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May 22, 2006 - Vol. 7, Issue 42

Israel Willing To Fund Palestinian Healthcare Paychecks: An Israeli official said Israel is prepared to release Palestinian tax revenues into a proposed aid mechanism being established by Middle East mediators to avert the collapse of the Palestinian health sector and to pay some salaries.

Israel Willing To Fund Palestinian Healthcare Paychecks: An Israeli official said Israel is prepared to release Palestinian tax revenues into a proposed aid mechanism being established by Middle East mediators to avert the collapse of the Palestinian health sector and to pay some salaries. The official said the money transferred by Israel would be given to specific Palestinian hospitals and clinics, and could then be used to pay salaries to doctors, nurses, and other health workers who have not been paid in over two months. The official said that an independent auditor would ensure that the money is not diverted to the Hamas-led government or Hamas officials.

The report came as the EU pledged to resume payments to the Palestinians as soon as possible, but that a new aid mechanism required Israeli support. EU External Affairs Commissioner Benita Ferrero-Waldner said she hoped that an aid mechanism that bypasses the Hamas government could be in place by June. But EU foreign policy chief Javier Solana indicated it would not be possible for the mechanism to cover salaries of all unpaid Palestinian Authority (PA) employees. While Washington had backed the establishment of the mechanism, Ferrero-Waldner said it was a "different story" whether the U.S. would use it or not. "I cannot give you any reason, but have to tell you that for the time being, I don't think they will use the mechanism," she said. American sources told al-Hayat last week the Hamas government will collapse within three months if the transfer of financial aid to the PA is not resumed. These sources confirmed that the EU, Jordan, and Egypt have committed themselves not to transfer funds directly the Palestinian government. (Reuters, 5/16 & 18/06 & Ynet, 5/17/06)

Limbo Land: How low can you go? That seems to be the challenge for Israeli Prime Minister Ehud Olmert's spin-doctors in trying to dampen expectations for his visit this week to Washington. Olmert's aides returned from a pre-summit trip to D.C. last week, and led Olmert to pronounce that "expectations must be lowered." They said that this will just be a "getting to know you" visit, and that "the Americans are not taking an interest at present in `convergence.' In the view of the Americans, disengagement was not a great success and all ways to a dialogue with Abu Mazen and to implementation of the Road Map have to be explored first. The Americans' only game at the moment is the Road Map." Olmert's aides told cabinet ministers, "The Americans are far removed from convergence at this stage and there is no point in talking to them about it. It will be necessary to exhaust all the possibilities of negotiations with Abu Mazen first."

In related news, French Foreign Minister Philippe Douste-Blazy said that a border that is determined unilaterally will not be recognized by the international community. That is the position of France and the EU. His main message to Israel was that it needs to reach a bilateral deal with the Palestinians, while at the same time France is siding with Israel in demanding that Hamas must abandon terrorism and recognize Israel's right to exist. Given the growing skepticism about his initiative, it's little wonder that Olmert lamented to settlers leaders last week that last summer's disengagement plan did not include a more extensive pullout from the West Bank. "My position was that everything should be done at once, because the [internal] rift exists regardless of the size of the withdrawal," he said. "For that reason, a large step was needed from the beginning." (Ma'ariv, 5/19/06 & Ha'aretz, 5/17/06)

No Deposits, No Returns: Israel's Discount Bank will gradually cease cooperation with Palestinian Authority (PA) banks within 3-6 months. The decision was made following the formation of the Hamas-led PA government and after discussions with the Finance Ministry and Bank of Israel. The bank will not honor checks withdrawn by Palestinian banks, and will not transfer funds to those banks. The bank was unable to find a formula to allow it to legally provide services to Palestinian banks without being exposed to risks and penalties. Bank officials are said to perceive that ties with Palestinian banks may breach money laundering and terror finance laws. (Ynet, 5/17/06)

Palestinian Kids Suffer More From Terror Trauma: A new study from Professor Alean al-Krenawi of Ben Gurion University found that most Palestinian children who have been exposed to trauma (72.8%) report post-traumatic symptoms, while Israeli children are less prone to suffer from post-traumatic stress. Just 25% of Israeli kids that have experienced terror attacks report such effects at different levels. Al-Krenawi's study included 1,000 Israeli and 1,000 Palestinian kids (half from Gaza and half from the West Bank). The research compared feelings and reactions from the two samples to violent incidents they have experienced. Al-Krenawi attributed the differences in distress rates to the fact that Palestinian kids reside in a war zone and are therefore at greater risk of developing depression disorders. The researcher also said that the impact of terror on both sides is expressed through a rise in mental problems and post-traumatic symptoms. "Palestinian children and adolescents in the West Bank and Gaza report of more serious mental states, and of more severe violence at schools," said al-Krenawi, who stressed that the study also focused on Israeli kids in settlements, in Gush Katif prior to disengagement, and "in areas where there is daily and direct contact with Palestinians."

The study found that Palestinian kids in Gaza are worse off than their counterparts in the West Bank in terms of response to trauma, due to the closure imposed on the Strip, the political violence in the streets, and the hunger they have been experiencing. On the other hand, settler youth are less prone to suffer from trauma than other Israeli children, despite the daily encounter with violence and terror. "People live in settlements because of ideology," said the researcher. "The mental damage and the effect violence has on them are less significant than with secular children. The increase in the exposure of Israeli kids to political difficulties brought to a rise in the distress levels of youngsters that are less [ideological], but not in the case of those who have a strong ideological belief." (Ynet, 5/18/06)

Idle Hands: Israeli security sources are less concerned about a humanitarian disaster in the Gaza Strip than an economic meltdown. They calculate that sufficient food is being delivered to Gaza. But the fact that the Karni crossing only works intermittently will bring about in a few months a complete halt to the means of production in Gaza and an end to the economic infrastructure there. Since the start of 2006, Karni has been completely shut for 60 days because of intelligence warnings. Even when it opened, it only functioned for a few hours a day. The enormous loss caused to the Palestinian economy because of the closings of the Karni and Kerem Shalom crossings is estimated at $600,000 a day. Every day Gaza loses 2,500-3,000 tons of goods and raw materials meant to go inside. As a result, factories in Gaza do not receive raw materials. 85% of the factories there produce goods for export, but the closed crossings have halted Palestinian exports since January. It is believed that as time passes, most Gaza industry will slow down and close. Agricultural exports from Gaza have also stopped. Orange grove owners in Gaza, who planned to sell 8,000 tons of oranges to the Gulf states for $400 a ton, are forced to sell them inside Gaza for just $40 a ton. Already in the coming season, the farmers will not have the money to invest in new crops. The high unemployment in Gaza and unpaid civil servant salaries are also becoming an Israeli security problem. "No wonder a policeman who earns $20 a day and does not even get this, agrees to fire a Kassam rocket for $200-the going rate paid by the terrorist organizations," says an Israeli security source. With the current situation, say Israeli security officials, "if anyone in Israel thinks that continuing to dry up the Palestinians economically will get rid of the Hamas government-they're wrong. In the territories, at least in the Gaza Strip, there is no organized group capable of overthrowing Hamas." (Yedioth Ahronoth, 5/19/06)

Hamas' Greatest Hits: There are strong suspicions that Hamas has unleashed its assassins against Fatah leaders, given developments in the occupied territories over the weekend. A preliminary investigation shows that the bomb that was planted to kill Tarek Abu Rajeb, the director of the General Intelligence Service, was attached to the bottom of the elevator that Abu Rajeb and his entourage used at the general intelligence building, one of the most well guarded sites in Gaza. The bomb included improvised explosives and metal ball bearings. The direction of the investigation is focusing on the company that maintains the elevator, which carried out general inspections in the building several days ago. Commander of the General Intelligence Service in the West Bank, Tawfik Tirawi, held a press conference on Saturday during which he claimed that several Palestinian organizations are trying to infiltrate the security services in order to assassinate their directors. "Everyone is under threat," he said. "We are also concerned about Abu Mazen." Security officials in Gaza believe that Hamas, which tried to kill Abu Rajed before, was behind the assassination attempt. On Sunday, Palestinian security forces foiled an attempt to kill another top commander loyal to Palestinian President Mahmoud Abbas. A bomb weighing 154 bombs was found outside the Gaza home of Rashid Abu Shbak and defused. "We believe the device was meant to be detonated when the chief left his house for work," an officer with the Palestinian Preventive Security Service said. "We believe this was an assassination attempt." Fatah sources accuse Hamas of planting the bomb. Meanwhile, a previously unknown group that links itself to al-Qaida claimed responsibility for the failed attempt to kill Abu Rajeb. Ben Caspit reported in Ma'ariv on May 5th that Palestinian security services were warning about the likelihood of Hamas assassinations, including the probability that al-Qaida would claim responsibility for them (see the May 9th edition of the Middle East Peace Report).

Analyzing the current situation in the occupied territories, Amit Cohen wrote, ".On paper, but not yet on the streets, Fatah leaders have more than enough power. Mohammed Dahlan, Samir Masharawi, Abu Maher Hiles-if they join hands, if they succeed in uniting the tens of thousands of members of the movement, they will be able to stand against Hamas. But it appears that in Fatah, everyone prefers to look to the side. To rejoice that the one who was hit this time was not an ally. Perhaps even an historical rival. When all the `rivals' disappear from the arena, those who remain are liable to discover that they have no one to assist them, that they are no longer connected to the field, to the foci of power. That they are alone.Fatah officials said that they are keeping the armed people in their homes because they are trying to behave responsibly and prevent civil war. But it is precisely the unwillingness to go to war that is bringing it closer. After all, the same officials who struck at Abu Rajeb., who are prepared to take things to the end, are betting, with a great deal of justification, that Fatah will remain shattered, even when its leaders are being harmed. If they believed that there were a chance that Fatah would unite in order to strike back, perhaps they might think twice. Meanwhile, Fatah is united only in statements to the media, not in fact." (Ma'ariv & Ha'aretz, 5/21/06)

Courting Accountability: In response to a petition from the Israeli Peace Now movement, the Israeli High Court of Justice ruled that local settlement authorities that want to fund informational programs and protest government decisions may do so, but the state may slash the equivalent amount of money from the authorities' budget allotments. Peace Now had petitioned against the Settlers Council and regional councils in the occupied territories, which took part in financing the public campaign against the disengagement plan. A majority on the court decided that the local authorities may fund political campaigns, but these activities must be financed with municipal tax revenue and independent income only, not with national government money. "It is not proper," wrote Justice Mishael Cheshin, "and we cannot accept that funds granted to the local authority by the state to aid its daily municipal activity are being used to finance the authority's campaign against the state's decision. A local authority that fights against a political plan, and finances that struggle with aid money granted by the state, is doing something that should not be done." Justice Dorit Beinisch added, "I can sympathize with the residents of communities worried about the possibility of being evacuated from their homes under a political plan. But they must honor the legal frameworks that apply to them. The local authority is limited to using funds solely for legally established purposes." This court ruling could impact budgets transferred by the government to local authorities that campaign against Prime Minister Ehud Olmert's convergence plan. (Ha'aretz, 5/16/06)

Peace Now Prompts Outpost Action: Peace Now recently filed a petition with the High Court demanding that the court obligate the state to evacuate a series of illegal outposts. Lo and behold, Israeli Defense Minister Amir Peretz has now renewed the evacuation orders for 12 outposts in the West Bank, as directed by Prime Minister Ehud Olmert. His signature renews the evacuation order for the new government's term and allows the immediate clearing of the 12 unauthorized sites. Former Prime Minister Ariel Sharon and former Defense Minister Shaul Mofaz had originated the order, but failed to evacuate the outposts. The list includes: Ramat Gilad; Givat Assaf; Maale Rehavam; Mitzpeh Lakhish; Givat Haroeh; Yitzhar Darom; Hazon David; and Mitzpeh Yitzhar. Peace Now Secretary General Yariv Oppenheimer responded, saying, "The defense minister should be congratulated for dealing with the evacuation of the settlement outposts. However, as long as there is no defined date for the evacuation, it cannot be predicted whether the good intentions will indeed be translated into action." (Ynet, 5/18/06 & Ma'ariv, 5/19/06)

Criminal Pursuits: In other Peace Now legal action, the organization-along with residents of the Palestinian village of Bil'in-have petitioned the High Court against the declaration of village's land as state land. With two declarations by the IDF in 1990 and 1991, more than 900 dunams that were owned by Bil'in residents were declared state land. Those declarations were actually meant to disguise a purchase that took place earlier by the Land Redemption Fund, an extreme right-wing outfit whose goal is taking control of West Bank land by various means. It is suspected that the "purchase" in question was done illegally. [We're shocked, simply shocked.] The legal owners of the land were unaware of the transaction, and therefore they could not oppose it. The new petition is based on the heavy suspicion that senior state officials joined members of the Land Redemption Fund for the purpose of laundering an illegal real estate transaction. Information about the questionable transaction reached organizations and people working against the security fence in Bil'in and the illegal construction of the Matityahu East neighborhood near the settlement of Modi'in Illit, on the same ground that was apparently declared state land in the early 1990s. (Peace Now Website Posting, 5/18/06)

New Settlement Watch Report: Peace Now's Settlement Watch project issued its quarterly report for January-March 2006. Settlement Watch found that during this period, no illegal outposts were evacuated, but none were established either. A total of 102 such sites remained standing at the end of March. However, significant building and development work continued apace at 28 outposts, including the construction of permanent houses and other structures, the addition of mobile homes, building a transmission tower, establishing greenhouses, and paving a new road. Dror Etkes, head of Settlement Watch, wrote, "In the first quarter of 2006, the State of Israel continued to ignore its commitment both in the area of enforcing the law against its citizens living in the West Bank and in the political and international context in which Israel is committed to evacuate the outposts created after March 2001. None of that was done. A closer examination of the location of the outposts where growth occurred in the past months shows activity is not concentrated in a particular area in the West Bank, but all over the West Bank. That shows again that the authorities' enforcement failure in the West Bank does not characterize certain areas or districts. It is an overall and ongoing failure."

Similarly, Settlement Watch reported that when it came to the status of older settlements in the first quarter of 2006, tenders for 30 lots were offered in Har Adar, massive construction was taking place in Maale Adumim, Alfei Menashe, Beitar Illit, and Modi'in Illit, and significant construction was occurring at eight other settlements. In addition, private building of settler homes was taking place at 21 settlements, while two other settlements had areas prepared for construction. Etkes noted that, "There has recently been an increase in reports of the intention of former residents of Gaza Strip settlements to relocate to settlements in the West Bank. As of today, we are aware of three such initiatives: Kfar Darom to Eshkolot; Netzarim to Ariel; and Shirat Hayam to Maskiot."

Otherwise, he wrote, "In the first quarter of 2006, the familiar trend of the last years continued. Most of the permanent construction is taking place at the large and medium settlements located in places the separation fence could de facto annex to Israel.The fence route, whether already built or still in various stages of planning, is undoubtedly the key element in shaping the map of construction in the settlements. Therefore it is easy to see that all the large and medium construction sites are west of the fence. So is most of the private construction of private homes being done in the settlements.However, private construction is also taking place in a number of settlements populated by `ideological settlers,' although its scope is limited (Ofra, Ma'on, Carmel, and Shavei Shomron)." (Settlement Watch Report, 5/18/06)

Peace Now Slams Settlement Expansions: Israeli Defense Minister Amir Peretz approved the expansion of four West Bank settlements, the first such approvals under his tenure. The expansion orders enlarged the "jurisdictional areas," a designation that in many cases serves as a prelude to construction of new settlement neighborhoods. The Defense Ministry said that the four cases involved procedures started during the term of Peretz's predecessor, Shaul Mofaz, and that Peretz intends to review the question of enlarging settlements. The four settlements are: Givat Ze'ev, north of Jerusalem, to be enlarged by 15 acres; Oranit, near Kfar Sava; Maskiyot, in the northern Jordan Rift Valley; and Beitar Illit, in the Gush Etzion area, to be expanded by 100 acres. Peace Now Secretary-General Yariv Oppenheimer responded to the moves, saying, "In back rooms and far from the public eye, the government of Israel has chosen to expand the settlements. It turns out that `settlement blocs' are also flexible and changeable concepts. Peretz must rescind this move and call General [Yair] Naveh [who signed the orders] to account." Oppenheimer called the expansions "an attempt to steal more Palestinian land" as part of Prime Minister Ehud Olmert's effort to set Israel's borders. (Ha'aretz, 5/21/06)