1. ISRAELI-PALESTINIAN TALKS EXPECTED TO RESUME AT COMMITTEE LEVEL… Talks between Israeli and Palestinian negotiators are expected to resume at the level of the joint committees established at the Sharm A-Sheikh summit in February. The committees were short-lived, but Ariel Sharon confidant Dov Weisglass will meet with chief Palestinian negotiator ‘Saib ‘Ariqat on Sunday or Monday in an effort to restart the talks concerning issues including the release of Palestinian prisoners; Israeli gestures; the transfer of security control of Palestinian cities to the Palestinian Authority; and the prevention of incitement. It is also expected that the discussions will include the establishment of additional joint committees to deal with economic and coordination issues relating to Israel’s planned pullout from the Gaza Strip in July. Those will fall under the jurisdiction of Vice Premier Shimon Peres and the P.A.’s Muhammad Dahlan. The push to jumpstart the joint committees is one result of Ariel Sharon’s visit to President Bush last week. That summit was followed by a visit by Palestinian minister Salam Faya’d, who was briefed by American officials.
2. SHARON TO CONVENE WITHDRAWAL MEETING ON SUNDAY… Israeli Prime Minister Ariel Sharon will convene a meeting on Sunday intended to provide the latest updates on preparations for the unilateral Israeli withdrawal from the Gaza Strip scheduled to begin on July 20th. Atop the agenda is the lack of housing for the approximately 8,000 Israelis who will be evicted from their homes. To date, there is neither temporary nor permanent housing available for the evacuees. Also prominent in the discussion will be a proposal to move entire communities en masse to the Nitzanim area north of the Gaza Strip. During a visit to the Gush Katif bloc of Israeli communities in the Gaza Strip last week, residents confirmed to The Media Line’s Felice Friedson that with less than three months until the pullout, those affected remain in the dark about where they will go with planning almost non-existent at this point. Representatives of the affected residents canceled their participation in Sunday’s meeting saying “there is no reason to meet with the prime minister as long as he has no answers for us.”
3. FORMER WORLD BANK CHIEF NAMED SPECIAL MIDEAST ENVOY… Former World Bank president James Wolfensohn has been named special coordinator to help the Palestinian Authority run the Gaza Strip after Israel withdraws in July. The appointment reflects growing concern, much of it from European governments, that there has been insufficient coordination between Israel and the P.A. concerning the pullout. Much of the concern stems from fear that Israel will destroy commercial facilities that could be used by the Palestinians for economic development. While Ariel Sharon originally promised that the Palestinians would not be handed infrastructure, that position has been reversed recently, much of it at the urging of Vice Premier Shimon Peres. Israelis operating greenhouses in the Gaza Strip told The Media Line they fear that the industry of plants and organic vegetables, one of Israel’s most successful industries, will be handed over to the Palestinians providing them not only with a successful enterprise it took decades to develop, but that the Palestinians will provide chilling competition during the years it will take to re-establish new Israeli facilities.
4. MIXED MESSAGES FROM P.A. ON JULY ELECTIONS… Palestinian Authority Chairman Mahmoud ‘Abbas insists that elections for the Palestinian Legislative Council will take place on July 17th as planned, but other senior Fatah and P.A. figures say otherwise. The PLC is scheduled to vote on Sunday for enabling legislation that will set the election for July. But some legislators expressed doubt that the bill will be passed by Sunday, resulting in less than adequate time to coordinate balloting for July. Information minister Nabil Sha’ath opened the door to a delay, blaming it on the Israeli pullout from Gaza that is slated to begin three days after the election date. The Hamas terrorist organization issued a veiled threat on Saturday that the calm with Israel might be upset if the election does not take place on July 17th as promised by ‘Abbas. In announcing that Hamas would “rethink” the truce, Sami Abu Al-Zuhri said it was already “on the verge of collapse.”
5. U.S., ISRAEL DISAGREE ON NEXT STEP CONCERNING IRANIAN NUCLEAR PROGRAM… While the United States and Israel agree on their respective assessments of Iran’s nuclear program, the two nations are divided over the next step. According to a report in the Hebrew daily Haaretz, Israel favors taking the issue immediately to the United Nations Security Council in the hope of getting sanctions slapped on Iran soon as possible to dissuade it from continuing its nuclear development. The U.S. however, does not believe it can pass a resolution with teeth over the objections of China, Russia and Europe. Israel and the United States agree that Iran’s negotiations with France, Germany and Great Britain provide a cover under which its nuclear development can continue. American sources, referring to an elaborate presentation of Israel’s assessment of the Iranian nuclear program during lunch at the Bush Crawford ranch, said it contained nothing the U.S. was not already aware of.
6. AMERICANS PUNISH ISRAEL OVER CHINA TIES… Israel has been dropped from participation in America’s largest warplane development program ever because of its arms dealings with China. An American official hinted at concern by U.S. officials that top secret technology would not be safe with Israel given its close ties with China. Israel’s armament deals with China have arguably been the prime sore-spot in U.S.-Israel relations for a number of years. After the U.S. forced Israel to renege on a lucrative contract to provide China with its Phalcon advanced warning system – an extremely costly default for Israel – the United States accused Israel of improperly transferring American technology to China in the course of upgrading the Chinese fleet of Harpy attack drones (unmanned aircraft). Although Israel insists no American technology is involved, the Americans have demanded that Israel not return the drones to China, causing tension between Israel and both China and the U.S. Israel is one of eight foreign governments participating in the development of the F-35 Joint Strike Fighter, and had signed a pledge to contribute $50 million to the project. It is nevertheless a minor player in the project, apparently making it the right vehicle for a public rebuke and message for the Israelis.
7. PALESTINIAN MINISTER REITERATES: WE DON’T WANT ABANDONED ISRAELI HOUSING… A Palestinian minister has reiterated that the P.A. does not want the houses scheduled to be abandoned by more than 8,000 Israelis when they are evicted from the Gaza Strip this summer. When he first announced his plan to pullout from Gaza, Ariel Sharon said the houses would be destroyed, preventing the nightmare scenario of Israelis seeing Palestinians joyously entering houses that had been home to Israelis for generations. He has since reversed his position and has called for turning over the homes intact in return for Palestinian cooperation with the pullout. On Saturday, Muhammad Shtayyeh, the Palestinian Authority’s Housing and Public Works minister became the latest official to reject the offer, reiterating what others have said: the Israeli communities featuring individual homes do not meet the Palestinian need for housing with greater density. He did, however, welcome other infrastructure.
8. CATERPILLAR BOARD OVERWHELMINGLY REJECTS ATTACK ON SALES TO ISRAEL… The Caterpillar Corporation’s Board of Directors overwhelmingly rejected a shareholder resolution calling for the appointment of an external committee to investigate whether sales to Israel were consistent with the company’s code of conduct. The strategy of the shareholders who brought the motion – many of whom acquired shares only for this purpose – was to obtain the 6% necessary to raise the issue again at the next meeting. They managed only 3%. The group believed that the idea of appointing a committee would be more acceptable to other shareholders who would have rejected out of hand a call to end sales to Israel. They accuse Israel of abusing Palestinians, using Caterpillar bulldozers to raze Palestinian homes.
9. NEW YORK’S PLAZA HOTEL SAVED… A deal has been reached that will save a significant portion of the landmark Plaza Hotel in New York. After purchasing the historic hotel, its Israeli owners announced that it would be converted to condominiums and commercial space, costing more than a thousand workers their jobs. A committee even traveled to Israel to lobby the owner and create local pressure by placing ads in Israeli newspapers. A deal was struck last week in which The Plaza will have 350 hotel rooms and 150 apartments slated for sale, instead of 150 hotel rooms and 200 apartments as originally planned. The hotel’s historic ballrooms will also be preserved and employees who choose to retire will receive twice the legally-stipulated compensation.