VZCZCXRO1490
OO RUEHROV
DE RUEHJM #1231/01 2011021
ZNR UUUUU ZZH
O 201021Z JUL 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5473
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 7780
RUEHLO/AMEMBASSY LONDON 4752
RUEHFR/AMEMBASSY PARIS 4599
RUEHNC/AMEMBASSY NICOSIA 6093
RUEHRO/AMEMBASSY ROME 4518
RUCNDT/USMISSION USUN NEW YORK 3094

UNCLAS SECTION 01 OF 03 JERUSALEM 001231 
 
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 (07/20): No change in the US 
position regarding settlements 
 
------------- 
Main Stories: 
------------- 
Al-Ayyam and Al-Hayat Al-Jadida lead with news on Israeli Prime 
Minister Benjamin Netanyahu's statements on July 19 concerning the 
construction of new settlement units surrounding the Shepherd Hotel 
in the East Jerusalem neighborhood of Sheikh Jarrah. Netanyahu is 
reported as challenging the US administration and refusing to 
respond to its demands of not pursuing settlement activities in 
Jerusalem. 
 
The Palestinian Authority's (PA) condemnation of Netanyahu's 
statement appears as the lead story in Al-Quds. PA Spokesperson 
Nabil Abu Rudayna noted that Jerusalem is a "red line that cannot be 
touched" and that the continuation of Israeli actions proves that 
Netanyahu does not respect the demands of the international 
community. 
 
News on the latest round of talks between Fatah and Hamas in Cairo 
on July 18-19 appeared on all front pages. The coverage notes that 
the talks ended with no progress made on any of the pending 
disagreements.  The pQies have agreed to meet on August 25 for a 
final round of talks. 
 
Al-Ayyam and Al-Hayat Al-Jadida run front page coverage on the 
meeting that took place between the PLO chief negotiator Saeb Erekat 
and Iranian Foreign Minister Manouchehr Mouttaki in Sharm Al-Sheikh 
last week on the sidelines of the Non Aligned Movement summit. The 
meeting focused on internal Palestinian affairs, including unity 
talks, and regional efforts to achieve peace. An Israeli official 
criticized the meeting, stating that "the Palestinians do not mind 
meeting with the enemies of peace," according to coverage. 
 
Al-Ayyam runs front page news citing Reuters that US Secretary of 
Defense Robert Gates will visit Israel on July 27 to discuss the 
Iranian nuclear program and the strategic relationship between the 
US and Israel in light of recent disagreements over settlement 
activities. In related news, Al-Ayyam runs front page coverage 
sourcing Israeli wires on statements that the US will exert pressure 
on the Palestinians and Israelis to pursue final status negotiations 
as soon as possible. The sources also note that recent Israeli 
measures, such as lifting checkpoints and facilitating access and 
movement in the West Bank, have encouraged the US administration to 
pursue negotiations. 
---------------- 
 
Weekend Stories: 
---------------- 
 
Sunday, July 19 
 
All dailies run front page coverage of Consul General Jake Walles 
stating that the US position on settlements has not changed. During 
a meeting with a group of journalists in Nablus, Walles also noted 
that US Special Envoy George Mitchell continues his discussions with 
all parties in order to prepare a positive environment for serious 
negotiations. The dailies also covered Walles's comment that the US 
wants to see the establishment of a Palestinian state living side by 
side in peace and security with Israel. Pictures of the Consul 
General in Nablus appear on the front page of Al Hayat Al Jadida and 
the back page of Al Quds. 
 
All dailies report on the PLO Executive Committee's meeting on July 
18, during which it renewed its support for PA President Abbas as 
 
JERUSALEM 00001231  002 OF 003 
 
 
the legitimate elected President. Following its discussions, the 
Executive Committee issued a statement reiterating the need for a 
complete halt of all settlement activities in Jerusalem and the West 
Bank prior to the relaunching of negotiations. 
 
All dailies front page news on PA Prime Minister Salam Fayyad 
stressing that East Jerusalem will be the capital of an independent 
Palestinian state and that there could be no peace agreement without 
solving the issue of Palestinian refugees according to UN 
resolutions.  Fayyad, who was speaking at Qalandia refugee camp, 
said "I renew my call to the US administration to accelerate the 
process of developing a careful and systematic plan, according to 
specific time-frames and practical terms of reference, which will 
contribute to ending Israeli settlement activities and all Israeli 
incursions that would culminate in serious negotiations."  Fayyad 
also announced that he will assume the PA's Ministry of Jerusalem 
Affairs to ensure that it fulfills its duties at all levels to 
strengthen the position of Palestinians in Jerusalem. 
 
 
Saturday July 18: 
 
Al Ayyam front pages news on well-informed Palestinian sources 
expressing concerns about the possibility the US administration may 
reach a compromise solution with the Israeli government regarding 
the cessation of settlement activities. The sources confirmed that 
this topic will be at the top of the agenda of US Special Envoy 
George Mitchell during his visit to the region next week. Mitchell 
reportedly informed President Abbas during a phone conversation last 
week that all contacts and meetings with Israeli officials, 
particularly with Israeli Defense Minister Ehud Barack, have failed 
thus far to secure an agreement to cease all settlement activity. 
 
Al Quds front pages news on a senior official in the State 
Department acknowledging that the Obama administration has exerted 
pressure on all parties concerned with the settlement of the 
Arab-Israeli conflict, including Israel, the Palestinians, and Arab 
states. The senior official, who spoke under condition of anonymity, 
added that Israel has taken meaningful steps in the last two weeks 
in terms of changing the way it deals with Palestinian security 
forces and lifting some of the movement restrictions in the West 
Bank. 
 
-------------- 
BLOCK QUOTES: 
-------------- 
1) Al-Quds runs an editorial under the title, "Big failure" (07/20): 
"The dialogue sessions finished without any progress... Hamas and 
Fatah both blame each other for the failure...Isn't it about time 
for the Palestinian factions to admit that they have failed so far 
in restoring national unity?...Isn't it time to evaluate all the 
reasons for this failure and try to overcome them since all 
Palestinians have started to lose interest in this endless and 
meaningless dialogue?" 
 
2) Basem Abu Summaya opines in Al-Ayyam independent daily under the 
title "Security and Kunafa" (07/20): "It is good that Palestine 
e 
entered the Guinness Book of World Records for the biggest dish of 
Kunafa (a Palestinian dessert) in the world, but what is more 
interesting is that Israel can enter Guinness for the longest 
occupation in the current century, for the biggest settlement units, 
for the largest area of confiscated lands, and for the longest 
economic and military siege..." 
 
JERUSALEM 00001231  003 OF 003 
 
 
 
 
WALLES