Middle East Inside Line: US Reaction to House Demolitions, Netanyahu-Mubarak Meeting Deferred and More...

US Criticises Demolition of Palestinian Houses: On Wednesday, State Department spokesman Philip Crowley criticized Israel's recent demolition of Palestinian houses in East Jerusalem: "It is the very kind of action that poses a potential obstacle to direct negotiations. Any steps that the Israelis, Palestinians or other parties take that change the facts on the ground, we think are unhelpful."

Netanyahu Not Going to Cairo: Egypt deferred "the planned meeting between President Hosni Mubarak and Prime Minister Benjamin Netanyahu. Israeli sources claim that the underlying reason of the postponement is Mubarak's deteriorating health situation (see separate EA entry with further information). However, speaking with Al-Shorouq on Wednesday, a senior Egyptian official denied reports of Mubarak's ailing health, saying the meeting was pushed back due to "provocative moves made by Israel".

Turkey Insists on International Probe of Flotilla Attack: After Maj.-Gen. Giora Eiland announced that a military commission's findings that the Israeli Navy had made "operational mistakes" in the 31 May operation against the Freedom Flotilla to Gaza, Turkey's Foreign Minister Ahmet Davutoglu told reporters Tuesday that he welcomed the acknowledgement of "mistakes". However, he said the Israeli commandos had committed "a crime" and said Turkey wants an international enquiry.

Israel Radar System Successfully Tested: Israel tested the Iron Dome's advanced radar system successfully on Wednesday, moving a step closer to deploying both radars and interceptor missiles along the Gaza and Lebanon borders.

Hezbollah's "List of Targets": In an interview with AFP, Naim Kassem, the leader of Hezbollah, said that the group has "large and precise" list of Israeli targets to attack if a third Lebanon war breaks out. He continued:

We now hold a large and precise bank of Israeli targets, and Israel will have to pay the price for any step it takes.

Hezbollah has worked to develop its readiness to rise to the challenge should it arise, and we can safely say that in the past four years we have prepared ourselves far more than Israel has.

Gaza Latest: Aid Ship Docks in Egypt but 3 International Investigations on the Way

The Amalthea, carrying aid, entered Egypt's el-Arish port on Wednesday despite the call of Hamas leader Ismail Haniyeh to break the siege of Gaza, "The sea and land convoys must continue. We hope we can depend on Islamic nations to help us lift the blockade."

Following the Amalthea's docking in el-Arish, Israeli Deputy Prime Minister Dan Meridor restated:

Gaza Latest: Is Aid Ship On Its Way or Going Back to Egypt?

Anyone who wants to bring materials there which are not dangerous materials - munitions, etcetera - can bring them through El Arish, can bring them through the [Israeli] port of Ashdod.

What we want is to set the arrangement for inspections, so we can always check and not allow them to bust their way in.

Then Deputy Foreign Minister Danny Ayalon announced that Israel can consider itself "victorious" in the Libyan ship incident. He said that calls by the European Union and the US for the ship to follow Israel's instructions and not sail to Gaza are a good sign.

However, West Jerusalem's problems may just be starting. Haaretz reports that there will be several meetings amongst high-ranked officials this week Israel's official response to the United Nations' enquiries. Following the Goldstone Report on the Gaza War, Israel faces three new international investigations. Some officials described the situation  as a "barrage".

The most significant enquiry is that of the UN committee charged with examining the credibility of Israel's court system in the wake of the Goldstone Report . Haaretz's Barak Ravid reports:

The inquiry into the Israeli court system was decided on at a March meeting of the UNHRC [UN Human Rights Commission] in Geneva as part of its continuing effort to monitor Israel's response to the Goldstone report. The panel is charged with examining the efficiency, independence, and professionalism of Israel's court system and its adherence to internationally accepted standards. Some Israeli officials have already begun describing it as "a second Goldstone committee."

The committee headed by the German jurist Christian Tomuschat is tasked with monitoring any legal steps taken by the Israeli or Palestinian authorities to implement the Goldstone Report's recommendations. It should begin its work in the next few weeks and submit a final report in October.

Israel's official response to the Goldstone report has been negative, labelling it as "one-sided, legitimizing terrorism". So, if the Netanyahu government decides to cooperate with the Tomuschat committee, it will be a change in strategy.

Two other international committees, one appointed by the UN Secretary General and the other by the UN Human Rights Council, are set to begin work over Israel's May raid on the Gaza-bound Freedom Flotilla.

Israel: Member of Knesset Hanin Zuabi Stripped of Privileges over Flotilla Clash

Israel's Parliament, the Knesset, voted 34-16 on Tuesday to revoke three parliamentary privileges of Arab MK Hanin Zuabi because of her participation in the Freedom Flotilla that sailed to Gaza in late May. Zuabi cannot carry a diplomatic passport, cannot exit the country, and cannot claim the right to have the Knesset cover litigation fees if she faces trial.

Zuabi accused her fellow lawmakers of punishing her out of vengeance and said:

UPDATED Gaza Latest: Is Aid Ship On Its Way or Going Back to Egypt?

It's not surprising that a country that strips the fundamental rights of its Arab citizens would revoke the privileges of a Knesset member who loyally represents her electorate.

In a civilized country, the people who incite against and threaten MK Zuabi would be punished and have sanctions imposed against them.

You have no freedom of choice with regards to the rules of democracy. There are fixed rules that do not change at whim. You do not need to protect democracy, but to protect me for democracy's sake.

Zuabi's party, Balad, condemned the decision as "racist and anti-democratic."

"The MKs who incite against Zuabi spill her blood –-- they are calling on the public to harm her and following their decision, her life will be threatened," Balad said in a statement.  "These MKs will be responsible for any harm that may be caused to her."

Palestine Analysis: What is Ramallah's Strategy on Israel Talks? (Yenidunya)

Although some Palestinian Authority officials do not rule out the possibility of moving to direct talks as long as Israel give certain pledges regarding the agenda and the timetable, chief Palestinian negotiator Saeb Erekat is not seeing eye-to-eye with them.

Speaking to the Turkish state television channel TRT on Tuesday, Erekat said:

Our option is a two-state solution. We have recognized the state of Israel and its right to exist on the 1967 borders. Now it's up to the international community to stand firm and recognize Palestine on the 1967 lines with Jerusalem as its capital.

Our position is that the key to direct negotiations is in the hand of Mr. Netanyahu. The minute he stops settlement activities including natural growth in Jerusalem, the minute he agrees to go to permanent status talks, where we left them in December 2008, we'll have direct talks.

The Israelis have a choice, settlements or peace. They can't have both.

Erekat also added that a unilateral declaration of a Palestinian state is "not on the agenda".

In contrast, pointing to a possible consensus on the transfer of security in some West Bank cities to Palestinian forces as a confidence-building measure, Haaretz reports that Shin Bet security service head Yuval Diskin recently spent a day in the West Bank city of Jenin as a guest of Palestinian Authority counterparts.

Shin Bet chose not to respond to the report. Senior Palestinian officials, however, confirmed yesterday that Diskin had visited last week.

So, given that some Palestinian officials like Erekat are putting conditions on talks but others like Yasser Abed Rabbo are hinting at a possible deal to get to the negotiating table, what is Ramallah's strategy?

It had been reported, following President Obama's telephone call to the PA leader Mahmoud Abbas, that Abbas rejected direct talks before a settlement freeze in both the West Bank and in East Jerusalem. However, Haaretz adds this crucial paragraph:

According to knowledgeable sources in Ramallah, the day after meeting with Netanyahu, US President Barack Obama promised PA President Mahmoud Abbas that if, by this coming winter, [Israeli Prime Minister Benjamin] Netanyahu doesn't place a reasonable map on the negotiating table, which includes the division of Jerusalem, Obama will place his own map on the table.

Thus, the answer to the Palestinian riddle tseems to lie in Washington.

Israel-Palestine: West Bank Village of Walajeh Faces Isolation

The Palestinian village Walajeh, a village in the Bethlehem Governorate located 8.5 kilometres (5.3 miles) to the southwest of Jerusalem, is in danger of being cut off from the rest of the Palestinian lands, leaving 2,000 villagers encircled by Israeli settlements, roads and security barriers.

"Construction has begun on a new section of the West Bank security barrier," says The Jerusalem Post, which continues:

The barrier will make a large dip into the West Bank to keep the settlements, including Har Gilo and the Gush Etzion bloc, on the Israeli side. Within that pocket, an extra loop of barrier is to surround Walajeh on three sides, with a fenced road off limits to Palestinians to Har Gilo closing off the fourth side, according to the Defense Ministry map of the projected route.

Adel Atrash, a village council member said, “We will cling to the village by our teeth. But we don’t know how the next generation will look at things. Maybe they won’t be able to live with all the difficulties and decide to leave.”

Although Foreign Ministry spokesman Yigal Palmor said, "In future negotiations [with the Palestinian Authority], the route of the security barrier will not constitute a political factor,” the newspaper's brief summary of the Wall is more imposing:

Today, the barrier, almost two-thirds complete, runs for more than 400 kilometers through the West Bank and east Jerusalem. Once finished, the barrier would put 9.4 percent of the West Bank on the Israeli side, along with 85% of half a million Israeli settlers, according to a UN report.