VZCZCXRO4932
OO RUEHROV
DE RUEHJM #1640/01 2480654
ZNR UUUUU ZZH
O 040654Z SEP 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2682
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 7303
RUEHLO/AMEMBASSY LONDON 4285
RUEHFR/AMEMBASSY PARIS 4138
RUEHNC/AMEMBASSY NICOSIA 5632
RUEHRO/AMEMBASSY ROME 4053
RUCNDT/USMISSION USUN NEW YORK 2619

UNCLAS SECTION 01 OF 02 JERUSALEM 001640 
 
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 (9/04): INTERNATIONAL CHANGES AND 
THEIR INFLUENCE ON THE REGION 
 
------------- 
Main Stories: 
------------- 
The three dailies highlight news that Israeli Minister of Defense, 
Ehud Barak, declared in an interview with Al-Jazeera TV on September 
3 that a future Palestinian state could have parts of Jerusalem as 
its capital.  According to Barak, Arab neighborhoods in East 
Jerusalem could make up the future capital of a Palestinian state. 
The papers quote Barak telling Al-Jazeera "We can find a formula 
under which certain neighborhoods, heavily-populated Arab 
neighborhoods, could become, in a peace agreement, part of the 
Palestinian capital that, of course, will include also the 
neighboring villages around Jerusalem."  The papers note that Barak 
did not mention whether these neighborhoods will include 
neighborhoods in the old city of Jerusalem, particularly Al-Aqsa 
Mosque. 
 
Al-Quds reports that the Israeli daily newspaper Ha'aretz said that 
Egypt and Jordan object to an Israeli- Palestinian agreement which 
does not bring the conflict as a whole in the region to an end. 
Jordan in particular expressed worries that such an agreement may 
force the country to absorb hundreds of thousands of Palestinian 
refugees.  The papers note that the Palestinian Authority agrees 
with the position of Egypt and Jordan. 
 
Accompanied by photos of the Palestinian Authority (PA) President, 
Mahmoud Abbas, and the President of Iceland, Olafur Grimsson, the 
three dailies lead with news about their meeting at the presidential 
compound in Ramallah on September 3.  Following the meeting, the 
papers note, Abbas confirmed the need to reach a comprehensive and 
complete peace agreement with the Israelis regarding all final 
status issues. 
 
Al-Ayyam reports that the Hamas leader, Mahmoud Az-Zahar, confirmed, 
in an interview with a Qatari newspaper, that the negotiations with 
Israel to broker a prisoners' exchange are frozen.  Az-Zahar said 
that Hamas did not receive a letter from the Egyptian mediator 
asking Hamas to reduce their conditions to release the Israeli 
soldier Gilad Shalit. 
 
------------ 
BLOCK QUOTES: 
------------ 
¶1.  Independent Al-Quds editorialized in "Special Damascus Summit," 
(9/4): "Today in Damascus a special quartet summit (which includes 
French President Sarkozy, President Assad of Syria, Amir of Qatar Al 
Thani, and Turkish PM Erdogan) is held... The convening of this 
summit by itself is considered a win for Syria and a certain end to 
the international isolation against it...  Although the American 
position remains distanced from the progressive position led by 
Sarkozy, the fact that the French President has very strong 
relations with the U.S. indicates that the U.S. is not opposed to or 
completely far-off from this Sarkozy's effort." 
 
¶2.  Independent Al-Ayyam runs an editorial by daily columnist Abdul 
Majid Sweilem entitled, "The New International Plan: Primary 
Features" (9/04):  "[T]he most important question is how the new 
international situation [i.e. the crisis between Georgia and Russia] 
will impact this region's crisis and opportunities for a solution? 
The biggest loser is Israel and the second biggest lose is 
Palestine!!! Israel's loss is clear because the United States is 
retreating from playing the role of international police, direct 
military use is no longer acceptable and international alliances are 
being redrawn...[This] means a deterioration in Israel's capacity to 
 
JERUSALEM 00001640  002 OF 002 
 
 
impose its [unilateral] plans and programs in the region...as for 
Palestine, the loss is due to the fact that the current internal 
[Palestinian] situation does not allow [Palestinians] to make use of 
this new historical chance to benefit Palestine's higher national 
interests...if I were in Hamas' place, I would have put the 
Palestinian cause and the unity of the Palestinian people and 
homeland on top of my priorities.  And if I were in place of the 
Palestinian left wing, I would have studied the new situation and 
revived the national program in order to pave its way." 
WALLES