CORRECTED COPY - JERUSALEM MEDIA REACTION (06/23): POSITIVE

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SUBJECT: CORRECTED COPY - JERUSALEM MEDIA REACTION (06/23): POSITIVE
REACTION TO FAYYAD'S SPEECH

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Main Stories:
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Palestinian print coverage of Palestinian Authority Premier Fayyad's
June 22 speech is neutral in tone, with Al-Ayyam and Al-Hayat
Al-Jadida running the full text of the speech and Al-Quds' front
page running extensive excerpts. Al-Hayat Al-Jadida leads with the
speech, delivered at Al Quds University in Abu Dis, in which Fayyad
called on Palestinians to unite and urged them to support the
establishment of the Palestinian state and the promotion of good
governance and institution building. Fayyad identified his policy
goal as the creation of a Palestinian state in the next two years, a
state living beside Israel in a "comprehensive peace," according to
coverage. Fayyad considered Israeli Prime Minister Netanyahu's June
14 speech as vague and lacking in commitment to the two-state
solution.

Al-Quds' continues to lead with wire coverage of unrest in Iran.

Al-Quds' front page reports on the opening of all of Gaza's
commercial crossing points on June 22 by the Israeli Government for
three days, to allow "aid materials" into the Strip.

Al-Ayyam's front page includes a report of attacks on Palestinians
by Israeli settlers in the West Bank. The settlers are also reported
to have confiscated more than 10 acres of land in Nahallin village
in the Bethlehem area on June 22, "under the protection of" Israeli
soldiers.

Al-Ayyam's front-page includes recent developments in the prisoners'
exchange between Israel and Hamas. According to reports, the
Israeli Government has submitted a new proposal to the Egyptians
that aims at concluding the prisoners' exchange between Hamas and
Israel. Israel will release 1,000 Palestinian prisoners in exchange
for the release of Israeli soldier Shalit, according to reporting.

Al-Quds' front page includes wire reports of Palestinian Authority
President (PA) Abbas' decision to release most of the Hamas
detainees currently in PA detention centers within twenty-four
hours, as a good will gesture ahead of national unity talks.

Al-Quds' front page also includes a report of the meeting between
King Abdullah of Jordan and British Prime Minister Gordon Brown
(June 22). It is reported that King Abdullah stated to Brown that
Israel must stop all "provocative measures" that jeopardize a peace
agreement and the establishment of an independent Palestinian state.
King Abdullah urged the international community to take serious
measures in support of a regional peace and the establishment of a
Palestinian state.
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BLOCK QUOTES:
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1) Hafith Al-Barghuti opines in Al-Hayat Al-Jadida official daily
under the title, "The speech of Bar Ilan, the speech of
Al-Quds",(06/23): " It is obvious from the location that Prime
Minister Fayyad chose for his speech that he believes that Jerusalem
is the capital of the Palestinian state... Fayyad seemed optimistic
in his tone about the capabilities of the PA to lead a state...
unlike Israeli Prime Minister Netanyahu who does not seem ready to
believe in a Palestinian state."

2) Al-Quds independent daily runs an editorial under the title, "Dr.
Salam Fayyad's speech," (06/23): "The speech was rational and

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comprehensive... it provided a clear description of the current
situation in the Palestinian Territories and motivates all parties
to reach a settlement that will end the conflict... The speech
stressed that the Palestinian Authority is the sole representative
of the Palestinian people and is in charge of enforcing law and
order."

3) Hilmi Al-Ghul opines in Al-Hayat Al-Jadida official daily under
the title, "What distinguishes Fayyad's speech," (06/23): "Although
the speech was meant to present the new [PA] government's agenda, it
was basically a reaction to Netanyahu's statements and perceptions
about the Israeli Palestinian conflict... having Premier Fayyad
present the official Palestinian reaction to these statements
clearly reflects how much this man is trusted by the Palestinian
leadership and conveys a firm message to all parties who try to
undermine his authority."

WALLES