JERUSALEM MEDIA REACTION (08/27): Press speculates on

UNCLAS SECTION 01 OF 02 JERUSALEM 001527 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 (08/27): Press speculates on outcome of London meeting -------------- Main Stories: -------------- The local press lead with news on Israeli Prime Minister Benjamin Netanyahu's meeting with US Special Envoy George Mitchell in London on August 26. All reports note that the meeting did not result in a breakthrough on the settlements issue. In its lead headline, Al-Ayyam reports "Failure of Netanyahu-Mitchell meeting" and continues "Israel rejects any freeze to settlement construction." Reports note the joint statement issued after the meeting saying that it is important for Israel to pursue serious talks with the Palestinians and to work towards achieving a comprehensive peace. Al-Ayyam and Al-Quds run front page stories citing the Guardian that the US is very close to reaching an agreement with Israel to restart negotiations with the Palestinians. The reports note that President Barack Obama received a commitment from the Israeli government for a partial freeze of settlement construction in return for the US taking tougher measures against Iran, including additional sanctions. All dailies report on Palestinian Authority (PA) President Mahmoud Abbas chairing the extraordinary session of the Palestinian National Council in Ramallah on August 26 to appoint 6 new members to the Fatah Central Committee [Note. The session lasted until 4am and so the papers did not report on the eventual appointees. End Note]. In his speech, Abbas reiterated that Israel must halt all settlement activity in order to resume the peace process and stressed that all parties must fulfill their Roadmap obligations. Abbas also stated that presidential and legislative elections are the only means forward if the Palestinian national dialogue fails. The local press highlights the Elders' group meeting with PA Prime Minister Salam Fayyad in Ramallah on August 26. Fayyad briefed the delegation on recent developments in the Palestinian territories and presented his government's plan for ending the occupation and building an independent Palestinian state. Fayyad is quoted saying "it is time for the Palestinians to enjoy freedom and to end the occupation." Former US President Jimmy Carter noted that the Elders' group is concerned with the severe humanitarian crisis in Gaza and called for an end to the closure. He also urged Israel to stop home demolitions and land confiscation in East Jerusalem. News on a potential deal to release kidnapped Israeli soldier Gilad Shalit dominates front page coverage in all dailies. The reports note that a Hamas delegation in Cairo is negotiating with the Egyptians and Germans on a possible prisoner exchange deal. -------------- BLOCK QUOTES: -------------- 1)Al-Quds independent daily runs an editorial under the title "Activating the Palestinian official institutions" (08/27): "The Palestinians have recently sensed a great improvement in their institutions due to the rule of law and order, the launching of many development projects, and the creation of new jobs under the leadership of Salam Fayyad. His agenda proves that he is committed to establishing an independent Palestinian state regardless of the obstacles." JERUSALEM 00001527 002 OF 002 2) Abdel Majeed Sweilem opines in Al-Ayyam independent daily under the headline "Fatah and the current national crisis" (08/27):"Reforming the Palestinian Liberation Organization is not an option and is not a demand, it is a real need for Fatah so that it can respond to internal and external threats and put an end to internal Palestinian division." WALLES