VZCZCXRO5659
OO RUEHROV
DE RUEHJM #1042/01 1731146
ZNR UUUUU ZZH
O 221146Z JUN 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5189
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 7737
RUEHLO/AMEMBASSY LONDON 4713
RUEHFR/AMEMBASSY PARIS 4560
RUEHNC/AMEMBASSY NICOSIA 6054
RUEHRO/AMEMBASSY ROME 4475
RUCNDT/USMISSION USUN NEW YORK 3052

UNCLAS SECTION 01 OF 03 JERUSALEM 001042 
 
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 (06/22):  "NATIONAL INTERESTS 
DEMAND THAT PALESTINIAN DIVISION END ON JULY 7" 
 
------------- 
Main Stories: 
------------- 
Al-Ayyam leads with and Al-Quds and Al-Hayat Al-Jadida front page 
news citing AFP and Wafa on the Israeli government's annual budget 
that has been provisionally approved (June 21) for 2009-2010 and 
will include $250 million for the establishment of new settlement 
outposts  in the West Bank, "despite the calls of President Obama to 
halt all settlement activities."  $4,000,000 dollars will be 
allocated for constructing a new neighborhood in Jerusalem area 
Ma'aleh Adumim settlement, whereas $125 million will go for 
supporting "security expenses," according to coverage.  An Israeli 
minister representing the Likud party noted during the Israeli 
cabinet meeting of June 21, that the "Jews have the right to live in 
a Jewish state and they have the right to continue the settlement 
activities in the West Bank areas." 
 
Al-Hayat Al-Jaddia leads with and Al-Quds front pages wire reports 
citing Israeli papers that a "comprehensive and profound deal" is 
being negotiated between Hamas and Israel with U.S. and Arab 
blessings to, "end the sufferings of the people of Gaza."  The 
arrangement is the main reason behind Israeli Defense Minister 
Barak's recent visit to Egypt, according to Israeli daily Haaretz. 
The deal, according to coverage, will support national 
reconciliation efforts between Fatah and Hamas, the release of 
captured Israeli soldier Shalit, and will establish a long term 
truce between Hamas and Israel. 
 
Al-Quds' leads and all front pages cover wire reports about 
continued riots in Iran.  Al-Quds runs separate front page coverage 
citing AFP about President Obama urging Iranian leaders on June 21 
to put an end to all violent and oppression acts against the Iranian 
people and calling on the Iranian government to respect the freedom 
of expression. 
 
Palestinian Authority President Abbas' visit to Saudi Arabia on June 
21 got front page coverage on all front pages.  Abbas met with King 
Abdullah and discussed recent developments in the Palestinian 
Territories and means to coordinate the position of the Arab 
countries in the next phase to support efforts towards achieving 
peace in the Middle East based on the establishment of a Palestinian 
state.  Abbas also briefed King Abdullah on recent developments 
regarding national unity dialogue, according to coverage. 
 
Al-Hayat Al-Jadida runs front page coverage on Fatah parliamentary 
block member Al-Ahmad noting on June 21 that Palestinian Authority 
President Abbas approved the release of a number of Hamas members 
detained in the PA detention centers in the coming few days. 
Al-Ahmad noted that more detainees will be released soon and pointed 
out that this step comes within efforts to support the national 
unity dialogue and end internal division. 
 
All front pages report on the Jerusalem Municipality issuing 65 
demolition orders on June 21 for houses and apartments in East 
Jerusalem, mainly Bayt-Hanina, Shu'fat and Silwan neighborhoods. 
The orders cite lack of appropriate construction permits, according 
to coverage. 
 
-------------- 
Weekend stories: 
-------------- 
Sunday June 21: 
 
All front pages reported that, "Abbas and Assad stress commitment to 
 
JERUSALEM 00001042  002 OF 003 
 
 
the Arab peace initiative and support Egyptian efforts for achieving 
Palestinian reconciliation and unity."  Syrian and Palestinian 
Authority Presidents Bashar Al Asaad and Mahmoud Abbas conducted 
"in-depth" discussions in Damascus addressing Palestinian 
developments, Palestinian national dialogue, the position of Israeli 
Prime Minister Netanyahu on the two-state solution, and results of 
discussions that President Abbas conducted in Washington, according 
to coverage.  Following the meeting, PLO negotiator Saeb Erekat, 
told press that,"in view of the speeches by President Obama and 
Israeli Prime Minister Netanyahu, the picture has become clear that 
there is a need for closer coordination among Arabs regarding many 
issues." 
 
"Misha'l postpones his speech from Damascus," according to Al 
Ayyam's and Al Hayat Al Jadida's front pages.  A statement issued by 
the Hamas media office in Damascus announcing the postponement of 
the speech did not give any reasons for the postponement reporting 
notes.  Meanwhile, media sources linked the postponement with the 
Palestinian-Syrian talks that took place in Damascus on June 20. 
 
An Ayyam front page headline reported, "A senior Hamas leader: "We 
informed Carter of our acceptance of a state within the 1967 borders 
without recognizing Israel" "Hamas: Carter provided a written 
initiative that goes beyond the Quartet's conditions."  The story 
followed on a June 20 Al Ayyam report that Hamas confirmed that 
Carter provided Hamas with a written initiative that goes beyond the 
conditions of the Quartet and offers direct dialogue with the 
American administration.  Palestinian sources indicated that 
Carter's initiative consists of two main elements, the first: 
announcement by Hamas of its acceptance of the Arab peace 
initiative, and second: announcement by Hamas of the ultimate goal 
of the Road Map, namely, the two-state solution." The sources added 
that Carter confirmed that Hamas's acceptance of these two elements 
will be the key to dialogue with the American administration and the 
lifting of the political and financial isolation of the movement, 
according to coverage. 
 
Saturday June 20: 
 
Al Quds' front page reported on, "New settlement projects in 
Jerusalem."  A new Israeli document reveals that the Israeli Land 
Administration will announce over the next two years the 
construction of 5,800 new housing units in Jerusalem, according to 
reporting.  The Israeli weekly newspaper 'Yirushalim', which 
revealed the news, stated that the most prominent tenders are: the 
tender in Har Homa settlement in East Jerusalem, with plans to 
construct 1200 settlement units there, the tender for establishing a 
new neighbourhood in Ramot including 900 housing units, as well as 
the establishing of a fancy neighbourhood consisting of 268 units in 
Lifta to replace the existing abandoned houses there. 
 
All front pages ran extensive coverage of Egyptian President 
Mubarak's recent editorial in the Wall Street Journal. 
-------------- 
BLOCK QUOTES: 
-------------- 
1) Rimonda Tawil opines in Al-Quds independent daily under the 
title, "Netanyahu's speech requires that we change our 
speech"(06/22):  "In his speech, Netanyahu presented everything he 
believes in and he ruined all peace initiatives and burned all 
reconciliation bridges.  We as Palestinians must now revisit our 
policies and positions... It is time to start a new strategy that is 
based on a clearer analysis of our interests, objectives, 
priorities..., because if Israel continues to consider itself the 
 
JERUSALEM 00001042  003 OF 003 
 
 
most powerful country in the region and plans to dominate, then the 
whole region will be threatened by these[racist policies]." 
 
2) Samih Shbayb opines in Al-Ayyam independent daily under the 
title, "Will July 7th be decisive?" (06/22):  "It is likely that 
Hamas will hesitate to accept the Egyptian proposal on July 7 that 
aims at ending internal division, however, national interests 
require that all parties and factions consider this date as 
decisive, ... Egypt is seriously engaged in ending the division and 
all parties have to realize that this date has to be respected and 
that the Palestinian situation will not tolerate any more divisions 
or conflicts." 
 
WALLES