PALESTINIANS AND ISRAELIS SORT GRAPES IN JORDAN VALLEY, 1998-07-08 (photo)

FOR RELEASE WITH FEATURE BC-MIDEAST-SETTLERS-EUROPE - Oren Ben Shaul (center), packages grapes with Palestinian workers at his father's vineyard in the Jordan Valley in the Israeli-occupied West Bank. The European Commissison issued a communique May 13 saying that the EU, the largest importer of Israeli goods, should bar entry of products from settlements benefiting from trade privileges granted to Israel. Some 60 Jewish families live and work in Pazael which was settled by the Labour party nearly 30 years ago. Diplomatic sources say the EU move stemmed from frustration over the 15-month peacmaking deadlock between Israel and the Palestinians. According to one Jewish farmer, "In the end if the EU goes ahead with the boycott we could be hurt, even ruined, but the real victims would be the many Palestinian labourers we employ who would lose their livelihood." Picture taken 24JUN98. EH/SB