April 10At a gathering of the Labor Party, Prime Minister Shimon Peres declares that Israel recognizes the Palestinians as a people. His statement provokes harsh criticism
May 6Minister of Industry and Trade Ariel Sharon directs that every Palestinian product from the Occupied Territories be clearly marked as such. His reason is that “they threaten Israeli products by means of unfair competition.”
August 6In response to a series of meetings between Israeli leftist activists and representatives of the PLO, the Knesset enacts a law that prohibits Israelis from meeting with PLO members. Offenders face three years’ imprisonment.
AugustThe Ministry of Industry and Trade budgets millions of dollars to establish four new industrial areas in the West Bank and to expand ten others.
December 19The Ansar II Detention Camp, in Gaza, is closed, following many complaints of abuse and poor conditions. Most of the prisoners are released. Only three months later, the camp reopens.