JERUSALEM MEDIA REACTION (06/19): "HAMAS MUST ACCEPT THE

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SUBJECT: JERUSALEM MEDIA REACTION (06/19): "HAMAS MUST ACCEPT THE
TWO-STATE SOLUTION"

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Main Stories:
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All front pages covered Israeli daily Haaretz's report of an
official complaint submitted by the U.S. three weeks ago to Israel
over the deteriorating situation in Gaza. The report, that leads Al
Hayat Al Jadida, alleges that the U.S. urged Israel to lift the Gaza
blockade and open the crossing points to allow entry of food aid,
medication and construction materials to accelerate Gaza
reconstruction activities. The lead photo of Al-Hayat Al-Jadida
shows Gazan children protesting the Israeli blockade near the Rafah
crossing, holding signs that read, "Stop killing us."

Al-Ayyam leads with and Al-Quds and Al-Hayat Al-Jadida run front
page coverage of new demolition notices served by the Jerusalem
Municipality on June 18 to Palestinian owners of several houses in
East Jerusalem's Al-Bustan neighborhood. The orders cite a lack of
building permits.

Al-Quds leads coverage with a Reuters wire report of a plan proposed
by Jewish religious leaders aimed at dividing the religious sites in
East Jerusalem, including Al-Aqsa mosque, among the three religions.
The Jewish leaders acknowledged that the plan will be extremely
difficult to implement because it will be, "subject to deep and
lengthy study by the concerned parties," according to coverage.

Al-Quds'front page announces, without further detail, that two new
cases of H1N1 have been reported in the Palestinian Territories.
The Palestinian Authority Ministry of Health reassured the public
that the cases, "are contained," reporting notes.

All dailies run front page coverage of statements made by Middle
East Quartet Envoy Tony Blair (June 18),stating that he believes a
peace settlement can be reached between Israel and the Palestinians
within a year's time, if all concerned parties meet their
obligations.

Al- Ayyam includes a Reuters wire report on its front page
concerning statements from PLO Chief Negotiator Erekat (June 18)
reiterating the Palestinian demand that settlement activities must
stop completely in order to end the Palestinian Israeli conflict.

Al-Hayat Al-Jadida runs inside coverage on the participation of
General Dayton and the Palestinian Authority Minister of Interior in
a graduation ceremony held in Ramallah (June 18) for 40 Palestinian
Authority National Security Forces from a "U.S.-funded training
course on security procedures." General Dayton is quoted stating
that preparing Palestinian Authority security forces is part of
preparations for a Palestinian state.
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BLOCK QUOTES:
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1) Al-Quds editorial runs under the title, "Retaining Palestinian
red lines"(06/190: "Palestinians can contain their conflict only by
returning to transparent and accountable elections... Palestinians
must commit to their national principles [statehood, sovereignty,
ending the Israeli occupation,etc.] which have always characterized
the Palestinian national movement... Otherwise, we will witness more
deterioration in the Palestinian cause, and we will have no one but
ourselves to blame."

2) Mouhammad Yaghi opines in independent daily Al-Ayyam under the
title, "The world is waiting to hear three words from Misha'al,"
(06/19): "In order for the Palestinian conflict to end, [Hamas

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leader] Misha'al must voice his acceptance of the two-state
solution, even if he attaches preconditions... such as a halt to all
settlement activities, dismantling existing settlements and
retaining full sovereignty over Jerusalem... The bottom line is to
recognize the need for two states... I do not believe that Hamas is
ready yet [to make such statements]."

WALLES