Israel

HC Deb 13 July 1994 vol 246 cc971-3

3. Mrs. Jane Kennedy

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on Anglo-Israeli relations.

The Minister of State, Foreign and Commonwealth Office (Mr. Douglas Hogg)

They are excellent.

Mrs. Kennedy

I am pleased to hear that from the Minister. Is he aware of concern about the British Government's attitude to the continuing Arab trade boycott of Israel? Does he agree that British companies need the shield of legislation to allow them unequivocally to reject demands that they comply with the boycott? Will he consider introducing such legislation here?

Mr. Hogg

There is concern about the trade boycott and we deplore that boycott. I am glad to say that the tertiary and secondary boycott has been falling away and that there has been a substantial increase in the volume of United Kingdom exports to Israel. In 1993, exports to Israel were up by 50 per cent; in the first five months of this year, exports to Israel were up by 26 per cent; and Israel is now the third most important export market for United Kingdom goods in the middle east.

Sir David Madel

What is the Government's attitude to the idea that Jerusalem could become the capital of an independent Palestinian state as well as the capital of Israel?

Mr. Hogg

That is certainly a matter which should be given the utmost consideration by those who will have to negotiate Jerusalem's status. It has long been agreed that that status will be addressed at the very end of the peace process, which I consider both inevitable and right, but the parties to the negotiations will wish to think seriously about finding a way for Palestinians and Israelis to share Jerusalem.

Sir David Steel

Will Her Majesty's Government give a warm welcome to last week's political initiative from King Hussein of Jordan, which has received a ready response from the Israeli Government? I understand that official talks between the two countries are taking place this very week.

Mr. Hogg

The right hon. Gentleman is quite right, and we do indeed give a warm welcome to the speech made by His Majesty the King of Jordan. Negotiations between Jordan and Israel will start on 18 July, and will deal with such important subjects as the border, security and water. That is a very welcome development, and we applaud it.

Mr. John Marshall

I welcome the recent improvements in relations between Britain and Israel, but may I ask my right hon. and learned Friend to agree with people in Israel who—remembering what happened in the years before 1967—are reluctant for Jerusalem ever again to become a divided city?

Mr. Hogg

I do not think that I can sensibly add to what I said to my hon. Friend the Member for Bedfordshire, South-West (Sir D. Madel). The question of Jerusalem is of key importance, and is best dealt with at the end of the peace process. There are powerfully competing emotions among all sides in the negotiations, which must be dealt with sensibly.

Dr. Howells

I am sure the Minister will agree that the international community has a duty to help the new Administration in Gaza and Jericho. No doubt he is aware that that Administration requires an estimated £900 million of aid just to stabilise living conditions for the 700,000 Palestinians who live in Gaza, mostly in deplorable conditions. Will the Government give a lead in ensuring that the money promised by donor countries is delivered to those who have the great task of rebuilding Gaza?

Mr. Hogg

But we are giving a lead. I am sure that the hon. Gentleman has not overlooked the statement made on 8 July by my right hon. Friend the Foreign Secretary, who made it plain that, in addition to the £70 million that we would make available over the next three years, we were providing an additional £5 million in bilateral assistance. That will go largely to the Palestinian police force, but there will be other technical support. The hon. Gentleman should also bear in mind the fact that, for example, the Bank of England is now helping the Palestinians to establish a Palestinian monetary authority. We are already playing a full part, and we now look to others to do likewise.