VZCZCXRO7327
OO RUEHROV
DE RUEHJM #0454/01 0710946
ZNR UUUUU ZZH
O 120946Z MAR 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4352
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 7581
RUEHLO/AMEMBASSY LONDON 4566
RUEHFR/AMEMBASSY PARIS 4414
RUEHNC/AMEMBASSY NICOSIA 5908
RUEHRO/AMEMBASSY ROME 4330
RUCNDT/USMISSION USUN NEW YORK 2904

UNCLAS SECTION 01 OF 02 JERUSALEM 000454 
 
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 (03/12):  HOPES FOR GREATER ARAB 
"RECONCILLIATION" 
 
------------- 
Main Stories: 
------------- 
Papers lead for a second day with news from Palestinian "national 
dialogue" talks in Cairo.  Al Quds reports that a permanent 
committee has been formed to address problems related to internal 
division.  All papers report that Palestinian "factions" have agreed 
to "urgently" form a new government with "national personalities" 
that would serve "independent of any factional affiliation."  Al 
Quds adds that Hamas has rejected asking Palestinian Authority 
Premier Fayyad to form a new government.  Al Hayat Al Jadida notes 
that Palestinians are waiting for the "white smoke" to come from the 
dialogue, and that Hamas will insist on the right to select the 
Prime Minister and most cabinet members in any new government. 
 
Al Quds' front page reports that Congress rejected a Republican bill 
to prevent Gazan Palestinians from living in the U.S. and enforce 
tough limitations on U.S. assistance to Gaza. In related reporting, 
Al Hayat Al Jadida and Al Ayyam front page a Reuters report about 
the U.S. asking Israel to explain why toilet paper and soap are 
prevented from entering Gaza.  The report further quotes the World 
Food Program saying that Israel has blocked a Gaza-bound cargo of 
chick-peas, "a popular Palestinian food," for several weeks.  The 
report quotes a Western official confirming that, "the Americans and 
NGOs have expressed concerns and protested," against the Israeli 
measures. 
Al Ayyam's and Al Quds' front pages report that President Obama 
signed a U.S. federal budget that includes $2.4 billion dollars for 
Israel, $1.5 billion dollars for Egypt, and significant aid to 
Jordan and Lebanon.  In related reporting, Al Hayat Al Jadida's 
front page cites a DPA report quoting a senior, anonymous U.S. 
official telling Israeli radio that the next decades' $30 billion of 
U.S. aid to Israel will not be affected by the current financial 
crisis. 
Al Ayyam and Al Hayat Al Jadida front page a report on "harassment 
of Palestinians by Israeli settlers" in Jerusalem on March 11. 
According to reports, Israeli police blocked roads to allow settlers 
access to the city for religious celebrations.  Reporting adds that 
the settlers' behavior "increased tensions" in and around the Al 
Aqsa mosque compound.  In related news, Al Quds' front page reports 
that the Israeli Jerusalem municipality and Israeli Ministry of 
Interior have issued demolition orders to seven houses in Burj 
Allaqlaq area in Jerusalem.  Papers call the action an "effort to 
confiscate" 12 acres on which to build a "settlement outpost" and 
synagogue in "Jerusalem's Islamic quarter."  In related news, 
Al Quds and Al Hayat Al Jadida cite Reuters in reporting on a 
special EU meeting on March 15 that will address "the situation in 
the Palestinian Territories."  The papers also report on EU warnings 
about Israeli plans to demolish 90 Palestinian houses, calling the 
action, "the largest demolition of Palestinian houses in Jerusalem 
since 1967, causing the displacement of 1,000 people." 
 
All papers report on the killing of a 17-year old Palestinian boy 
and injury of another by the Israeli military in Dir Abu Mishal 
village near Ramallah on March 11.  Al Ayyam adds that the Israeli 
military arrested 35 Palestinians in Bayt Ummar near Hebron on March 
¶11. 
 
Al Quds and Al Ayyam front page a report on the "mini" Arab summit 
held on March 11 with Egyptian President Mubarak, Saudi King 
Abdullah, Syrian President Assad and Kuwait Emir Al Subah in Riyadh. 
 The report reveals that the Arab leaders agreed to unify their 
approach on dealing with the Palestinian issue and will begin a new 
era of Arab cooperation. 
 
JERUSALEM 00000454  002 OF 002 
 
 
Al Ayyam's and Al Hayat Al Jadida's front pages cite an AFP report 
revealing that prisoner exchange negotiations between Hamas and 
Israel have entered a final stage.  The report quotes an Egyptian 
source confirming that intense, difficult negotiations continue in 
Egypt.  -------------- 
BLOCK QUOTES: 
-------------- 
 
1)  Al Quds' editorial is titled, "Arab reconciliation to confront 
axes and challenges"(03/12):  "We hope that the smaller summit held 
in Saudi Arabia... will contribute to achieving reconciliation and 
confronting threats and foreign axes, and consequently, 
strengthening Arab influence and national security..." 
 
WALLES