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OO RUEHROV
DE RUEHJM #1101/01 1810916
ZNR UUUUU ZZH
O 300916Z JUN 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5284
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 7750
RUEHLO/AMEMBASSY LONDON 4725
RUEHFR/AMEMBASSY PARIS 4572
RUEHNC/AMEMBASSY NICOSIA 6066
RUEHRO/AMEMBASSY ROME 4491
RUCNDT/USMISSION USUN NEW YORK 3067

UNCLAS SECTION 01 OF 02 JERUSALEM 001101 
 
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 (06/30): PALESTINIANS WANT HAMAS 
TO SHOW MORE FLEXIBILITY 
 
------------- 
Main Stories: 
------------- 
 
Al-Quds' lead story reports on Palestinian Authority (PA) President 
Mahmud Abbas' appearance at the launching of "housing project in 
Ramallah," in which he reiterated that Israel must halt all 
settlement activities, and fulfill its road map obligations before 
the PA resumes negotiations (June 29). Additionally, the Israeli 
government is reported to have endorsed the construction of 50 new 
settlement units in a settlement in the West Bank (June 29).  This 
endorsement came a few hours before the Israeli Defense Minister 
left to the US to meet with Senator Mitchell to discuss the 
settlements issue.  These new units are reportedly part of a larger 
scheme that includes the construction of 1450 future settlement. 
 
Al-Hayat Al-Jadida also reports on President Abbas' appearance at 
the Ramallah housing launch (June 29), implemented by the 
Palestinian Investment Fund with a value of $200 m. Abbas affirmed 
the Palestinians recognition of the State of Israel, adding 
Palestinians are ready to pursue negotiations if the Israelis meet 
their roadmap obligations. 
 
Al-Quds and Al-Hayat Al-Jadida report of five preconditions made by 
Israeli Prime Minister Netanyahu, before Israeli-Palestinian 
negotiations can resume:  1) the Palestinian recognition of Israel 
as a Jewish state; 2)disarmed Palestinian state; 3) international 
support to the security arrangements; 4)no return for refugees to 
Israel; and 5)any agreement must provide a permanent end to the 
conflict. 
 
Al-Ayyam and Al-Hayat Al-Jadida both report on comments made by 
Fatah parliamentary block leader Al-Ahmad (June 29) of progress 
being made during the bilateral talks in Cairo between Hamas and 
Fatah.  Reports are optimistic that an agreement will likely be 
signed on July 7. 
 
All dailies reported the official launch of the Abraham Lincoln 
Incentive Scholarship at Amideast offices in Ramallah (June 29), 
with the Consul General in attendance. A recorded video message was 
made by Judith McHale, Under Secretary for Public Diplomacy and 
Public Affairs from her office in Washington to students about the 
scholarship. The headlines read: "Ramallah: The US Consul General 
launches the Abraham Lincoln Incentive Scholarship for Studying in 
the US;" "To contribute in building the Palestinian State, the 
Consul General launches from Ramallah the Abraham Lincoln Incentive 
Scholarship to enable the Palestinian students from pursuing their 
education;" and "US Scholarships for Palestinian students to study 
at the US". 
 
Al-Hayat Al-Jadida's article leads with "The Consul General 
reiterates the US rejection to the continuation of settlement 
activities." The article includes photos of the Consul General at 
the Abraham Lincoln Scholarship launching ceremony, where he 
reiterated that the US rejects the continuation of the settlement 
expansion in the Palestinian territories, and emphasizing that the 
Obama administration duly supports the establishment of an 
independent Palestinian state. The article started with the 
following heading 
 
All dailies front page coverage on the Palestinian Authority (PA) 
Prime Minister Fayyad noting during the PA weekly cabinet meeting on 
June 29 that Israel must halt all settlement activities. Fayyad 
called on the Middle East Quartet and the US administration to 
 
JERUSALEM 00001101  002 OF 002 
 
 
intervene and exert every pressure to force Israel to stop all 
settlement activities. 
-------------- 
BLOCK QUOTES: 
-------------- 
1) Rajab Abu Sirriyeh, Al-Ayyam, "The dialogue in Cairo" (06/30): 
"Hamas realizes now [after the failure of Hizbullah in the Lebanese 
elections] that in order to have a role in the unity government, it 
must show more flexibility and a readiness to open a dialogue with 
the US... That is why Hamas leaders have tried, through Misha'al's 
speech, to indicate their willingness for more engagement with the 
US." 
 
2) Al-Quds editorial, "Barak and his political misleading agenda" 
(06/30): "Prior to his departure to the US to discuss the halting of 
settlements, Barak has endorsed the construction of new settlement 
units, a typical deceiving Israeli position... The US administration 
and the international community should realize the Israeli policy 
and its implications on the peace process which never seemed to be 
one of Israel's priorities." 
 
 
WALLES