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DE RUEHJM #0889/01 1430942
ZNR UUUUU ZZH
O 220942Z MAY 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1612
RHEHAAA/WHITE HOUSE WASHDC
RHEHNSC/WHITE HOUSE NSC
RUEKJCS/SECDEF WASHDC
RUEKJCS/DIA WASHDC
RUEAIIA/CIA WASHDC
RUEADWD/DA WASHINGTON DC//DAS-ZD/DACS-ZK//
RUEAHQA/CSAF WASHINGTON DC//POLAD//
RHMFIUU/CMC WASHINGTON DC
RUENAAA/CNO WASHINGTON DC//POLAD//
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUEHTU/AMEMBASSY TUNIS 7128
RUEHLO/AMEMBASSY LONDON 4115
RUEHFR/AMEMBASSY PARIS 3968
RUEHNC/AMEMBASSY NICOSIA 5466
RUEHRO/AMEMBASSY ROME 3884
RUCNDT/USMISSION USUN NEW YORK 2446

UNCLAS SECTION 01 OF 03 JERUSALEM 000889 
 
SIPDIS 
 
STATE PASS BBG 
STATE FOR NEA, NEA/IPA, NEA/PPD 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
NSC FOR ABRAMS 
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 (5/22): "PALESTINE INVESTMENT 
CONFERENCE: A STEP TOWARDS A PALESTINIAN STATE?" 
 
------------- 
Main Stories: 
------------- 
 
Coverage of the Palestine Investment Conference (PIC), complete with 
photos, continues to dominate the front and inside pages of all the 
dailies. Reports focused on quotes from President Abbas's opening 
speech, which began with a statement hailing the Lebanese agreement 
and welcoming the Israeli-Syrian negotiations (see additional 
coverage below).  Al-Quds headlined its report with "The President 
Inaugurates Palestine Investment Conference amid a Huge Political, 
Economic, Foreign, and Arab Crowd," and highlighted his comments 
about the need to reunite with Gaza on the condition that Hamas 
return control of the Strip to the Palestinian Authority, the status 
of East Jerusalem, and the importance of security and economy when 
pursuing the road to peace. Al-Hayat Al-Jadida opened with a quote 
by Abbas in bold black letters: "The Palestine Investment Conference 
is a turning point in the lives of our people, but the current 
situation is not rosy."  Reports in all dailies highlighted the 
announcement by a Saudi corporation to invest $250 million in a 
construction project in the West Bank and quoted heads of 
delegations emphasizing the importance of investment in supporting 
the Palestinian economy and state.  Dr. Hasan Abu Libdeh, CEO of the 
PIC, downplayed expectations of the conference, noting that while it 
is hoped that it will attract about $200 billion in investment, the 
conference is meant primarily to lay the groundwork for future 
cooperation and he does not expect significant financial commitments 
at this time.  Inside pages of the dailies reported on meetings that 
occurred during the conference and agreements of support signed by 
different Arab and foreign investors. 
 
All dailies included front-page mentions of American participation 
in the PIC and announcements of support by members of the U.S. 
delegation.  All reports noted that American officials announced 
U.S. funding of economic projects valued at hundreds of millions of 
dollars. The inside pages of all three dailies included multiple 
articles detailing the announcements and comments by the delegation. 
 They quoted Deputy Secretary of the Treasury Robert Kimmit saying, 
"the Palestine Investment Conference being held in Bethlehem in the 
West Bank constitutes a part of the economic track included in 
Annapolis as one of three tracks paving the road towards the 
establishment of a Palestinian State."  These reports also named the 
participants in, and noted the high level of, the U.S. presidential 
delegation and continued with details of American assistance through 
OPIC and USTDA.  The second page of Al-Quds carried a comprehensive 
report about the meeting of the American delegation with Palestinian 
officials in Jerusalem entitled, "Walles Renews the Commitment of 
his Country to Support Palestinian Economic Growth."  The same page 
also featured a photo of President Abbas welcoming Deputy Secretary 
Kimmit in Bethlehem.  Additionally, the on-line news site, 
Ekhbariyat, ran a U.S. Consulate General Jerusalem-produced press 
release on its economic page with a large photo of an American Flag. 
 
 
The simultaneous announcement by Damascus, Tel Aviv and Ankara about 
ongoing "indirect" Israeli-Syrian peace negotiations mediated by 
Turkey received front-page coverage in all dailies.  A Syrian 
official noted that, "each party expressed their desire to conduct 
negotiations with good will and decided to continue with serious 
dialogue to achieve the goal of a comprehensive peace in accordance 
with the Madrid Peace Accord."  Reuters reported from Qatar that 
Syrian Foreign Minister Walid Mualem stated that Israel committed 
itself to withdrawing from the Golan, back to the "4th of July 1967 
line" and that he hopes Israel is serious about the negotiations. 
 
JERUSALEM 00000889  002 OF 003 
 
 
In related coverage, all dailies highlighted remarks by Olmert that 
negotiations with Syria are not easy but are a national duty.  In 
its front-page headline, Al-Ayyam quoted Olmert saying, "we are 
ready to make difficult compromises." 
 
All dailies front paged reports on last night's air-strike by 
Israeli forces in Gaza and the subsequent injury of five children. 
Al-Hayat Al-Jadida features a photo of a bloodied infant being 
treated at a Gaza hospital.  Coverage also noted that Israeli 
Special Forces infiltrated the area of Johr Eddik in Gaza and 
assassinated a member of the Al-Qassam brigades, affiliated with 
Hamas.  The front page of all dailies carried news that Israel 
refuted reports that they have already agreed to a truce with Hamas, 
and reiterated that no deal will be accepted that does not include 
the release of kidnapped soldier Gilad Shalit and ends all rocket 
fire from Gaza.  Reports claim that the Israeli army has received 
orders to prepare for a broad military operation in Gaza.  Al-Ayyam 
titled its coverage, "Israel downplays the hopes of reaching a truce 
soon: The issue is not yet settled." 
 
The Israeli intention to construct new houses in the Bitar Elit 
settlement near Jerusalem received front page coverage in all 
dailies.  Al-Ayyam's coverage was accompanied with a photo of an 
Israeli bulldozer demolishing six apartments belonging to 
Palestinians in the Al-Tour neighborhood of East Jerusalem.  Reports 
indicated that Israel intends to build 286 housing units in the 
settlement, as was announced yesterday by the Israeli Housing 
Ministry.  Bitar Elit, with a current population of 32,000 people, 
is considered the third largest settlement in the West Bank. 
Al-Ayyam's report referred to this construction as a violation of 
the roadmap, highlighting that it is the second such violation since 
Annapolis. 
 
News of the Lebanese "Doha agreement" also received front-page 
coverage. 
 
------------ 
BLOCK QUOTES: 
------------ 
 
¶1.  In its main editorial, independent daily Al-Quds opined under 
the title, "Investment Conference... between reality and 
expectation" (05/22):  "There is no doubt that having the 
Palestinian Investment Conference happen is a success in itself, and 
that is not a stretch of the truth or exaggeration.  In addition to 
Palestinian businessmen and investors, hundreds of Arab and foreign 
investors have realized that it is possible to invest in Palestine, 
and moreover, had the courage to attend the conference and search 
for various opportunities for work and investments; this is a 
success for the Palestinian stand... But we know, as everyone else 
does, that the occupation lies heavily on [Palestinians'] hearts and 
is actively, both directly and indirectly, working to hinder 
development. The occupation is an obstacle in face of investment 
because as the saying goes, capital is a coward and when there is no 
guarantee of its safety, it will not usually venture forth; hence 
just as proclaimed earlier, just by having this conference take 
place and having investors attend, we have achieved success.  We are 
standing between great expectations and hard reality; our hopes are 
soaring for a bright tomorrow while being pulled down by the weight 
of the occupation and the hard reality it imposes.  This experience 
[the Investment Conference] is vital, and we wish success for the 
conference and the investment laws that Abu Mazen promised for the 
protection of the investors.  This might alleviate the suffocating 
situation that we are living in." 
 
JERUSALEM 00000889  003 OF 003 
 
 
 
¶2.  Independent daily Al Ayyam carried an op-ed by regular columnist 
Talal Okal under the title, "Only a little time is left" (05/22): 
"What President Bush said in front of the Israeli Knesset on the 
15th of May - which angered President Mahmoud Abbas, the Egyptian 
President Hosni Mubarak (who preferred not to listen to the speech 
while attending the Davos forum), and all the Palestinian and Arab 
people - what Bush said was not a slip of a tongue or an unintended 
mistake because of an emotional moment.  Bush reinforced what he 
announced at the Knesset and completed it without shame - totally 
siding with Israel and fully supporting Israel's words and actions. 
This impressed the former advisor of Sharon, Dov Weisglass, who said 
that no Israeli official can express Israel's stand better than the 
American president did.   In Sharm Al-Sheikh, once again, Bush 
intentionally ignored the Palestinian rights... [Secretary] Rice, in 
her next visit to the region, which is happening soon according to 
American announcements, has to work really hard to explain and 
justify her President's opinion.  She also has to work to take away 
some of the anger - but cannot take away all of it - from President 
Mahmoud Abbas and the Palestinian leadership, since she shares her 
boss's beliefs.  What Bush said and announced is really hard to 
justify." 
 
WALLES