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 August 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 August 30, 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: August 30, 2005





                                  EXHIBIT INDEX

      EXHIBIT NO.           DESCRIPTION

             1.             Press release dated August 30, 2005






                                    Exhibit 1

                                           NEWS

                                           CLIENT:           American Israeli
                                                             Paper Mills Ltd.

                                           AGENCY CONTACT:  Philip Y. Sardoff

                                           FOR RELEASE:      Immediate

                        AMERICAN ISRAELI PAPER MILLS LTD.
                      DETERMINES DOLLAR AMOUNT OF DIVIDEND

Hadera, Israel, August 30, 2005... As previously announced on August 17, 2005,
American Israeli Paper Mills Ltd. (ASE:AIP) declared a cash dividend in the
amount of NIS 12.50 per share payable on September 13, 2005 to shareholders of
record on August 30, 2005. The exact dollar payout was to be based on the rate
of exchange of the NIS in relation to the US Dollar in effect on August 30,
2005, the record date, and has now been determined to be $2.7418 per share
before a withholding tax of 25% at the source.