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EXHIBIT 8.1

# Significant
Subsidiaries and Associated Companies

The following is a list of all of
American Israeli Paper Mills Ltd.s significant subsidiaries and associated
companies, including the name, country of incorporation or residence, proportion of
ownership interest and, if different, proportion of voting power held.

|Name of the Company                                                | Country of Incorporation or Residence | Percentage of Ownership Interest | Percentage of Voting Power(if different fromownership)
|------------------------------------------------------------------ | ------------------------------------- | -------------------------------- | ------------------------------------------------------
|                                                                   |                                       |                                  |                                                       
|Subsidiaries                                                       |                                       |                                  |                                                       
|Amnir Recycling Industries Ltd.                                    |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|Graffiti Office Supplies & Paper Marketing Ltd.                    |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|Attar Marketing Office Supplies Ltd.                               |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|American Israeli Paper Mills Paper Industry (1995) Ltd.            |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|Associated Companies                                               |                                       |                                 
|Hogla-Kimberly Ltd.                                                |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|Kimberly -Clark Tuketim Mallari Sanayi Ve Ticaret A.S.             |                                       |                                 
|("KCTR") (held through H-K)                                        |                                       |                                  | Turkey                                                
|                                                                   |                                       |                                 
|Mondi Paper Hadera Ltd.                                            |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|Barthelemi Holdings Ltd.**                                         |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|T.M.M. Integrated Recycling Industries Ltd.(direct and indirect)** |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|Carmel Containers Systems Ltd.                                     |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|Frenkel- CD Ltd.(direct and indirect through Carmel)               |                                       |                                  | Israel                                                
|                                                                   |                                       |                                 
|Cycle-Tec Recycling Technology Ltd.                                |                                       |                                  | Israel                                                

| | *
Not applicable.
| | -----------------

| | **
As of February 2007, the Company no longer has any holding in these entities.
| | --------------------------------------------------------------------------------



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