VZCZCXRO7871
OO RUEHC RUEHSD
DE RUEHJM #0481/01 0771100
ZNR UUUUU ZZH
O 181100Z MAR 09 ZDK ZUI UR SVC
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4395
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 7590
RUEHLO/AMEMBASSY LONDON 4575
RUEHFR/AMEMBASSY PARIS 4423
RUEHNC/AMEMBASSY NICOSIA 5917
RUEHRO/AMEMBASSY ROME 4339
RUCNDT/USMISSION USUN NEW YORK 2913

UNCLAS SECTION 01 OF 02 JERUSALEM 000481 
 
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 (03/18):  THEORIES ON WHO IS TO 
BLAME FOR PRISIONER EXCHANGE DEAL FAILURE 
 
------------- 
Main Stories: 
------------- 
All papers lead with March 17 televised statements by Israeli 
Premier Olmert announcing the failure of prisoners exchange 
negotiations with Hamas.  The papers report that Israel has decided 
to form two cabinet committees, one to propose ways to exert 
pressure on Hamas and the other to propose legislation that will 
change, "Palestinian prisoner detention conditions to equal those of 
the captured Israeli soldier in Gaza."  The papers report on Hamas 
and Israel trading blame for the failure and speculate that 
negotiations may continue "behind the scenes."  The three papers, 
citing Israeli media, publish a list of the Palestinian prisoners 
who Israel would have released. 
All front pages cite DPA in quoting UNRWA Commissioner General Karen 
Abu Zayd stating on March 17 that Israel is conditioning the entry 
of humanitarian assistance into Gaza on the release of captured 
Israeli soldier Shalit. 
All dailies run front page coverage of stalled internal Palestinian 
dialogue in Cairo.  The papers report that "not much progress" has 
been made and that the major obstacle remains the question of the 
composition and policy of the next Palestinian Authority 
(PA)government.  The negotiation High Committee will attempt to 
settle the issue, where specialized committees have failed, 
reporting notes.  Papers also report that Egypt has asked 
Palestinian factions to extend talks through March 19 and that 
Egyptian Intelligence Chief Sulayman is in Washington.  Sulayman's 
visit is part of Egyptian-Palestinian international efforts to 
promote a "national consensus" Palestinian government, to include a 
Hamas faction that will not recognize Israel. The papers continue 
that Nabil Shaath of Fatah "reminded" other factions that acceptance 
of Quartet and international conditions is required to gain 
international recognition for any future PA government. 
 
Al Quds' and Al Ayyam's front pages again highlight the 17 house 
demolition orders issued to Palestinians in the East Jerusalem 
neighborhood of Thuri by the Jerusalem Municipality.  Coverage also 
notes the demolition of a top floor in a Palestinian apartment 
building in Jerusalem's Bayt Safafa area on March 17.  Al Quds and 
Al Ayyam run a front page photo of a woman crying over her 
demolished home, as her 9 year old son looks on. 
All papers report that Egypt arrested a Hamas delegation member who 
was returning to Gaza from Palestinian reconciliation talks in Cairo 
on March 17.  The papers report that the Egyptian border police 
found the delegate in possession of $850,000 dollars and night 
vision equipment.  In related news, Al Quds and Al Ayyam front page 
reports that Hamas has refused an offer by Egypt to open the Rafah 
crossing to Gaza in protest of Egyptian "practices" at the 
crossing. 
Al Ayyam's front page reports that the U.S. has denied entry to, 
"the Israeli national security candidate" Uzi Arad, citing 
Washington Post reporting.  The report explains that the U.S. 
considers Arad a security threat, believing that he is linked to 
leaks of U.S. classified information. 
 
Al Quds runs a front page Reuters report about a study by U.S. think 
tank, Center for Strategic and International Studies, asserting that 
Israel may use long-range missiles to attack Iran.-------------- 
BLOCK QUOTES: 
-------------- 
 
1)  Independent daily Al Quds titles their editorial, "Olmert 
obstructs prisoner exchange deal"(03/18):  "Olmert was never serious 
 
JERUSALEM 00000481  002.2 OF 002 
 
 
about making a final decision about the prisoner exchange deal [with 
Hamas].  Instead, he let time run out in the test of nerves, which 
has always been a  lose-lose game..." 
 
2)  Omar Al Ghul opines in official daily Al Hayat Al Jadida under 
the title, "What deal does Olmert want?"(03/18):  "[The 
Israeli-Hamas prisoner exchange deal] does not seem to be have been 
turned off completely, but rather has been turned down low, to 
continue cooking until the time is ripe.  Current developments 
suggest that wrapping up the deal might take longer unless Hamas 
backs down from its demands and yields to Olmert's conditions... 
opening the crossings...is conditional on releasing [captured IDF 
soldier Shalit]." 
 
WALLES