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　　It's morning at the Spring Tissues factory on theoutskirts of Bethlehem and workers are making rollsof toilet paper. The company started operations twomonths ago and already produces three tons oftoilet tissue rolls a day.

　　Issa Karra’a, founder and marketing director of the company, says there was no such factorybefore in this city of 60,000 people. Nevertheless competition for customers is stiff.

　　“We have maybe 10 competitors and every competitor has many brands. So it’s difficult toenter the market because we don’t have that experience. We are new. And it’s a bigchallenge," said Karra’a.

　　This is the first factory in Bethlehem’s new industrial zone, launched several years ago by thePalestinian Authority (with support from France). More than 30 projects are being planned inthis and two other zones in Jericho and Jenin, says the Zone Authority’s Marketing Director,Nidal Jabari.

　　“We as the Palestinian government want to create jobs, want to support the entire economy ofPalestine by using many tools. One of these tools is the industrial zone," said Jabari.

　　Businessman Jiryes Karra’a, Issa’s father, is helping with the start-up. He is worried becauseeconomic growth in the Palestinian territories is stagnating.

　　“If it’s a bad situation, of course we are afraid because if we’re not going to full capacity wehave to become a little bit down ]downsize]," he said.

　　Businessmen say restrictions by the Israeli government on Palestinian imports and exports andaccess to water and electricity present additional challenges.

　　Normally, Spring Tissue employs 15 people and produces several other products, like tissuesand paper towels. But today these lines are idle because raw paper stock, which must beimported, is tied up at an Israeli port.

　　Jabari says both Palestinians and Israelis have an interest in promoting Palestinian enterprise.

　　“What we need is to create the peace. We cannot create the peace when these people are verypoor. There is no job for them. There is no money for them, no future for them. [So] They arethinking about killing, about bombing," he said.

　　Prosperity is the best weapon against terrorism, he says, but in any case, Palestinianentrepreneurs will survive because they have learned to improvise, and persevere.

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