JERUSALEM MEDIA REACTION (07/21): Cessation of settlements

UNCLAS SECTION 01 OF 02 JERUSALEM 001249

SIPDIS

STATE PASS BBG
STATE FOR NEA, NEA/IPA, NEA/PPD
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM
NSC
CMC WASHINGTON DC FOR POLAD

JERUSALEM ALSO FOR ICD
LONDON FOR HKANONA AND POL - TSOU
PARIS ALSO FOR POL
ROME FOR MFO

E.O. 12958: N/A
TAGS: PREL KMDR KPAL KWBG KPAO IS
SUBJECT: JERUSALEM MEDIA REACTION (07/21): Cessation of settlements
must include Jerusalem

JERUSALEM 00001249 001.2 OF 002


--------------
Main Stories:
--------------
Al-Ayyam and Al-Hayat Al-Jadida lead with reports citing AFP that
the US may impose financial penalties on Israel in light of the
continued settlement activities in Jerusalem. According to Israeli
sources, the US may reduce its financial support to Israel by
approximately $1 billion. Additionally, an Israeli official stated
that "Israel does not care about a confrontation with the US
concerning the current construction activities in Jerusalem since
the US chose to start the confrontation," according to coverage.

Al-Hayat Al-Jadida runs front page coverage on Palestinian Authority
(PA) Prime Minister Salam Fayyad calling on the international
community to exert pressure on Israel for an immediate cessation of
settlement activities in the Palestinian territories, including
Jerusalem. Fayyad also noted that Israel must stop all incursions
and attacks against the Palestinians and must end the Gaza siege in
order to have an environment that will allow the re-launching of
peace talks. Fayyad made his statements while in Hebron meeting
with the local governor to discuss economic development and water
shortages.

Al-Quds and Al-Hayat Al-Jadida have front page news on continued
settler attacks against Palestinian farms in the West Bank on July

20. The settlers reportedly started fires on large parcels of land
near Yetsar and Beit Eyn settlements to protest against the eviction
of settlement outposts in those areas.

All dailies report that PA President Mahmoud Abbas reiterated in his
July 20 visit to the West Bank city of Beit Sahour that presidential
and legislative elections are the solution to ending Palestinian
internal division.

Al-Quds front page news cites DPA on the Hizbullah Secretary General
Hasan Nasrallah stating on July 20 that Israel is being used as a
tool by the US. Nasrallah criticized Israeli measures against the
Palestinians and reiterated that "resistance is and will remain the
best mechanism to end the Israeli occupation."

Al-Ayyam front page news cites an article in the "National Review"
claiming that Special Envoy George Mitchell intends to resign by the
end of 2009 once an agreement is reached with the Israeli government
regarding the cessation of settlement activities.
--------------
BLOCK QUOTES:
--------------
1) Al-Quds runs an editorial under the title, "The cessation of
settlements includes Jerusalem" (07/21): "The natural growth which
is claimed by Israel as a justification for expanding settlements
has become a marginal issue in light of current Israeli plans to
construct new housing units in Jerusalem ... By doing this, Israel
hopes to distract the world's attention from the real problem
concerning settlements ... The international community must be aware
of that policy and exert pressure to put an end to it."

2) Omar Hilmi Al-Ghoul opines in Al-Ayyam independent daily under
the title "Will the US position change?" (07/21):
"The US must ask Israel if it wants to end the conflict or pursue
settlements, if it wants war or peace, if it wants to abide by
international laws or continue with the occupation ... The US should
d
not change its position concerning settlements, as this will
indicate that it gives into Israeli pressure ... Any change in the

JERUSALEM 00001249 002.3 OF 002


US position doesn't serve US interests".

WALLES