JERUSALEM MEDIA REACTION (03/12): HOPES FOR GREATER ARAB

UNCLAS SECTION 01 OF 02 JERUSALEM 000454

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 (03/12): HOPES FOR GREATER ARAB
"RECONCILLIATION"

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Main Stories:
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Papers lead for a second day with news from Palestinian "national
dialogue" talks in Cairo. Al Quds reports that a permanent
committee has been formed to address problems related to internal
division. All papers report that Palestinian "factions" have agreed
to "urgently" form a new government with "national personalities"
that would serve "independent of any factional affiliation." Al
Quds adds that Hamas has rejected asking Palestinian Authority
Premier Fayyad to form a new government. Al Hayat Al Jadida notes
that Palestinians are waiting for the "white smoke" to come from the
dialogue, and that Hamas will insist on the right to select the
Prime Minister and most cabinet members in any new government.

Al Quds' front page reports that Congress rejected a Republican bill
to prevent Gazan Palestinians from living in the U.S. and enforce
tough limitations on U.S. assistance to Gaza. In related reporting,
Al Hayat Al Jadida and Al Ayyam front page a Reuters report about
the U.S. asking Israel to explain why toilet paper and soap are
prevented from entering Gaza. The report further quotes the World
Food Program saying that Israel has blocked a Gaza-bound cargo of
chick-peas, "a popular Palestinian food," for several weeks. The
report quotes a Western official confirming that, "the Americans and
NGOs have expressed concerns and protested," against the Israeli
measures.
Al Ayyam's and Al Quds' front pages report that President Obama
signed a U.S. federal budget that includes $2.4 billion dollars for
Israel, $1.5 billion dollars for Egypt, and significant aid to
Jordan and Lebanon. In related reporting, Al Hayat Al Jadida's
front page cites a DPA report quoting a senior, anonymous U.S.
official telling Israeli radio that the next decades' $30 billion of
U.S. aid to Israel will not be affected by the current financial
crisis.
Al Ayyam and Al Hayat Al Jadida front page a report on "harassment
of Palestinians by Israeli settlers" in Jerusalem on March 11.
According to reports, Israeli police blocked roads to allow settlers
access to the city for religious celebrations. Reporting adds that
the settlers' behavior "increased tensions" in and around the Al
Aqsa mosque compound. In related news, Al Quds' front page reports
that the Israeli Jerusalem municipality and Israeli Ministry of
Interior have issued demolition orders to seven houses in Burj
Allaqlaq area in Jerusalem. Papers call the action an "effort to
confiscate" 12 acres on which to build a "settlement outpost" and
synagogue in "Jerusalem's Islamic quarter." In related news,
Al Quds and Al Hayat Al Jadida cite Reuters in reporting on a
special EU meeting on March 15 that will address "the situation in
the Palestinian Territories." The papers also report on EU warnings
about Israeli plans to demolish 90 Palestinian houses, calling the
action, "the largest demolition of Palestinian houses in Jerusalem
since 1967, causing the displacement of 1,000 people."

All papers report on the killing of a 17-year old Palestinian boy
and injury of another by the Israeli military in Dir Abu Mishal
village near Ramallah on March 11. Al Ayyam adds that the Israeli
military arrested 35 Palestinians in Bayt Ummar near Hebron on March

11.

Al Quds and Al Ayyam front page a report on the "mini" Arab summit
held on March 11 with Egyptian President Mubarak, SAUDI King
Abdullah, Syrian President Assad and Kuwait Emir Al Subah in Riyadh.
The report reveals that the Arab leaders agreed to unify their
approach on dealing with the Palestinian issue and will begin a new
era of Arab cooperation.

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Al Ayyam's and Al Hayat Al Jadida's front pages cite an AFP report
revealing that prisoner exchange negotiations between Hamas and
Israel have entered a final stage. The report quotes an Egyptian
source confirming that intense, difficult negotiations continue in
Egypt. --------------
BLOCK QUOTES:
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1) Al Quds' editorial is titled, "Arab reconciliation to confront
axes and challenges"(03/12): "We hope that the smaller summit held
in SAUDI Arabia... will contribute to achieving reconciliation and
confronting threats and foreign axes, and consequently,
strengthening Arab influence and national security..."

WALLES