VZCZCXRO2296
OO RUEHROV
DE RUEHJM #1249/01 2020900
ZNR UUUUU ZZH
O 210900Z JUL 09 ZDK
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5494
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 7783
RUEHLO/AMEMBASSY LONDON 4755
RUEHFR/AMEMBASSY PARIS 4602
RUEHNC/AMEMBASSY NICOSIA 6096
RUEHRO/AMEMBASSY ROME 4521
RUCNDT/USMISSION USUN NEW YORK 3097

UNCLAS SECTION 01 OF 02 JERUSALEM 001249 
 
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 (07/21): Cessation of settlements 
must include Jerusalem 
 
JERUSALEM 00001249  001.2 OF 002 
 
 
------------- 
Main Stories: 
------------- 
Al-Ayyam and Al-Hayat Al-Jadida lead with reports citing AFP that 
the US may impose financial penalties on Israel in light of the 
continued settlement activities in Jerusalem. According to Israeli 
sources, the US may reduce its financial support to Israel by 
approximately $1 billion. Additionally, an Israeli official stated 
that "Israel does not care about a confrontation with the US 
concerning the current construction activities in Jerusalem since 
the US chose to start the confrontation," according to coverage. 
 
Al-Hayat Al-Jadida runs front page coverage on Palestinian Authority 
(PA) Prime Minister Salam Fayyad calling on the international 
community to exert pressure on Israel for an immediate cessation of 
settlement activities in the Palestinian territories, including 
Jerusalem. Fayyad also noted that Israel must stop all incursions 
and attacks against the Palestinians and must end the Gaza siege in 
order to have an environment that will allow the re-launching of 
peace talks.  Fayyad made his statements while in Hebron meeting 
with the local governor to discuss economic development and water 
shortages. 
 
Al-Quds and Al-Hayat Al-Jadida have front page news on continued 
settler attacks against Palestinian farms in the West Bank on July 
¶20. The settlers reportedly started fires on large parcels of land 
near Yetsar and Beit Eyn settlements to protest against the eviction 
of settlement outposts in those areas. 
 
All dailies report that PA President Mahmoud Abbas reiterated in his 
July 20 visit to the West Bank city of Beit Sahour that presidential 
and legislative elections are the solution to ending Palestinian 
internal division. 
 
Al-Quds front page news cites DPA on the Hizbullah Secretary General 
Hasan Nasrallah stating on July 20 that Israel is being used as a 
tool by the US. Nasrallah criticized Israeli measures against the 
Palestinians and reiterated that "resistance is and will remain the 
best mechanism to end the Israeli occupation." 
 
Al-Ayyam front page news cites an article in the "National Review" 
claiming that Special Envoy George Mitchell intends to resign by the 
end of 2009 once an agreement is reached with the Israeli government 
regarding the cessation of settlement activities. 
-------------- 
BLOCK QUOTES: 
-------------- 
1) Al-Quds runs an editorial under the title, "The cessation of 
settlements includes Jerusalem" (07/21): "The natural growth which 
is claimed by Israel as a justification for expanding settlements 
has become a marginal issue in light of current Israeli plans to 
construct new housing units in Jerusalem ... By doing this, Israel 
hopes to distract the world's attention from the real problem 
concerning settlements ... The international community must be aware 
of that policy and exert pressure to put an end to it." 
 
2) Omar Hilmi Al-Ghoul opines in Al-Ayyam independent daily under 
the title "Will the US position change?" (07/21): 
"The US must ask Israel if it wants to end the conflict or pursue 
settlements, if it wants war or peace, if it wants to abide by 
international laws or continue with the occupation ... The US should 
d 
not change its position concerning settlements, as this will 
indicate that it gives into Israeli pressure ... Any change in the 
 
JERUSALEM 00001249  002.3 OF 002 
 
 
US position doesn't serve US interests". 
 
WALLES