PEACE OR NOT, ISRAEL'S ECONOMY IS SOUND Regarding ''The Achilles' heel of Israel's peace process: Economics'' (International Outlook, Nov. 9): While the peace process will undoubtedly enhance Israel's economic outlook, Israel's fundamentals remain sound. In 1997, receipts from the privatization of Israel's major industries totaled $3 billion. Last year was also a record year for foreign investment--some $3.7 billion. In 1990, there was one venture-capital firm operating in Israel; today, there are more than 50. Many investors are seeking opportunities in our high-tech sector where, in the Internet arena alone, Israel pioneers more new technologies than any country outside of the U.S. Like most other developed countries, Israel has been affected by the fallout of the global economic crisis. Yet independent sources continue to give Israel high marks: an ''A'' credit rating from Standard & Poor's, and an ''A3'' from Moody's Investors Services. In addition, with a highly educated labor force and high-tech industry base, Israel is well poised for future growth. Ron Chaimovski Economic Minister to North America Government of Israel New York

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