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O 161059Z JUN 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1808
RHEHAAA/WHITE HOUSE WASHDC
RHEHNSC/WHITE HOUSE NSC
RUEKJCS/SECDEF WASHDC
RUEKJCS/DIA WASHDC
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RUEAHQA/CSAF WASHINGTON DC//POLAD//
RHMFIUU/CMC WASHINGTON DC
RUENAAA/CNO WASHINGTON DC//POLAD//
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUEHTU/AMEMBASSY TUNIS 7160
RUEHLO/AMEMBASSY LONDON 4147
RUEHFR/AMEMBASSY PARIS 4000
RUEHNC/AMEMBASSY NICOSIA 5498
RUEHRO/AMEMBASSY ROME 3916
RUCNDT/USMISSION USUN NEW YORK 2478

UNCLAS SECTION 01 OF 03 JERUSALEM 001015 
 
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 (6/16):  SETTLEMENTS - "AN 
OBSTACLE TO PEACE" 
 
------------- 
Main Stories: 
------------- 
 
The three dailies lead with coverage meetings between Secretary Rice 
and President Abbas in Ramallah on June 15.  Al-Quds opens with a 
quote of Abbas stressing that settlements are the main obstacle to 
peace.  The paper quotes Secretary Rice stating that settlement 
activities will hurt negotiations, but not affect final status 
issues.  The dailies highlight that the issue of settlements 
dominated meetings between Rice and Abbas.  The dailies also note 
that Rice participated in a trilateral meeting with Israeli Foreign 
Minister Livni and Palestinian negotiator Quray in Jerusalem after 
meeting with Abbas. 
 
Israeli plans to build 40,000 new housing units in East Jerusalem 
over the next ten years are front page news in all dailies. 
Al-Hayat Al-Jadida quotes PLO negotiator Sa'eb Erekat stating that 
since Annapolis, Israel has announced plans for 1,731 new housing 
units in settlements.  The paper also quotes Palestinian 
presidential spokesperson Abu Rudayna, stating that the peace 
process is "dying" because of continued settlement activity. 
 
Ongoing efforts at internal reconciliation between Fatah and Hamas 
continue to capture headlines.  According to all front pages, Fatah 
and Hamas are willing to "turn the page, following a year of 
division."  Al-Hayat Al-Jadida reports that some progress has been 
made on this front. 
 
The front page of Al-Ayyam runs an AFP story quoting Israeli Defense 
Minister Barak stating that, "maintaining checkpoints in the West 
Bank is important due to the increasing threat of rocket attacks 
from the West Bank."  Related coverage in all dailies reports that 
Israel continues to consider a military "invasion" of Gaza. 
 
The front page of Al-Quds reports that a researcher from Dale 
Carnegie suggested that the future U.S. president should consider a, 
"one-state solution with dual nationalities," as an alternative 
solution to the Palestinian-Israeli conflict. 
 
Citing different wires, the dailies highlight that Syria and Israel 
have begun "direct" negotiations under Turkish sponsorship 
 
Al-Ayyam carries an inside story by Reuters regarding Fulbright 
students in Gaza.  The story quotes Secretary Rice confirming the 
importance of Israel allowing students to leave the Gaza Strip. 
Rice is also seen reassuring readers that efforts will continue to 
help the students exit Gaza as long as there are no "obvious Israeli 
security concerns regarding their departure." 
 
--------------- 
Weekend stories 
--------------- 
 
Sunday, June 15, 2008 
 
The visit by Secretary Rice to the region and her planned meetings 
with Israeli and Palestinian officials wins extensive coverage on 
the front pages of the three dailies.  According to the lead story 
in official daily Al-Hayat Al-Jadida, Rice described settlements as 
a "problem" in her remarks to traveling press en route to Tel Aviv. 
Al-Quds reports that Rice stated that, "settlement expansion in 
Jerusalem is an obstacle to the peace process."  Related stories 
positively cover June 14 comments by President Bush about the, 
 
JERUSALEM 00001015  002 OF 003 
 
 
"importance of creating a Palestinian state."  According to the 
front page coverage, Bush insisted upon the importance of 
establishing a Palestinian state soon as a model for others in the 
region to emulate.  Separate coverage in the dailies reports that 
Palestinian Premier Fayyad "accused" Israel of obstructing the peace 
process by expanding settlements.  Al-Ayyam also highlights that 
Rice stated that Israel has not done enough to ease restrictions on 
movement for Palestinians in the West Bank. 
 
Photos of Israeli soldiers clashing with Palestinian protesters in 
Bethlehem lead coverage in the three dailies.  According to linked 
reporting, 15 Palestinians were injured during an anti-wall protest 
in the city on June 14. 
 
In Gaza, reports in all dailies note that Hamas has designated two 
million dollars in assistance to, "victims of Israeli operations in 
Gaza."  Related coverage in all papers highlights that Egypt will 
share with Hamas, the Israeli response to a truce proposal. 
 
Citing Israeli sources, the dailies report that the United States 
has accused Israel of secretly buying 20 million dollars worth of 
food imports from Iran. 
 
Saturday, June 14, 2008 
 
The dailies reported that PLO negotiator Sa'eb Erekat confirmed 
that, "there is no agreement with the Israelis regarding a land 
swap."  His comments responded to a statement by Ami Ayalon, an 
Israeli minister-without-portfolio, who indicated the existence of 
such an agreement between Israeli Foreign Minister Livni and chief 
Palestinian negotiator Quray. 
 
The dailies led with photos of international activists being 
"attacked" by Israeli soldiers during "anti- wall protests" in 
Ramallah and Bethlehem. The dailies reported that dozens of 
Palestinians and international activists were injured during the 
protests that took place on June 13. Related coverage in all dailies 
shows photos of "brutal" attacks by Israeli settlers on Palestinian 
farmers.  The photos were released to the press by the Israeli NGO 
Betselem as part of their new campaign to document, "settler attacks 
on Palestinians." 
 
------------ 
BLOCK QUOTES: 
------------ 
¶1.  Independent Al-Ayyam carries its daily editorial under the 
title, "Waiting for the analysis of Rice's statement" (6/16): 
"Comments by Secretary Rice after hermeeting with President Abbas 
included statementsthat the time has come to establish a 
Palestinianstate, and that settlements are an obstacle to peae, 
and that the United States is concerned aboutthese activities.  She 
also said that she will dscuss the issue [of settlements] with the 
Israel Premier and gave her assurance that Washington wil make 
every effort to accomplish an agreement tht will lead to the 
establishment of a Palestinias state by the end of this year. 
These are important, pioneering statements ..." 
 
¶2.  Independent Al-Quds runs an editorial by veteran columnist Samih 
Sh'bayb entitled, "Rice's visit!" (6/16): "This is her sixth visit 
since the Annapolis conference, which at the time, generated 
positive expectations [about a resolution of] the Palestinian 
question in general, and the settlements issue in specific ... 
settlement activities have continued since Annapolis like never been 
before, especially in the Jerusalem area.  Official Israeli 
 
JERUSALEM 00001015  003 OF 003 
 
 
statements call discussions on Jerusalem 'out of the question', and 
[we see] serious Israeli steps to change and create new realities on 
the ground to make Jerusalem the de facto united capital of 
Israel... This visit by Rice was meant to underscore that settlement 
activities are a problem when building bridges of trust between 
Palestinians and Israelis.  However, she did not define any clear 
position regarding ongoing settlement construction in Jerusalem. 
What is clear is that the United States is committed to the same 
position of not pressuring Israel ... what Rice really wants is to 
just continue holding meetings and negotiations as a sign that the 
peace process still exists..." 
 
WALLES