Israel-Palestine Analysis: What is Washington's Strategy on Settlements and Talks?

On Monday, reminded about the statement by Palestinian representatives that they would walk away if the settlement freeze was not extended in the West Bank, U.S. State Department Spokesman P. J. Crowley said:

Well, first of all, we look forward to the first meeting next week with Prime Minister Netanyahu, President Abbas, and Secretary Clinton here on September 2^nd as well as the individual meetings and dinner that President Obama will host at the White House on September 1^st. We look forward to getting into the direct negotiation and then we believe that once that negotiation starts, it’ll be incumbent upon both the Israelis and Palestinians to avoid steps that can complicate that negotiation.

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Then, asked whether Washington was worried that the Israelis had not committed to extend that moratorium, Crowley implicitly revealed the Obama Administration's expectations:

No. As we’ve been saying throughout this process, our focus has been to get the parties into direct negotiations and once in the direct negotiations, then these very issues will be tabled and resolved.

On Tuesday, Crowley was asked whether the US had reached an understanding with Israelis that there would be no announcement that the settlement freeze would continue but some construction, possibly in large settlement blocks, would continue. Crowley did not deny but reiterated Washington's classic statement: "Well, we look forward to the meetings next week."

In contrast, a senior administration official briefing reporters in Jerusalem said that the US position had not changed,and that Washington “doesn’t accept the legitimacy of continued Israeli settlements”. The official also said there were no “clandestine” understandings with either side.

On Wednesday, two US officials --- Daniel Shapiro, a top National Security Council staffer handling Israel and neighbouring countries, and David Hale, deputy to special Mideast envoy George Mitchell --- are going to the region to talk separatelywith Palestinians and Israelis.

Washington's message is clear to both sides: No provocative actions until 2 September and the start of the directly. The second strategy is to urge the Israeli government for a partial, if not a full, settlement freeze in the West Bank. Still, the question remains: beyond the refugee and status of East Jerusalem issues, how is the US going to persuade Ramallah to accept a peace plan likely to be linked to Israel's "sensitive" security concerns, even if it is based on 1967-War borders(even not mentioning the refugee and the status of East Jerusalem problems)?

Palestine-Israel Analysis: Ramallah's "One Month Trial" and Netanyahu's "Security Card"

After half the members of the Executive Committee of the Palestine Liberation Organization failed to attend the discussion over direct talks with Israel, the Palestinian Ma'an News Agency reported that Hamas cancelled Saturday's reconciliation meeting with Fatah.

According to the London-based Arab language daily Al-Quds Al-Arabi, the Palestinian Authority leader Mahmoud Abbas has re-labeled the talks as a two-stage process: a one-month trial period to see if Israel's Netanyahu Government will extend the freeze on West Bank settlements and then direct talks focusing on core issues.

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For that second stage of the talks, Abbas suggested that the Quartet --- in which Russia, European Union, and United Nations sit with the US --- can press Washington to get Israel to reveal its hand, behind closed doors, on the borders of a future Palestinian state. In a letter, Abbas urged the Quartet members to abide by resolutions of the UN pertaining to the Israeli-Arab conflict, the principles of the 1991 Madrid Peace Conference, the 2002 road map and the 2002-2007 Arab Peace Initiative.

Azzam al-Ahmed, a senior Fatah official who also serves as an adviser to Abbas, expressed dismay over Washington’s failure to invite representatives of all the Quartet members to the launch of direct talks in Washington early next month.

On the Israeli front, Prime Minister Netanyahu is preparing to use his best card, "security issues", as soon as the talks commence. Over the weekend, Netanyahu said he plans to focus on security arrangements before addressing final borders. (That means "drawing final borders across security arrangements". If Israeli forces are deployed in the Jordan Valley and most of the 500.000 Israeli settlers are kept as a buffer force for the Israeli state from missiles, then the lines have more or less been drawn.)

Netanyahu increased the pressure by depicting a "real partner on the Palestinian side, sincere and serious in negotiations, negotiations which will require both sides to take necessary measures, not only the Israeli side but also the Palestinian side”. Then it would be possible to “shortly reach a historic peace agreement between the two peoples.”

In response to Ramallah's "one-month trial" for the extension of a settlement freeze, Netanyahu will use his "security" card in order to get the maximum concessions at the beginning of negotiations. That is a wise strategy: if the concessions are not made, then West Jerusalem can blame Ramallah for not living up to its agreement to negotiate. However, that in turn also points to the difficulty of getting Israel to move beyond the initial phase of talks.

Who might be responsible for that position? What about a country whose administration once supported Palestinians pre-conditions --- including the settlement freeze and ending the occupation in East Jerusalem --- yet, with urgent phone calls to Ramallah, has insisted on no pre-conditions and definitely no reference to Israel's weapons programmes, including its nuclear capability? Any guess who that might be?

Israel-Palestine Analysis: Why Did Ramallah Agree to Direct Talks? (Yenidunya)

On Friday, US Secretary of State Hillary Clinton stated that Prime Minister Benjamin Netanyahu and Palestinian Authority leader Mahmoud Abbas will each meet with President Barack Obama on 1 September, with formal direct negotiations starting the following day. The Quartet (United Nations, United States, European Union and Russia) echoed Washington's invitation and said a deal could be reached within a year.

Netanyahu's office issued a statement, highlighting the significance of Israel's security institutions, "We are coming to the talks with a genuine desire to reach a peace agreement between the two peoples that will protect Israel's national security interests, foremost of which is security." Defense Minister Ehud Barak said both parties will be required to make "courageous decisions to reach an agreement."

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Netanyahu has got what he wanted with direct talks without preconditions, so his welcome is understandable. On the other hand, Ramallah had been showing resistance. But why the change in position? And why now?

As a non-state organisation, the Palestine Authority's capabilities and room for manoeuvre are relatively limited. It is neither sovereign nor territorially defined and its decision-making process is more fluid, given the lack of legitimate authority both in the eyes of Palestinians and Israelis. So Ramallah's resistance, in the face of Washington's sustained efforts, was curbed.

Ramallah also faced an imminent deadline, with the Israeli moratorium on settlement expansion in West Bank ending on 26 September. Any hope of an extension rested on an apparent breakthrough, otherwise the intense conservative discourse in Israel--- "Palestinians not missing an opportunity to miss an opportunity" --- would prevail. So the Palestine Authority now seeks to consolidate the demand for a moratorium, as well as an extension of the freeze to East Jerusalem, as part of the negotations. a rule of negotiations, a sine qua non necessity legitimized  in the eyes of international community.

In the end, despite the months required for the effort, Washington was able to use this leverage to get Mahmoud Abbas and his team to the table, given the limited assurances that the non-state could hope to extract. We have no idea whether President Obama threatened sanctions against the PA and/or showed a carrot, such as a pledge that he would bring forth his own map, based on pre-1967 borders, if Netanyahu did not produce one before the winter. However, what we know is that Washington successfully made Ramallah sit down. (On Saturday, the London-based al-Hayat newspaper claimed that the Obama Administration gave assurance to Abbas.)

The decision to go to Washington is strategically the least damaging option for Ramallah. Following the conditional approval of the Arab League for the talks and the international pressure, Ramallah will not be tarred --- at least in the short term --- as the party who always misses opportunities. The Palestinian Authority will try to play the card of getting assurances over Israeli settlements for the continuation of direct talks after 26 September. Less than 24 hours of the approval, the chief Palestinian negotiator Saeb Erekat said:

It can be done in less than a year. The most important thing now is to see to it that the Israeli government refrains from settlement activities, incursions, fait accompli policies.

Given no clear timeframe, specific terms of reference, and a monitoring mechanism, Ramallah is already insisting on taking the Quartet inside the negotiation room.  The PA will try to further the Quartet's March statement, saying that talks should lead to a settlement, negotiated between the parties within 24 months, with an end to the occupation that began in 1967 and an independent, democratic, and viable Palestinian state living side-by-side in peace and security with Israel and its other neighbours. The statement also called for a freeze to settlements in the West Bank and an end to the annexation of East Jerusalem.

On Friday, the Quartet expressed support for the pursuit of a just, lasting and comprehensive regional peace as envisaged in the Madrid terms of reference, Security Council resolutions and the Arab Peace Initiative. So far, Israelis have not responded to this statement and it is not known if and when the Obama Administration will include the Quartet in direct talks.

At the end of the day, however, given the limits of Ramallah's bargaining power, the catalyst for any advance in the talks will be the decisiveness of the Netanyahu Administration: how serious is it about reaching a deal regardless of public pressure over "non-negotiable security needs"?

US-Israel-Palestine Analysis: Arabs Talk Nuclear-Free Region, but Israel Returns US "Quartet Card"

Arabs' 'Nuclear-Free Region' Insistence: Only three months ago, a nuclear-free Middle East was a stated aim of the United Nations Nuclear Non-Proliferation Treaty (NPT) conference. It was backed by the US Government. Then President Obama made it clear that his Administration would not question Israel's nuclear programme when Prime Minister Benjamin Netanyahu was hosted in the White House.

However, it seems that the Arab nations have not given up chasing Israel's nuclear arsenal. A letter of 8 August, signed by Arab League chief Amr Moussa, asks for support of a resolution that Arab nations will submit to the September assembly of the International Atomic Energy Agency:

Singling out a state assumes that there are a number of states in the same position and only one state was singled out. The fact is that all the states in the region have acceded to the NPT except Israel.

Given the Arab League's "yellow light" for direct talks between Palestinians and Israelis, one wonders if some Arab nations are trying to boost credibility in the region with a sign of pressure on the US and Europe.

Meanwhile, Washington has little interests in talking nukes in West Jerusalem. Having failed to mediate direct talks, let alone a resolution, of the Israeli-Palestinian conflict, it now appears --- with the political pressure of November's mid-term elections already being felt --- that it may put the Quartet (United States, Russia, European Union, and United Nations) up front until the end of the year.

State Department spokesman Philip J. Crowley said last Wednesday that the Quartet was likely to issue a statement of support for the talks in the coming day. Then the Quartet was expected to make an announcement regarding the resumption of direct talks on Monday, with US sources saying that the Quartet would call for the establishment of a Palestinian state based on the pre-1967 borders.

This may be a different version of the March statement of the Quartet, in which it was asserted that talks should lead to a settlement, negotiated between the parties within 24 months, ending the occupation that began in 1967 and resulting in an independent, democratic and viable Palestinian state living side-by-side in peace and security with Israel and its other neighbours. The Quartet urged Israel to freeze all settlement activity, including natural growth, and to dismantle West Bank outposts erected since March 2001, and it underlined that the international community does not recognize Israel’s annexation of East Jerusalem.

A  senior American official put on some pressure over the weekend by stating that the Palestinian Authority leader Mahmoud Abbas will announce the start of direct peace negotiations with Israel in only "a matter of days".

However, the dilemma remains that calls for a future Palestinian state based on pre-1967 War do not necessarily touch Israel's expansion of settlements both in the West Bank and East Jerusalem. And West Jerusalem is not blind to the disticntion: in the latest Cabinet meeting, all ministers except Defense Minister Ehud Barak and Deputy Prime Minister Dan Meridor rejected continuing the freeze in the West Bank. It was reported on Sunday that Netanyahu approved construction of 23 new classrooms in various West Bank settlements.

So another US card --- look to the Quartet, at least until mid-November --- played, another card apparently set aside, if not trumped, by Israel.

Greece: The Economic Crisis Continues (Christodoulou)

Eleni Christodoulou writes for EA:

It was only last week, after panic and media outbursts over the financial crisis, that the words "good", "progress", and even "strong began to appear beside "Greece". This combination, almost an oxymoron to our ears, came after an assessment by a team from the European Union, European Central Bank and International Monetary Fund, preceded by a two-week audit, in which the lenders said Greece had made “impressive” progress in revamping its economy, from restructuring pensions to overhauling the tax system.

This report cleared the way for Athens to receive the next installment of its bailout package. The New York Times described it as "the latest sign that the crisis surrounding European finances was starting to ebb". The BBC reported, "Greece's efforts to tackle its public deficit have had a 'strong start', the International Monetary Fund and European Union have said."

The report added that the Greek government had made "impressive" efforts regarding structural reforms, trimming pensions and continuing efforts to reform the labour market. "The programme has made remarkable progress," said Servaas Deroose, a representative for the European Commission.

Earlier this year, the media was flooded by negative waves of heavy criticism, fear of potential spread of the crisis, and even hostility against Greece –--- both the state and its people. Pessimism loomed, and it seemed that Greece’s default was inevitable, a financial disaster simply waiting to happen.

Gradually a decline in these media outbursts became apparent, reflecting perhaps a period of behind-the-scenes workings between Greek and international financial and political experts. Still, an editorial of The New York Times criticised European leaders for going "from panic to complacency" in a few months and warned that there is no time for such attitudes as "the eurozone crisis is not over".

Complacency was followed by optimism and relief, only for the short-lived nature of this euphoria to be exposed. Stories are once again placing Greece side-by-side with gloomy verbs and nouns: "shrank", "decline", and, of course, "unemployment".

The BBC, headlining, "Greek Economy Shrinks a Further 1.5%", says a further contraction of the Greek economy in the second quarter of the year suggests an accelerated rate of recession. Reduced government spending, an outcome of the aggressive austerity policies, accompanied not only a decline in Gross Domestic Product but also a continuing rise in unemployment figures.

According to the Greek Statistics Agency, there was a rise of 43.2% in the number of unemployed in May, compared with the same month last year. This effectively means 181,784 people who were employed in 2009 are now without a job. Even worse, unemployment is due to rise further.

Anyone who lives in Greece has a drama of job loss to tell, either their own story or that of a person related to them. More than one in three in the 15-24 age bracket are out of work: that should worry the social services, given that a high proportion of those involved in violence during the recent strikes were youngsters.

The latest strike, that of the Greek truck drivers, paralysed the country for almost a week. The strike, which began on 25 July at the height of the holiday season, protested planned reforms aimed at liberalising the freight industry. The havoc created by the lack of fuel not only affected citizens who could not get to their jobs but also destroyed food exports, such as the peach industry, and crippled the tourist industry, leaving thousands stranded at their destinations. The government was forcedin the end to call in the army to ensure supplies of fuel to airports, hospitals, and power stations and to halt the devastating effect on the already burdened economy.

Meanwhile, the editor of the Greek newspaper ‘H KAΘHMEPINH’ argues that ‘the intensity of true public discontent has been surprisingly low’. This statement, given the prevailing chaos and violence which resulted in the death of four innocent people working in a bank, seems overly optimistic. Even if there is relative tolerance of the existing austerity cuts, the long-term effects of reduced wages and pensions are more likely to be felt in the following months. The more the discontent, the greater the resistance. And the less that the state claims it can do, the more the people will turn to past offenders who are perceived to have led the country into the brink of bankruptcy.

Although many lists of tax evaders (including doctors and lawyers) have been published by the media, arrests for corruption, tax avoidance, and money laundering have yet to be made. And until the perpetrators are brought to justice, Greek society remains volatile, even during this holiday mood.

A popular Greek blog ‘Fimotro’ wrote about a telling event that occurred this week in a fish tavern in Paros, one of the Cyclades Islands). When a Greek couple finished eating, they took their bill to the nearby table where Dimitris Sioufas, the former President of the Greek Parliament under the conservative party of Nea Dimokratia, was dining with colleagues. The couple placed the bill in front of the politicians’ plates and shouted, "Take it, and pay it using the stolen money."