Exhibit 16 ARTHUR ANDERSEN ___________________ Arthur Andersen LLP April 25, 1997 ___________________________ 1345 Avenue of the Americas New York NY 10105-0032 Office of the Chief Accountant SECPS Letter File Securities and Exchange Commission Mail Stop 9-5 450 Fifth Street, N.W. Washington, DC 20459 Re: PEC Israel Economic Corporation Amendment to Form 8-K Dear Sirs: This is to state that Arthur Andersen LLP agrees with the statements made by PEC Israel Economic Corporation in Item 4 of this Amendment to its Current Report on Form 8-K/A-1 dated April 16, 1997. Very truly yours, Arthur Andersen LLP Page 3 of 3 pages