Reported from Jerusalem
1. NETANYAHU CANCELS DUBAI SUMMIT TRIP, DENIES IT’S SECURITY… Israeli Finance Minister Binyamin Netanyahu has cancelled his planned trip to the World Bank and International Monetary Fund meetings in Dubai. It was originally reported that the former prime minister changed plans due to security considerations, but he has denied that and said through a spokesman that he will remain home to work on the budget for 2004. Meir Sheetrit, a minister assigned to the Finance Ministry, will replace Netanyahu. The conference marks the first time that Israel has been included in an event held in an Arab country. In order to host the conference, the United Arab Emirates (of which Dubai is one of seven sheikdoms) was required to suspend their ban on Israeli passport holders from entering the country.
2. ISRAEL PLEADS ITS CASE FOR THE FENCE TODAY… Prime Minister Ariel Sharon’s emissaries will try to convince U.S. National Security Adviser Condoleezza Rice today that the United States should not penalize Israel for building its controversial security fence. The Bush Administration announced last week that it would deduct the amount spent on construction in post-1967 territories from the $9 billion loan guarantee package and is considering doing the same with money spent on building a fence between Israel and the Palestinian areas that Israel claims is meant to keep suicide bombers out. The U.S. and the Palestinians claim that the fence creates unilateral de facto borders and causes undue hardships for Palestinians living on the opposite side of the fence. Treasury officials worry that the amount deducted from both penalties would reduce Israel’s ability to raise money through bond offerings backed by the American guarantees.
3. GUNBATTLE IN HEBRON AS ISRAEL DEMOLISHES HOUSE… Shortly before Israeli troops surrounded a Hebron home belonging to the father of a Hamas member on Monday morning, a masked gunman entered the house and held its occupants at gunpoint, according to Israeli security officials. The occupants left when the Israelis arrived and before troops began demolishing the structure. When the demolition began, heavy gunfire erupted. The house was brought down and there was no word of the fate of the fugitive who might have remained inside.
4. PALESTINIAN CABINET FORMING… Ahmad Qurei’, the Palestinian Authority’s prime minister-designate, expects to name his cabinet this week. Although the Hamas terrorist organization said in a statement from Beirut that it will not join the government, Qurei’ is nevertheless expected to name a “Hamas-sympathizer” to his cabinet. A diplomatic showdown with the United States looms large as the cabinet nears completion. The Bush Administration has said repeatedly that it will not deal with a government that is controlled by Yassir Arafat, and notwithstanding a fig leaf in the form of the appointment of a cabinet minister said to be “favorable to the United States,” Arafat will be solidly in control. His own Fatah faction will name 16 of 24 ministers. It now remains to be seen whether President Bush will stand by his vow or seek a diplomatic contrivance to bypass the reality of Arafat’s control in order to circumvent his previous assertions.
5. IN ISRAEL: GOVERNMENT INTRIGUE GROWS… Internal intrigue is running high in the Sharon government. The rift between the National Religious Party and the secular Shinui Party has prompted the NRP to call for the opposition Labor Party to replace secular Shinui. At a birthday bash for Shimon Peres Sunday night, Sharon hinted of a new overture to Labor when he referred to the possibility of him and Peres “walking together again.” Peres replied that it may be, “closer than what you think.” For their part, Labor leaders dismissed the comments and accused Sharon of using the event for political purposes. Labor Party members were angered that the gala two-day fest was chaired by Likud officials, rather than members of Peres’s own party. Dignitaries including former heads of state such as Mikhail Gorbachev, F.W.de Klerk, and Bill Clinton attended. Outside, protestors condemning the failed Oslo process held signs that likened Peres to Yassir Arafat.
6. BAGHDAD CAR BOMB KILLS 2, INJURES 7… A car bomb exploded in Baghdad on Monday morning as it tried to enter the United Nations compound. Two were killed and seven injured. The compound located at the Canal Hotel was the scene of another car bombing last month in which 23 people, including high-ranking U.N. officials, were killed.