1. ISRAELI FOREIGN MINISTER DECLARES ‘ABBAS TO BE ‘IRRELEVANT’… Israeli Foreign Minister Tzipi Livni says Palestinian Authority Chairman Mahmoud ‘Abbas is “irrelevant.” Speaking on Israel Radio, Livni used the words Ariel Sharon previously applied to Yassir Arafat. She said, “[Abbas] cannot serve as a fig leaf to a terrorist authority. Abu Mazen cannot be the pretty face of the ugly terror hiding behind him.” Livni’s comments were immediately rejected by the Palestinian Authority. Chief negotiator ‘Saib ‘Ariqat called them “unacceptable.” The foreign minister’s remarks also place the Israeli government at odds with the United States and European Union, both of which are focusing diplomatic efforts on ‘Abbas as the alternative to Hamas. But analysts at The Media Line point out that the policy of the Olmert government appears to be to reinforce the idea that there is no negotiating partner on the Palestinian side – Israel’s justification for proceeding unilaterally.
2. QUARTET TO DISCUSS AVERTING FINANCIAL COLLAPSE OF THE PALESTINIAN AUTHORITY… Representatives of the Quartet (U.S., United Nations, European Union, Russia) will hold a telephone conference on Wednesday to discuss averting the financial collapse of the Palestinian Authority. According to the Financial Times newspaper, although the Hamas election victory was originally met by threats to cut off financial aid, efforts have now switched to preventing the P.A.’s imminent financial ruin. At a meeting in Brussels on Monday, European foreign ministers are expected to agree to release as much as $120 million to help the P.A. pay its bills. The United States has backed off its initial threat to cut off aid and is now looking for ways to provide what it’s calling “humanitarian aid” in ways that circumvent the Hamas-led government. Israel, however, has suspended the monthly turnover to the P.A. of about $55 million it collects in customs and taxes on its behalf.
3. INTEL PICKS ISRAEL OVER INDIA FOR NEW R&D PLANT… Cyber giant Intel has decided to build its new research and development center in Israel rather than in India. The company just purchased five acres of land in the northern coastal city of Haifa, across from a plant it already has there. The deal is a major one for Israel. The Intel investment is believed to be about $20 million, and will add an estimated 1,500 jobs created for its workforce. Intel already employs 2,000 Israelis at the Haifa facility. The expanded site will cover twelve acres. Intel will also build a technology center in the Gaza Strip. The company has operated in Israel for more than thirty years. It was there that the Pentium M – the basis of its new generation of technology – was created.
4. ISRAEL TO REDUCE LENGTH OF MANDATORY MILITARY SERVICE… Israel’s government has begun the process of reducing mandatory military service from three to two years. The cabinet approved a phased-plan that will see two reductions of four months each through 2010, with the final cut to two years made if conditions permit at that time. Presently, at age 18, Israeli men are conscripted for three years, women for two years. Arab citizens of Israel are exempt from service.