Reported from Jerusalem
1. ISRAEL PENALIZED FOR BUILDING IN POST-1967 AREAS… The Bush Administration set $289.5 million as the figure to be offset from Israel’s $9 billion loan guarantee package as a penalty for its building in post-1967 Israeli communities. Construction in those areas has long been a sore spot between the U.S. and Israel, and the loan guarantee package’s enabling legislation required the offset. The exact amount was determined in negotiations between representatives of the Ariel Sharon government and senior Bush Administration officials headed by National Security Adviser Condoleezza Rice. The U.S. also decided that there would be further offsets to penalize Israel for building certain portions of the security fence that Israel insists it is building in order to keep suicide bombers away from its civilian population. The United States, however, agrees with Palestinian claims that the fence creates unilateral boundaries, usurps Palestinian land and creates hardships for the Palestinian people. The amount of the second penalty will be established at a later date.
2. IN APPARENT REBUKE TO SHARON, U.S. WILL SEND OBSERVER TO “GENEVA INITIATIVE” SIGNING… In another apparent rebuff to Ariel Sharon, the United States will send an observer to Monday’s ceremonial launch of the “Geneva Initiative” – an unauthorized and renegade peace plan that offers an alternative to the official plan, the “Road Map for Peace.” Compounding the insult, it was also reported that U.S. Secretary of State Colin Powell is considering inviting the authors of the Geneva plan to discuss their proposal. After ‘Geneva’ was announced by former Israeli minister Yossi Beilin and former Palestinian Authority cabinet minister Yassir ‘Abd Rabbo, Powell raised eyebrows when he sent Beilin and Rabbo a letter “welcoming” their effort even though it competes with the ‘Road Map.’ United Nations Secretary General Kofi Annan, has also expressed support for ‘Geneva’ even though the U.N. Security Council has formally adopted the ‘Road Map’ as the operative plan. The plan itself was funded by several European nations. The ‘Geneva Initiative’ continues to be a major headache for Sharon at home as well, arguably compelling the prime minister towards foreign policy measures that are above all designed to demonstrate that the ‘Road Map’ is still viable. Two other new alternative plans have now been launched as well– one by Israel’s political right and one by the opposition Labor Party. The right wants a single Jewish state in which willing Palestinians can obtain Israeli citizenship under certain circumstances. The Labor Party is offering a modified ‘Geneva’-style proposal.
3. ISRAEL’S SHARON BACKS TRADE MINISTER’S CONTROVERSIAL POLICY REVERSAL IN OPPOSITION TO FOREIGN MINISTER… When Israeli Trade Minister Ehud Olmert announced that he had agreed to the European Union’s demand to label Israeli products with their point of origin, Foreign Minister Sylvan Shalom complained Olmert had overstepped his authority and that Shalom was backed by Prime Minister Sharon in opposing the measure. The European Union wants the labeling in order to deny tax breaks to any product coming from the post-1967 territories. Olmert claims that his move will protect some $7 billion in exports and that the government will compensate exporters for any additional duty it is forced to pay to the EU. Residents of the affected post-1967 areas claim that Olmert’s decision will advance international attempts to define those areas as not being a part of Israel. In a footnote to the story, a spokesman for the European Union denied that a deal had been reached with Olmert. A spokesman for the European Union’s trade commissioner said that Olmert presented proposals that would now be discussed by the appropriate parties inside the EU.
4. IRAQI BABY FLOWN TO ISRAEL FOR RARE HEART SURGERY… An Iraqi infant whose main heart arteries are reversed arrived in Israel where she will undergo an operation to correct the defect at the Wolfson Hospital. The one-week old baby’s condition was diagnosed by an American doctor working with U.S. troops in a northern Iraqi town. He contacted Save a Child’s Heart, an Israeli humanitarian organization, which organized the travel and the surgery for the baby, Bayan Jassem. A spokesman said that no Iraqi doctor had ever been trained to perform the necessary procedure.
5. NINE JORDANIANS HELD BY ISRAEL REPATRIATED… Nine Jordanians being held in Israeli prisons were sent home on Tuesday in a goodwill gesture by Israel in honor of the Muslim holiday of ‘Id Al-Fitr. Two of the nine were imprisoned for possessing arms or explosives; two for anti-Israeli activities; and five for illegal entry into Israel. Israel stressed that the release was unconnected to the prisoner swap being negotiated with the Lebanon-based Hizbullah terrorist organization that will also include additional Jordanian nationals.
6. QUREI’ CASTS DOUBT ON SHARON SUMMIT… The much anticipated summit between Israeli Prime Minister Ariel Sharon and the Palestinian Authority’s Ahmad Qurei’ was thrown in doubt after Qurei’ placed conditions on holding such a meeting. The PA’s prime minister said Israel would have to halt construction on its controversial security barrier and show what he considered to be significant “movement” on other issues. Qurei’s challenge came after weeks of statements by both sides declaring their readiness to hold a sit-down. It also comes amid mounting international and domestic pressure on Ariel Sharon to demonstrate his commitment to the ‘Road Map’ peace process and the plan’s viability. The United States has also demanded that Israel halt construction of the buffer and has been critical of Sharon’s policies.