VZCZCXRO9365
OO RUEHROV
DE RUEHJM #1685/01 2541029
ZNR UUUUU ZZH
O 101029Z SEP 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2737
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 7312
RUEHLO/AMEMBASSY LONDON 4294
RUEHFR/AMEMBASSY PARIS 4147
RUEHNC/AMEMBASSY NICOSIA 5641
RUEHRO/AMEMBASSY ROME 4062
RUCNDT/USMISSION USUN NEW YORK 2628

UNCLAS SECTION 01 OF 02 JERUSALEM 001685 
 
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 (9/10):  ALTERNATIVES TO THE 
TWO-STATE SOLUTION 
 
------------- 
Main Stories: 
------------- 
Internal Palestinian division leads reporting in all dailies.  All 
front pages highlight comments by Arab League Secretary General Amro 
Musa expressing "anger" over the rift, and warning Palestinians that 
they may face sanctions by Arab governments.  Citing "news 
agencies," reporting continues that Musa's stated that, "sanctions 
would not be against anyone in particular.  They would be against 
the party which obstructs reconciliation and perhaps against 
everyone, or against the organization that obstructs Egyptian 
efforts."  Mousa gave no details about what sanctions might entail, 
according to reports.  Al-Quds and Al-Ayyam run a related article by 
DPA including statements by Fatah Central Committee member Zakariya 
Al-Agha.  Al-Agha reveals that Fatah and Hamas will hold separate 
talks with Egypt on internal reconciliation at the end of September 
¶2008.  An Egyptian call for "comprehensive, national" Palestinian 
dialogue will follow in October.  Al-Agha confirms that Fatah has 
not yet received any official invitation for Cairo talks, the 
article concludes. 
 
Palestinian Authority President Mahmud Abbas' meeting with President 
Bush is front page news in Al-Ayyam and Al-Hayat Al-Jadida.  The AFP 
report quotes Abbas' spokesperson Abu Rudaynah revealing the date 
and exact time for the September 26 meeting, while White House 
spokesperson Perino is reported as commenting only that the meeting 
may take place after the upcoming UN General Assembly meeting. 
According to PLO negotiator Sa'eb Erekat, Abbas and Bush will, 
"evaluate the Israeli-Palestinian negotiation process and discuss 
obstacles preventing the conclusion of an accord," the report 
continues.  Erekat also accuses Israel of failing to abide by its 
commitments in peace talks, including the agreement to freeze 
settlement activity in the West Bank, the report concludes. 
 
The Israel-Hamas prisoner exchange talks get front page billing in 
Al-Ayyam and Al-Hayat Al-Jadida.  Citing Israeli daily Haaretz, the 
papers report that an Israeli ministerial task force has drawn up a 
list of 450 Palestinian prisoners whom Israel would be willing to 
exchange for captive Israeli soldier Gilad Shalit.  Israel also 
threatened to take, "various active measures," should Hamas continue 
to delay talks over Shalit, according to the coverage. 
 
Al-Quds runs the front page headline, "Palestinian Authority [PA] 
pays $15 million bond in bid to resume compensation case," 
introducing an article about the recent    ruling by a U.S. federal 
judge that the PA must pay the American family Ellis $192.7 million 
in damages for the killing of their son in a 2002 terrorist attack 
in Israel.  Reporting explains that the PLO and PA had until now 
refused to defend themselves in court, saying the case lacked merit. 
 Now the PA has asked the judge to allow them to challenge the 
judgment, with defense lawyers filing affidavits by PA Premier 
Fayyad explaining that the PA is facing a financial crisis caused by 
international embargos on foreign aid, the withholding of revenues 
by Israel and restrictions on trade and movement in the West Bank 
and Gaza Strip.  PA defense lawyers said in court papers that the PA 
is, "teetering on the verge of bankruptcy," according to the story. 
 
 
Al-Quds highlights an interview with the head of Israel's military 
Civil Administration Brigadier General Yoav Mordechai about Israeli 
checkpoints in the West Bank.  Mordechai admits that Israeli 
soldiers and the settlers have made mistakes but also highlights 
positive news that almost 100 of the 607 West Bank checkpoints have 
been removed.  He adds that in accordance with established 
 
JERUSALEM 00001685  002 OF 002 
 
 
procedures, the Israelis study security conditions in the West Bank 
weekly and then decide whether to remove checkpoints or otherwise 
facilitate movement.  As for settler attacks on Palestinians, 
Mordechai said that Israeli Police, soldiers and intelligence are 
taking strong action against violence whether it involves 
Palestinians or Israelis, according to the interview.  Al Quds does 
not identify the date or source of the interview. 
 
Al Quds runs a prominent front page photo of President Bush speaking 
at the American National Defense University on September 9, next to 
an AFP article on the Bush announcement to withdraw 8,000 US troops 
from Iraq and deploy an additional 4,500 soldiers to Afghanistan. 
The story notes that the decision means that Bush's successor will 
preside over a largely unchanged number of U.S. troops in Iraq, 
despite the "deep unpopularity of the war." 
 
Al-Hayat Al-Jadida's lead photo shows Palestinian Authority Premier 
Salam Fayyad opening a new USAID-funded public park near Bethlehem 
on September 9.  Citing Wafa, articles on inside pages in Al Quds 
and Al-Ayyam explain that the park was previously an abandoned 
Israeli military base.  Fayyad thanked USAID for their support and 
also condemned Israeli settlers' prior attempts to occupy land in 
the area. 
 
------------ 
BLOCK QUOTES: 
------------ 
¶1.  Independent Al-Quds runs an editorial by daily columnist Dr. 
Hasan Abdullah entitled, "The success of Cairo talks Could save our 
communal ship from sinking" (9/10): "[C]airo talks must lead to an 
agreement...the agreement should pave the way for presidential and 
legislative Palestinian elections...the Palestinians should consult 
the people on the choice of their own leader...and everybody must 
respect their choice if we [Palestinians] really want to save 
ourselves and our homeland from the hellish division which is 
becoming greater than both the homeland and the Palestinian cause." 
 
¶2.  Independent Al-Ayyam runs an editorial by daily columnist Hani 
Habib entitled, "Bilateral State...Unilateral Game!!" (9/10): 
"[C]lear statements by Palestinian officials show that the 
negotiations process has not led to any results regarding final 
status issues.  Chief Palestinian negotiator, Ahmad Quray openly 
hinted that if the independent state solution fails, the alternative 
demand by the Palestinian people and its leadership should be a 
'one-state, double nationality' solution.  It is obvious that this 
demand/choice is evidence of depression and confusion..." 
WALLES