palestinian

Oct. 27 (Bloomberg) — Palestinian Economy Minister Hasan Abu-Libdeh talks about the outlook for the region’s economy and political relations with Israel and prospects for the formation of a Palestinian state in 2011. He speaks from Marrakech with Maryam Nemazee on Bloomberg Television’s “The Pulse.”

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Video: Abu-Libdeh Says Palestinians Are ‘Ready For Statehood’

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By Jonathan Ferziger and Saud Abu Ramadan June 18 (Bloomberg) — Half of Mohammed Abed Rabbo’s extended family of 23 lives in a tent next to the rubble of his two-story house in Gaza’s Jabalia refugee camp, while the rest is crowded into a small rented home nearby. Abed Rabbo says his house was destroyed 17 months ago by Israeli bulldozers after Palestinian militants hid nearby and fired at soldiers. The 55-year-old potato farmer says he can’t get material needed to rebuild because Israel restricts most construction supplies from entering Hamas-ruled Gaza. His is one of more than 3,000 homes that the United Nations reported were destroyed during the 22-day military offensive Israel says it initiated in December 2008 to stop Hamas and other groups from firing rockets at its southern towns. Israel clamped restrictions on goods entering Gaza after Hamas seized control there in 2007 and has begun relaxing them after facing international pressure in the wake of its May 31 raid on an aid flotilla that left nine pro-Palestinian activists dead. “The siege has affected everything in Gaza,” Abed Rabbo, whose farm is near Gaza’s northern border, said in an interview before yesterday’s Israeli decision to loosen the blockade. “It’s destroyed our lives.” The lives of Abed Rabbo and the 1.5 million other residents of Gaza have become hostage to a three-cornered political struggle pitting Hamas — which Israel, the U.S. and the European Union have branded as terrorist — against both the Jewish state and the Palestinian Authority government that controls the West Bank. ‘Pressuring the Population’ While Israel saw the blockade as a way to undermine Hamas’s hold on Gaza by turning the population against it, the strategy hasn’t worked, said Mohsen Adnan, director of the Arab Center for Agricultural Development in Gaza City. “Israel hoped that by pressuring the population in Gaza, Hamas would be uprooted, but Hamas is still strong and the people have been exhausted by the siege,” Adnan said in a telephone interview. Human rights groups, including Amnesty International, say restrictions on food imports and building materials have created a humanitarian crisis. Israeli Prime Minister Benjamin Netanyahu said June 2 that each week “an average of ten thousand tons of goods enter Gaza” and that “there’s no shortage of food. There’s no shortage of medicine.” Israel says it restricts imports of construction materials to Gaza because they can be used to build rockets, bunkers or bombs. Officials said they were also concerned about weapons being hidden in food packaging. Job Losses More than 1,100 Palestinians and 13 Israelis were killed in the Gaza conflict. Since then, more than 400 rockets and mortars have been fired into Israel, killing one foreign worker last March, the Israeli army said. Israel’s top ministers decided yesterday to loosen the blockade, changing the system in which goods enter Gaza and expanding the import of “material for civilian projects under international supervision,” the prime minister’s office said in a statement. German Foreign Minister Guido Westerwelle said the decision was a “first step” that must be followed by “swift, concrete and noticeable improvements in access to the Gaza Strip.” Egypt has also largely kept its Gaza border closed since Hamas took over because it says it doesn’t recognize the Islamic movement’s administration. After the flotilla raid, it opened the Rafah crossing, which is used mainly by people. Hamas, which won parliamentary elections in 2006, ousted troops loyal to Palestinian Authority President Mahmoud Abbas the following year and took full control of Gaza. ‘Food Insecure’ At least 3,540 homes in Gaza were destroyed in the conflict with Israel and 2,870 were severely damaged, the UN Office for the Coordination of Humanitarian Affairs said in an August 2009 report . Restrictions on imports and exports resulted in the loss of some 120,000 jobs, the report said. Haytham Khudeir, 30, who runs an import business out of an office in downtown Gaza City, estimates he’s lost some $500,000 in sales since Israel cut off most shipments into the territory. He buys coffee, mineral water and cooking oil at increased prices that come through smuggling tunnels from Egypt, built to circumvent the blockade, and can’t get the quantities once available through Israel. “It’s very difficult to get quality products and people don’t have money to buy them,” Khudeir said. “Running a business in Gaza these days is almost impossible.” The UN classifies 75 percent of Gaza’s population as “food insecure,” meaning they lack access to sufficient safe and nutritious food. It cited a shift in the diet of Gazans from more expensive foods, such as fruit, vegetables and animal products, to cheap and high-carbohydrate foods such as cereals, sugar and oil. ‘Vegetables and Bread’ “My children see fruit in the grocery stores, but we can’t afford it,” Walid Mushtaha, a 45-year-old unemployed father of nine, said in an interview. His family depends on food supplies from the United Nations Relief and Works Agency that include flour, olive oil, rice, sugar and canned beef. His family’s diet consists largely of “vegetables and bread,” he said. “On weekends we open the cans of processed beef. Fresh meat, maybe once a month.” Restricted goods ranging from computers to live cattle and motorcycles have been available at twice to four times their market price through the tunnels, which are licensed and taxed by Hamas. Weapons are also smuggled in via the tunnels. Full-Fledged War Israel says its blockade is legal because it is in “a state of armed conflict” with Hamas. Legal scholars such as Robin Churchill , a professor of international law at the University of Dundee in Scotland, say the legality turns on whether the conflict is a full-fledged war and whether the military benefit is proportionate to civilian suffering. Sitting in his tent and offering tea, Abed Rabbo said he rushed his family from their house when Israel started bombing and headed south, away from the area where fighting was most intense. After the war ended with a cease-fire on Jan. 18, 2009, Abed Rabbo said, he and his family returned to find their home destroyed. “I thought we might be able to get some cement from the flotilla, but look what happened,” he said. To contact the reporters on this story: Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net ; Saud Abu Ramadan in Gaza City at sramadan@bloomberg.net

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Gazans Say Israeli Blockade Keeps Homes in Decay, Fails to Undermine Hamas

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Netanyahu Announces `Independent’ Public Inquiry Into Gaza Flotilla Raid

June 13, 2010

By Calev Ben-David June 14 (Bloomberg) — Israel announced it is setting up an “independent” public probe into its raid on a Gaza-bound flotilla in which nine Turkish activists were killed. The probe will include two foreign observers. The commission will examine “the security circumstances surrounding the imposition of the naval blockade on the Gaza Strip and the conformity of the naval blockade with the rules of international law,” the office of Prime Minister Benjamin Netanyahu said in an e-mailed statement . It will also look into “the conformity of the actions taken by Israel to enforce the naval blockade in the incident of 31 May 2010 with the rules of international law.” The panel will be headed by former Israeli supreme court judge Jacob Turkel. The two foreign observers are Nobel Peace Prize winner and Northern Ireland politician David Trimble , and Ken Watkin, former Judge Advocate General of Canada’s armed forces. Demands for an international probe began after Israel’s May 31 raid in international waters on six ships that were attempting to breach its three-year blockade on Hamas-controlled Gaza. Israel last year refused to participate in a United Nations investigation of the 2008 Gaza war, an inquiry its leaders rejected as one-sided, and Netanyahu turned down a proposal for a UN-led probe into the ship incident. Independent Commission The inquiry will be conducted by “an independent public commission” that will examine Israel’s May 31 actions “to prevent vessels from reaching the coast of the Gaza Strip,” the statement said. The prime minister will bring his proposal to the Cabinet for a vote today. The Obama administration welcomed the announcement as “an important step forward.” In a statement, White House Press Secretary Robert Gibbs reiterated the administration’s support for “a prompt, impartial, credible and transparent investigation.” The statement said Israel “has a military justice system that meets international standards,” that the administration “will not prejudge the process or its outcome” and that it expects the findings to be “presented to the international community.” Radical Terror Groups The commission’s members also include retired Israeli general Amos Horev and international law expert Shabtai Rosenne. It will also investigate “the actions taken by the organizers of the flotilla and its participants, as well as their identity.” Israel has alleged that some members of the flotilla had links to radical Islamic terror groups. The panel will have the authority to request information from any Israeli government official, including Netanyahu and “including through testimony before the Commission,” the statement said. It will present its findings to the prime minister upon completion of its investigation. The Israel Defense Forces said June 8 that it had appointed Major-General Giora Eiland to lead a separate military investigation of the raid. The UN inquiry into the Gaza war, led by former UN prosecutor and South African judge Richard Goldstone , accused Israel and Hamas of war crimes and called on them to investigate the charges. Numerous Warnings Israel said it issued numerous warnings to the Gaza-bound flotilla to change course for the port of Ashdod and unload there. It says that soldiers were attacked with knives and clubs and seven were wounded, including by gunfire, after people aboard one of the ships managed to grab Israeli firearms. Activists have said they threw the firearms into the sea and that the Israelis instigated the violence. Israel has imposed restrictions on Gaza since the Islamic Hamas movement, which won Palestinian parliamentary elections in 2006, ousted forces loyal to President Mahmoud Abbas ’s Fatah group and seized full control of the territory in 2007. Hamas is considered a terrorist organization by the U.S., the European Union and Israel. The blockade of Gaza is legal, according to Israel, because it is in “a state of armed conflict” with Hamas. Criticism within Israel of the operation has focused largely on the execution of the raid and not the blockade, which polls show most Israelis support. Some countries, such as Turkey, dispute the legality of the blockade. Humanitarian Crisis Palestinians, backed by the UN and human-rights groups, say the restrictions on food imports and construction materials have created a humanitarian crisis. Israel denies that such a crisis exists, saying it restricts imports of building materials to Gaza because they can be used to build rockets, bunkers or bombs. Officials said they also were concerned about weapons being hidden in food packaging. Israel launched a three-week military offensive in Gaza in December 2008 that it said was meant to stop the firing of rockets by Hamas and other Palestinian militants into its territory. More than 1,000 Palestinians and 13 Israelis were killed in the conflict. More than 400 rockets and mortars have been fired from Gaza into Israel since the end of the 2008 military operation, killing one foreign worker last March, the Israeli army said. Hamas’s charter calls for the destruction of the Jewish state. Hamas leaders say they will renounce violence when Israel withdraws from territory occupied in 1967 and allows Palestinians to return to areas in Israel from which they fled in 1948. To contact the reporter on this story: Calev Ben-David in Jerusalem at cbendavid@bloomberg.net

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Obama Tells Palestinians’ Abbas Gaza Situation `Unsustainable,’ Offers Aid

June 9, 2010

By Kate Andersen Brower June 9 (Bloomberg) — President Barack Obama called the situation in the Gaza Strip “unsustainable” after he and Palestinian Authority President Mahmoud Abbas met in an effort to restore momentum to the peace process. Obama announced the U.S. will provide $400 million in aid for housing, school construction and other infrastructure improvements in Gaza and the West Bank to help improve the “day to day lives of ordinary Palestinians.” “The situation in Gaza is unsustainable,” Obama said after today’s Oval Office meeting. “Increasingly you’re seeing debates within Israel recognizing the problems with the status quo.” Israel’s security needs must be met as well as the humanitarian needs of the people in Gaza, Obama said as he called for a new “conceptual framework” for Israel’s blockade of ships bringing supplies to Gaza to focus on stopping the flow of arms into Gaza. Obama said he will be talking to leaders in Europe, Egypt, Israel and the Palestinian Authority, about ways to achieve that. Abbas, speaking through a translator, thanked the U.S. president for the aid pledge, calling it “a positive signal” that the “United States cares about the suffering of the people in Gaza and about the suffering of the Palestinian people.” Raid on Flotilla A May 31 Israeli raid on a ship in an aid flotilla that resulted in the deaths of nine pro-Palestinian activists has drawn international criticism. Israel says the blockade is aimed at preventing Hamas, whose charter calls for the destruction of the Jewish state, from getting weapons smuggled in with aid shipments. Obama said he and Abbas agree that “Israelis have the right to prevent arms from entering into Gaza that can be used to launch attacks into Israeli territory.” However, he said, “the key here is making sure that Israel’s security needs are met but that the needs of the people in Gaza are also met.” Obama affirmed Israel’s right to “not have missiles flying out of Gaza into its territories.” He said there should be a way “to stop the flow of arms that could endanger Israel’s security” while at the same time allowing “people in Gaza to live out their aspirations and their dreams.” Investigation Obama said he stands by a June 1 UN Security Council resolution condemning the violence and calling for a “credible, transparent investigation” into the raid. He said he has told the Israelis that it is in their interests to “make sure that everybody knows exactly how this happened so that we don’t see these kinds of events occurring again.” Still, Obama said if both sides recognize what’s at stake there could be “significant progress” in the peace process before the end of the year. “There’s a lot of work that remains to be done so that we can create a two-state solution in the Middle East,” he said, including more progress on security and incitement in Palestine. “In the long run the only real way to solve this problem is to make sure that we’ve got a Palestinian state side by side with an Israel that is secure.” Abbas said that he appreciated Obama’s “attention and determination” in moving the peace process forward and he said “time is of the essence” to bring peace and security to the region. Abbas said there is a need to “open all the crossings” and “let building material and humanitarian material and all the necessities” into Palestinian territories. The Palestinian president said he wants “an independent Palestinian state that will live side by side with Israel in peace and stability.” Israeli Prime Minister Benjamin Netanyahu ’s planned meeting with Obama at the White House was canceled last week because of the raid. To contact the reporters on this story: Kate Andersen Brower in Washington at Kandersen7@bloomberg.net

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Israel Seizes Gaza-Bound Aid Ship Organizers Say Boarded Without Violence

June 5, 2010

By Calev Ben-David and Gwen Ackerman June 5 (Bloomberg) — Israeli naval vessels seized an aid ship heading for the Gaza Strip with no violence, according to an army spokesman and the organizer of the boat. The MV Rachel Corrie was boarded by the Israeli navy in a peaceful takeover in international waters and is being taken to Israel’s Ashdod port, Free Gaza Movement spokeswoman Mary Hughes said in a phone interview. The crew put up no resistance, the army spokesman said, speaking anonymously according to regulation. The seizure caps a week of heightened tensions after the deaths of nine Turks during the boarding of a Gaza supply ship in international waters on May 31. Turkey and several European states have criticized Israel for its naval blockade of Gaza. The Jewish state is considering easing restrictions on the flow of aid into Gaza, Israel’s Channel Two television has reported. “We’re open to any suggestions,” Michael Oren , the Israeli ambassador to the U.S., said in an interview with Bloomberg Television’s “Political Capital with Al Hunt ,” airing this weekend. “We, too, are not happy with the status quo.” The Free Gaza movement, which organized the flotilla in the confrontation on May 31 and the MV Rachel Corrie — named after an American activist killed by an Israeli bulldozer while protesting home demolitions in the Gaza Strip in 2003 — rejected Israel’s proposal that the ship off-load its cargo at Ashdod port for transport to Gaza after security checks. It said Israeli restrictions are causing a humanitarian crisis in Gaza. Israel says the blockade is meant to prevent the smuggling of rockets and weapons into Hamas-ruled Gaza and insists the Palestinian coastal enclave is receiving sufficient aid. International Monitors Top Israeli ministers met June 3 to review the blockade policy and explore ways of changing its implementation after this week’s deadly naval raid, an Israeli official said, speaking on condition of anonymity because he wasn’t authorized to speak to the press on the matter. One possibility is the use of international monitors at Ashdod, Israel’s Channel Two news said without citing anyone. Israel says it attempted to prevent clashes with the aid flotilla earlier this week by issuing numerous warnings beforehand to change course for Ashdod and unload there. Israel has said that in its confrontation with the Gaza flotilla on May 31 its soldiers were attacked with knives and clubs after boarding the Mavi Marmara, one of the six vessels in the flotilla, and seven were wounded, including by gunfire after volunteers aboard the ship managed to grab Israeli firearms. Activists have said they threw the firearms into the sea. There was no violence on the other five ships. Turkish Autopsy A Turkish autopsy found that several of those killed were shot multiple times and from the back at close range, the U.K.’s Guardian newspaper reported today, citing Yalcin Buyuk, vice chairman of the council of forensic medicine. Criticism within Israel on the flotilla operation has focused largely on the execution of the raid and not the blockade. A survey of Israeli Jews published in the Maariv daily on June 2 showed 94.8 percent agreeing that it was necessary to stop the boats, with 62.7 percent saying it should have been handled in a different manner. Only 8.1 percent thought Prime Minister Benjamin Netanyahu should resign. The newspaper didn’t say how many people were surveyed or give a margin of error. Israel has faced global criticism over the raid and calls for an international investigation. The U.S. has declined to specifically criticize Israeli actions. It backed a United Nations Security Council resolution on June 1 that condemned the violence that led to the deaths of the aid activists, and called for an impartial inquiry. Diplomatic Protest Turkey, which along with South Africa withdrew its ambassador from Israel over the incident, says an Israeli investigation wouldn’t meet that criteria. Israel has been blockading Gaza since Hamas ousted forces loyal to President Mahmoud Abbas ’s Fatah group and seized control in 2007, after winning Palestinian parliamentary elections the previous year. Hamas is considered a terrorist organization by Israel, the U.S. and the European Union. A rocket fired from the Gaza Strip struck an open area in southern Israel this morning and no injuries were reported, an Israeli Army said. Israel launched an operation in the Gaza Strip in December 2008 that it said was meant to stop the firing of rockets into its territory. More than 1,000 Palestinians and 13 Israelis were killed in the conflict. Since the end of the three-week operation, some 330 rockets have been fired from Gaza into Israel, killing one foreign worker last March, the Israeli army said. Palestinians, backed by the UN and human-rights groups, say the restrictions on food imports and construction materials have created a humanitarian crisis. Israel says it blocks building materials because they can be used by Hamas to build rockets and bunkers. To contact the reporters on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net ; Calev Ben-David in Jerusalem at Cbendavid@bloomberg.net .

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Erakat Says U.S.-Mediated Indirect Peace Talks With Israel `Have Started’

May 9, 2010

By Gwen Ackerman and Saud Abu Ramadan May 9 (Bloomberg) — U.S.-mediated peace talks between Israel and the Palestinian Authority “have started,” senior Palestinian official Saeb Erakat said, ending a breakdown that lasted almost a year and a half. Palestinian Authority President Mahmoud Abbas will act as a chief negotiator and all core issues, such as Jerusalem, borders and refugees will be on the table during the four months of indirect negotiations, Erakat said in remarks published today by the official Wafa news agency. His comments followed a second meeting between Abbas and U.S. envoy George Mitchell in as many days. Mitchell was expected to return to Washington later today. Israeli Prime Minister Benjamin Netanyahu welcomed yesterday’s decision by the Palestinians to resume talks, saying he hoped they would lead to direct negotiations. “In the long term, it is impossible to arrive at decisions and agreements on critical issues, such as security and national interests, without sitting together in the same room,” he said at today’s Cabinet meeting. Talks between Israel and the Palestinians stalled in December 2008 after Israel sent forces into the Gaza Strip in an operation the government said aimed to stop cross-border rocket attacks. Abbas had linked participation in the talks to Israel’s agreeing to freeze plans to build new homes for Jews in east Jerusalem, captured by Israel from Jordan in the 1967 Middle East war and sought by the Palestinians as the capital of a future state. Core Issues An Israeli official, speaking anonymously because he was not authorized to give details of the negotiations, said Israel had agreed core issues such as Jerusalem, borders and refugees may be raised in the talks for preliminary discussion, on the understanding that any solutions would be found in direct talks. Netanyahu adviser Yitzhak Molcho will be sitting with Mitchell during the indirect talks, the official added. “In a certain sense, proximity talks are mainly theater,” said Gerald Steinberg , a political scientist at Bar-Ilan University outside Tel Aviv. “Certainly nobody expects proximity talks to lead to anything substantial.” Opposition and Kadima party leader Tzipi Livni , the former foreign minister who was a chief negotiator with the Palestinians under the previous government, called the indirect talks a test of Netanyahu’s readiness to make decisions for peace. “I hope these talks will have content, that they will be true talks, and I hope we will not miss this opportunity,” Livni said today in an e-mailed statement. Talks Stalled U.S. efforts to initiate indirect discussions stalled in March when Israel approved a plan to build 1,600 new homes for Jews in east Jerusalem during a visit by Vice President Joe Biden . U.S. officials criticized the plans and Palestinian officials said they were reconsidering their participation in the talks. Netanyahu, while publicly saying construction in Jerusalem will continue, may have slowed projects in disputed areas of the city. The planning committee responsible for approving construction in Jerusalem , which gave the go-ahead for the building plans in March, met last week for the first time since Biden’s visit. No building plans related to east Jerusalem were on the agenda, committee member and Jerusalem Councilman Yair Gabbay said in a phone interview last week. To contact the reporter on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net Saud Abu Ramadan in Jerusalem at sramadan@bloomberg.net

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Netanyahu Accepts Broad Middle East Talks While Standing Firm on Jerusalem

March 22, 2010

By Gwen Ackerman and Peter S. Green March 22 (Bloomberg) — Israeli Prime Minister Benjamin Netanyahu arrives in Washington to meet President Barack Obama after accepting some U.S. demands to calm a dispute over east Jerusalem construction plans and remove obstacles to peace talks. Netanyahu dropped previous objections to raising central issues of the Israeli-Palestinian conflict during proposed U.S.- mediated “proximity” talks with the Palestinians intended to pave the way for direct negotiations. “Was Netanyahu’s arm twisted into making this last concession, and may the Americans twist more?” said Dan Schueftan , a political scientist at Haifa University. “The answer is yes.” It remains uncertain whether Netanyahu’s move will fully satisfy the U.S., or the Palestinians who want Israel to freeze all settlement construction including in east Jerusalem, a condition the prime minister continues to resist. At stake are whether the proximity talks will begin, and whether the U.S. and Israeli governments can repair the damage to their relationship created by the housing dispute. Netanyahu told his Cabinet yesterday that in the proximity talks “each side will be able to raise its positions on all the issues in dispute.” That opens the way for discussion on the future status of Jerusalem and Palestinian refugees, issues that have proven the most intractable in resolving the conflict. Meeting With Envoy Netanyahu met in Jerusalem afterwards with the U.S. Middle East envoy George Mitchell . He received a formal invitation to meet Obama tomorrow just hours before boarding his plane for the trip to Washington. While in the U.S. capital, the prime minister is also scheduled to meet Secretary of State Hillary Clinton and address the U.S.’s largest pro-Israel lobbying group, the American Israel Public Affairs Committee . He will dine with Vice President Joe Biden tonight. Netanyahu’s agreement “to negotiate final status issues” is “one step in the right direction,” said Palestinian Authority spokesman Ghassan Khatib . “We are waiting to hear the Israeli response to the rest of the requirements, especially the issue of illegal building of settlements in occupied territories, including Jerusalem.” Jerusalem Policy Netanyahu yesterday reiterated the long-held Israeli position that all of Jerusalem is Israeli territory. “Our policy toward Jerusalem is the same policy of all Israeli governments in the past 42 years and it has not changed,” Netanyahu said before the Cabinet meeting. “From our point of view, construction in Jerusalem is like construction in Tel Aviv.” Israel’s TA-25 Index closed 0.5 percent lower at 1,209.09 yesterday. The benchmark Mimshal Shiklit note due February 2019 dropped 0.19 shekel to 109.36 at the close. The yield on the 6 percent security rose four basis points to 4.75 percent. The announcement during Biden’s visit to Israel earlier this month that Israel had approved plans to build 1,600 new housing units in east Jerusalem derailed the planned start of the proximity talks and earned the Netanyahu government rebukes from Biden, Obama and Clinton. Israel captured east Jerusalem from Jordan in the 1967 war and its annexation of the area later was never internationally recognized. Palestinians seek the territory as the capital of a future state. ‘Mutual Confidence-Building’ In a telephone call with Clinton on March 18, Netanyahu proposed “mutual confidence-building steps” for Israel and the Palestinian Authority to defuse the tensions over the east Jerusalem project. According to a U.S. official who spoke on condition of anonymity, Washington seeks a freeze of the planned housing units along with gestures to bolster the Palestinian Authority. “It’s not about any one particular action,” Clinton said in a March 19 interview with Bloomberg TV. “It’s about the overall atmosphere that is necessary to demonstrate clearly and unequivocally the commitment to the negotiations and the outcome of a two-state resolution.” ‘Time to Resolve’ Biden said March 11 that because construction of the housing units will take several years, “it gives negotiations the time to resolve this, as well as other outstanding issues.” Netanyahu is considering more gestures to the Palestinians, said an Israeli official, speaking on condition of anonymity because he wasn’t authorized to discuss the issue with the press. They include easing restrictions on the Gaza Strip, the official said. Gaza is controlled by the Islamic group Hamas, which the U.S. and Israel regard as a terrorist organization. Both Netanyahu and Obama have much at stake in resolving the disagreement over the housing plan. For the U.S., making progress on the Israeli-Palestinian conflict is important to win Arab support for stopping Iran’s nuclear program, withdrawing U.S. troops from a stable Iraq and battling extremists in the Middle East, Afghanistan and Pakistan, according to U.S. officials. “Arab anger over the Palestinian question limits the strength and depth of U.S. partnerships with governments and peoples” in the Middle East and South Asia and “weakens the legitimacy of moderate regimes in the Arab world,” General David Petraeus , the commander of U.S. forces in the Middle East, told a U.S. Senate committee March 16. Netanyahu is faced with the potentially competing priorities of preserving his governing coalition, which includes elements such as the religiously oriented Shas party that support the east Jerusalem housing project intended for Orthodox Jews, and maintaining Israel’s relationship with its chief strategic ally. Obama said March 17 that he doesn’t see a crisis in relations with Israel. “Israel’s one of our closest allies and we and the Israeli people have a special bond that’s not going to go away,” Obama said in an interview with the Fox News Channel. “But friends are going to disagree sometimes.” To contact the reporters on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net . Peter S. Green in New York at psgreen@bloomberg.net

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Clinton Awaits Israeli Response on Commitment to U.S.-Brokered Peace Talks

March 16, 2010

By Indira A.R. Lakshmanan March 17 (Bloomberg) — Secretary of State Hillary Clinton said the U.S. is seeking assurances from Israel and the Palestinian Authority of each side’s commitment to U.S.-brokered indirect peace talks following a flap over Israeli settlements. A scheduled trip to Israel and the Palestinian territories by U.S. special envoy George Mitchell was postponed in part because the Obama administration is awaiting a response from Israeli Prime Minister Benjamin Netanyahu to requests Clinton made during a phone call to him on March 12, State Department spokesman Phillip J. Crowley said yesterday. “We are engaged in a very active consultation with the Israelis over steps that we think would demonstrate the requisite commitment to this process,” Clinton told reporters in Washington yesterday. Mitchell was planning to set the so-called proximity talks in motion, adding momentum to President Barack Obama ’s efforts to settle Israeli-Palestinian differences and move toward creation of a Palestinian state. The Israeli government stood firm yesterday on its policy of building Jewish homes in all parts of Jerusalem in the face of U.S. objections and outbreaks of violence in the capital’s Arab neighborhoods. Israeli Foreign Minister Avigdor Lieberman said any ban on Jewish building in east Jerusalem is unacceptable. “There can’t be a situation where only Jews are prohibited from building in Jerusalem, while Arabs are allowed to both build and buy,” Lieberman said in an interview with Israel Radio. Protesters Dispersed Police used stun grenades to disperse Palestinian protesters in two areas of east Jerusalem and arrested 60 of the demonstrators yesterday. Fifteen policemen were injured in the disturbances. Clinton said she had expressed to Netanyahu U.S. “dismay and disappointment” over Israel’s announcement during a visit last week by Vice President Joe Biden of plans to construct 1,600 apartments for Jewish residents in east Jerusalem. Palestinians want east Jerusalem as the site of a future capital of an independent state. The U.S. asked Palestinian leaders this week to refrain from any incitement that could stoke tension in the region. Clinton dismissed the suggestion that U.S.-Israeli relations were experiencing their worst strain in three decades, saying, “I don’t buy that,” and stressing Washington’s “close, unshakeable bond” with the Israeli people. Speech Planned Clinton plans to speak next week at the Washington policy conference of the American Israel Public Affairs Committee, which has called on the administration to “defuse the tension” with Israel. Michael Oren , the Israeli ambassador to the U.S., said in a statement late yesterday that “recent events do not — I repeat — do not represent the lowest point in relations between” the two countries. He added: “Though we differ on certain issues, our discussions are being conducted in an atmosphere of cooperation as befitting long-standing relations between allies. I am confident that we will overcome these differences shortly.” Clinton’s Call In the 43-minute call on March 12, Clinton told Netanyahu that the U.S. wants three things from Israel to prove its commitment to Mideast peace: a freeze on construction of the new housing units announced for east Jerusalem; a gesture to bolster the Palestinian Authority, such as the restoration of economic exchanges, and a pledge that talks would tackle substantive issues, such as the final status of Jerusalem and the return of refugees, a U.S. official familiar with the talks said. The official, who was privy to the talks, spoke on condition of anonymity because the conversation was private. A response from Netanyahu is possible as early as today, the official said. As a gesture to kick-start stalled peace talks, Netanyahu had pledged a 10-month settlement freeze, with certain exclusions, on territories annexed by Israel since 1967. Palestinian officials for the past year had opposed any return to negotiations without a settlement freeze first. Arab states earlier this month endorsed U.S. plans for indirect talks, in part because of Israel’s conditional moratorium. The State Department last week used some of its strongest language toward Israel since Obama took office, going so far as to question Israel’s attitude toward its friendship with the U.S. Crowley said Clinton had told Netanyahu that he would have to “demonstrate not just through words, but through specific actions, that they are committed to this relationship and to the peace process.” To contact the reporter on this story: Indira Lakshmanan in Washington at ilakshmanan@bloomberg.net

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Biden Calls Israel Housing Plan Threat to Peace Talks Amid Visit to Region

March 9, 2010

By Gwen Ackerman and Jonathan Ferziger March 10 (Bloomberg) — Vice President Joe Biden condemned an Israeli plan to build new houses in East Jerusalem, saying it threatened to undermine a U.S. effort to restart the Israeli- Palestinian peace process that had brought him to the region. In a statement issued hours after he met with Israeli Prime Minister Benjamin Netanyahu in Jerusalem yesterday, Biden said the announcement of the plan “is precisely the kind of step that undermines the trust we need right now and runs counter to the constructive discussions that I’ve had” in Israel. “We must build an atmosphere to support negotiations, not complicate them,” said Biden, who will meet with Palestinian Authority President Mahmoud Abbas in Ramallah today. Israel’s Interior Ministry planning committee approved the plans for 1,600 new homes, according to an e-mailed statement yesterday. The ministry said in the statement that the decision was a “procedural” step in a “long process” and that the timing had “no connection whatsoever” to Biden’s visit. The Obama administration wasn’t informed in advance about Israel’s announcement, said a U.S. official who spoke on condition of anonymity. The Palestinian Authority criticized Israel’s move, saying it “will obstruct efforts to resume the negotiations with indirect talks.” The homes approved yesterday will be built in an area of Jerusalem captured by Israel from Jordan in the 1967 Middle East war. The Palestinians seek east Jerusalem as the capital of a future state to be established in the Gaza Strip and West Bank. Biden’s trip began March 8 with the announcement that Israel and the Palestinians had agreed to participate in negotiations that would allow them to discuss peace without meeting face-to-face. Settlements Dispute Previous U.S. efforts to revive talks foundered on the issue of West Bank settlements, with Netanyahu announcing a partial building halt and Abbas demanding a freeze on all construction. George Mitchell , the special envoy for Mideast peace who recently returned from the region, said on March 8 that he was “pleased that the Israeli and Palestinian leadership have accepted indirect talks” and urged all parties “to refrain from any statements or actions which may inflame tensions.” Fayez Abu Eita, spokesman for Abbas’s Fatah party in the West Bank, said the onus was on Biden, 67, to exploit his visit to pressure Israel to stop “settlement activities.” Before Biden’s arrival, Israel disclosed that it had approved construction for 112 new homes in the West Bank, drawing condemnation from the Palestinian Authority, which called the action “provocative.” Talks Frozen Israeli-Palestinian talks have been frozen since the end of 2008, when Israel carried out an offensive in the Gaza Strip that it said was intended to stop Hamas from firing rockets at Israeli communities. Indirect negotiations enable Palestinians to engage with Israel even though Abbas made a public commitment to forgo talks until all settlement construction is stopped. The foreign ministers of Arab states agreed in Cairo last week to give the “proximity talks” four months and call for an emergency United Nations Security Council meeting if they fail. After meeting with Netanyahu yesterday, Biden said “peace is going to require both parties to make some historically bold commitments.” He said the U.S. “will always stand with those who take risks for peace.” Daniel Kurtzer , the U.S. ambassador to Israel from 2001 to 2005, said Israel’s housing announcement during the vice president’s trip “tells you this is a Swiss-cheese settlement freeze. It’s really not serious.” ‘It’s Surprising’ “It’s surprising it would be this overt when there’s an arrival of a friend like Joe Biden,” said Kurtzer, now a visiting professor at Princeton University in New Jersey. Biden will also meet with Palestinian Prime Minister Salam Fayyad and tour the West Bank town of Bethlehem. On March 11, he flies to Jordan. Palestinians would like to see the U.S. pressure Israel to stop all settlement activity and set dates for progress to be made, said Nabil Kukali , director of the Beit Sahour, West Bank- based Palestinian Center for Public Opinion . “Palestinians in general want the American government to just be fair and neutral,” said Kukali. In Jerusalem, Biden also told Israeli leaders that the U.S. was “determined to prevent Iran from acquiring nuclear weapons,” and expressed an “absolute, total, unvarnished commitment to Israel’s security.” Iran Restrictions The U.S. has given China, Britain, France, Russia and Germany a proposal to tighten restrictions on deals with Iran’s banking, shipping and insurance industries. Gabriela Shalev , Israel’s ambassador to the United Nations, told reporters in New York that while her government would like to see “crippling” new UN sanctions imposed on Iran, the chances were “grim” that the Security Council would agree on such measures. Failure to adopt such sanctions would make it more likely that either one of two “bad options” would occur: Iran will “race” toward developing nuclear weapons or be stopped “by force” from doing so, Shaley said. Defense Minister Ehud Barak said yesterday that while Israel continued to seek out an arrangement that would stop Iran’s nuclear program, it was keeping one hand “with its finger near the trigger to defend itself,” a statement from his office said. To contact the reporters on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net ; Jonathan Ferziger in Jerusalam and Ramallah at 1200 or jferziger@bloomberg.net .

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Biden Pushes Indirect Middle East Peace Process With Peres, Abbas Meetings

March 9, 2010

By Jonathan Ferziger and Gwen Ackerman March 9 (Bloomberg) — Indirect peace talks can help build trust between Israel and the Palestinians, Vice President Joe Biden said as he began meetings with leaders of both sides after they agreed to a U.S.-led format for negotiations. “I hope the indirect talks will be a vehicle by which we can allay that layer of mistrust that has built up over the past years,” Biden said in a Jerusalem meeting today with Israeli President Shimon Peres . Biden’s visit began yesterday with an announcement that Israel and the Palestinians had agreed to participate in a round of U.S.-mediated negotiations that would allow them to discuss peace without actually meeting face-to-face. Israeli-Palestinian talks have been frozen since the end of 2008, when Israel carried out an offensive in the Gaza Strip that it said was intended to stop Hamas from firing rockets at Israeli communities. Previous U.S.-led efforts to revive talks have foundered on the issue of West Bank settlement building, with Israeli Prime Minister Benjamin Netanyahu announcing a partial halt and Palestinian Authority President Mahmoud Abbas demanding a freeze on all construction. Hours before Biden’s arrival yesterday, Israel disclosed that it had approved the construction of 112 new homes in a West Bank settlement, drawing condemnation from the Palestinian Authority, which called the action “provocative.” U.S. envoy George Mitchell , who announced the sides’ acceptance of the indirect talks, called on “the parties, and all concerned, to refrain from any statements or actions which may inflame tensions or prejudice the outcome of these talks.” Return to Region “We’ve begun to discuss the structure and scope of these talks and I will return to the region next week to continue our discussions,” Mitchell said yesterday in a statement released in Washington. Biden is also meeting with Netanyahu today, and tomorrow travels to the West Bank city of Ramallah to meet Abbas. “I hope indirect talks will be quickly followed by direct talks,” Netanyahu said late yesterday in Jerusalem, according to a text message sent to reporters by his office. “The two principles guiding me are Palestinian recognition of Israel as a Jewish state and security arrangements that will guarantee Israel’s security in the future.” The format of indirect negotiations enables Palestinians to engage with Israel even though Abbas made a public commitment not to hold talks until all settlement construction is stopped. The foreign ministers of Arab states agreed in Cairo last week to give the “proximity talks” four months and call for an emergency United Nations Security Council meeting if they fail. President Barack Obama raised Arab hopes that the U.S. would apply pressure to Israel with a June 4 speech in Cairo in which he called for a total settlement freeze. Arab leaders expressed disappointment five months later when Secretary of State Hillary Clinton acknowledged that a complete construction halt is unrealistic and praised Netanyahu’s proposal for a limited 10-month freeze as “unprecedented.” Biden is also due to visit Jordan this week. To contact the reporters on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net Jonathan Ferziger in Jerusalem at jferziger@bloomberg.net

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Israel Settlement Halt Wins Approval From U.S., Rejected by Palestinians

November 25, 2009

By Gwen Ackerman Nov. 26 (Bloomberg) — Israel’s government approved a 10- month halt to the construction of new homes in West Bank settlements, a move immediately welcomed by the U.S. and rejected by Palestinians. George Mitchell , the U.S. Middle East peace envoy, said the action “falls short of a full settlement freeze but it is more than any Israeli government has done before.” Palestinian spokesman Nabil Abu Rudeineh told the official Wafa news agency that the Palestinian Authority “rejects returning to peace talks without the complete cessation of settlement activities in the West Bank and Jerusalem.” Israeli Prime Minister Benjamin Netanyahu has been facing pressure from the U.S. to halt all West Bank settlement- building, which the Palestinians have said is a precondition for resuming peace talks. Efforts by President Barack Obama to bring the two sides together have failed to break the stalemate. Netanyahu said yesterday that Israel wouldn’t halt construction in east Jerusalem or halt public buildings in the West Bank such as synagogues and kindergartens. “This is not an easy step, it is a painful step, but we are taking it out of broad national security considerations with the goal of renewing negotiations to achieve peace with our neighbors, the Palestinians,” Netanyahu said at a press conference in Jerusalem. Clinton Praises Move U.S. Secretary of State Hillary Clinton said in an e-mailed statement that the Israeli decision “helps move forward toward resolving the Israeli-Palestinian conflict.” Her comment came within minutes of Netanyahu’s announcement. “Israel is really negotiating with the U.S. and not with the Palestinians,” said Mark Heller , a political scientist at Tel Aviv University’s Institute for National Security Studies. Israeli-Palestinian negotiations broke down in December 2008 when Israel launched a military operation in the Gaza Strip. “There is a sense that the Israeli government is aware that a vacuum in the Israel-Palestinian political process does not play to Israel’s favor,” said Jonathan Spyer , a political scientist at the Interdisciplinary Center Herzliya, outside Tel Aviv. “It invites the possibility of imposed solutions from outside.” East Jerusalem Palestinians seek east Jerusalem, which Israel captured in the 1967 Middle East war and annexed in a move that wasn’t internationally recognized, as the capital of a future state. The suspension approved by Israeli ministers yesterday “is not enough for the Palestinians,” said Mkhaimar Abusada, a political scientist at Al-Azhar University in Gaza City. If Palestinian Authority President Mahmoud Abbas “goes back to the negotiating table with this Israeli offer, he’s going to lose a lot of credibility with the Palestinian people,” Abusada said. Abbas announced Nov. 5 that he won’t run for re-election in January. Mitchell said the U.S. is encouraging Abbas to stay in office. Israel approved the construction of 455 housing units on the West Bank on Sept. 7, and work is under way on 2,500. Netanyahu has said settlers should be allowed to build new homes and schools in existing settlements to accommodate population growth. A Jerusalem planning committee on Nov. 17 approved the building of 900 new homes in the area of Gilo, built beyond the 1967 borders. To contact the reporters on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net .

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Abbas Threat to Spurn Re-election May Leave Israel Without a Peace Partner

November 11, 2009

By Gwen Ackerman Nov. 11 (Bloomberg) — In Washington, the conversation between Israeli Premier Benjamin Netanyahu and President Barack Obama was about reviving peace talks. Back home, Netanyahu’s Palestinian partner for the negotiations may soon be gone. Palestinian Authority President Mahmoud Abbas said on Nov. 5 that he may not run for re-election in January, a step his advisers said could lead to the collapse of his administration. Aides warned of possible violence as a result of the stalemate with Israel. “The Palestinian Authority was established to achieve a goal, and that was the two-state solution, an independent Palestinian state,” chief negotiator Saeb Erakat said in an interview yesterday. “If the Israelis have not reached the defining moment of wanting a two-state solution, who needs the Palestinian Authority?” Netanyahu’s trip to Washington follows remarks by Secretary of State Hillary Clinton praising his proposal to limit West Bank settlement expansion. The comments angered Palestinian officials, who have repeatedly said that Israel must end all settlement building in the West Bank as a precondition to talks. The announcement by Abbas, who has staked his career on negotiating peace, may be a tactic aimed at pressing Obama to exert more pressure on Netanyahu to freeze West Bank building, said Moshe Maoz , a professor of Islamic and Middle Eastern studies at Hebrew University in Jerusalem. “I wouldn’t rule out the possibility that Abbas is doing this as a message to Mr. Obama, that if something is not done by the Americans then the Authority may collapse,” Maoz said. ‘Great Hazard’ The unraveling of the Palestinian Authority would be a “great hazard,” Maoz added. “Hamas can take over and troops trained by the Americans will disband or join Hamas.” The Islamic Hamas group, which refuses to recognize Israel, seized control of the Gaza Strip in 2007, ending a partnership government with Abbas. Hamas is considered a terrorist organization by the U.S., European Union and Israel. After Abbas announced that elections would take place on Jan. 24, Hamas said it wouldn’t allow Gazans to take part. Azzam el-Ahmad, a Fatah central committee member, said this week that the balloting would only move forward if West Bank and Gaza residents could participate. If elections aren’t held, Abbas could also choose to stay on in his position. Opportunity for Negotiation “The most likely scenario is that Abbas will not run for the next term as president and elections will be deferred so that he will continue to be president in near future,” said Yossi Beilin , an architect of the 1993 Oslo Accords with the Palestinians who now runs Beilink, a business consulting firm. “If I’m not wrong, then there is still an opportunity to have intensive negotiations,” he said. In an address this week to the Jewish Federations of North America, Netanyahu said: “I say to Mahmoud Abbas, leader of the Palestinian Authority: Let us seize the moment to reach an historic agreement, let us begin talks immediately.” Netanyahu also repeated his call, made in June, for the establishment of a Palestinian state so long as it is demilitarized, a condition that Abbas has rejected. Palestinian security forces in the West Bank have been successful recently in stopping attacks on Israel as well as ensuring public order and safety, measures Israeli officials have said allowed for the removal of Israeli roadblocks and helped boost the economy. The U.S. has backed the authority and has helped train its forces. Clinton’s Praise Clinton’s praise of Netanyahu’s readiness to restrict settlement building as “unprecedented,” was a retreat from the administration’s earlier insistence on a total settlement freeze. “I was not the one to stand in Cairo University and say ‘real settlement freeze,’” Erakat said last week, referring to Obama’s June 4 speech at the university. “What has changed?” It wasn’t clear who would replace Abbas, 74, also known as Abu Mazen , if elections are held and he doesn’t run. Abbas’s Fatah party has so far refused to name any alternative candidates and has called on him to remain in his post. Marwan Barghouti , now serving a life prison sentence in Israel after being convicted of plotting terrorist attacks, has been suggested as a possible candidate, although his chances of running are stymied by the fact that he is in jail. Prime Minister Salam Fayyad , who has issued a plan that would lead to the unilateral declaration of a Palestinian state within two years, and Fatah leader Abu Maher Ghneim have also been suggested as possible contenders. Former British Prime Minister Tony Blair , now the envoy of the so-called Quartet group on Middle East peace, the U.S., Russia, European Union and United Nations, said a resumption of talks may help change Abbas’s mind. “I’m still hopeful — I’m trying to be optimistic about these things — that we will be able to get a negotiation under way in the next few weeks, and if that happens, then obviously that changes the situation a lot,” Blair said yesterday on Israel’s Army Radio. To contact the reporter on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net

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Dancing Bin Laden Doll, Terrorist-Headband Kitsch Chronicle Gaza’s History

November 10, 2009

By Daniel Williams Nov. 10 (Bloomberg) — “I can offer you a discount on the headbands,” said Tareq Abu Dayyeh, souvenir-store owner. “They’re just like the kind used by suicide bombers.” He was making a sales pitch at his Chairman Arafat Shop, one of Gaza’s most curious commercial outlets. A battery- powered, dancing Osama bin Laden doll occupies a shelf above Barack Obama coffee mugs emblazoned with a misspelling of the U.S. president’s middle name: “Abu Hussain Palestine Loves You.” A plastic Virgin Mary and Jordan River holy water share space with plaques depicting the Dome of the Rock, Jerusalem’s foremost Muslim shrine. Green flags of Hamas, the Islamic party that took over the Gaza Strip in 2007, stand next to yellow banners of Fatah, the bitter rival Hamas expelled. Che Guevara, the Cuban revolutionary leader, appears on T-shirts. “‘We have something for everybody, believe me,” said Abu Dayyeh, 31, who started working in the store in 1994 when his father founded it. Since then, the shop has been a one-stop barometer of Palestinian fortunes, selling kitsch that chronicles war, political infighting and Gaza’s isolation since 2006, when Israel began to blockade the coastal strip. When the store opened, it was called the PLO Flag Shop and the souvenirs reflected hope. Yasser Arafat , the late Palestine Liberation Organization leader, had returned from exile to take control of parts of Gaza and the West Bank. Peace seemed to be on the horizon and in tribute, the shop displayed little crossed Israeli and Palestinian flag pins and key chains, Israeli flags and menorahs, the candelabra that is a symbol of Judaism. A big seller was an inflatable vinyl pillow imprinted with Arafat’s smiling face. One that was purchased in 1995 deflated after a few months. Saddam Posters Israeli-themed mementos fell out of favor in the late 1990s as peace talks foundered, the Israeli settlements expanded and Hamas carried out a suicide-bomb campaign inside Israel. Posters of Saddam Hussein , who supported Palestinian liberation, were the rage. “When things were good, everyone thought that Gaza was going to become the next Singapore; instead, it became the next hell,” Abu Dayyeh said, adding that he’ll take five shekels ($1.33) for a Saddam poster now. Sales of United Nations flags were stimulated in 2000 when the Palestinians launched a revolt that included waves of suicide attacks on Israel. Schools and hospitals bought the flags to fly in the hope that Israel’s retaliatory air raids wouldn’t target them. Israeli flags were also popular — for burning at rallies. ‘Free Gaza’ Some optimism returned in August 2005. Israeli troops withdrew from the Gaza Strip and shut down the settlements. “Free Gaza” T-shirts celebrated the changes. The upbeat mood didn’t last. In 2006, Danish flags became a hot item, purchased to torch in protest of cartoons depicting Muhammad, the prophet of Islam, published in a Denmark newspaper. That summer, Hezbollah, the Lebanese militia and party, fought a 33-day war with Israel, and its leader Hassan Nasrallah became a subject of heroic portrait posters. In late 2007, Abu Dayyeh introduced a coffee mug that commemorated the Annapolis peace process President George W. Bush initiated to spur Israeli-Palestinian talks. A message printed on the outer surface presaged the negotiations’ eventual breakdown, telling buyers of the souvenir to “Break This Mug” if the conference failed. “Buy five, get one free, and you’ll have plenty to smash,” Abu Dayyeh said. Bombed Building The shop is on Gaza’s main boulevard across from the Palestinian parliament building that Israeli bombs flattened during the 2008-2009 war against Hamas. Business now is limited mostly to Hamas orders for Dome of the Rock plaques to give wounded veterans, headbands and flags for parades, and posters announcing the death of a war “martyr.” Some goods are made in China, some in Gaza. The dancing bin Laden was fashioned out of an electric St. Nick. The latest mugs bear the logo “SMILE You are in Largest Jail on Earth Gaza.” Fluctuations in Palestinian politics dictate the shop’s interior decoration. A portrait of Hamas Prime Minister Ismail Haniya replaced a poster of Mahmoud Abbas , president of the Palestinian Authority, at the back of the store in 2007, when Hamas’s militia defeated forces loyal to Abbas. ‘Take Abbas Down’ “Hamas people told us to take Abbas down,” Abu Dayyeh said. “The customer is always right!” A diligent search yields a “Mahmoud Abbas President of Palestine” mug, lodged behind a row of the Obama cups. A picture of Arafat hangs next to Haniya. Even with Arafat’s long-standing opposition to Hamas, he can still be displayed because he is a sort of patron saint of Palestinian nationalism, Abu Dayyeh said. Personal photos round out the carefully balanced décor. One shows Abu Dayyeh as a teenager posed beside Arafat. A second is of his own son posing with Haniya. “That way everybody is happy,” Abu Dayyeh said. To contact the reporter on this story: Daniel Williams in Gaza at dwilliams41@bloomberg.net .

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Netanyahu Departs for Washington With Middle East Peace Effort in Disarray

November 8, 2009

By Jonathan Ferziger Nov. 8 (Bloomberg) — Israeli Prime Minister Benjamin Netanyahu headed for Washington today after a round of diplomacy that may have narrowed gaps with President Barack Obama while slowing peace efforts with the Palestinians. Netanyahu will give a speech Monday to an annual conference of North American Jewish organizations. He did not respond when asked by reporters aboard his plane whether he would meet with Obama during the trip. The visit comes just a week after Netanyahu won praise from Secretary of State Hillary Clinton for his “unprecedented” proposal to limit West Bank settlement expansion to completion of around 2,500 new homes. That was a turnaround from the U.S. position last May that Israel must freeze all settlement building, and one that left Palestinian leaders upset. “This isn’t easy for the Palestinians to absorb because Obama made such an extreme effort early on to improve the U.S. relationship with the Arab world,” said Dan Schueftan , director of the National Security Studies Center at Haifa University. “It’s very tricky and Obama doesn’t want to look too cozy with Netanyahu right now, but eventually they’ll work something out.” Palestinian leaders are insisting on an end to all settlement construction as a precursor to resuming peace talks. By the end of the week, Palestinian Authority President Mahmoud Abbas withdrew his candidacy for re-election and others within his Fatah party warned of a new outbreak of violence. ‘Settlements or Peace’ “Israel has a choice: settlements or peace,” said Abbas’s top negotiator, Saeb Erakat . Nabil Shaath , an aide to Abbas, said there was a risk of violence if Israel continues to build settlements. At Clinton’s meeting last week with Arab leaders in Marrakech, Morocco, which was overshadowed by her shift on settlements, Arab League Secretary-General Amr Moussa said the remarks had crippled the Middle East peace process. “Failure is in the atmosphere all over,” he said. Since then, the secretary of state and other administration officials have been backtracking, saying Palestinian advances in training security forces on the West Bank were also “unprecedented” and that Obama still considers Israeli settlements illegal. That wasn’t enough for Abbas, who spoke in a prime time televised address on Nov. 5 to tell Palestinians that he had “no desire” to run again for the presidency in elections scheduled for January. Meeting Agenda During his trip, Netanyahu will likely focus on the Israeli-Palestinian conflict, Iran’s nuclear program, and a United Nations report that said Israel may have committed war crimes in the Gaza Strip. The prime minister had no scheduled meetings with Obama, Clinton or other senior administration officials, according to his spokesman Mark Regev , who spoke before the departure. The only item on his agenda in Washington was the speech to the General Assembly of the United Jewish Communities, an umbrella group for North American Jewish organizations. Netanyahu is expected to stop in Paris on his way back from the U.S., according to the prime minister’s office. Regev said no meeting with President Nicolas Sarkozy has been scheduled. Schueftan suggested the lack of clarity over Netanyahu’s movements this week derives from the raw feelings left by Clinton’s Middle East tour. “Obama had a slow learning curve but now he understands that Netanyahu couldn’t freeze settlement completely even if he wanted to,” Schueftan said. “It’s going to take some time for the Palestinians to get used to this but I don’t think it’s going to shut off the peace process.” To contact the reporters on this story: Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net

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West Bank Peace Signaling 7% Growth as Israel Increases Roadblock Removals

November 2, 2009

By Gwen Ackerman Nov. 2 (Bloomberg) — Nablus Soap and Detergents Company says its revenue has grown as much as 20 percent since Israel removed three major roadblocks in the area, making it easier for merchants from other parts of the West Bank to visit. “We now have the possibility of finding more customers and sales have improved,” said Mojtaba Tubeileh, 41, general manager of Nablus Soap, which had 2008 revenue of about 1 million shekels ($267,000). “We are waiting for more improvement.” Economic growth in the West Bank may accelerate to 7 percent this year from 5 percent as Israel eases restrictions, the International Monetary Fund said in a report last month. The lifting of barriers must continue for the expansion to be sustained, the lender said. Prime Minister Benjamin Netanyahu has said he is focusing efforts on boosting the West Bank economy and will continue easing movement restrictions. Palestinian investors say a political process must be launched to bring in the foreign investment needed to turn around an economy that, according to the World Bank, has contracted 13 percent in the eight years between 2000 and 2008. “This is a step forward, but you can’t build an investment decision on it because if they have problems, the roadblocks will come back,” said Samir Hulileh , chief executive officer of the Ramallah-based Palestine Development and Investment Ltd. Investors have to see “the West Bank and Gaza without the army and tanks and demonstrations.” Largest Investor The company is the largest private investor by initial investment in the West Bank and Gaza Strip, according to the Palestine Capital Market Authority . Israeli Vice Premier Silvan Shalom said on Sept. 23 that his country is “committed to economic peace and to focus on ways to ease the lives of Palestinians.” Palestinian security forces “are working better against extremists and this makes it possible to cancel more roadblocks in the future,” he said. Israel has removed 11 checkpoints this year, including the three around Nablus in the past six months. Some 250 roads that had been completely closed have been reopened since 2007, including 100 in the last six weeks, military spokesman Maj. Peter Lerner said in a phone interview. Netanyahu said Oct. 31 that Israel’s decision to dismantle roadblocks and eliminate “a lot of bureaucratic hurdles to daily life and economic activity in the Palestinian Authority’s areas,” had resulted in “a Palestinian economic boom.” Short Time Some 450 blocked roads and 14 checkpoints remain in the West Bank and are necessary to stop Palestinian militants from reaching Israeli towns and cities to carry out attacks, Lerner said. “If the situation turns around into a negative one, we do have the ability to relatively, in a short period of time, re- implement these elements and put them back in place,” he said. Tubeileh said the situation was too uncertain to forecast revenue for this year or next. Palestinians, as well as the IMF and the World Bank , say that roadblocks severely limit travel and transport of goods in the West Bank and have strangled the local economy, especially the private sector. “As a result of the Israeli security regime, the Palestinian economy has hollowed out, with the productive sectors declining and the public sector growing,” the World Bank said in a report released in June. Palestinian Prime Minister Salam Fayyad told reporters in Ramallah on Oct. 14 that economic growth has been led by the $1.7 billion in international donor money granted to the Palestinian Authority last year and the $1 billion donated so far this year. Solid Waste Investment Imad Al-Hindi, the general manager of Ramallah-based National Beverage Company , the Palestinian franchisee for Coca- Cola Co. , said revenue climbed 5 percent since the easing of restrictions as trucks can now more easily travel through the northern West Bank toward Nablus and Jenin. Revenue in 2008 was 200 million shekels, he said. Profit from revenue growth was partly offset after a major checkpoint in the south was closed, increasing the cost of sending goods to that area, Al-Hindi said. “There is a slight improvement but not something that will lead to major changes,” he said. “A lot more of that has to happen for there to be a critical mass of change and the economic revival to go forward.” Hulileh said PADICO is concentrating investments on “big projects that need a longer period of time to mature” such as power stations and solid waste management. These types of infrastructure projects can be kept going “through wartime and occupation,” he said. Unemployment Down While per capita Palestinian GDP has fallen about a third since 1999, it may expand this year due to Israel’s lifting of roadblocks and to Palestinian institution building and financial changes, the World Bank said in a Sept. 22 report. Unemployment in the West Bank fell to 16 percent in the second quarter from 20 percent in the previous three months, a drop the bank said may largely be due to a seasonal increase in agricultural employment. Palestinian gross domestic product in 2008 was $6.5 billion, according to the IMF. The Palestine Stock Exchange has gained 11.4 percent this year, compared with a 68.1 percent jump of the Morgan Stanley Emerging Markets Index. Tubeileh said that while conditions in the West Bank have improved, Israeli limits on the flow of goods into the Gaza Strip are undermining potential growth there. “Before 2000, 70 percent of our sales were to Gaza,” said Tubeileh, who says his family has been making soap out of olive oil in the West Bank city of Nablus for more than 400 years. “Since then I have sent two containers, and those only in the past three months.” To contact the reporter on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net

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Obama Says U.S. Won’t Accept Legitimacy of Israel’s West Bank Settlements

September 23, 2009

By Janine Zacharia Sept. 23 (Bloomberg) — President Barack Obama called Israeli settlements in the West Bank illegitimate a day after he praised Israel for showing restraint in their construction, a comment that had left Palestinians angry. “We continue to call on Palestinians to end incitement against Israel. And we continue to emphasize that America does not accept the legitimacy of continued Israeli settlements,” Obama said in a speech today before the United Nations General Assembly. Obama brought Israeli Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas together for a meeting yesterday in New York aimed at restarting negotiations on the fundamental issues that divide them: the future of Jerusalem, the fate of Palestinian refugees and the borders of a future Palestinian state. Instead, the president had to settle for the more limited accomplishment of meeting with both leaders together for the first time and extracting an agreement to keep talking about possible negotiations. In today’s speech, Obama set out the U.S. position and signaled a willingness to keep up pressure on Israel while calling on Arab leaders and others to show more effort. “The United States does Israel no favors when we fail to couple an unwavering commitment to its security with an insistence that Israel respect the legitimate claims and rights of the Palestinians,” Obama said. “And nations within this body do the Palestinians no favors when they choose vitriolic attacks against Israel over constructive willingness to recognize Israel’s legitimacy and its right to exist in peace and security,” he added. Envoy Stymied Obama’s Middle East envoy, former U.S. Senator George Mitchell , has for months been trying to win an Israeli settlement freeze in the West Bank, the core territory of a future Palestinian state, as a way of prodding the Palestinians to take steps on security. The concession also would persuade Arab states to normalize ties with Israel, according to the American strategy. Still, Israel and the U.S. remain divided on the nature of a settlement halt. Israel has announced the construction of 455 new homes in the West Bank and says it will finish construction on 2,500 others. To contact the reporter on this story: Janine Zacharia in New York at jzacharia@bloomberg.net .

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Obama Says Israel, Palestinians Must Act With Urgency to Get Talks Going

September 22, 2009

By Kate Andersen Brower and Jonathan Ferziger Sept. 22 (Bloomberg) — President Barack Obama said Israel and the Palestinians must act “with a sense of urgency” to restart the stalled the peace process. At the start of his first joint meeting with Palestinian Authority President Mahmoud Abbas and Israeli Prime Minister Benjamin Netanyahu , Obama said his special envoy, George Mitchell , will meet with Palestinian and Israeli negotiators next week. Secretary of State Hillary Clinton will report on the status of those efforts next month, he said in New York. “It is past time to stop talking about starting negotiations,” Obama said before talks that included the two leaders as well as senior officials from the U.S., Israel and the Palestinian Authority. Talks “must begin and begin soon.” Obama, who pledged to take a direct role in pursuing Middle East peace, is attempting to restart negotiations on the major issues that divide Israel and the Palestinians: territory, borders, the future of Jerusalem, and Palestinian refugees. He has so far hasn’t won substantial movement on either side. Obama said some progress has been made since he took office, adding, “we still have much further to go.” Settlements, Security Israelis have “facilitated greater freedom of movement for the Palestinians and discussed important steps to restrain settlement activity but they need to translate these discussions into real action,” he said. “Palestinians have strengthened their efforts on security but they need to do more to stop incitement and to move forward on negotiations,” Obama said. Netanyahu told reporters afterward that the meeting helps “break the ice.” Israeli negotiators are ready to meet with Mitchell and those talks will focus on how to restart the peace process. Palestinian Authority Prime Minister Salam Fayyad said Obama’s call for “restraint” on Israeli settlement construction, rather than a complete halt, is a “problem” that threatens to impede resumption of negotiations. “I happen to believe one reason why the political process has stumbled is because those requirements for success were ignored, including a halt to settlement activity,” he said. Low Expectations All three participants have downplayed talk of a breakthrough at today’s meeting. White House spokesman Robert Gibbs said yesterday that there are no “grand expectations.” “You need patience,” Israeli Defense Minister Ehud Barak said in response to a question as he an others entered the room at the Waldorf Astoria Hotel in Manhattan. The leaders are in New York for the opening session of the United Nations General Assembly. Obama met with each separately for about 40 minutes before the three-way discussions. Netanyahu and Abbas didn’t make any public comments. “All of us know this will not be easy, but we are here today because we know it is the right thing to do,” Obama said. “I am committed to pressing ahead.” Domestic Pressures Netanyahu and Abbas face strong domestic pressure not to make any compromises while in New York. Netanyahu’s Likud party has long supported settlement building in the West Bank while opposing territorial compromises that would allow a Palestinian state there. Abbas faces opposition to compromise from the Islamic Hamas movement, which seized full control of the Gaza Strip in June 2007. Hamas leader Ismail Haniya criticized Abbas two days ago for agreeing to meet with Netanyahu in the U.S. Mkhaimar Abusada, professor of political science at Gaza’s Al-Azhar University, said, “Abbas will be in a very bad position if he goes back to the negotiating table without even getting a temporary freeze on settlement expansion.” Netanyahu and Obama have disagreed over settlements since they met at the White House in May and Obama called for a total construction freeze. Netanyahu has said that, while he is willing to negotiate over a Palestinian state in the West Bank, settlers should still be allowed to build new homes and schools in existing settlements to accommodate population growth. New Round of Talks Obama is bringing the Israeli and Palestinian negotiators to Washington next week to meet with Mitchell. Mitchell left Jerusalem last week after failing to bridge the gaps enough to restart peace talks that were suspended nine months ago with Netanyahu’s election. “We’re now going to enter into an intensive and brief period of discussion” of talks aimed at breaking the deadlock, Mitchell said at a briefing afterward. “We’ll build on the work that was done today.” David Makovsky , a fellow at the Washington Institute of Near East Policy, said the three-way meeting is a “good first step.” “You obviously cannot have negotiations unless you can get Netanyahu and Abbas in the same room. With the ice broken, hopefully the diplomatic thaw is now possible,” said Makovsky, co-author of a book on Middle East peacemaking with Obama’s senior adviser on the region, Dennis Ross . To contact the reporters on this story: Kate Andersen Brower in New York at Kandersen7@bloomberg.net ; Jonathan Ferziger New York at jferziger@bloomberg.net

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Iran Calls for Palestinian Talks, United Nations Reform in Atomic Proposal

September 11, 2009

By Jonathan Tirone Sept. 11 (Bloomberg) — Iran said it wants talks about the future of the Palestinian people and reform of the United Nations Security Council to be tied to any discussion of nuclear proliferation in the Middle East. “Security requires reorganization and creating an opportunity for broad and collective participation in the management of the world,” according to a five-page Iranian proposal that doesn’t address the country’s own nuclear program. “Iran voices its readiness to embark on comprehensive, all- encompassing and constructive negotiations.” The Iranian plan doesn’t adequately address U.S. concerns about the country’s nuclear ambitions, State Department spokesman Philip J. Crowley told reporters late yesterday in Washington. The proposal was delivered to U.S., Russian, Chinese, British, French and German diplomats. Foreign Minister Manouchehr Mottaki presented the plan in Tehran on Sept. 9. Officials from the six nations receiving the proposal met this month in Frankfurt to discuss Iran’s nuclear program. The proposals are a response to Western concern about the program, President Mahmoud Ahmadinejad said. Iran’s nuclear development has been under UN investigation since 2003. Negotiations should commence around “political-security issues,” “international issues,” and “economic issues,” according to the document, titled Package of Proposals by the Islamic Republic of Iran for Comprehensive and Constructive Negotiations. Diplomatic Relations U.S. President Barack Obama has said he’s ready to shelve a 30-year moratorium on diplomatic contact with Iran, imposed after the 1979 Islamic revolution, when 52 U.S. diplomats were held hostage in Tehran for 444 days. Iran, with the world’s No. 2 oil and natural gas reserves, is accused by the U.S. of having an illicit nuclear weapons program, supporting terrorism and interfering in neighboring Iraq. Iran denies the allegations. In the proposal, Iran calls for “joint efforts and interactions to help the people of Palestine to draw a comprehensive, democratic and equitable plan.” Iran, which is under three sets of Security Council sanctions over its refusal to suspend parts of its nuclear program, also seeks reform to raise UN “effectiveness on the basis of principles of democracy and justice.” The document’s only mention of the atomic issue is in its call to mobilize “complete disarmament” and to prevent “proliferation of nuclear, chemical and microbial weapons.” Iran’s atomic work is approaching a “dangerous and destabilizing” point at which it may be able to build a bomb, Ambassador Glyn Davies , the U.S. envoy to the International Atomic Energy Agency, said Sept. 9 in a statement to the Vienna- based UN agency’s 35-member board of governors. Ahmadinejad this week rejected any deadlines for talks on Iran’s nuclear program, saying the issue is closed and that the country won’t negotiate over its “undeniable rights.” To contact the reporters on this story: Jonathan Tirone in Vienna at jtirone@bloomberg.net .

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Barak Approves Construction of 455 West Bank Houses, Defying U.S. Demands

September 7, 2009

By Jonathan Ferziger Sept. 7 (Bloomberg) — Israeli Defense Minister Ehud Barak approved the building of 455 housing units in the West Bank, defying U.S. demands for a freeze on settlement construction. The Palestinian Authority immediately condemned the move, saying it “undermines the belief that Israel is a credible partner for peace.” A settler leader pledged to fight any move by Prime Minister Benjamin Netanyahu to halt further building. President Barack Obama has demanded a total freeze of West Bank construction, and Palestinians say they won’t resume peace talks with Israel unless building is halted. Netanyahu says construction should be allowed in existing communities, though he’s agreed to rule out new settlements. The new homes will mostly be in larger settlements close to Jerusalem, including Maale Adumim and Har Gilo, according to an e-mailed statement sent today by the Tel Aviv-based Defense Ministry. Barak also gave permission to open a park for extreme sports in the more distant settlement of Ariel. “I tend to think that this last bit of construction was coordinated with the Americans,” Ephraim Kam , deputy director of Tel Aviv University’s Institute for National Security Studies, said in a telephone interview. “They know Netanyahu has domestic political pressures he has to address.” Jewish settlers, who provide support for Netanyahu and many of his Cabinet ministers, said accepting a freeze on construction would be “catastrophic for the government.” Ministers’ Support “We believe most of the ministers support the settlements, and we will try to translate this into political action,” Dani Dayan, head of the Council of Jewish Communities in Judea and Samaria, a settler lobby, said at a Jerusalem press conference. Barak approved construction of 149 housing units in Har Gilo, 89 in Maale Adumim, 84 in Modiin Illit, 76 in Agan Ayalot, 25 in Keidar, 20 in Maskiot and 12 in Alon Shvut, the Defense Ministry said. The decision was announced without comment and spokesmen for Netanyahu also declined to discuss the new construction. Saeb Erakat , the Palestinian Authority’s chief negotiator, accused Israel of bad faith by exploiting a “loophole” in discussions with the U.S. and other international backers of the Middle East peace process over a settlement halt. “It is now trying to unilaterally redefine a settlement freeze in a way that facilitates rather than stops future settlement construction,” Erakat said in an e-mailed statement sent from his office in the West Bank city of Ramallah. Peace Prospects The U.S. is trying to broker a deal in an effort to renew peace talks, which includes steps by Arab states to normalize relations with Israel. Reacting to reports Sept. 4 that Israel would approve more construction in the West Bank, Amre Moussa, secretary general of the Arab League, said such a move would “destroy the peace prospects entirely.” President Barack Obama’s Middle East envoy George Mitchell is expected to return to Israel for talks with Netanyahu on the settlement issue early next week, according to a government official who declined to be identified because he wasn’t authorized to comment. To contact the reporter on this story: Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net

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Gates to Assure Israel U.S. Will Pressure Iran on Nuclear Weapons Program

July 26, 2009

By Viola Gienger July 26 (Bloomberg) — U.S. Defense Secretary Robert Gates will seek to assure Israeli leaders during a visit this week that the Obama administration stands firm in its demand that Iran forgo any development of nuclear weapons. Gates, scheduled to arrive in Israel tomorrow, will ask the Israeli leadership for patience while President Barack Obama tries diplomatic engagement with Iran, according to an American defense official who briefed reporters. The U.S

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