JERUSALEM MEDIA REACTION (06/01): CAUTIOUS OPTIMISM OVER

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SUBJECT: JERUSALEM MEDIA REACTION (06/01): CAUTIOUS OPTIMISM OVER
U.S. ABILITY TO MOVE PEACE FORWARD

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Main Stories:
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All front pages report on "bloody confrontations" on May 31 between
Palestinian Authority (PA) police and Hamas "militants" in
Qualquilya northern West Bank. Al-Quds and Al-Hayat Al-Jadida lead
with the story. Papers report that six police and 2 militants were
killed and one innocent bystander. Palestinian Authority (PA)
President Abbas condemned the incident and highly praised the role
of the PA police and security services in keeping the situation calm
and strengthening the rule of law in the Palestinian Territories.
PA Premier Fayyad expressed his sorrow over the confrontations, but
also stressed that the, "PA won't apologize for the incident since
it is our duty to enhance rule of law." Al-Ayyam runs separate
front page coverage of Hamas reaction in Gaza, where Hamas leaders
are reconsidering Hamas participation in future Palestinian unity
talks, in light of the incident and, the "continued crimes against
Hamas," according to coverage.

Al-Ayyam leads with and Al-Quds runs front page coverage on Israeli
Premier Netanyahu's rejection of President Obama's request to
halting all settlement activities and quotes him stating that there
will be no freeze, despite requests by Obama and Secretary Clinton.
Israeli officials are further quoted stating that, "the decision to
halt settlement activities is unacceptable to the Government and the
people of Israel."

All front pages report that Palestinian Authority President Abbas
met with Jordan's King Abdullah on May 31 in Amman. The two leaders
discussed efforts to re-launch peace talks between Israel and the
Palestinians and end the conflict based on the two-state solution
and the Arab Peace Initiative. Abbas briefed King Abdullah on his
meetings with President Obama last week in Washington, during which
Obama reiterated the need to halt all settlement activities,
according to coverage.

Al-Ayyam and Al-Quds run front page coverage citing the London-based
Al Sharq Al Awsat newspaper on, "sources in the Israeli right wing"
revealing that prominent American and European political figures
have promised to try to undermine the two-state solution by offering
Palestinian refugees monetary compensation and an "alternate
homeland" in Jordan, according to reporting.

Al-Hayat Al-Jadida's front page cites AFP in reporting that Egypt
hopes that President Obama's speech to the Muslim world on June 4,
will present a, "serious rapprochement towards peace in the Middle
East". Quoting an Egyptian Presidency spokesperson, reporting
continued that Egypt considers the Palestinian-Israeli conflict a
higher priority than even the "Iranian threat" and that no further
delays or failures to end the conflict should be allowed, given U.S.
and European support for a Middle East peace process.

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Weekend Stories:
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Sunday May 31:

Weekend papers carried extensive reporting on last week's meetings
between President Obama and Palestinian Authority (PA)President
Abbas. All front pages on May 31 led with Abbas' quotes highlighted
in lead headlines, "We felt the Americans were serious about
achieving peace: We told them to implement the Arab peace
initiative and reiterated our opposition to any modification of that
initiative." Speaking in a joint press conference with his Egyptian

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counterpart, Abbas again reiterated Palestinian demands for a halt
to all settlement activities and Israel's acceptance of the
two-state solution and noted that the Annapolis meetings were not "a
waste of time" but could be useful in resolving final status issues.
In regards to a future PA unity government, Abbas noted that he
told the Americans that all members of such a government would abide
by PLO agreements. In separate reporting, all front pages also ran
comments by Fatah leader Ahmad Quray welcoming U.S. policy regarding
the Palestinian-Israeli conflict, and rejecting Israeli Premier
Netanyahu's policies, stressing that Palestinian-Israeli
negotiations have been "exhausted".

Well-informed American sources told London-based Al Sharq Al Awsat
newspaper that President Obama wants U.S. partners in the Middle
East to take positive steps towards, "laying the foundation" for
re-launching the Israeli-Palestinian peace process, according to Al
Hayat Al Jadida's and Al Ayyam's front pages. The sources added
that the U.S. will work as an "honest broker for peace" a role which
has become more visible to the American public through constant U.S.
pressure on Israel's Prime Minister to halt settlement activities.
In related reporting, Al Hayat Al Jadida's front page and Maan news
agency reported that U.S. officials have promised to step up
pressure on Israel to halt Palestinian home demolitions in Jerusalem
and ensure their housing needs in exchange for certain steps.
According to reporting, a senior Palestinian official revealed on
May 29 the steps that Palestinian-Americans are helping put into
play by asking Palestinians to temporarily refrain from building
without Israeli permits and immediately seeking permits through
Israeli legal channels by submitting zoning and construction plans
to the Jerusalem Municipality.

Saturday, May 30:

Reporting on last week's meetings between President Obama and
Palestinian Authority President Abbas led news. All front pages
noted that Obama awaited official response from Israel to his
request for a halt to settlement activities and acceptance of the
two-state solution. Lead headlines also highlighted that 400 U.S.
Congressmen have signed a letter calling upon President Obama to
intensify his efforts for peace in the Middle East. In separate
front page reporting, all dailies reported that Abbas gave Obama a
document outlining the PA's plan for re-launching the peace process
and resolving final status issues. Abbas told AFP that the plan
"corresponded to" the Road Map and the Arab peace initiative. Al
Ayyam's front page ran optimistic quotes by PA Presidency
spokesperson Abu Rudaynah noting that, "We heard a new and unified
language in Washington and the coming weeks will witness active
political movement."
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BLOCK QUOTES:
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1) Regular columnist Samih Shbib opines in Al-Ayyam independent
daily under the title, "A Promising Start" (06/01):"President
Obama's meeting with Abbas in Washington has been very positive; it
was an open and honest talk. Obama reiterated his commitment to the
two-state solution... The U.S. administration fully realizes that
any progress in relations with the Muslim world won't be attained if
the expansion of settlements continues... However, Israel has never
felt any real pressure from all previous U.S. administrations,
pressure that actually stops Israel from imposing facts on the
ground ... We, as Palestinians, hope to see Obama's promising
statements coupled with specific timeframes and real pressure to
translate promises into action or else the Palestinian state will
never be a reality."

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2) Hafith Barghouti opines in Al-Hayat Al-Jadida official daily
under the title "Netanyahu" (06/01): "... Netanyahu will never be
forced to halt settlement activities, since he is supported by all
Israeli factions who endorse settlement expansion in one way or
another... These factions don't believe in the establishment of an
independent Palestinian state... I believe that halting settlements
can't be achieved through agreements and understandings but through
REVOLUTIONS."

WALLES