Defense Minister Yitzhak Rabin confirmed in the Knesset yesterday that he has approved the opening of a Palestinian bank in the West Bank. He said the move was in the context of his and Premier Shimon Peres’ determination to improve the quality of life and living standards of Arabs in the territory.
Rabin said the bank would operate under the close supervision of the Bank of Israel — as do all banks in Israel — and would pose “no security danger.”
He was challenged by MK Gershon Shafat of the Tehiya Party who claimed that a Palestinian bank would encourage trends toward “splitting Judaca and Samaria away from Israel.” Rabin replied that his decision does not prejudice” the political outlooks of any of the components of the unity government regarding the final status” of the territories.
Rabin, however, punctuated his announcement by warning that the government would continue its “remorseless war against terrorism.”
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