JERUSALEM MEDIA REACTION (07/27): Palestinians seek deeper

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SUBJECT: JERUSALEM MEDIA REACTION (07/27): Palestinians seek deeper
US involvement in East Jerusalem

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Main Stories:
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Al-Quds and Al-Hayat Al-Jadida lead with and Al-Ayyam carries front
page news on US Special Envoy George Mitchell's visit to the region.
The report covers Mitchell's visit to Syria on July 26, including
his meeting with President Bashar Assad. Mitchell called on Arab
states to take steps that will build trust with Israel and
reiterated that the US is serious about achieving a comprehensive
and lasting peace between Israel and the Arab states. Mitchell
stated that the purpose of his visit to Syria was to discuss the
prospects for achieving a comprehensive peace in the region and
enhancing relations between the US and Syria. Mitchell noted that
discussions with Assad were "very candid and positive." President
Assad noted that Syria must regain control of its occupied
territories in the Golan Heights in order to achieve comprehensive
peace in the region, according to coverage. The political and media
advisor to President Assad, Buthaina Shaban, noted that "the
messages we continue to receive from President Obama prove how
serious he is about opening a new chapter with Syria and achieving
peace and security in the region."

Al-Quds runs separate front page coverage of a report in the Israeli
daily Haaretz that US Secretary of State Hillary Clinton reportedly
noted during a meeting with European Union foreign ministers last
week that Israel and the US are very close to an agreement on a
temporary settlements freeze. Per the report, a senior Israeli
official tated that Secretary Clinton told the EU foreign ministers
that she is "optimistic" about the possibility of reaching an
agreement with Israel concerning settlements, noting that this would
be the first time Israel has agreed to such a step.

Al-Ayyam runs front page coverage on the Israeli Government
endorsing the allocation of approximately NIS 25 million for the
construction and development of settlements in the West Bank. The
decision was made on July 26, before the arrival of US officials to
the region, according to the report.

All dailies report on "settlers" attacking and demolishing a
Palestinian house located in the Sheikh Jarrah neighborhood of East
Jerusalem on July 26 with protection from the Israeli police. The
police arrested Hatem Abdul Qader, the head of the Fatah Jerusalem
Affairs Committee, and 11 foreigners who were protesting the attack.
The police also blocked the press and a US Consulate General
Political Officer from approaching the scene. The Grand Mufti of
Jerusalem, Mohammed Hussein, noted following the incident that
Jerusalemites do not need any more statements from the US, but
rather they want the US to take serious measures and raise the issue
in the UN Security Council, adding that "Palestinians will take
notice how the US responds regarding Sheikh Jarrah."

News on the Sixth Fatah Party Congress, scheduled to begin August 4
in Bethlehem, receives front page coverage in the three dailies.
Al-Ayyam quotes the head of the Fatah parliamentary block Azzam
Al-Ahmad noting on July 26 that Hamas is requesting the release of
all Hamas prisoners in the West Bank before it will allow Fatah
members residing in Gaza to attend the conference in the West Bank.
Al-Ahmad criticized this Hamas policy and noted that Fatah should
not give in to this "blackmail."

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Weekend Stories:
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Sunday July 26:

All dailies front page news that the US is intensifying its efforts
to find a solution to the Arab-Israeli conflict. The efforts also
aim to resume indirect negotiations between Syria and Israel.
Reports note an announcement by a senior Palestinian official that
U.S. National Security Advisor James Jones will meet with
Palestinian Authority (PA) President Mahmoud Abbas Thursday in
Ramallah. The official, who spoke to AFP under condition of
anonymity, added that Jones will meet with President Abbas and PA
Prime Minister Salam Fayyad on his first visit to the Palestinian
territories since assuming office. The Palestinian official
considered the visits by Jones and Special Envoy Mitchell a
"confirmation of the American administration's great interest in the
Palestinian question and the resolution of the Palestinian and
Arab-Israeli conflict."

Al-Quds runs front page news on the Israeli Central Court decision
to give the owners of six houses in the Jerusalem neighbourhood of
Beit Safafa one week to evacuate their homes and hand them over to a
settler from the West Bank settlement of Kiryat Arba (near Hebron).
The settler claims he purchased one of the homes in 1993 from an
Armenian who moved to the United States. Homeowner Mohammad Salah
told Al Quds newspaper that the family was surprised that the court
decision called for the evacuation of all six homes, rather than the
single home the settler claimed as his. Reporting notes that the
decision was not based on this individual claim, but rather the
Israeli desire to evacuate the area to expand the nearby Givat
HaMatos settlement.

Al Quds, Al Ayyam, and Al Hayat Al Jadida front page news on PA
Prime Minister Fayyad's statement that the time of "disregarding
court decisions has gone for good," confirming that all decisions
and verdicts issued by the Palestinian High Court have been
implemented. Fayyad said in a statement that "the independence of
the judiciary, strengthening of its status and respect, and
implementation of all its decisions is a red line that cannot be
overstepped by anyone," and added "the PA, as it works diligently to
build a state of institutions, reiterates its utmost desire to
separate the three powers and to implement all court decisions."

Saturday July 25:
All dailies lead with news on US Secretary of State Hillary Clinton
announcing the transfer of $200 million in direct support to the
PA's budget. The announcement came during a signing ceremony held
through videoconference with the participation of Secretary Clinton
from Washington, DC, and Prime Minister Fayyad, PA Minister of
Planning Ali Jarbawi, US Consul General Jake Walles and USAID
Mission Director Howard Sumka from the Council of Ministers'
headquarters in Ramallah. Dr. Fayyad stressed that the direct
transfer to the Palestinian treasury is an indicator of
international confidence in the Palestinian financial system and
called on other donors to follow the same approach. Secretary of
State Clinton said "I want to underscore how much we appreciate the
steps and changes that your government has undertaken." She
continued by expressing her support for the reforms that were
started two years ago by President Abbas and Prime Minister Fayyad,
and urged other donors to fulfil their pledges of assistance, noting
that the PA has "systems in place to ensure that donor funds are
handled transparently and in an accountable manner."

The dailies cite Israeli sources saying that the US warned the
Israeli government not to implement the "E1" project to expand the

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Maale Adumim settlement, thus connecting it with Jerusalem.
Palestinians and some Israeli organizations say that this would
effectively divide the West Bank into two parts and isolate
Jerusalem completely from the West Bank. Prime Minister Benjamin
Netanyahu pledged during his election campaign to implement the
project. Reports state that implementation of the project was part
of the agreement that Netanyahu struck to include Foreign Minister
Avigdor Liberman's Yisrael Beitenu (Israel is Our Home) party in his
governing coalition. The US has expressed its opposition to the
project and asked Netanyahu "to refrain from imposing facts on the
ground until such time that an agreement is concluded that would
settle the legal status of East Jerusalem."

Al Quds front pages news on a senior PA official denying a July 24
report published by an Israeli research center regarding the PA's
risk of "collapse" and "bankruptcy" as a result of its continued
financial crisis. The official, who spoke under condition of
anonymity, accused the Israeli media of "seeking to cause damage to
the PA's reputation and to portray the PA as fragile and unreliable
for political and security considerations." While the official
acknowledged that the PA has been suffering from a severe financial
crisis for months now and urged donors to come through with their
pledges of assistance, the official vehemently denied any risk of
collapse or bankruptcy.
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BLOCK QUOTES:
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1) Al-Quds independent daily runs an editorial under the title, "So
that the International Community doesn't fail again" (07/27): "The
peace process cannot be re-launched if the US does not cooperate
with the international community and with the Middle East Quartet to
implement the two state solution, including all of Israel's
obligations (and mainly the cessation of settlement activity). It is
time for Europe and Russia to play a vital role to support the US in
its efforts to achieve peace in the region."

2) Omar Hilmi Al-Ghoul opines in Al-Ayyam independent daily under
the title "What is the significance of extensive US diplomacy?"
(07/27): "It is obvious that the US is not ready to waste more time
like previous administrations ... Obama's administration will try to
persuade Netanyahu of a settlement freeze and reduce restrictions
imposed on the Palestinians ... The US diplomatic effort is not done
at random, but is very well studied and planned and shows that
President Obama knows what he wants from all the involved parties."


WALLES