JERUSALEM MEDIA REACTION (06/18): REACTIONS TO NETANYAHU'S

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SUBJECT: JERUSALEM MEDIA REACTION (06/18): REACTIONS TO NETANYAHU'S
SPEECH CONTINUE

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Main Stories:
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Al-Ayyam and Al-Hayat Al-Jadida lead with wire reports on the joint
press conference between Secretary Clinton and Israeli Foreign
Minister Lieberman (June 17, Washington). Clinton reiterated the
importance of halting settlement activities in the Palestinian
Territories and supporting efforts to reach a peace settlement
between Palestinians and Israel. The wires covered the Secretary's
statements concerning the establishment of a Palestinian state
living side-by-side with ISRAEL in peace and security. Meanwhile
they write that Lieberman rejected the U.S. call for a freeze in
settlement activity, stating that ISRAEL cannot accept any such
request. Lieberman also stated that the Israeli government must
take into consideration natural growth needs, according to
reporting.

Al-Quds' leads with continued wire reporting on recent Iranian
presidential elections and subsequent protests and violence.

Al-Ayyam and Al-Quds front page coverage of an AFP report that
Israel dismantled a checkpoint at the entrance of the West Bank city
of Jericho on June 17. The checkpoint was erected in 2006,
according to coverage.

All front pages report on the Israeli government's decision on June
17 to release the Speaker of the Palestinian Legislative Council
Aziz Dwayk after three years in Israeli prison.

Al-Ayyam's inside coverage included a wire report of President
Obama's announcement on June 17 of his planned financial overhaul.


All dailies run inside coverage of a Wafa report about Consul
General Walles' meeting with Palestinian Authority President Abbas
on June 17 in Ramallah. President Abbas briefed the Consul General
on the latest developments in the Palestinian Territories and Middle
East peace efforts. Abbas reiterated Palestinian Authority
commitment to the two-state solution and to Roadmap obligations.

All front pages run wire reports about Egypt drafting a
reconciliation agreement to end Palestinian division. The agreement
will be signed on July 7 during a meeting attended by Palestinian
groups in Cairo. Senior Fatah leader Abu Najjah noted that the
Palestinian Authority (PA) will release a number of Hamas members
from PA custody as a gesture of goodwill.

Al-Quds' front page cites Israeli daily Jerusalem Post in reporting
that the Israeli organization, "Loyal to the Land of Israel,"
announced plans to establish 30 new settlement outposts in the
Palestinian Territories this summer as a challenge to Israeli Prime
Minister Netanyahu's June 14 statements that no new settlements
would be established.

All dailies run inside coverage of a June 17 ribbon-cutting ceremony
of the USAID funded Criminal Records Office at the Palestinian
Authority (PA) Ministry of Justice. The event was attended by PA
Prime Minister Fayyad and USAID West Bank/Gaza Mission Director
Sumka. Sumka described the new facility as, "a positive step" in
building PA institutions, according to coverage. For his part,
Fayyad confirmed the PA's continuing support to its judicial
authority and the independence of the judiciary.
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BLOCK QUOTES:
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1) Talal Okal opines in Al-Ayyam independent daily under the title,
"Shock and the Reason Behind It"(06/18): "The conditions that
Netanyahu presented in his [June 14]speech seek to force every Arab
and every Palestinian to submit to all Israeli plans and Israeli
interests. Palestinians can understand Netanyahu and his Israeli
policy, but they cannot understand the positions of the U.S. and the
EU... Obama should quickly take practical and balanced steps if he
cares about his country's interests and image."

2) Al Quds independent daily runs an editorial under the title, "Are
these positive signs?" (06/18): "Egypt is trying hard to support
national Palestinian reconciliation efforts... Hamas' leaders are
becoming supportive of any settlement that will end [internal]
division. President Obama has also proposed new language and a new
beginning. In order for Palestinians to benefit from these positive
signs, they must end internal division so that Netanyahu is not
given more chances to justify his continued provocative plans."

WALLES