VZCZCXRO1756
OO RUEHROV
DE RUEHJM #0907/01 1441019
ZNR UUUUU ZZH
O 231019Z MAY 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1651
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 7131
RUEHLO/AMEMBASSY LONDON 4118
RUEHFR/AMEMBASSY PARIS 3971
RUEHNC/AMEMBASSY NICOSIA 5469
RUEHRO/AMEMBASSY ROME 3887
RUCNDT/USMISSION USUN NEW YORK 2449

UNCLAS SECTION 01 OF 02 JERUSALEM 000907 
 
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 (5/23): "UNLIKELY BUT NECESSARY 
TRUCE" 
 
------------- 
Main Stories: 
------------- 
 
Coverage of the Palestine Investment Conference in Bethlehem 
dominates coverage in the dailies.  Al-Quds' lead story reports that 
the second day of the conference witnessed the signing of 11 
partnership agreements, including three with US government agencies 
for communication, housing and insurance support.  The dailies 
highlight that work will begin "soon" on projects to build 
industrial zones in the Palestinian Territories.  In related 
coverage of the May 22 meeting between Palestinian President Abbas 
and French Foreign Minister Kouchner in Ramallah, Al Quds quotes 
Abbas stating, "Europe has an economic role, but we also want it to 
play a wider political role [in the peace process]."  Kouchner is 
quoted stating that, "Israel should stop settlement activities." 
 
American participation at the Palestine Investment Conference 
generated prominent and positive coverage in all the dailies and 
online news agencies, including Ma'an and Wafa News Agency. 
Al-Jazeera Arabic aired an interview with Consul General Jake Walles 
also highlighting American participation at the conference. 
According to the dailies, the Americans participated at, "a high 
level" in an effort to support the Palestinian economy and 
investment.  The dailies quote, Consul General Jake Walles noting 
that, "the size and composition of the Presidential Delegation 
reflects the strong U.S commitment to support the Palestinian 
Authority's efforts to strengthen the private sector." The Consul 
General added that this participation, "underscores our commitment 
to support the process of political negotiations with tangible 
economic improvements in the lives of Palestinians."  Related 
reports in the dailies, stated that Palestinian President Abbas 
received a telephone call from Secretary Rice and discussed, "the 
latest developments." 
 
The dailies report on the killing of two Palestinians in Gaza by the 
Israeli Defense Forces on May 22.  According to front pages, Israeli 
sources confirm that the situation in Gaza is very likely to 
"escalate."  Related news in all papers about a possible truce 
between Gaza and Israel highlights that the Hamas delegation has 
departed Cairo because the truce proposal did not include an 
understanding about the Rafah Gaza/Egypt border crossing.  Al-Hayat 
Al-Jadida reports that Palestinian President Abbas commented that, 
"the latest news about the truce is not encouraging." 
 
Syrian-Israeli negotiations capture front page coverage in the 
dailies.  Al-Quds reports that the first stage of the negotiations 
has ended.  The dailies highlight that Damascus affirms that Israel 
has provided assurances of the return of the Golan Heights.  The 
paper quotes Israeli Premier Olmert stating, "Israel is willing to 
make painful compromises for peace." 
 
------------ 
BLOCK QUOTES: 
------------ 
 
¶1.  Regular columnist of independent Al-Ayyam, Mohammed Yaghi, 
argues under the headline, "Quick Notes on an Unsuccessful Policy" 
(05/23/08); "This [Bush] Administration is completely different from 
all of its predecessors.  It has considerably damaged the 
international standing of the United States and undermined the 
effectiveness of its foreign policy and willingly given up its 
influence to the benefit of other countries in the region. 
America's friends were actually stunned by what Bush said at the 
 
JERUSALEM 00000907  002 OF 002 
 
 
Knesset, so much so that even [the son of Egypt's president] Jamal 
Mubarak publicly denounced the May 15] speech.  No one imagined 
that Bush's vision of the birth of a Palestinian State during his 
tenure would instead become a vision of a state to be established 
only after another 60 years, after the disappearance of Hamas and 
Hezbollah... Everyone realizes the special nature of the 
American-Israeli relationship... but any American President, who is 
a friend of Israel, fully understands that the future of Israel is 
dependent on its ability to reach a peace agreement with its 
neighbors, especially the Palestinians.  What the Palestinians 
expect from any American President is not concern for their 
well-being, but rather an active, objective diplomacy that supports 
international resolutions, and the courage to launch initiatives and 
convince Israel to accept them and then demand implementation, which 
is the very role that the current Administration gave up so 
willingly, in favor of ideas full of deceitful ideology." 
 
¶2.  Under the headline, "The Lebanese Model of Reconciliation...for 
Palestinians" (05,23,08), independnt Al-Quds' main editorial 
opined, "All evidenceindicates that Israel, after having rejected 
all erms of the truce to which Palestinian factions inthe Gaza 
Strip had agreed, may very likely resor to the use of military 
power and invade the [Gaa] Strip.  This is a reckless plan... but 
the deision makers in Israel have not always invoked wisdm, 
foresight and sound judgment to guide their ations whenever the 
goal has been to appease the adical parties that have controlled a 
series of oalition governments and consequently controlled te 
survival or collapse of Israeli governments.  Wthin this context, 
concealing implicit dangers dspite the outward appearance of calm 
and explici, public negotiations, the Lebanese model of 
recnciliation must be proposed to Palestinians if the are to end 
the current state of division and sepration between the West Bank 
and the [Gaza]Strip" 
 
WALLES