Mr Albanese asked the Minister for Foreign Affairs, upon notice, on 2 March 1998:

(1) What is Australia's position on the (a) existence and continued expansion of Israeli settlements in the Palestinian and Arab territories occupied by Israel since 1967 and (b) consistency of Israeli settlement activity in the occupied territories with the letter and spirit of the Oslo Agreements, the Hebron Protocol and all relevant UN resolutions.

(2) Is he able to say whether Australian citizens, organisations or companies provide funding to support activities in the occupied territories which threaten to impede further progress in the Middle East peace process; if so, what is the Government's position.

(3) What are Australia's responsibilities and obligations to prevent financial assistance being provided by Australian citizens, organisations or companies to support Israeli settlement activities in the occupied territories.

(4) What action has the Government taken on the matter.

(5) Is he able to say whether the use of tax-exempt funds from Australia to assist Israeli institutions or settler groups in the occupied territories is prohibited under Australian law.

(6) Do his Department, the Australian Taxation Office or other Government bodies monitor the sending of tax-exempt funds from Australia to support groups or institutions whose presence or activities in a particular region are contrary to international law or UN resolutions; if so, by what mechanism.

(7) Is he able to say what sums are being sent from Australia to support political organisations based in the occupied territories and to which organisations they are being sent.

Mr Downer (Foreign Affairs) —The answer to the honourable member's question is as follows:

(1) (a) Australia considers Israeli settlement activity in those territories occupied by Israel in 1967 to be harmful to the peace process.

(b) The Interim Agreement between Israel and the Palestinian Authority requires that neither side change the status of the West Bank and Gaza pending the outcome of the permanent status negotiations. While noting that fact, the Government does not consider it appropriate or productive for Australia to interfere in an ongoing process of negotiation on issues of great difficulty, sensitivity and complexity which only the parties themselves can resolve through renewed dialogue.

(2) The Government is aware of reports that there may be private Australian involvement in providing funding settlement activity in the Occupied Territories. The Government has repeatedly urged all parties to the Middle East dispute to avoid and prevent actions which may lead to a heightening of tensions in the region.

(3) Under Australian law it is not illegal for Australian citizens to make donations to political or religious causes in Israel.

(4) The Government has not sought and will not seek to restrict private citizens from using private funds as they wish, so long as the activity remains legal.

(5) Such activity is not prohibited under Australian law.

(6) No. The Government has no interest in monitoring private funding activities which are not illegal under Australian law.

(7) No.