1. PALESTINIAN TERRORIST FACTIONS OPPOSE EGYPTIAN SECURITY ROLE POST-ISRAELI PULLOUT… The major terrorist factions that the Palestinian Authority has sought to bring into the security infrastructure of the Gaza Strip after Israel unilaterally withdraws are opposing the involvement of either Egypt or Jordan in peacekeeping roles. A joint statement was issued on Monday by Hamas, Fatah and other organizations. It said, in part, that, “We are amazed by, and deplore, the talk of a ‘security role’ for some Arab parties in Gaza and the West Bank, because our people expect the Arab nation to act according to the logic of supporting the Palestinians and not the logic of ‘security,’ which cannot be used with regard to the Palestinian people defending its land and its holy places…The Palestinian people will not accept the logic of guardianship and turning the Palestinians into apprentices instead of adopting a combined Palestinian and Arab policy based on solidarity and joint action.” The international community sees Egypt’s role as critical in preventing a security vacuum following the departure of Israeli troops. Although Egypt’s participation seemed to be certain, the factions’ statement casts new doubt.
2. U.S. PREVENTS ISRAELI FIRMS FROM LUCRATIVE OLYMPIC 2008 CONTRACTS… The United States is preventing Israel’s security industry, considered crucial to its economy, from bidding on contracts for work related to the 2008 Olympics in Beijing. According to an Israel Radio report, Israeli firms may be able to bypass the ban by becoming subcontractors to international corporations. News of the ban came during a visit to China by Ehud Olmert, who holds positions both as Deputy Premier and Minister of Industry and Trade. Olmert made clear the importance of China as a trade partner to the Jewish state saying that, “China will be the main target of Israeli business efforts over the next decade.” Israel-China trade reached $1.8 billion last year. In an incident similar to the Olympic ban, the U.S. forced Israel to renege on a billion dollar deal to sell its Phalcon early warning system to the Chinese. Israeli businessmen at the time told The Media Line that they believed the move was an effort by the U.S. government to protect American companies from Israeli competition rather than being defense/policy-related.
3. POLL: MAJORITY OF ISRAELI JEWS VIEW ISRAELI ARABS AS THREAT… 55.3 percent of Israeli Jews view Israeli Arabs as a threat to national security according to a new poll commissioned by the University of Haifa. Conducted by the National Securities Study Center, the survey indicated that 68.3% of Israelis believe that the Arab minority should be encouraged to emigrate from Israel. The results marked an increase in concern by Israelis over the Arab population from the previous poll.
4. SHARON PRESSURED TO FORM JOINT GOVERNMENT… Advisers to Israeli Prime Minister Ariel Sharon are pushing him to close a deal that would bring the opposition Labor Party into his government before the window of opportunity closes. Labor fired a warning shot across Sharon’s political bow when it voted against the prime minister in a no-confidence motion in Israel’s parliament, the Knesset, on Monday. Labor had agreed to provide a “safety net” (a promise not to vote “yes” on no-confidence motions that could topple the government) as long as his plan to withdraw unilaterally from the Gaza Strip continues to move along. And it did so on a no-confidence measure related to the withdrawal. But with economic policy having emerged as Labor’s line-in-the-sand, Labor members of Knesset were free to vote as they pleased on a motion about economic policy, resulting in Sharon’s coalition barely surviving a narrow 55-50 vote. The daily Ma’ariv is reporting that senior Labor members are urging an end to the safety net and strong opposition to joining the coalition. A vitriolic public war of words has erupted between Labor Party chief Shimon Peres and Finance Minister Binyamin Netanyahu, the author of the economic recovery plan that is the target of Labor angst.