in the Country Notes - Security Issues section, there are concerns regarding the potential for a third intifada, or uprising, among the Palestinians; such a development, if it were to occur, would affect the security environment in Jerusalem.

Jerusalem is also believed to be experiencing a widening rift between the city's secular residents and religious community. This division is evident in the controversy surrounding the opening of a parking garage near the Jaffa gate of the Old City in the summer of 2009 and the weekly sometimes violent and disruptive demonstrations that occurred for several months against it. Jerusalem's ultra-orthodox (Haredi) community continues to stage demonstrations against the Carta parking garage on occasion, though more recent protest actions have been relatively peaceful. Secular residents staged counter protests on several occasions. Several other developments involving the Haredi community have occurred that have prompted protests and incidents of unrest.

Terrorism

Like other Israeli cities, Jerusalem experienced a noticeable decrease in the frequency of major terrorist attacks in recent years. Despite the absence of a major attack since 2004, several smaller-scale incidents have occurred in Jerusalem, particularly since 2008. Incidents have varied from the types of attacks that have previously occurred, such as bombings. While no notable incidents have occurred of late, other incidents have occurred in Jerusalem in recent months, though they have been of lesser scale; these incidents have included stabbing attacks and stone-throwing attacks against Israeli security personnel, particularly at and near checkpoints. Higher profile developments in recent years include the March 2009 bulldozer attack on traffic along a busy thoroughfare in southern Jerusalem by a Palestinian man. In September 2008 a Palestinian drove his vehicle into a crowd of soldiers, and in July 2008, two separate incidents occurred during which a Palestinian man used a bulldozer to attack vehicles and pedestrians in public, crowded areas of West Jerusalem. These incidents were alarming, as they appeared to represent a shift in tactics. Due to the tight security measures imposed by the Israelis, it is more difficult for militant groups to stage higher- profile attacks within the country, but sporadic incidents perpetrated by individuals not acting on the behest of a group are much more difficult to prevent. Given the intense political climate and state of relations between the Israelis and

World Watch® Report from ASI Group Palestinians, further incidents similar to the aforementioned attacks are possible, particularly in Jerusalem, which has a large Palestinian population. The two individuals who perpetrated the 2 July and 22 July 2008 incidents were residents of East Jerusalem, which could be significant, as many Palestinian residents of East Jerusalem have blue Israeli identity cards that allow them to access other areas of Jerusalem and travel without the restrictions that other Palestinians encounter. In addition to the two July incidents, a shooting attack occurred at a Jewish yeshiva in West Jerusalem in March 2008. The March 2008 incident appeared to be politically-motivated and in retaliation for Israeli military operations in the Gaza Strip.

There remains a heavy and visible police presence in the city. For some time now, authorities have also maintained armed civilian guards at the entrances to many public buildings, restaurants, banks, entertainment venues and other similar facilities; guards usually inspect the bags and briefcases of all individuals entering such facilities. These types of security measures have shown their effectiveness, as many terrorist attacks in Israel (including in Jerusalem) have been foiled; however, as stated above, given the political climate and the unresolved issues regarding Israeli- Palestinian tensions, the threat of terrorism cannot be fully discounted in Jerusalem. Travelers to Jerusalem should take their own appropriate security precautions with regard to accommodation, travel arrangements and day-to-day activities. Although foreign travelers are unlikely to be the primary target in an attack, the risk of being collaterally affected is a serious concern due to the fact that most attacks occur in public locations (as evidenced by recent incidents in the city).

Crime

Crime rates are moderate in Jerusalem and are unlikely to pose a significant concern to foreign travelers. Petty crime does occur on occasion, but the heavy security presence in Jerusalem has a positive effect in deterring crime. There have been some reports of assaults on Arab taxi drivers, but this issue does not pose a concern to travelers. The Israeli National Police are highly trained, very professional and effective. In Jerusalem, the Israeli National Police force is made up of both Arabs and Israelis.

City Division

West Jerusalem

Many Israeli government offices and official institutions (such as the Knesset) are located in West Jerusalem, the population of which is approximately 95 percent Jewish. West Jerusalem is also referred to as “New Jerusalem” and excels in development over East Jerusalem. Terrorism is the primary security concern in West Jerusalem. Crime is usually not a major concern for travelers, who should, however, employ common sense measures to guard against petty crime, particularly in crowded areas. As in much of Jerusalem, there is a noticeable security presence in West Jerusalem.

East Jerusalem

In East Jerusalem, the population is approximately 75 percent Palestinian, but there are also Jewish neighborhoods in and around that part of the city. Reports of isolated attacks by Arabs against Israeli police officers or other security personnel emerge periodically in East Jerusalem, and it is a likely location for sporadic individual acts of violence by Palestinians against targets of opportunity. East Jerusalem also experiences frequent protests by the Arab population. Israeli security authorities have been successful in preventing unrest in this part of the city from spilling over into West Jerusalem, but it periodically impacts security conditions in the Old City. In the past, Jewish militants have planned and conducted attacks against Arab targets in East Jerusalem.

The Old City

The Old City is located in the eastern part of Jerusalem. It is considered an independent division of the city. The Old City is divided into four quarters: Jewish, Christian, Armenian and Muslim. Israeli security forces maintain very strict security inside the Old City walls, and the Jewish and Armenian quarters in particular, have been free of violence even during the current wave of unrest. The Temple Mount, where the al-Aqsa mosque and the Dome of the Rock are located, are sensitive locations in the Old City. The Israelis maintain very stringent security in the area, accounting for the lack of large-scale disturbances. On some occasions, however, clashes have occur in the Temple Mount area, and the potential for violence in this very sensitive spot remains high despite the security measures in place. The risk of disturbances is especially high on Friday, the Islamic day of worship. Additionally, security concerns are present in the Old City given the limited number of entrances and exits. Random incidents of violence can occur, such as shooting or stabbing attacks; these types of incidents pose a collateral threat to travelers who may find themselves in the wrong

World Watch® Report from ASI Group place at the wrong time.

City Tips - Jerusalem

l Unless escorted by a trusted guide, travelers should avoid areas where a large number of people congregate, as such locations are potential terrorist targets. Locations include major shopping malls such as Mahane Yehuda, the portion of Jaffa Street near that market and the corner of Jaffa and King George streets. l Travelers should avoid travel to the suburb of Gilo, to Rachel's Tomb and to Atarot Airport. Visitors should not travel on Bethlehem Road south of the Ramat Rachel junction.

l Visitors should avoid travel on all roads linking Jerusalem with Jewish settlements in the West Bank, including the major road connecting Jerusalem with the Dead Sea. l The Temple Mount remains a very sensitive site, where disturbances can occur despite the high level of security. Travelers should preferably avoid visits to the site. Travelers who wish to visit the Temple Mount should do so in the company of a reliable local security consultant. l Travelers should dress modestly when visiting any religious sites.

l Walking in the Jewish sector of the Old City is usually safe. It is important to point out, however, that travelers who are not familiar with the Old City can easily cross into higher-risk areas without realizing it.

Tel-Aviv, Israel City Facts

l Status: Largest City

l Population: 2.9 million

l Crime Rate: 2

l Threat Level: 3 City Overview Located along the country’s Mediterranean coastline, Tel Aviv is Israel’s second-largest city (second to Jerusalem) and its economic hub; the city -- who’s official name is Tel Aviv-Yafo -- is the wealthiest in Israel and is where many companies and research centers are located. The greater Tel Aviv area encompasses the port city of Jaffa, which is located in the southern part of the city and is well-known for its restaurants and entertainment venues. Tel Aviv is a very metropolitan city that offers visitors and residents luxury hotels, beaches, fine restaurants, shopping centers and popular cultural and artistic venues; a downside to this is that the city is the most expensive city in Israel to live in. Tel Aviv -- a popular and fairly liberal destination -- is always flush with visitors who come to frequent the many entertainment venues, making Tel Aviv into a city that is active 24-hours a day. The city is also well-known for its open air markets, such as Carmel and Hatikva, which preserve an authentic Mediterranean character. The city can be divided into four main areas: north, south, central and Jaffa; because the city developed from south to north, northern Tel Aviv is home to newer developments. As Israel's main urban center, Tel Aviv experiences very heavy traffic. Travelers experience long delays, especially when trying to get into Tel Aviv in the morning hours, or when trying to leave the city in the afternoon. When traveling within Tel Aviv during the summer months until mid-November, delays are common even in the late night or early morning hours.

The threat of terrorism is a serious issue in Israel, and Tel Aviv has experienced attacks; security measures are strictly enforced and travelers will notice the visible police presence. Security Issues

l Despite a decline in the frequency of attacks in the city, the threat of terrorism in Tel Aviv is ongoing.

l Moderate crime rates, as well as occasional strikes and demonstrations, also affect security conditions in Tel Aviv.

Terrorism

There is an ever-present threat of terrorism in Tel Aviv, which will persist at least as long as a political agreement on the fundamental issues between Israeli and Palestinians remains lacking. Often the threat of attack increases

World Watch® Report from ASI Group when there is progress in diplomatic relations between Israelis and Palestinians, because it is during such times that militant groups have the strongest incentive to act in order to wreck any chances of an enduring agreements. There are concerns that Israel's recent military actions in the Gaza Strip may increase the risk of terrorism in Israel, including Tel Aviv.

In recent years, there has been a decrease in the frequency of terrorist incidents in Tel Aviv, primarily due to increased security by the Israelis. One measure that has been controversial but has shown its effectiveness already was the decision to build a security fence between the West Bank and Israel proper. In addition to the security fence, the security measures include the stationing of armed civilian guards at the entrances to all public buildings, restaurants, banks, entertainment venues and other similar facilities in Tel Aviv and inspections of the bags and briefcases of all individuals entering these facilities. In addition, Israeli military troops are present in the West Bank and conduct frequent operations aimed at neutralizing militants before they can reach their targets in Israel. When the Israelis judge the threat level to be particularly high, they close off the Palestinian territories altogether, barring Palestinians from entering Israel proper. These closures are always temporary.

Although these measures are usually quite effective, they cannot fully prevent an attack. In the past, attacks in Tel Aviv targeted busy outdoor areas, buses, bus stops, entertainment venues, restaurants and shopping malls. Usually, attacks tend to occur in locations where security measures are absent or where a full security coverage is impossible due to the nature of the facility. No incidents have occurred thus far in Tel Aviv hotels, but these facilities have been targeted in other Israeli cities. Local sources indicate that security measures are not of the same quality at all hotels, and visitors should therefore carefully consider security measures when arranging accommodations.

While most attacks that have occurred in Tel Aviv were organized by one of the Palestinian militant groups, there is also a threat in the city of spontaneous acts of violence by individuals who are not working on behalf of a particular organization. Such incidents are particularly likely following high-profile Israeli actions in the territories that tend to intensify hostile sentiments among the Palestinians.

Crime

Tel Aviv has a moderate crime rate. Most crimes involve petty theft and car theft. Violent crimes occur rarely and are usually related to underworld activities. Violence in this case is not random, but directed at specific targets. Innocent bystanders have, on rare occasions been killed and injured during attacks. However, crime is usually not a major concern for travelers to Tel Aviv.

Israeli authorities are making use of civilian guards, neighborhood security teams and other such measures to supplement the police force, whose resources are severely strained by the need to counter the terrorist threat. Although the security personnel drawn from the civilian population are not specifically trained in combating crime, their very presence in various areas of Israeli cities helps to deter some criminal activities. The threat of crime is highest in the southeastern part of the city (the area around the old Central Station).

Strikes and Demonstrations

Tel Aviv experiences strikes, demonstrations and rallies periodically. Violence can occur during strikes and demonstrations but usually affects only participants and does not pose a significant risk to the travelers’ physical well-being. Demonstrations may result in traffic congestion or service interruptions.

City Tips

l Visitors should avoid or maintain vigilance at entertainment venues, including restaurants, unless they have adequate security measures in place. Such locations have been targeted in past attacks.

l Travelers should avoid travel to Jewish settlements, including settlements in the vicinity of Kfar Saba, located northeast of Tel Aviv.

l Visitors should avoid public buses and bus stops, as militants have targeted them for terrorist attacks in the past.

l Travelers may have their bags searched briefly when entering department stores, entertainment venues, museums and other public buildings.

l Travelers should avoid walking south of Allenby Street, located near the old central station, in the evening or at night due to a higher risk of crime in this area.

World Watch® Report from ASI Group l The area located in the eastern part of metropolitan Tel Aviv, near the Diamond Exchange Center and close to the Sheraton hotel, has been known as a center for prostitutes after hours.

l Northern areas of Tel Aviv are considered safer than southern Tel Aviv, where more industrial areas and immigrant labor populations are located.

Airports & Ground Transportation BEN GURION INTERNATIONAL AIRPORT (LLBG/TLV)

General Israel periodically increases security measures in the country during holidays and at times when threats are deemed to be high. The implementation of such measures can impact the roads leading to the airport and at times result in longer commuting times. Travelers should allow ample time when traveling from and to the airport.

Israeli officials have increased security screening measures in response to the recent late October 2010 events in which explosive packages originating in Yemen and destined for the U.S. via cargo flights were discovered in the U.K. and the U.A.E. Stricter searches are being conducted on cargo.

Sporadic flight disruptions occur on occasion at Ben-Gurion International Airport (LLBG/TLV) as a result of interference on the air traffic control’s radio frequency by unlicensed, or pirate, radio stations. Although Israeli officials continuously work to resolve the issues that cause disruptions, there is a possibility that additional disruptions will occur in the future with little or no advance warning. Flight planning should also take into consideration the possibility of strikes at this airport. Most strikes are announced in advance in an attempt to negotiate with government officials.

Security

LLBG/TLV is one of the best-secured airports in the world; while the airport has been the target of terrorist attacks in the past, no attempt to hijack an aircraft departing from the facility has succeeded. The Israel Airport Authority (IAA) is responsible for security airside and at all access gates, and security measures are strictly enforced. The IAA subcontracts with several private security companies. The police force maintains perimeter control. The perimeter fence is in excellent condition, and the facility's lighting is good. Security personnel monitor the access gates to the tarmac, which are electronically controlled.

There are two approaches by road to the airport, one from the southeast, through a feeder of the Tel Aviv- Jerusalem highway, and one from the east, near the domestic terminal. Police officers control checkpoints on both roads, where they stop vehicles for screening before they reach the airport. There is a security presence outside each terminal, designed to prevent potential terrorists from entering the facility. The security is not highly visible as many agents are not in uniform, but these measures have been very successful thus far. At the terminal, passengers undergo the first security screening before check-in. Security personnel interview passengers, determining how stringent security measures will be for each. After passport control, security personnel screen departing passengers and their belongings by hand and with metal detectors. Checked baggage remains under security surveillance until it is loaded onto the aircraft.

There are technically four terminals at LLBG/TLV, but only three terminals are used (Terminal 4 never officially opened). General Aviation (GA) flights may use any of the three terminals, depending on which handling company they are working with. Passengers are transported by bus between the aircraft and the terminal building. Crew members and passengers go through passport control separately. A VIP room is also available.

Transportation From Ben Gurion International Airport to Tel Aviv

Ben Gurion Airport is located 12 mi/20 km southeast of Tel Aviv. Travel time from the airport to Tel Aviv is approximately 30 minutes and 45 minutes from the airport to Jerusalem, though travel times can vary depending on traffic conditions. Travelers using the airport should be aware that authorities may increase security on roads leading to the airport with little or no advance notice, lengthening commuting time to and from the airport. Travelers should remain abreast of local developments so that they are aware of any possible delays.

A train is available for travel from Terminal 3 to Tel Aviv. Travel time to downtown Tel Aviv is approximately 20 minutes. The train is a convenient option for passengers arriving on commercial aircraft, as these flights arrive at Terminal 3, but corporate travelers would need to make alternative arrangements if their flight does not arrive

World Watch® Report from ASI Group at Terminal 3. Buses are also available for travel to and from the airport, but are less convenient.

Within Tel Aviv

Tel Aviv’s public bus system operates six days a week (no buses are available between Friday afternoon and Saturday evening). Buses, which are the most common means of transportation within Tel Aviv, have experienced terrorist attacks in the past. A special security force designated to provide security on public transportation was dismantled and shut down. Additionally, travelers may find it difficult to navigate the bus system in Israel. As such, travelers should avoid this mode of public transportation. Taxis are a popular means of travel within Tel Aviv, and unlike buses have not been targeted for terrorist attacks. From a security point of view, taxis are an adequate mode of travel between the airport and the city and within Tel Aviv; many taxi drivers speak and understand at least some English. Taxis are metered, but travelers can also agree to a price beforehand. There is also a train service for travel between Tel Aviv and other major cities; routes service such locations as Haifa, Beersheba, Rishon leTzion, Jerusalem and Ashkelon, but do not operate on the Sabbath (Saturdays) and public holidays.

Traffic drives on the right side of the road; drivers in Israel can be aggressive (as is the case in most Middle Eastern countries) and traffic congestion is very common in Tel Aviv, particularly during the morning and early evening hours. Most roads, particularly major thoroughfares and highways, are well-maintained. Checkpoints are usually located near entrances to major cities, including Tel Aviv, and security measures can be intensified with little forewarning during times of heightened alert; such developments can result in extreme congestion while authorities search vehicles and restrict the flow of traffic. Parking in Tel Aviv can be problematic, and traffic in the city is particularly heavy during rush hour. Visitors should allow extra time when traveling during this period. Travelers who are unfamiliar and undertake unescorted travel outside Tel Aviv (particularly to Jerusalem and along the West Bank) run the risk of inadvertently straying into areas where they can encounter random acts of violence.

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World Watch® Report from ASI Group