"On October 26 we will celebrate the ninth anniversary of the peace treaty between Israel and Jordan. Israel sees its ties with Jordan as strategic and is seeking to develop them in all possible fields," an embassy statement said.

"Israel considers Jordan an important cornerstone within the framework of reaching peace with all its neighbours in the Middle East," the statement said.

It noted that there is "constant political dialogue" between Jordan and Israel, as well as economic, scientific and cultural cooperation between the two neighbours.

According to the Israeli embassy, trade ties between Israel and Jordan for the first eight months of 2003 rose by six percent compared to the same period last year, from 76 million dollars to 81.6 million dollars.

It linked this increase to the so-called Qualified Industrial Zones (QIZs), where textile factories set up mostly by Israeli and Jordanian investors produce goods that are sold duty free in the United States.

"These zones are considered the most tangible example of the fruits of peace," the statement said.

Jordan and Israel signed agreements in June, on the sidelines of the World Economic Forum (WEF), to set up two new industrial zones between them, bringing to seven the number of QIZs in the kingdom.

Israel's new ambassador to Jordan, Yacov Hadas Handelsmen, presented his credentials to Jordan's King Abdullah II on September 7, becoming his country's fourth representative to Amman since the peace treaty was signed.

Jordan has an embassy in Tel Aviv but recalled its ambassador following the outbreak of the Palestinian uprising in September 2000 to protest what it termed Israel's use of excessive force.

Relations between the two countries have been cool ever since, although officials from both sides have kept meeting.

WAR.WIRE