JERUSALEM MEDIA REACTION (05/18): PALESTINIANS: U.S.

UNCLAS SECTION 01 OF 03 JERUSALEM 000812

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 (05/18): PALESTINIANS: U.S.
CREDIBILITY HINGES ON TANGIBLE IMPROVEMENT TO DAILY LIFE

--------------
Main Stories:
--------------
All dailies lead with news that July 7 will see the signing of a
final "Palestinian national reconciliation" accord to end
Fatah-Hamas division. According to reporting, Egyptian Intelligence
Chief Sulayman spoke about ongoing Palestinian unity talks in Egypt,
stating that talks must reach some "productive outcome." Sulayman
announced that the next round of unity talks will be for signing
agreements, adding that it is impossible to talk about
reconstruction and a truce in Gaza, the peace process, and a lifting
of the "siege" before ending Palestinian division. The Head of
Fatah block Azzam Al-Ahmad announced that a Fatah-Hamas committee
for Gaza security issues will be formed. Meanwhile, Hamas
spokesperson Barhum stressed that it is premature to talk about
results and reiterated that the singing of any agreement must wait
for the resolution of all pending issues. Barhum also told press
that Fatah has not presented, "any new vision regarding pending
issues."

All front pages report on Israeli Prime Minister Netanyahu's meeting
with President Obama in Washington on May 18. According to Israeli
sources, Netanyahu will tell President Obama that he is ready to
pursue negotiations with the Palestinians on establishing an
independent Palestinian state if certain pre-conditions are met
including the recognition of Israel as a Jewish state. Israel in
return, will seek to strengthen the Palestinian economy and support
institution building. Netanyahu is also expected to suggest that a
committee redraft the Road Map and will present a new strategy for
dealing with Iran, according to coverage.

Front page headlines announce that the World Economic Forum
concluded at the Dead Sea on May 17. According to reporting, the
Forum focused extensively on the Israeli-Palestinian peace process.
King Abdullah of Jordan reiterated the importance of quickly
re-launching negotiations based on the two-state solution and the
Arab Peace Initiative. Israeli President Peres called the readiness
of 57 Arab countries to make peace with Israel "very encouraging"
and highlighted that the gap between Palestinian and Israeli
negotiators has narrowed.

Al-Ayyam runs a front page story about the Palestinian
Telecommunications company "Paltel" signing a preliminary merger
agreement with Kuwaiti company "Zein" on May 18. The official
signing ceremony will take place in Ramallah in two weeks, the paper
reports.

All papers front page coverage about Israeli Defense Minister Barak
issuing a permit to an Israeli right wing group to visit Hebron and
the Ibrahim mosque on May 18. Hebron Mayor Issily considered the
visit "provocative" and "a new obstacle to peace."

--------------
Weekend stories:
--------------
Sunday, May 17:

All front pages highlight analyses and predictions about President
Obama's upcoming meetings with regional leaders. Headlines announce
that Obama will use the meetings to identify which elements of a new
American peace plan should be announced during his June visit to
Egypt. The papers also highlight that the U.S. refused on May 16 to
reveal the new peace plan. The articles run comments by a senior
White House advisor confirming that the plan will include elements

JERUSALEM 00000812 002 OF 003


of the Arab Peace Initiative and elements discussed during the
series of meetings. The articles also run May 16 comments by
Israeli officials about possible meeting topics and by Jordan's King
Abdullah highlighting President Obama's endorsement of the two-state
solution.

Al Ayyam and Al Hayat Al Jadida front paged statements by PLO chief
negotiator Sa'eb Erekat calling on President Obama to stop Israel
from acting like a, "state above the law" and force Israel to accept
the two-state solution and halt settlement activities. Erekat
added, in statements made at the World Economic Forum, that dealing
with Israel is, "the first test of the Obama administration."
Reporting also highlights that Erekat summarized Palestinian
expectations of President Obama's meeting with Israeli Premier
Netanyahu stating, "we hope that the American administration views
regional peace as an issue of great interest to the U.S." In
related news, the two papers ran a front page story about Syrian
Ambassador to Washington Mustafa telling Al Hurra that Special Envoy
Mitchell has applied for a visa to Syria.

Saturday, May 16:

Al Quds and Al Hayat Al Jadida quoted Palestinian Authority advisor
on Jerusalem Affairs, Abdil Qadir revealing a new plan by an Israeli
settler group to construct settlement housing on the rubble of more
than 60 houses recently demolished by the Jerusalem Municipality in
the East Jerusalem neighborhood of Silwan. According to Qadir, the
plan is being implemented in "collusion with" the Jerusalem
Municipality, reporting noted.

"Thousands in the Gaza Strip commemorate the 61st anniversary of the
Nakba [the catastrophe] - Scores injured in anti-wall and Nakba
commemoration protests and demonstrations," according to front page
headlines in all dailies. According to coverage, protestors carried
banners with the names of villages and towns from which Palestinians
were "expelled" in 1948 and shouted slogans supporting the
Palestinian refugees' right of return.

All front pages highlighted statements made by the Pope upon the
conclusion of his visit to the Holy Land. The Pope noted that the
"wall" [separation barrier] was, "one of the saddest things I have
seen during this visit." He added that, "the Palestinian people
have a right to an independent sovereign state in which they live in
dignity and move freely," according to coverage.
--------------
BLOCK QUOTES:
--------------
1) Al-Quds independent daily runs an editorial under the title,
"Examining the credibility of the U.S. administration" (05/18):
"Since President Obama's entry to the White House, we have been
hearing a lot about the new administration's commitment to the
two-state solution in addition to a possible announcement of a new
Middle East peace plan to be unveiled during Obama's visit to
Cairo... Despite all this, we have not seen any dramatic change in
U.S. policy regarding the Palestinian question and the Israeli
occupation... We say to Obama, your message to the Arab and Muslim
world should be preceded by tangible evidence of your commitment
[changes on the ground] in order to convince us that the two-state
solution is not merely a slogan as it was under the Bush
administration."

2) Regular columnist Samih Sh'bayb opines in Al-Ayyam independent
daily under the tile, "The dialogue's fifth round" (05/18): "A
quick review of the several rounds of national Palestinian

JERUSALEM 00000812 003 OF 003


dialogue... reveals that Hamas has sought only to prolong the
dialogue... Hamas began the current round of talks by announcing
that it will not recognize the new Fayyad government... How will we
ever agree on a government given these two different visions
[Fatah/Hamas] of how to deal with Israel and the international
community?... How will we ever agree on a government and its
composition in light of Hamas' preconditions? It is obvious that
Hamas has used the dialogue to buy time to build support for its
policies. It is also obvious that Hamas is still not ready to sign
any national agreement to break the siege and reconstruct the
Strip."

WALLES