VZCZCXRO8002
OO RUEHROV
DE RUEHJM #0376/01 0621400
ZNR UUUUU ZZH
O 031400Z MAR 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4252
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 7566
RUEHLO/AMEMBASSY LONDON 4551
RUEHFR/AMEMBASSY PARIS 4399
RUEHNC/AMEMBASSY NICOSIA 5893
RUEHRO/AMEMBASSY ROME 4315
RUCNDT/USMISSION USUN NEW YORK 2887

UNCLAS SECTION 01 OF 02 JERUSALEM 000376 
 
SIPDIS 
 
STATE PASS BBG 
STATE FOR NEA, NEA/IPA, NEA/PPD 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
NSC 
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 (03/03):  "GREAT RECONSTRUCTION 
AMBITIONS FACE HUGE OBSTACLES" 
 
------------- 
Main Stories: 
------------- 
The three dailies lead with news that donors pledged $4.48 billion 
in aid to the Palestinian economy and Gaza reconstruction at the 
March 2 Sharm El Sheikh conference. The papers note that speakers at 
the conference called for implementing the two-state solution, 
achieving Palestinian reconciliation and opening Gaza crossings. The 
papers highlight statements by Palestinian Authority President Abbas 
and Premier Fayyad calling for an end to the Israeli occupation 
through political means in order to prevent having to, "reconstruct 
after every Israeli aggression." 
 
All front pages report extensively on remarks and statements made by 
Secretary Clinton at the Gaza reconstruction conference. The papers 
note that Secretary Clinton hopes to see the establishment of a 
Palestinian state this year, adding that the U.S. joins other 
countries in providing aid to meet the needs of the Palestinian 
people. Clinton further highlighted that the U.S. has pledged more 
than $900 million in initial, emergency assistance to the Gaza 
Strip. She underlined that the conference symbolized two important 
things: The commitment of the international community to provide 
immediate, emergency assistance to meet humanitarian needs in Gaza 
and assist the Palestinian Authority in improving the lives of 
Palestinians in both the Gaza Strip and the West Bank; secondly, to 
provide assistance to promote a comprehensive peace and the 
two-state solution. Clinton further stressed that she is working 
with the Palestinians to pave the way for the establishment of a 
Palestinians state that is independent, accountable to its people 
and lives in peace with Israel and neighboring Arab states, 
according to reporting. Finally, Clinton expressed support for the, 
"just and specific" demands by Palestinian Authority President Abbas 
and Premier Fayyad, describing them as helpful to many aspects of 
peace and Gaza reconstruction, and noted that she will meet with 
both leaders in Ramallah on March 4. 
 
Front pages report that Clinton expressed concern over continued 
rocket fire from Gaza against Israel during the Gaza donors' 
conference and called on all parties to work towards achieving a 
sustained peace. On Hamas, she stated that Hamas is an entity, not a 
state, and needs to understand that in order to engage with the 
international community, it must meet certain requirements. 
Regarding Iran, reporting notes that Clinton explained that the U.S. 
is discussing related issues with friends and partners in Egypt, 
Jordan and the Gulf and is open to dialogue. 
 
The three dailies run front page coverage of a report by the Israeli 
"Peace Now" organization revealing Israeli plans to double the 
number of Israeli settlers in the West Bank by building 73,000 
housing units and 5,700 in Jerusalem. The papers also report on the 
demolition of two Palestinian houses in East Jerusalem's Silwan area 
on March 2. Papers report that Palestinian Authority Presidency 
Spokesman Abu Rudaynah called the Israeli settlement plans, "a blow 
to the peace process." The papers also detail how the Israeli 
Jerusalem municipality will implement demolition orders in three 
phases in the southern, northern and southeastern parts of the city, 
according to Palestinian sources. Papers do not expect that Israel 
will demolish more Palestinian homes during the visit of Secretary 
Clinton. 
 
Al Ayyam runs front page statements by Italian Premier Berlusconi 
reiterating his call for a "Marshall plan" for the Palestinian 
economy and the construction of an airport in the West Bank to serve 
pilgrims. Berlusconi will present his plan at the upcoming G-8 
 
JERUSALEM 00000376  002 OF 002 
 
 
meeting, according to reporting.-------------- 
BLOCK QUOTES: 
-------------- 
1)  Independent Al-Quds editorializes in, "Great Reconstruction 
Ambitions face Huge Obstacles,"(03/03):  "The Sharm el-Sheikh 
conference for rebuilding Gaza and supporting the Palestinian 
economy may form an important basis for achieving the goals of the 
conference, especially in light of strong international 
participation and generous pledges...  However, the biggest problem 
and most dangerous obstacle remains - the current state of 
Palestinian division.  The plans for supporting and funding the 
reconstruction of Gaza clearly bypass Hamas which controls the Gaza 
Strip.  Naturally, such a situation will anger Hamas...  Thus, it is 
pivotal that the issue of forming a national unity government be 
resolved quickly... Without forming such a government, it might 
prove impossible to implement most of these [reconstruction] 
projects." 
 
WALLES