VZCZCXRO8108
OO RUEHROV
DE RUEHJM #1901/01 2911224
ZNR UUUUU ZZH
O 171224Z OCT 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3023
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 7362
RUEHLO/AMEMBASSY LONDON 4342
RUEHFR/AMEMBASSY PARIS 4195
RUEHNC/AMEMBASSY NICOSIA 5689
RUEHRO/AMEMBASSY ROME 4111
RUCNDT/USMISSION USUN NEW YORK 2676

UNCLAS SECTION 01 OF 02 JERUSALEM 001901 
 
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 (10/17):  "STALEMATE" IN 
FATAH-HAMAS UNITY TALKS 
 
------------- 
Main Stories: 
------------- 
The three dailies lead with condemnations by the Palestinian 
Authority (PA) President's office of three separate killings of 
Palestinians, two by Israeli soldiers and one by settlers, in the 
past week.  The killings all occurred in the Ramallah area of the 
West Bank, with the third Palestinian being shot dead by Israeli 
soldiers on October 16.  PA Presidential spokesman Nabil Abu 
Rudaynah called on Israel and the international community to halt 
the Israeli "aggression." 
 
In lead photo coverage, all dailies run front page photos of damage 
to a Palestinian's car after "Israeli settler attacks on Palestinian 
olive farms."  Al Ayyam highlights a large photo of Israeli 
"settlers illegally" roaming about the Al Aqsa mosque compound in 
Jerusalem on October 15, under Israeli security escort.  Al Hayat Al 
Jadida also leads with a photo from the October 16 funeral of a 
young Palestinian killed by Israeli soldiers. 
 
Al Quds and Al Ayyam run front page stories about photos from 1948 
that were recently released by Israeli daily Yedeot Aharanot, 
showing Israeli soldiers leading an elderly Palestinian to his 
death.  Al Ayyam publishes the story on a black background, denoting 
the grim nature of the news, while Al Hayat Al Jadida runs a similar 
story on an inside page. 
 
All papers report that Democratic presidential hopeful Obama has 
taken the lead in polls, but is warning supporters not to become 
over-confident.  The news is part of front page coverage in Al Quds 
and Al Ayyam about the latest presidential debates.  Al Ayyam and Al 
Hayat Al Jadida publish photos from the debate on inside pages and 
the latter also runs excerpts focused on candidates' comments on the 
economy. 
 
The front pages present conflicting reports on Israel's readiness to 
accept Hamas' terms for the release of kidnapped Israeli soldier 
Shalit from Gaza.  Israeli Defense Ministry official Amos Gilad is 
quoted denying that Israel has accepted Hamas' terms.  In related 
news, Al Hayat Al Jadida's front page reports that Gilad and Egypt's 
President Mubarak discussed on October 12, the extension of the 
6-month calm agreement between Hamas and Israel when it expires in 
December.  Finally, Al Quds' front page reports that Hamas awaits 
the Egyptian response to its proposal for direct talks with Fatah in 
Cairo and calls upon Palestinian Authority President Abbas to, 
"silence voices opposing national unity." 
 
One in three Palestinian families live in poverty according to 
statistics recently released by the Palestinian Authority Bureau of 
Statistics, as reported on Al Quds' front page.  The statistics also 
reveal a rise in overall poverty rates in the Palestinian 
Territories. 
 
Al Ayyam and Al Hayat Al Jadida report that PLO negotiation chief 
Sa'eb Erekat announced that PA President Abbas will not meet with 
Israel's Premier Olmert as stated earlier, but that preparations for 
a meeting are on-going. 
 
Al Ayyam runs a front page AFP story about international calls for 
the implementation of a new financial system, as the global 
financial crises deepens. 
 
------------ 
BLOCK QUOTES: 
 
JERUSALEM 00001901  002 OF 002 
 
 
------------ 
¶1.  Former Palestinian Authority Minister Hasan Asfour opines in Al 
Ayyam under the title, "National dialogue:  Interim or final 
solution?" (10/17):  "The current situation requires that there be a 
comprehensive document that provides answers... [to] the issues of 
electoral law and mechanisms... [such as] the Legislative Council or 
PLO as tools to bring the Palestinian arena back into balance.  The 
security issue remains a basic issue to resolve..." 
 
¶2.  Al Quds editorial is titled, "What is the way out of this 
vicious circle?" (10/17):  "Egypt presented an initiative that was 
accepted by [Fatah and Hamas]...so why is this initiative now facing 
a stale-mate?... Is it because the initiative requires direct 
dialogue between the two movements?... The media have reported that 
Fatah rejects direct dialogue with Hamas, because in the past... 
Hamas has violated agreements... Fatah has the right to have 
reservations and seek Arab guarantees...... but not to totally 
reject direct dialogue" 
 
Walles