JERUSALEM MEDIA REACTION (07/08): Israel Will Not Commit to

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SUBJECT: JERUSALEM MEDIA REACTION (07/08): ISRAEL Will Not Commit to
the Two-State Solution or a Settlements-freeze

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Main Stories:
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Al-Hayat Al-Jadida, Al-Quds and Al-Ayyam all run front page coverage
of the July 7 meeting between Israeli President Shimon Peres and
Egyptian President Hosni Mubarak in Cairo. In a joint press
conference following the meeting, Mubarak pointed out that there
must be a serious commitment by ISRAEL to achieve peace, and that
resolving the Palestinian conflict will ensure peace and security in
the entire region. Mubarak also praised President Obama's new
approach towards the Middle East, stating that there is an excellent
chance that peace can be achieved with the engagement of the current
US administration. Peres stated that although ISRAEL accepts the
two-state solution and will not construct new settlements, it will
continue expanding existing settlements to accommodate "natural
growth." Concerning the status of the kidnapped Israeli soldier
Gilad Shalit, Mubarak noted that he hoped to see this matter
resolved very soon.

Al-Ayyam leads with Al-Arabiya satellite channel's exclusive
interview with Palestinian Authority President Mahmoud Abbas on July
7, in which Abbas called on Hamas to agree to presidential and
legislative elections under Arab and international supervision in
January 2010. Additionally, Abbas stated that ISRAEL has not met any
of its obligations under the Road Map, including the cessation of
all settlement activities. Abbas reiterated that he will not accept
a Palestinian state with temporary borders, and doubted that Arab
countries would be willing to normalize relations with Israel, until
Israel fulfills all its obligations under the Road Map. Abbas
noted, "How can we pressure the Arabs on this when ISRAEL is not
willing to freeze settlements?"

All dailies run front page coverage of the July 7 meeting between
Palestinian Authority President Abbas and Serbian President Boris
Tadic in Belgrade. Abbas emphasized the need for diplomacy in
solving the Arab-Israeli conflict, noting that Serbia can play an
important role in ending the Palestinian-Israeli conflict.

Al Ayyam reports on its inside pages about President Obama's address
to Russian students during his current visit to Russia. The paper
noted Obama's comments that a new chapter should be opened in
US-Russian relations, based upon mutual respect and cooperation.

All dailies run front-page coverage of President Obama's CNN
interview in which he stated that the US did not give ISRAEL a
"green light" to attack Iran and its nuclear program. The papers
note Obama statement that he prefers addressing the Iranian nuclear
program through diplomatic measures.
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BLOCK QUOTES:
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1) Hani Habib, Al-Ayyam, "Peres-Barak: flexible or
deceptive?"(07/08): "We heard Barak and Peres noting that the
settlements will stop, but will they seriously stop...? Netanyahu
has not shown any readiness to stop settlement activity... Are these
contradictory statements meant only to mislead the world and public
opinion? Israeli leaders must know they can't keep deceiving the
e
world. Obama must show seriousness in exerting pressure on ISRAEL to
stop these activities!"

2) Azmi Khawaja, Al-Ayyam, "The Palestinians and the two-state
solution" (07/08): "The proposal in Netanyahu's speech regarding the

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two-state solution and the Palestinian state is meaningless. It has
no solid ground, and is not based either on the Arab peace
initiative or on the Road Map... His proposal will only lead to more
chaos and deterioration of regional stability".

WALLES