SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                              --------------------

                                    FORM 6-K
                        Report of Foreign Private Issuer
                        Pursuant to Rule 13a-16 or 15d-16
                     of the Securities Exchange Act of 1934
                         For the Month of December 2003
                             -----------------------

                        AMERICAN ISRAELI PAPER MILLS LTD.
                 (Translation of Registrant's Name into English)
                          P.O. Box 142, Hadera, Israel
                    (Address of Principal Corporate Offices)

Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:

                  |X|         Form 20-F         |_|     Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): |_|

NOTE: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): |_|

NOTE: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

                  |_|      Yes               |X|      No

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-______________






         Attached hereto as Exhibit 1 and  incorporated  by reference  herein is
the Registrant's press release dated December 9, 2003.







                                    SIGNATURE
                                    ---------

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



                                            AMERICAN ISRAELI PAPER MILLS LTD.
                                            (Registrant)


                                            By:  /s/ Lea Katz
                                                --------------------------------
                                                Name:  Lea Katz
                                                Title: Corporate Secretary

Dated:  December 9, 2003.





                                  EXHIBIT INDEX
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      EXHIBIT NO.           DESCRIPTION
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          1.                Press release dated December 9, 2003.






                                    EXHIBIT 1
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                                      NEWS

                                      CLIENT: American Israeli Paper Mills

                                      AGENCY CONTACT: Philip Y. Sardoff

                                      FOR RELEASE:         IMMEDIATE


AMERICAN ISRAELI PAPER MILLS UNIT SUBJECT TO POTENTIAL CLASS ACTION SUIT

Hadera, Israel,  December 9, 2003...American  Israeli Paper Mills Ltd. (ASE:AIP)
announced today that  Hogla-Kimberly  LTD (H-K), an affiliated  company (49.9%),
received on  December 7, 2003 a claim and a petition  that was filed in Tel-Aviv
district court for the approval of a class action against H-K.  According to the
petition  H-K has  reduced  the number of units of diapers in a package and thus
mislead  the public  according  to the  Israeli  Consumer  Protection  Act.  The
plaintiffs  estimate  the scope of the class  action to be NIS 18  million.  H-K
rejects the claims and intends to defend itself against the action.