UPDATE 1025 GMT: More on the item below on conflict between Israeli Prime Minister Benjamin Netanyahu and Foreign Minister Avigdor Lieberman... Lieberman held a press conference this morning, offering far-from-enthusiastic support for the coalition Government: "It can not be that we were the first [to sign the coalition agreement but we're the last when it comes to the budget. We weren't humiliated, and we aren't the kind of people who let others humiliate us - we won't give this joy to anyone. We do not intend to leave. This coalition can last until 2010 [Editor: 2010?!] in its current framework, and we will do everything possible to make it happen," Lieberman said.Israel-Palestine Analysis: What is the Obama Administration Seeking?
Middle East Inside Line: Lieberman-Netanyahu Tension, Syria’s “Greatest Hope”, Restrictions on Gaza, & Much More
Cairo's Israel-Palestine Mediation: On Sunday, both Israeli Prime Minister Benjamin Netanyahu and Palestinian Authority leader Mahmoud Abbas held separate meetings with Egypt's President Hosni Mubarak in Cairo. Netanyahu, expected to ask Egypt's help in moving Palestinians to direct talks, said, "President Mubarak represents the aspiration to expand the circle of peace, stability and security to all the region's peoples. I view him as a central partner in achieving these important goals."
After talks with US special envoy George Mitchell, Mohammed Dahlan, the head of the Fatah Party's public relations, said
Israel has not accepted the PA's demands on security and border issues so there is no reason for direct talks to resume. Abbas had said he would resume direct peace talks if Israel accepted its 1967 frontier as a baseline for the borders of a Palestinian state and agreed to the deployment of an international force.
After the Netanyahu-Mubarak meeting, Egyptian Foreign Minister Ahmed Aboul Gheit said
more work needs to be done to bridge the gap between Israel and the Palestinians before they can move to direct peace talks.
More Netanyahu-Lieberman Tension: The latest incident stoking tensions between Israeli Prime Minister Benjamin Netanyahu and his Foreign Minister, Avigdor Lieberman, is Lieberman's appointment --- without Netanyahu's consent --- of a relatively little-known diplomat, Meiron Reuven, as Israel’s Acting Ambassador to the United Nations.
This is not the only troublesome issue, however. Last week, the Constitution, Law and Justice Committee of the Knesset approved the draft on
conversion reform, a bill giving Israel's chief rabbinate the legal power to decide whether any conversion outside Israel is legitimate. Under current practice, Israel recognizes only conversions performed by Orthodox rabbis inside Israel, but people converted by non-Orthodox rabbis outside the country are automatically eligible for Israeli citizenship.
On Sunday, Netanyahu said he opposes the conversion bill, proposed by Lieberman's Yisrael Beiteinu Party, because it is "tearing apart the Jewish people". He added that his Likud Party would block the proposed legislation from a vote in the Knesset.
In contrast, Interior Minister Eli Yishai (Shas) said that the absence of a conversion law would pose "an enormous spiritual danger to the Jewish people".
Lieberman's "Serious Partner" Advertisement: Following European Union High Representative Catherine Ashton's statement on the need to open all border crossings around the Gaza Strip, Foreign Minister Avigdor Lieberman said the new Israeli policy of increasing the amount of goods that can enter the Gaza Strip "is not enough" and that his government "
is looking for serious partners" to improve the economic situation in the coastal territory.
He added that Israel is working on a plan to build a power station, desalination plants, and infrastructure for water purification in the Gaza Strip. Doing so, Lieberman put the ball in the court of Hamas, implying that the political leadership of Gaza is the real barrier to Israeli help with the economy.
Cairo's Anger at Lieberman: The Israeli Foreign Minister,however, has ruffled feathers in Egypt. Last week Lieberman called on Israel to disconnect gradually from the Gaza Strip, shutting down all border crossings with the Strip and allowing movement in and out through the sea and the Rafah crossing on the Egyptian border.
Senior Egyptian officials told
Haaretz that Cairo adamantly opposed the move. "We won't allow the responsibility for Gaza to be dumped on us," one official said. "You don't work like that and we are wondering about the timing of Lieberman's statement just before Netanyahu's meeting with President Mubarak."
No Smoking Pipes for Women in Gaza: On Sunday, Hamas said it had
banned women from smoking water pipes in public.
Interior ministry spokesman Ihab al-Ghussein told
AFP:
The police have decided to ban women from smoking water pipes in open, public places because it is against our customs, traditions and social norms.
Sunday, July 25, 2010 at 9:42 
Hamas's Call on EU Countries: Following European Union Foreign Policy Chief Catherine Ashton's visit to the Gaza Strip, with a call for a lifting of Israel's blockade and French Foreign Minister Bernard Kouchner's expression of readiness to hold direct dialogue with Hamas "if France receives an official request from the Palestinian Authority", Ismail Radwan, a Gaza-based senior Hamas leader called on EU countries to hold direct talks with the group, "The European Union and France shouldn't hesitate in having direct dialogue with Hamas on the basis of direct dialogue and not on the basis of containment."