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 July 2005

                             -----------------------

                        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 herein by reference is the
Registrant's press release dated July 14, 2005

                                    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: July 14, 2005





                                  EXHIBIT INDEX

      EXHIBIT NO.           DESCRIPTION

             1.             Press release dated July 14, 2005





                                    Exhibit 1

                                           News

                                           Client:  AMERICAN ISRAELI
                                                    PAPER MILLS, LTD.

                                           Agency Contact:  PHILIP Y. SARDOFF

                                           For Release:      IMMEDIATE

Hadera Israel, July 14,2005......American Israeli Paper Mills Ltd. (ASE:AIP)
[AIPM], announced today following the Press Release of 13 July 2005, with regard
to Clubmarket chain, that the sales of Hogla Kimberly ("Hogla") to Clubmarket
amounts to 6.4% of the consolidated sales of Hogla and the Company estimates
that in the mid and long term, Hogla's volume of sales will not be materially
affected even if Clubmarket discontinues its operations.

The Company holds 49.9% of Hogla's shares. Therefore, if Hogla will not receive
any consideration from Clubmarket on account of its debt, the maximum loss to
the Company (net of allowances and taxes) will be approximately NIS 5 million
($1.1 million).