JERUSALEM MEDIA REACTION (07/22): Growing International

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SUBJECT: JERUSALEM MEDIA REACTION (07/22): Growing International
Pressure on Settlements

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Main Stories:
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Al-Quds and Al-Hayat Al-Jadida lead with news on continued
international pressure on ISRAEL to halt settlement construction.
Coverage notes that European Union officials called the continuation
of such activities "provocative," and renewed their calls on ISRAEL
to help create an environment conducive for re-launching
negotiations with the Palestinians. German officials are also quoted
in Al-Hayat Al-Jadida saying that ISRAEL is committing a "slow
suicide" that will negatively impact its political interests.
Al-Quds runs separate front page coverage of a US official stressing
that the US position concerning settlement construction activities
has not changed and that the US wants to see a complete cessation of
construction in East Jerusalem and the West Bank.

All dailies report that Palestinian Authority (PA) Prime Minister
Salam Fayyad announced on July 21 during the weekly cabinet meeting
that the PA will allocate $1.5 million as "exceptional aid" to
support the institutions and local councils of Jerusalem in light of
recent Israeli actions in the city.

All dailies carry front page news on PA President Mahmoud Abbas's
July 21 statement that the PA will resume negotiations with ISRAEL
only when the latter fulfills its road map obligations, which
include the complete cessation of settlement construction activity
in East Jerusalem and the West Bank. President Abbas also reiterated
that the Fatah Party Congress will begin as planned on August 4.

Al-Ayyam runs front page coverage on Israeli sources denying reports
published in Haaretz of a plan to evacuate 23 West Bank settler
outposts in one day.

Al-Hayat Al-Jadida front page news cites Wafa news agency on the
July 21 World Bank announcement of a $40 million donation to the PA
to implement the Palestinian Reform and Development Plan (PRDP). A
World Bank representative stated that this donation reflects the
World Bank's satisfaction with the government's efforts toward
implementing the PRDP. He reiterated that ISRAEL must ease its
restrictions on access and movement to improve the economic
environment and called for greater support to the private sector.

Al-Ayyam runs front page coverage on the decision by the Palestinian
Legislative Council (PLC) that Aziz Dweik, who was recently released
from an Israeli jail, will resume his duties as the head of the PLC
starting July 26. Al-Hayat Al-Jadida runs inside coverage on PLC
Secretary General Ibrahim Khreisheh condemning this decision, saying
"it will create a new crisis in the legislative authority."

Al-Hayat Al-Jadida runs inside page coverage on the latest opinion
poll conducted by Al-Najah University in the West Bank city of
Nablus. The poll shows that 67% of Palestinians would vote for
President Abbas in a presidential election, while 21.4% would vote
for Hamas Gaza leader Ismail Haniyeh. The results also show that
44.8% believe that Prime Minister Fayyad is capable of managing
Palestinian internal business affairs, compared to only 23% who
believe that the Hamas government could do so. --------------
BLOCK QUOTES:
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1) Hani Habib opines in Al-Ayyam independent daily under the title,
"Obama, Netanyahu and the Jewish lobby" (07/22): "What made
Netanyahu suddenly authorize the construction of housing units in
East Jerusalem? Did he fear that the Jewish lobby in the US agrees

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with Obama's position regarding the Middle East peace process and
the necessity to halt settlement activities? Was he certain that by
authorizing such a project in East Jerusalem, all Jews, no matter
what their beliefs, would unite to defend Jerusalem?"

2) Hafeth Barghouti opines in Al-Hayat Al-Jadida official daily
under the title "The crisis" (07/22): "If Hamas wants a state, it
has to commit to national principles and end divisions ... and if
Netanyahu wants real peace with the Palestinians, he has to stop all
settlement activities ... But as Palestinians, we lack a forceful
position that could stand up to Hamas and Netanyahu's policies."

WALLES