VZCZCXRO4557
OO RUEHROV
DE RUEHJM #0045/01 0110900
ZNR UUUUU ZZH
O 110900Z JAN 10
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7221
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 8032
RUEHLO/AMEMBASSY LONDON 5003
RUEHFR/AMEMBASSY PARIS 4849
RUEHNC/AMEMBASSY NICOSIA 6337
RUEHRO/AMEMBASSY ROME 4768
RUCNDT/USMISSION USUN NEW YORK 3372

UNCLAS SECTION 01 OF 03 JERUSALEM 000045 
 
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 (01/11): Israelis and Palestinians 
trade blame for the failure to resume negotiations 
 
------------- 
Main Stories: 
------------- 
The dailies lead with news on the death of five Palestinians from 
Israeli attacks in central Gaza yesterday. The dailies also front 
page news on Israeli forces demolishing shelters housing 
approximately 150 Palestinians in Tana village near Nablus. A 
spokesman for the Israeli authorities said that the 14 shelters were 
"illegally constructed structures," adding that they had been built 
on a military training ground, "endangering the lives of those 
present." 
 
PA official daily Al-Hayat Al-Jadida reports that Israel is not 
taking seriously Senator George Mitchell's statement that the US 
could withhold loan guarantees to pressure Israel into making 
compromises with the Palestinians. 
The coverage quotes Israeli Finance Minister Yuval Steinitz saying 
"We don't need to use these guarantees ... But several months ago we 
agreed with the US Treasury on guarantees for 2010 and 2011, and 
there were no conditions." Independent daily Al-Quds reports on 
Senator Joe Lieberman saying that Congress will not allow the 
Administration to withhold financial assistance to Israel. 
 
Independent daily Al-Ayyam reports on the Palestinian Authority (PA) 
Presidency Spokesperson Nabil Abu Rudeina refusing to accept that 
the PA is to blame for obstructing any progress towards the two 
state solution, as Israeli Prime Minister Netanyahu stated 
yesterday. Netanyahu's office issued a statement on Sunday stating 
that "Everyone realizes that the Palestinian Authority refuses to 
renew peace talks, while Israel took significant steps to advance 
the process." 
 
All three dailies report on Berlanty Azzam, the Bethlehem University 
student who was removed from the West Bank and returned to Gaza by 
the Israeli authorities, receiving her university degree in Gaza. 
Bethlehem University Vice President Brother Peter Bray gave Azzam 
the certificate in a ceremony held in the Latin Patriarch in Gaza 
yesterday. 
 
The local press report on the head of the Hamas political bureau 
Khaled Mishal noting that Hamas will submit its response to the 
German mediator concerning the prisoner exchange deal in 2-3 days. 
Reports note that Netanyahu refuses to release Palestinian prisoners 
who are "terrorist figures" as part of the deal. 
 
---------------- 
Weekend Stories: 
---------------- 
 
Sunday, January 10: 
 
The three dailies run front page stories on Secretary of State 
Clinton's meetings with the Jordanian and Egyptian Foreign Ministers 
in Washington. Reports note that Clinton asked President Abbas to 
give up his demand for a full cessation of settlement activities as 
a condition for resuming negotiations. Chief PA Negotiator Saeb 
Erekat said "we highly appreciated President Obama's call, on his 
first day in office, to President Abbas. We also highly appreciated 
the fact that he appointed Senator George Mitchell as an envoy to 
the peace process during his first week in office." However, "it is 
very unfortunate that the American administration failed to hold the 
Israeli government responsible for obstructing President Obama's 
effort to launch a genuine peace process." Palestinian political 
 
JERUSALEM 00000045  002 OF 003 
 
 
analyst Hani Al Masri said "President Obama started on a very 
promising note, but the shock is reflected in the tremendous and 
surprising change of position in the first round because he gave in 
to the pressures of the Jewish lobby and moved from a position of 
promising full cessation of settlement activities to a position 
where partial freezing of these activities was considered an 
unprecedented step, and ultimately moving towards exerting pressure 
on the Palestinians." 
 
In related news, Al-Quds and Al-Hayat Al-Jadida run separate front 
page stories on the Egyptian Minister of Foreign Affairs Aboul Gheit 
saying that "the lack of common ground and the absence of proper 
circumstances" make it impossible for PA President Abbas and Israeli 
Prime Minister Netanyahu to start direct negotiations right now. 
 
Al-Quds and Al-Ayyam front page news on Prime Minister Netanyahu's 
office responding to statements by Special Envoy George Mitchell 
that the US could withhold loan guarantees if Israel did not act on 
moving negotiations with Palestinians forward. Netanyahu's office 
said that "Israel, as well known to everyone, has taken significant 
steps to move the peace process forward, while the Palestinian side 
continues to refuse the resumption of negotiations." 
 
Al-Ayyam and Al-Hayat Al-Jadida run front page stories on the 
Jerusalem Center for Social and Economic Rights reporting that more 
than 125,000 Jerusalemites risk losing their residency rights in 
Jerusalem because of the wall built around Jerusalem, rather than 
50,000 as reported by the Jerusalem Municipality. 
 
Saturday, January 9: 
 
The dailies lead with stories on Special Envoy George Mitchell 
stating that the US could withhold loan guarantees to Israel if the 
latter did not take steps to move the peace process forward. 
Mitchell added that the US will use incentives or sanctions with the 
Israelis and the Palestinians alike in order to push the peace 
process forward. Despite that, Mitchell said, a "slight progress" 
has been achieved recently towards resuming peace negotiations and 
the US will continue its efforts to achieve further progress. 
 
Al-Quds and Al-Hayat Al-Jadida carry front page news on Israeli 
sources revealing a plan to build a new settlement in the Ras Al 
Amoud area in Jerusalem consisting of 100 units over an area of 11 
dunnums. In related news, Israeli Defence Minister Ehud Barak gave 
settlement councils the power to approve any additions or changes to 
existing buildings that do not entail building new residential 
units. 
 
The three dailies front page news on Israeli government sources 
saying that Prime Minister Netanyahu's hardened position on the 
prisoner exchange deal might force Hamas to close the door on this 
subject. An Israeli official said that as the German mediator 
resumed his efforts between Israel and Hamas after the Christmas 
holidays, Netanyahu did not give him any room to negotiate. News 
reports mentioned that Hamas rejected the most recent Israeli 
offer. 
 
Al-Ayyam front pages a story citing the Israeli newspaper Haaretz 
reporting that the US might explore the possibility of launching 
indirect negotiations between Israel and the Palestinian Authority 
because President Abbas continues to refuse direct negotiations. The 
newspaper added that according to this plan, Special Envoy George 
Mitchell and his team will meet separately with both parties and 
 
JERUSALEM 00000045  003 OF 003 
 
 
present the position of each party to the other in an attempt to 
bridge the gap between them. The report added that this is the same 
unsuccessful approach used by Presidents Bush and Clinton in the 
Israeli-Syrian negotiations. 
------------ 
BLOCK QUOTE: 
------------Abdel Rahim Malouh, Vice Chairman of the Popular 
Front for Liberation of Palestine, writing in Al-Quds under the 
title "We Need to Abide by International Rules and Resolutions," 
opines that President Obama must stick to his earlier position 
ion 
regarding the Palestinian-Israeli conflict that both sides must 
abide by international laws and resolutions ... Malouh believes that 
Obama is very much like former US President Bush, as they both 
defend the interests of Israel. Malouh concludes that neither the 
Palestinian leadership nor the Palestinian people are responsible 
for the stalemate in negotiations. 
 
 
RUBINSTEIN