VZCZCXRO4851
OO RUEHROV
DE RUEHJM #1565/01 2431018
ZNR UUUUU ZZH
O 311018Z AUG 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5928
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 7838
RUEHLO/AMEMBASSY LONDON 4810
RUEHFR/AMEMBASSY PARIS 4658
RUEHNC/AMEMBASSY NICOSIA 6151
RUEHRO/AMEMBASSY ROME 4577
RUCNDT/USMISSION USUN NEW YORK 3156

UNCLAS SECTION 01 OF 03 JERUSALEM 001565 
 
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 (08/31): Indications of progress 
on a prisoner exchange deal 
 
------------- 
Main Stories: 
------------- 
 
Al-Ayyam leads with news on Israeli Prime Minister Benjamin 
Netanyahu denying news that a prisoner exchange deal has been 
reached. Netanyahu is quoted as saying during the weekly cabinet 
meeting on August 30, "we are not close to achieving a breakthrough 
on [kidnapped Israeli soldier Gilad] Shalit's release." Al-Quds runs 
front page news citing a senior Egyptian official noting that the 
prisoner exchange deal with Israel is almost done pending a few 
issues, including the release of Marwan Barghouti and determining 
where to send the released prisoners. 
 
Al-Quds leads with news about an Israeli plan to build a new 
settlement in East Jerusalem that will accommodate more than 2000 
people in addition to building a new commercial center and cemetery. 
According to coverage, the anticipated new settlement will be built 
on land between the Shufat and Beit Hanina neighborhoods. 
 
The local press report on Palestinian Authority (PA) President 
Mahmoud Abbas's meeting with the Emir of Qatar Hamad Bin Khalifa in 
Doha on August 30. The meeting focused on recent developments in the 
Middle East and the Palestinian national dialogue. President Abbas 
stated in an interview with Al-Jazeera that he is not willing to 
meet with Prime Minister Netanyahu unless there is a settlement 
freeze. 
 
Al-Quds runs front page news citing Wafa News Agency on PA Prime 
Minister Salam Fayyad reiterating on August 30 during his visit to 
the Supreme Judicial Council in Ramallah that the PA is committed to 
supporting the independence of the judicial authority in Palestine 
as well as maintaining law and order for the Palestinian people. 
 
---------------- 
Weekend Stories: 
---------------- 
 
Sunday, August 30: 
 
All dailies front page news citing the German newspaper Der Spiegel 
that German mediators got an agreement from Israel for release of 
kidnapped Israeli soldier Gilad Shalit in return for the release of 
450 Palestinian prisoners. Israel has given Hamas until the 
beginning of September to accept the offer. The Israeli government 
also said it will later release another number of prisoners as a 
"humanitarian gesture" if Hamas agrees to the deal. 
 
Al Ayyam front pages a story citing well informed Palestinian 
sources that US Envoy George Mitchell will arrive in the region 
within the next two weeks to formulate a list of obligations that 
the parties will be asked to implement to create a positive 
atmosphere necessary for moving the peace process forward. According 
to several sources, Mitchell will submit his conclusions to 
President Barack Obama who will then determine the next steps in the 
process. 
 
Al Ayyam front pages a story that Egypt has conducted a number of 
consultations with heads of the various Palestinian factions in 
preparation for the next round of Palestinian national dialogue that 
will take place after Eid Al Fitr in late September. 
 
Al Quds front pages a story on Palestinian and international efforts 
 
JERUSALEM 00001565  002 OF 003 
 
 
to impose sanctions on foreign companies helping to build the light 
rail transport system in Jerusalem. The Palestinian campaign is led 
by a coalition of civil society organizations and the Popular 
Campaign against the Wall. These efforts have contributed to the 
recent announcement by French transport company Veolia of its 
withdrawal from the project following divestments and other 
sanctions that have cost the company approximately $7 billion in 
losses, according to coverage. 
 
Saturday, August 29: 
 
 
Al Ayyam and Al Hayat Al Jadida carry front page news on Egyptian 
Minister of Foreign Affairs Ahmed Aboul Gheit's announcement 
yesterday from Stockholm that Egypt wants the "revival of 
negotiations between Israel and Palestinians to take place 
simultaneously with the freezing of settlements in the Palestinian 
territories." Aboul Gheit added, "if Israelis said the freezing will 
extend over a six-month period, the deadline for conducting the 
negotiations should be six months too, and the deadlines should be 
synchronized." 
 
Al Hayat Al Jadida and Al Ayyam carry a front page story on US 
Consul General Jake Walles announcing an $81 million grant to UNRWA 
in support of its regional emergency program in the West Bank and 
Gaza Strip during a ceremony that took place at the UNRWA school in 
Ayda Refugee camp north of Bethlehem. Walles said that the grant 
will provide necessary humanitarian assistance to one million 
refugees in Gaza, including emergency food aid, assistance for the 
creation of jobs, support for special health and education programs 
for children, as well as for the rehabilitation of shelters, health 
clinics, and schools that were damaged earlier this year. Walles 
reiterated US support for the Road Map and the two-state solution 
and urged the Palestinian people to maintain hope. 
 
Al Quds front pages a story citing senior Palestinian officials 
saying that President Abbas will issue a decree to the Central 
Election Commission in October tasking them to take all needed 
actions to prepare for conducting presidential and legislative 
elections in January 2010. Sources added that President Abbas 
believes that the Central Election Commission will find the legal 
and technological means for guaranteeing the participation of voters 
in Jerusalem, the West Bank, and Gaza Strip in the elections. 
------------- 
BLOCK QUOTES: 
------------- 
 
1) Odeh Erikat opines in Al-Quds independent daily under the title 
"Pursuing meaningful negotiations" (08/31): "If the 
Palestinian-Israeli negotiations are left without international 
support and without US intervention, the negotiations will not move 
forward and there will be no tangible outcome, regardless of the 
duration of negotiations ... This is especially so since Israel is 
asking for normalizing relations with the Arab States and imposing 
sanctions against Iran prior to pursuing negotiations, which is not 
acceptable to the Arab states." 
 
2) Omar Hilmi Al-Ghoul opined in Al-Hayat Al-Jadida official daily 
under the headline "When will the trilateral meeting take place?" 
" 
(08/31):"Nothing is prohibiting the trilateral meeting between 
Netanyahu, Abbas and Obama in New York except the Israelis being 
stubborn about refusing the two-state solution and rejecting the 
 
JERUSALEM 00001565  003 OF 003 
 
 
whole political reconciliation in general." 
 
WALLES