VZCZCXRO1117
OO RUEHROV
DE RUEHJM #1861/01 2821025
ZNR UUUUU ZZH
O 081025Z OCT 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2974
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 7353
RUEHLO/AMEMBASSY LONDON 4333
RUEHFR/AMEMBASSY PARIS 4186
RUEHNC/AMEMBASSY NICOSIA 5680
RUEHRO/AMEMBASSY ROME 4102
RUCNDT/USMISSION USUN NEW YORK 2667

UNCLAS SECTION 01 OF 02 JERUSALEM 001861 
 
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 (10/08):  "THE END OF 
NEO-CAPITALISM" 
 
------------- 
Main Stories: 
------------- 
 
Al Quds and Al Hayat Al Jadida lead with news on internal 
Palestinian talks in Cairo.  Al Quds highlights comments by Hamas 
leader Mahmud Zahhar denying that the group has vetoed" proposals to 
be discussed in Cairo.  However, Zahhar adds that Hamas 
categorically rejects the formation of a Palestinian technocrat 
government and will insist on the formation of a national unity 
government, instead.  Al Hayat Al Jadida adds that parties will also 
discuss early legislative and presidential elections and reform, 
under Arab supervision, to Gaza security forces. 
 
Al Ayyam leads with, "Israel allows Palestinian Authority (PA) to 
deploy police in Hebron."  Al Hayat Al Jadida carries a similar 
front page story.  Reporting cites Israeli daily Yediot Aharanot and 
notes that PA security achievements in Nablus and Jenin have 
generated international support for expanding PA security efforts to 
other areas of the West Bank.  The deployment of 500 PA police is 
scheduled for next week, according to reports.  Al Ayyam adds that 
several international officials have visited Jenin where the PA 
achieved significant security improvements and quotes PA Foreign and 
Information Minister Riyad Al Malki stating that the, "PA plans to 
assume responsibility for security in all PA Territories". 
 
Al Quds runs a front page story on the visit of Quartet 
Representative Tony Blair to the northern West Bank city of Jenin. 
Blair is quoted saying, "the Quartet is determined to achieve change 
at the political, security, economic and social levels in the 
Palestinian Territories."  Blair also asserts that the international 
community should lay the proper foundation for PA security efforts, 
including:  allocating resources for building prisons and industrial 
zones and pressuring Israel to lift obstacles to Palestinian 
movement. 
 
The three dailies front page reports on the visit by Palestinian 
Authority (PA) President Abbas to India.  India pledged $10 million 
in support to the PA budget and donated land and buildings for the 
PA "embassy" in New Delhi, the papers note. 
 
Al Ayyam publishes front page statements by Israel's Likud party 
chief Binjamin Netanyahu explaining that the peace process is not 
his first priority and that he would instead focus on taking 
practical steps to improve daily Palestinian life.  Speaking to the 
Financial Times, he continued that he would allow Palestinians to 
live in their communities, but not take control of the Jordan valley 
area.  Al Ayyam also highlights a recent UN report that shows an 
increase in Israeli obstacles to Palestinian movement. 
 
Al Ayyam cites news agencies in a front page item that reads, 
"International mobilization to prevent panic over financial crises." 
 The news item quotes Chairman of the U.S. Federal Reserve Ben 
Bernanke stating, "The American Central Bank has to reconsider its 
financial policies in light of the crises....  Risks related to 
growth have increased." 
 
Al Ayyam highlights on its front page that Israeli soldiers shot a 
Palestinian at close range in the Fara'a refugee camp near Nablus. 
The report also highlights that soldiers "tortured" another 
handicapped Palestinian in the camp, "who is neither a political 
activist nor on the Israeli 'wanted list'," but was simply preparing 
a meal in her kitchen. 
 
 
JERUSALEM 00001861  002 OF 002 
 
 
Al-Hayat Al-Jadida runs an inside report headlined, "Water Authority 
and USAID Celebrate $45 million water project in East Hebron." The 
report includes comments by USAID Mission Director Howard Sumka 
reiterating U.S. commitment to strengthening the Palestinian economy 
and improving daily life for the Palestinian people.  Palestinian 
Authority Minister of Local Government Bandak thanked USAID for 
implementing the important project. 
 
------------ 
BLOCK QUOTES: 
------------ 
¶1.  Al Ayyam independent daily prints an opinion piece written by 
Jawad Al Bashiti under the title, "The End to History" (10/08): 
"During feudal times, the church was the largest real estate owner, 
but during the... [end to] the history of neo-capitalism, the 
"Bush-Paulson" state has suddenly become the major real estate 
owner... The upcoming months will not be a time of healing but 
rather a time for the U.S. economy to slip into a deepening 
recession...  Now, the ideology called "neo-capitalism" or the 
ideology of the "neo-liberals" has... reached its end... If we look 
deep into the history of the failure of ideologies, we discover that 
socio-economic systems first fail in their ideological kingdoms 
before they fail in the real kingdoms.  What has gone bankrupt on 
Wall Street is not only a few banks, but the ideology of 
neo-capitalism itself..." 
 
¶2.  Regular columnist Adli Sadiq writes in official Al-Hayat 
Al-Jadida under the title, "Producing reconciliation ... in other 
words"(10/08):  "It won't help Hamas to debate with itself nor on 
"Al Jazeera"... Hamas has to master the art of listening and get 
back to some level of maturity after losing its credibility.  While 
it came to lead Palestinian society through a platform that touted 
reform, Jihad and resistance, it has failed to engage on easy, 
natural issues such as supporting the values of caring, harmony and 
social solidarity and other Quranic values.  Instead, it has 
destroyed civil peace and established a future of revenge." 
 
Walles