JERUSALEM MEDIA REACTION (03/27): PALESTINIANS SEE U.S.

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SUBJECT: JERUSALEM MEDIA REACTION (03/27): PALESTINIANS SEE U.S.
"UNEASE" WITH NETANYAHU'S GOVERNMENT

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Main Stories:
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Al Quds leads with Israeli confirmation that a senior Egyptian
official visited Israel on March 25 to discuss the prisoner exchange
deal between Hamas and Israel. The report, that appears on all
front pages, claims that Israel has dropped some of its demands
regarding the names of prisoners to be released in exchange for
Israeli soldier Shalit. Papers note that Hamas remains firm in its
demand that each prisoner be free to accept or reject Israel's
demand for deportation outside of the Palestinian Territories.
Al Ayyam and Al Hayat Al Jadida lead with wire stories about foreign
jet fighters striking a convoy allegedly carrying arms for Hamas
through Sudan in mid-January. The report that also appears on Al
Quds' front page, reveals that the convoy was attempting to cross
over to Egyptian dessert and then into Gaza. Al Ayyam notes
indications of U.S. and Israeli involvement in the attack, a fact
that could increase tensions between Sudan and the West. Al Ayyam
further quotes Israeli Premier Olmert denying Israeli involvement
but asserting that Israel has the capability to conduct military
strikes anywhere, and that, "he leaves it to the journalists'
imagination to interpret his remarks."

Al Ayyam and Al Hayat Al Jadida front page an AFP report quoting PLO
Chief negotiator Erekat accusing outgoing Israeli Premier Olmert of
obstructing the signing of a peace agreement, scheduled for January
2009 in Washington, by, "launching a comprehensive aggression
against the Palestinian people in Gaza, making it impossible to hold
the meeting."
Al Quds' front page quotes former CIA official, Michael Sheuer,
stating that supporters of Israel undermine U.S. policies and work
to give Israeli interests priority over U.S. interests. He also
stated that current U.S.-Israeli relations undermine U.S. national
security and called on the U.S. to leave Israel to handle its own
affairs without U.S. support.
All front pages cite Reuters in reporting that Israeli Premier
designate Netanyahu told journalists on March 26 that he does not
expect the U.S. to pressure his government on his strategy for the
peace process in the Middle East.
Al Ayyam and Al Hayat Al Jadida's front pages run an AFP story
reporting on the Israeli military's acknowledgment of white
phosphorus being used in recent operations in Gaza, but refuting
that the weapon's use constitutes a war crime. The report runs
alongside a photo of a Gazan woman showing her arm with scars of
white phosphorus burns.
Al Ayyam's front page runs a DPA story about Israel's successful
test of its "Steel Dome" anti-missile system, designed to intercept
missiles from the Gaza Strip. Reporting notes that the 210 million
Euro system can intercept missiles with a range of 70 km.
Al Hayat Al Jadida's front page reports that Islamic Jihad in Gaza
has confirmed that Hamas arrested one of its militants who battled
with Israeli soldiers on March 26. --------------
BLOCK QUOTES:
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1) Al Quds' editorial is titled, "The incoming Israeli Government
faces the world"(03/27): "The dangers of the appointments of
Lieberman and other extremists to the Netanyahu hawk government are
clear to the international community, particularly to President
Barack Obama's administration. The [March 25] statements by Obama
were an indication to his unease, felt by the whole world... that
peace will not be easier under the new Israeli government."

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2) Mohamad Yaghi opines in Al Ayyam under the title, "Western
contact with Hamas"(03/27): "Breaking the political siege
[isolation] on Hamas would require Hamas to step forward and
recognize the two-state solution... The West can understand that
Hamas does not recognize Israel, since no borders have been
defined... but the West cannot accept Hamas' rejection of the
two-state principle as the basis for solving the conflict... The
West did not argue against the legitimacy of Palestinian legislative
elections and did not reject Hamas' victory in those elections,
rather the West rejected Hamas' vision for solving the conflict with
Israel."

WALLES