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 March 2006

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

                        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 March 9, 2006.

                                    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: March 10, 2006






                                  EXHIBIT INDEX
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      EXHIBIT NO.           DESCRIPTION
      -----------           -----------

             1.             Press release dated March 9, 2006.






                                    EXHIBIT 1



                                   NEWS

                                   CLIENT:  AMERICAN ISRAELI PAPER MILLS LTD.

                                   AGENCY CONTACT:  PHILIP Y. SARDOFF

                                   FOR RELEASE:        IMMEDIATE


   AMERICAN ISRAELI PAPER MILLS LTD/ TMM INTEGRATED RECYCLING INDUSTRIES LTD.

HADERA,  Israel, March 9 -- Below is an immediate report issued in Israel by TMM
Integrated Recycling Industries Ltd. ("TMM") an associated company.

"The Israel  Securities  Authority turned to TMM with regard to an investigation
the  authority  is  conducting.  To the  best  of the TMM 's  knowledge,  TMM 's
president was arrested and was released under  restrictions.  At this stage, TMM
doesn't have any additional information."

(pr 21558)