VZCZCXRO6567
OO RUEHROV
DE RUEHJM #0812/01 1380801
ZNR UUUUU ZZH
O 180801Z MAY 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4868
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
RHMFIUU/CNO WASHINGTON DC//POLAD//
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUEHTU/AMEMBASSY TUNIS 7683
RUEHLO/AMEMBASSY LONDON 4661
RUEHFR/AMEMBASSY PARIS 4508
RUEHNC/AMEMBASSY NICOSIA 6002
RUEHRO/AMEMBASSY ROME 4423
RUCNDT/USMISSION USUN NEW YORK 3000

UNCLAS SECTION 01 OF 03 JERUSALEM 000812 
 
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 (05/18):  PALESTINIANS:  U.S. 
CREDIBILITY HINGES ON TANGIBLE IMPROVEMENT TO DAILY LIFE 
 
------------- 
Main Stories: 
------------- 
All dailies lead with news that July 7 will see the signing of a 
final "Palestinian national reconciliation" accord to end 
Fatah-Hamas division.  According to reporting, Egyptian Intelligence 
Chief Sulayman spoke about ongoing Palestinian unity talks in Egypt, 
stating that talks must reach some "productive outcome."  Sulayman 
announced that the next round of unity talks will be for signing 
agreements, adding that it is impossible to talk about 
reconstruction and a truce in Gaza, the peace process, and a lifting 
of the "siege" before ending Palestinian division.  The Head of 
Fatah block Azzam Al-Ahmad announced that a Fatah-Hamas committee 
for Gaza security issues will be formed.  Meanwhile, Hamas 
spokesperson Barhum stressed that it is premature to talk about 
results and reiterated that the singing of any agreement must wait 
for the resolution of all pending issues.  Barhum also told press 
that Fatah has not presented, "any new vision regarding pending 
issues." 
 
All front pages report on Israeli Prime Minister Netanyahu's meeting 
with President Obama in Washington on May 18.  According to Israeli 
sources, Netanyahu will tell President Obama that he is ready to 
pursue negotiations with the Palestinians on establishing an 
independent Palestinian state if certain pre-conditions are met 
including the recognition of Israel as a Jewish state.  Israel in 
return, will seek to strengthen the Palestinian economy and support 
institution building.  Netanyahu is also expected to suggest that a 
committee redraft the Road Map and will present a new strategy for 
dealing with Iran, according to coverage. 
 
Front page headlines announce that the World Economic Forum 
concluded at the Dead Sea on May 17.  According to reporting, the 
Forum focused extensively on the Israeli-Palestinian peace process. 
King Abdullah of Jordan reiterated the importance of quickly 
re-launching negotiations based on the two-state solution and the 
Arab Peace Initiative.  Israeli President Peres called the readiness 
of 57 Arab countries to make peace with Israel "very encouraging" 
and highlighted that the gap between Palestinian and Israeli 
negotiators has narrowed. 
 
Al-Ayyam runs a front page story about the Palestinian 
Telecommunications company "Paltel" signing a preliminary merger 
agreement with Kuwaiti company "Zein" on May 18.  The official 
signing ceremony will take place in Ramallah in two weeks, the paper 
reports. 
 
All papers front page coverage about Israeli Defense Minister Barak 
issuing a permit to an Israeli right wing group to visit Hebron and 
the Ibrahim mosque on May 18.  Hebron Mayor Issily considered the 
visit "provocative" and "a new obstacle to peace." 
 
-------------- 
Weekend stories: 
-------------- 
Sunday, May 17: 
 
All front pages highlight analyses and predictions about President 
Obama's upcoming meetings with regional leaders.  Headlines announce 
that Obama will use the meetings to identify which elements of a new 
American peace plan should be announced during his June visit to 
Egypt.  The papers also highlight that the U.S. refused on May 16 to 
reveal the new peace plan.  The articles run comments by a senior 
White House advisor confirming that the plan will include elements 
 
JERUSALEM 00000812  002 OF 003 
 
 
of the Arab Peace Initiative and elements discussed during the 
series of meetings.  The articles also run May 16 comments by 
Israeli officials about possible meeting topics and by Jordan's King 
Abdullah highlighting President Obama's endorsement of the two-state 
solution. 
 
Al Ayyam and Al Hayat Al Jadida front paged statements by PLO chief 
negotiator Sa'eb Erekat calling on President Obama to stop Israel 
from acting like a, "state above the law" and force Israel to accept 
the two-state solution and halt settlement activities.  Erekat 
added, in statements made at the World Economic Forum, that dealing 
with Israel is, "the first test of the Obama administration." 
Reporting also highlights that Erekat summarized Palestinian 
expectations of President Obama's meeting with Israeli Premier 
Netanyahu stating, "we hope that the American administration views 
regional peace as an issue of great interest to the U.S."  In 
related news, the two papers ran a front page story about Syrian 
Ambassador to Washington Mustafa telling Al Hurra that Special Envoy 
Mitchell has applied for a visa to Syria. 
 
Saturday, May 16: 
 
Al Quds and Al Hayat Al Jadida quoted Palestinian Authority advisor 
on Jerusalem Affairs, Abdil Qadir revealing a new plan by an Israeli 
settler group to construct settlement housing on the rubble of more 
than 60 houses recently demolished by the Jerusalem Municipality in 
the East Jerusalem neighborhood of Silwan.  According to Qadir, the 
plan is being implemented in "collusion with" the Jerusalem 
Municipality, reporting noted. 
 
"Thousands in the Gaza Strip commemorate the 61st anniversary of the 
Nakba [the catastrophe] - Scores injured in anti-wall and Nakba 
commemoration protests and demonstrations," according to front page 
headlines in all dailies.  According to coverage, protestors carried 
banners with the names of villages and towns from which Palestinians 
were "expelled" in 1948 and shouted slogans supporting the 
Palestinian refugees' right of return. 
 
All front pages highlighted statements made by the Pope upon the 
conclusion of his visit to the Holy Land.  The Pope noted that the 
"wall" [separation barrier] was, "one of the saddest things I have 
seen during this visit."  He added that, "the Palestinian people 
have a right to an independent sovereign state in which they live in 
dignity and move freely," according to coverage. 
-------------- 
BLOCK QUOTES: 
-------------- 
1)  Al-Quds independent daily runs an editorial under the title, 
"Examining the credibility of the U.S. administration" (05/18): 
"Since President Obama's entry to the White House, we have been 
hearing a lot about the new administration's commitment to the 
two-state solution in addition to a possible announcement of a new 
Middle East peace plan to be unveiled during Obama's visit to 
Cairo... Despite all this, we have not seen any dramatic change in 
U.S. policy regarding the Palestinian question and the Israeli 
occupation... We say to Obama, your message to the Arab and Muslim 
world should be preceded by tangible evidence of your commitment 
[changes on the ground] in order to convince us that the two-state 
solution is not merely a slogan as it was under the Bush 
administration." 
 
2) Regular columnist Samih Sh'bayb opines in Al-Ayyam independent 
daily under the tile, "The dialogue's fifth round" (05/18):  "A 
quick review of the several rounds of national Palestinian 
 
JERUSALEM 00000812  003 OF 003 
 
 
dialogue... reveals that Hamas has sought only to prolong the 
dialogue... Hamas began the current round of talks by announcing 
that it will not recognize the new Fayyad government... How will we 
ever agree on a government given these two different visions 
[Fatah/Hamas] of how to deal with Israel and the international 
community?... How will we ever agree on a government and its 
composition in light of Hamas' preconditions?  It is obvious that 
Hamas has used the dialogue to buy time to build support for its 
policies.  It is also obvious that Hamas is still not ready to sign 
any national agreement to break the siege and reconstruct the 
Strip." 
 
WALLES