THE SAUDI PLAN REVIEWED

LAND FOR PEACE (THE FUTURE 7 YEARS OF HELL ON EARTH)

JOEL 3:2
2 I will also gather all nations, and will bring them down into the valley of Jehoshaphat, and will plead with them there for my people and for my heritage Israel, whom they have scattered among the nations, and parted my land.

THE WEEK OF DANIEL 9:27 WE KNOW ITS 7 YRS

Heres the scripture 1 week = 7 yrs Genesis 29:27-29
27 Fulfil her week, and we will give thee this also for the service which thou shalt serve with me yet seven other years.
28 And Jacob did so, and fulfilled her week: and he gave him Rachel his daughter to wife also.
29 And Laban gave to Rachel his daughter Bilhah his handmaid to be her maid.

DANIEL 9:26-27
26 And after threescore and two weeks(62X7=434 YEARS+7X7=49 YEARS=TOTAL OF 69 WEEKS OR 483 YRS) shall Messiah be cut off, but not for himself: and the people of the prince that shall come shall destroy the city and the sanctuary;(ROMAN LEADERS DESTROYED THE 2ND TEMPLE) and the end thereof shall be with a flood, and unto the end of the war desolations are determined.(THERE HAS TO BE 70 WEEKS OR 490 YRS TO FUFILL THE VISION AND PROPHECY OF DAN 9:24).(THE NEXT VERSE IS THAT 7 YR WEEK OR (70TH FINAL WEEK).
27 And he( THE ROMAN,EU PRESIDENT) shall confirm the covenant with many for one week:(1X7=7 YEARS) and in the midst of the week he shall cause the sacrifice and the oblation to cease,(3 1/2 yrs in TEMPLE SACRIFICES STOPPED) and for the overspreading of abominations he shall make it desolate, even until the consummation, and that determined shall be poured upon the desolate.

ISAIAH 28:14-19 (THIS IS THE 7 YR TREATY COVENANT OF DANIEL 9:27)
14 Wherefore hear the word of the LORD, ye scornful men, that rule this people which is in Jerusalem.
15 Because ye have said, We have made a covenant with death, and with hell are we at agreement; when the overflowing scourge shall pass through, it shall not come unto us: for we have made lies our refuge, and under falsehood have we hid ourselves:
16 Therefore thus saith the Lord GOD, Behold, I lay in Zion for a foundation a stone, a tried stone, a precious corner stone, a sure foundation: he that believeth shall not make haste.
17 Judgment also will I lay to the line, and righteousness to the plummet: and the hail shall sweep away the refuge of lies, and the waters shall overflow the hiding place.
18 And your covenant with death shall be disannulled, and your agreement with hell shall not stand; when the overflowing scourge shall pass through, then ye shall be trodden down by it.
19 From the time that it goeth forth it shall take you: for morning by morning shall it pass over, by day and by night: and it shall be a vexation only to understand the report.

DANIEL 8:23-25
23 And in the latter time of their kingdom, when the transgressors are come to the full, a king (EU DICTATOR) of fierce countenance, and understanding dark sentences,(FROM THE OCCULT) shall stand up.
24 And his power shall be mighty, but not by his own power:(SATANS POWER) and he shall destroy wonderfully, and shall prosper, and practise, and shall destroy the mighty and the holy people.
25 And through his policy also he shall cause craft to prosper in his hand; and he shall magnify himself in his heart, and by peace shall destroy many: he shall also stand up against the Prince of princes;(JESUS) but he shall be broken without hand.

I WATCHED THE 2ND EDITION 911 AND NO DOUBT IT WAS A CONTROLLED TOWER BRING DOWN BY BOMBS.I BELIEVE IT WAS OVER THE PEACE PROCESS THOUGH.

LOOSE CHANGE 2ND EDITION RECUT
http://video.google.com/videoplay?docid=7866929448192753501
LOOSE CHANGE FINAL CUT
http://video.google.com/videoplay?docid=-3719259008768610598

IF ANYTHING IT WOULD BE SAUDI ARABIA WORKING WITH THE OWNER OF THE WORLD TRADE CENTER TOWERS TO PUT BOMBS IN THE TOWERS THAT BROUGHT THEM DOWN BECAUSE GEORGE W PROBABLY NEVER WANTED THE PALESTINIANS TO HAVE A STATE OF THEIR OWN AND WAS FAVORING ISRAEL.

BY SAUDI ARABIA ATTACKING THE WORLD TRADE CENTER TOWERS IT GAVE GEORGE W A MESSAGE THAT USE BETTER STICK WITH THE PALESTINIANS AND SAUDI ARABIA AND NOT TO ISRAEL OR THIS WILL BE HAPPENING ALL OVER AMERICA. AND NOTICE AFTER 2001 ATTACK THE SAUDIS MADE A PEACE PLAN IN 2002. I DON'T THINK THIS IS AN ACCIDENT,I THINK THE SAUDIS WANTED CONTROL IN THE PEACE PROCESS. AND AS OF TODAY AMERICA-ISRAEL ARE GOING BY THE 2002 SAUDI PEACE PLAN,NO ACCIDENT,I BELIEVE THE SAUDIS SCARED AMERICA AND ISRAEL INTO THEIR PEACE PLAN THAT WOULD DIVIDE JERUSALEM AND GIVE THE PALESTINIANS A STATE OF THEIR OWN.

I DO NOT BELIEVE THE AMERICAN GOVERNMENT HAD ANYTHING TO DO WITH THE ATTACK,BUT THE SAUDIS SET EVERYTHING UP AND AMERICA WAS FORCED TO COVER THE 911 ATTACK UP OR THE SAUDIS WOULD CUT THEIR TIES AND WOULD TERRORIZE AMERICA BIGTIME.

August 29-September 6, 2001: Bush Tries to Repair Relations with Saudis, But Policy Change Halted by 9/11 Attacks The Bush administration attempts to repair its relation with Saudi Arabia after a dramatic letter from Saudi Crown Prince Abdullah. On August 27, 2001, Abdullah, the de facto leader of Saudi Arabia, sent a message to President Bush threatening to end the Saudi alliance with the US because of what they see as US favoritism towards Israel (see August 27, 2001). Two days later, Bush sends a two-page letter to Abdullah: Let me make one thing clear up front: nothing should ever break the relationship between us. There has been no change in the strategic equation. I firmly believe the Palestinian people have a right to self-determination and to live peacefully and securely in their own state, in their own homeland, just as the Israelis have the right to live peacefully and safely in their own state. Journalist Bob Woodward will later note that this was a much bigger step than President Clinton had taken. Even as Clinton had tried to fashion a Middle East peace agreement as his legacy, he had never directly supported a separate Palestinian state. On September 6, Abdullah replies, Mr. President, it was a great relief to me to find in your letter a clear commitment confirming the principle in which the peace process was established. I was particularly pleased with your commitment to the right of the Palestinians to self-determination as well as the right to peace without humiliation, within their independent state.The Saudis appear appeased. [Woodward, 2006, pp. 77-79] Also on September 6, Bush holds a meeting with his top advisers and suggests a change of policy towards Palestine, including public support for a separate Palestinian state. However, days before Bush is to announce these new policies, the 9/11 attacks take place. None of the planned US policy changes materialize.

3RD TEMPLE TO BE REBUILT
http://www.youtube.com/watch?v=TI9VKQRY47Q
http://www.youtube.com/watch?v=JSKHV4-tA8w&feature=related
http://www.youtube.com/watch?v=O9UmYO0EtfU&feature=related
http://www.youtube.com/watch?v=B37Mp6mhs3A&feature=related
http://www.youtube.com/watch?v=w8DK1Ymg7x8&feature=related

EU WORLD LEADER MAKES 7 YR CONTRACT WITH ISRAEL
http://www.youtube.com/watch?v=EyTRCZABaDI
http://www.youtube.com/watch?v=yxffB2bJE8c
http://www.youtube.com/watch?v=hT-sBPp1oL8

REVIVED ROMAN EMPIRE LEADER MAKE 7 YR TREATY WITH ISRAEL
http://www.youtube.com/watch?v=y3hXAEm7ISE
http://www.youtube.com/watch?v=dk95ZbMu2jk&feature=PlayList&p=F9DA04357419630A&playnext=1&playnext_from=PL&index=3
http://www.youtube.com/watch?v=4Nhdsa0Is_I
http://www.youtube.com/watch?v=EBZX_YKNnhE&feature=related
http://www.youtube.com/watch?v=OZN0LzkeZ-8&feature=related
http://www.youtube.com/watch?v=MSXVDog-ZOc&feature=related
http://www.youtube.com/watch?v=SLE_VRlqzDk&feature=related
http://www.youtube.com/results?search_query=revived+roman+empire&page=2
http://www.youtube.com/watch?v=Mg3gHT0_ins&feature=related

WALID SHOEBAT ON ISLAM AGAINST CHRIST
http://www.youtube.com/watch?v=SL6Oou4I_Ys&feature=related
http://www.youtube.com/watch?v=fn_XiI1LQQo&feature=related
http://www.youtube.com/watch?v=N_LAmd1Tago&feature=related
http://www.youtube.com/watch?v=AuzAzLwwaxs&feature=related
http://www.youtube.com/watch?v=IDbLLth7W9g&feature=related
http://www.youtube.com/watch?v=qAhuArtn7YE&feature=related
http://www.youtube.com/watch?v=CFnNhNhwlD0&feature=related
http://www.youtube.com/watch?v=SiKwCHHB1BQ&feature=related
http://www.youtube.com/watch?v=vNjle2uKZws&feature=related
http://www.youtube.com/watch?v=UvzBBP1F-Nw&feature=related
http://www.youtube.com/watch?v=PDfjvCU3C8o&feature=related

Text: Arab peace plan of 2002

This is the official translation of the Saudi-proposed Arab peace initiative adopted at the annual Arab League Summit in Beirut in 2002. The Council of the League of Arab States at the Summit Level, at its 14th Ordinary Session,

- Reaffirming the resolution taken in June 1996 at the Cairo Extra-Ordinary Arab Summit that a just and comprehensive peace in the Middle East is the strategic option of the Arab Countries, to be achieved in accordance with International Legality, and which would require a comparable commitment on the part of the Israeli Government.

- Having listened to the statement made by His Royal Highness Prince Abdullah bin Abdul Aziz, the Crown Prince of the Kingdom of Saudi Arabia in which his Highness presented his Initiative, calling for full Israeli withdrawal from all the Arab territories occupied since June 1967, in implementation of Security Council Resolutions 242 and 338, reaffirmed by the Madrid Conference of 1991 and the land for peace principle, and Israel's acceptance of an independent Palestinian State, with East Jerusalem as its capital, in return for the establishment of normal relations in the context of a comprehensive peace with Israel.

- Emanating from the conviction of the Arab countries that a military solution to the conflict will not achieve peace or provide security for the parties, the council:


1. Requests Israel to reconsider its policies and declare that a just peace is its strategic option as well.

2. Further calls upon Israel to affirm:

a. Full Israeli withdrawal from all the territories occupied since 1967, including the Syrian Golan Heights to the lines of June 4, 1967 as well as the remaining occupied Lebanese territories in the south of Lebanon.

b. Achievement of a just solution to the Palestinian Refugee problem to be agreed upon in accordance with UN General Assembly Resolution 194.

c. The acceptance of the establishment of a Sovereign Independent Palestinian State on the Palestinian territories occupied since the 4th of June 1967 in the West Bank and Gaza strip, with East Jerusalem as its capital.


3. Consequently, the Arab Countries affirm the following:

a. Consider the Arab-Israeli conflict ended, and enter into a peace agreement with Israel, and provide security for all the states of the region.

b. Establish normal relations with Israel in the context of this comprehensive peace.

4. Assures the rejection of all forms of Palestinian patriation which conflict with the special circumstances of the Arab host countries.

5. Calls upon the Government of Israel and all Israelis to accept this initiative in order to safeguard the prospects for peace and stop the further shedding of blood, enabling the Arab Countries and Israel to live in peace and good neighborliness and provide future generations with security, stability, and prosperity.

6. Invites the International Community and all countries and Organizations to support this initiative.

7. Requests the Chairman of the Summit to form a special committee composed of some of its concerned member states and the Secretary General of the League of Arab States to pursue the necessary contacts to gain support for this initiative at all levels, particularly from the United Nations, the Security Council, the United States of America, the Russian Federation, the Muslim States and the European Union.

United Nations General Assembly Resolution 194 (III)11 December 1948
The General Assembly,http://www.mideastweb.org/194.htm

Having considered further the situation in Palestine,

1. Expresses its deep appreciation of the progress achieved through the good offices of the late United Nations Mediator in promoting a peaceful adjustment of the future situation of Palestine, for which cause he sacrificed his life; and Extends its thanks to the Acting Mediator and his staff for their continued efforts and devotion to duty in Palestine;

2. Establishes a Conciliation Commission consisting of three States Members of the United Nations which shall have the following functions:

(a) To assume, in so far as it considers necessary in existing circumstances, the functions given to the United Nations Mediator on Palestine by resolution 182;(S-2) of the General Assembly of 14 May 1948;

(b) To carry out the specific functions and directives given to it by the present resolution and such additional functions and directives as may be given to it by the General Assembly or by the Security Council;

(c) To undertake, upon the request of the Security Council, any of the functions now assigned to the United Nations Mediator on Palestine or to the United Nations Truce Commission by resolutions of the Security Council; upon such request to the Conciliation Commission by the Security Council with respect to all the remaining functions of the United Nations Mediator on Palestine under Security Council resolutions, the office of the Mediator shall be terminated;

3. Decides that a Committee of the Assembly, consisting of China, France, the Union of Soviet Socialist Republics, the United Kingdom and the United States of America, shall present, before the end of the first part of the present session of the General Assembly, for the approval of the Assembly, a proposal concerning the names of the three States which will constitute the Conciliation Commission;

4. Requests the Commission to begin its functions at once, with a view to the establishment of contact between the parties themselves and the Commission at the earliest possible date;

5. Calls upon the Governments and authorities concerned to extend the scope of the negotiations provided for in the Security Council's resolution of 16 November 1948 and to seek agreement by negotiations conducted either with the Conciliation Commission or directly, with a view to the final settlement of all questions outstanding between them;

6. Instructs the Conciliation Commission to take steps to assist the Governments and authorities concerned to achieve a final settlement of all questions outstanding between them;

7. Resolves that the Holy Places - including Nazareth - religious buildings and sites in Palestine should be protected and free access to them assured, in accordance with existing rights and historical practice; that arrangements to this end should be under effective United Nations supervision; that the United Nations Conciliation Commission, in presenting to the fourth regular session of the General Assembly its detailed proposals for a permanent international régime for the territory of Jerusalem, should include recommendations concerning the Holy Places in that territory, that with regard to the Holy Places in the rest of Palestine the Commission should call upon the political authorities of the areas concerned to give appropriate formal guarantees as to the protection of the Holy Places and access to them, and that these undertakings should be presented to the General Assembly for approval;

8. Resolves that, in view of its association with three world religions, the Jerusalem area, including the present municipality of Jerusalem plus the surrounding villages and towns, the most eastern of which shall be Abu Dis; the most southern, Bethlehem, the most western, Ein Karim (including also the built-up area of Motsa); and the most northern Shu'fat, should be accorded special and separate treatment from the rest of Palestine and should be placed under effective United Nations control;

Requests the Security Council to take further steps to ensure the demilitarization of Jerusalem at the earliest possible date;

Instructs the Commission to present to the fourth regular session of the General Assembly detailed proposals for a permanent international régime for the Jerusalem area which will provide for the maximum local autonomy for distinctive groups consistent with the special international status of the Jerusalem area;

The Conciliation Commission is authorized to appoint a United Nations representative, who shall co-operate with the local authorities with respect to the interim administration of the Jerusalem area;

9. Resolves that, pending agreement on more detailed arrangements among the Governments and authorities concerned, the freest possible access to Jerusalem by road, rail or air should be accorded to all inhabitants of Palestine;

Instructs the Conciliation Commission to report immediately to the Security Council, for appropriate action by that organ, any attempt by any party to impede such access;

10. Instructs the Conciliation Commission to seek arrangements among the Governments and authorities concerned which will facilitate the economic development of the area, including arrangements for access to ports and airfields and the use of transportation and communication facilities;

11. Resolves that the refugees wishing to return to their homes and live at peace with their neighbours should be permitted to do so at the earliest practicable date, and that compensation should be paid for the property of those choosing not to return and for loss of or damage to property which, under principles of international law or in equity, should be made good by the Governments or authorities responsible;

Instructs the Conciliation Commission to facilitate the repatriation, resettlement and economic and social rehabilitation of the refugees and the payment of compensation, and to maintain close relations with the Director of the United Nations Relief for Palestine Refugees and, through him, with the appropriate organs and agencies of the United Nations;

12. Authorizes the Conciliation Commission to appoint such subsidiary bodies and to employ such technical experts, acting under its authority, as it may find necessary for the effective discharge of its functions and responsibilities under the present resolution;

The Conciliation Commission will have its official headquarters at Jerusalem. The authorities responsible for maintaining order in Jerusalem will be responsible for taking all measures necessary to ensure the security of the Commission. The Secretary-General will provide a limited number of guards for the protection of the staff and premises of the Commission;

13. Instructs the Conciliation Commission to render progress reports periodically to the Secretary-General for transmission to the Security Council and to the Members of the United Nations;

14. Calls upon all Governments and authorities concerned to co-operate with the Conciliation Commission and to take all possible steps to assist in the implementation of the present resolution;

15. Requests the Secretary-General to provide the necessary staff and facilities and to make appropriate arrangements to provide the necessary funds required in carrying out the terms of the present resolution.

Israel lauds Saudi peace plan before King Abdullah Wed Nov 12, 2008 5:06pm EST(adds Livni, background, paragraphs 10-13)By Louis Charbonneau

UNITED NATIONS, Nov 12 (Reuters) - Israeli President Shimon Peres seized the rare opportunity of being in the same hall as Saudi King Abdullah on Wednesday to praise a Saudi peace initiative that he said had brought hope to the Middle East.Addressing a special high-level U.N. General Assembly meeting on dialogue between different religions, Peres termed some of the language in an Arab peace proposal based on the Saudi initiative inspirational and promising -- a serious opening for real progress.

It was a rare moment -- an Israeli head of state speaking directly to the Saudi Arabian leader, whose country does not recognize Israel. Egypt and Jordan are the only Arab countries to have signed full peace accords with the Jewish state.Israeli officials, including Peres, have previously said Israel was seriously reconsidering the 2002 Saudi peace initiative, which calls for full Arab recognition of Israel if it gives up lands occupied in a 1967 war and accepts a solution for Palestinian refugees.But this was the first time a representative of Israel was able to address Abdullah directly.Your Majesty, the King of Saudi Arabia, I was listening to your message,Peres said from the podium after the king spoke of the need for religious tolerance and said terrorism was the enemy of religion.I wish that your voice will become the prevailing voice of the whole region, of all people,Peres told Abdullah. It's right, it's needed, it's promising.

LIVNI PRAISES SAUDI INITIATIVE

Unlike Peres, the king did not directly refer to the Saudi initiative when addressing the assembly.The initiative's portrayal of our region's future provides hope to the people and inspires confidence in the nations, Peres told the audience, which included U.S. Secretary of State Condoleezza Rice and numerous Middle Eastern heads of state.Peres, whose position is largely ceremonial, holds little power. But Tzipi Livni, Israel's foreign minister and chief negotiator in talks with the Palestinians, joined Peres in praising the Saudis.The Saudi initiative itself is something that sent a very good message, Livni said at a news conference with Peres. Unfortunately, she said, the Arab proposal based on the Saudi plan was not as good, particularly on the issue of refugees.Livni, who could become prime minister after Israel's general election in February, added that Arab-Israeli peace needed to be hammered out in bilateral talks between Israel and the Palestinians and its Arab neighbors.Despite Peres' and Livni's newfound praise, Israel has never officially endorsed the Saudi initiative, citing reservations about refugees and Jerusalem.Peres said Israel was making progress in talks with the Palestinians and exploring the possibility of real peace with the Syrians, the last in the list of historic conflicts.However, there are those in our region who sow hatred and try to widen the abyss and erect barriers, those who seek to wipe out other people and encourage killing,Peres said.Disputes over Jewish settlements in the occupied West Bank, divisions among the Palestinians and Israel's recent political crisis have frustrated attempts by Washington to clinch an Israeli-Palestinian peace deal by the end of this year.U.N. Secretary-General Ban Ki-moon said on Tuesday that he did not expect an agreement by then. (Editing by Cynthia Osterman)

Obama Favors Saudi Peace Plan For Israel/Palestine Conflict
From The Sunday TimesNovember 16, 2008Barack Obama links Israel peace plan to 1967 borders deal Uzi Mahnaimi in Tel Aviv and Sarah Baxter.

Barack Obama is to pursue an ambitious peace plan in the Middle East involving the recognition of Israel by the Arab world in exchange for its withdrawal to pre-1967 borders, according to sources close to America’s president-elect. Obama intends to More..throw his support behind a 2002 Saudi peace initiative endorsed by the Arab League and backed by Tzipi Livni, the Israeli foreign minister and leader of the ruling Kadima party. The proposal gives Israel an effective veto on the return of Arab refugees expelled in 1948 while requiring it to restore the Golan Heights to Syria and allow the Palestinians to establish a state capital in east Jerusalem.

On a visit to the Middle East last July, the president-elect said privately it would be crazy for Israel to refuse a deal that could give them peace with the Muslim world, according to a senior Obama adviser. The Arab peace plan received a boost last week when President Shimon Peres, a Nobel peace laureate and leading Israeli dove, commended the initiative at a Saudi-sponsored United Nations conference in New York.

Peres was loudly applauded for telling King Abdullah of Saudi Arabia, who was behind the original initiative: I wish that your voice will become the prevailing voice of the whole region, of all people.A bipartisan group of senior foreign policy advisers urged Obama to give the Arab plan top priority immediately after his election victory. They included Lee Hamilton, the former co-chairman of the Iraq Study Group, and Zbigniew Brzezinski, a Democrat former national security adviser. Brzezinski will give an address tomorrow at Chatham House, the international relations think tank, in London. Brent Scowcroft, a Republican former national security adviser, joined in the appeal. He said last week that the Middle East was the most troublesome area in the world and that an early start to the Palestinian peace process was a way to psychologically change the mood of the region. Advisers believe the diplomatic climate favours a deal as Arab League countries are under pressure from radical Islamic movements and a potentially nuclear Iran. Polls show that Palestinians and Israelis are in a mood to compromise. The advisers have told Obama he should lose no time in pursuing the policy in the first six to 12 months in office while he enjoys maximum goodwill. Obama is also looking to break a diplomatic deadlock over Iran’s pursuit of nuclear weapons technology. A possible way forward, suggested last spring by Dennis Ross, a senior Obama adviser and former Middle East envoy, would be to persuade Russia to join in tough economic sanctions against Iran by offering to modify the US plan for a missile shield in eastern Europe. President Dmitry Medvedev signalled that Russia could cancel a tit-for-tat deployment of missiles close to the Polish border if America gave up its proposed missile defences in Poland and the Czech Republic.

Ross argued in a paper on How to Talk to Iran that if the Iranian threat goes away, so does the principal need to deploy these [antimissile] forces. [Vladimir] Putin [the Russian prime minister] has made this such a symbolic issue that this trade-off could be portrayed as a great victory for him. Ross and Daniel Kurtzer, a former American ambassador to Israel, accompanied Obama on a visit to Israel last July. They also travelled to Ramallah, where Obama questioned Mahmoud Abbas, the Palestinian leader, about the prospects for the Arab plan. According to a Washington source Obama told Abbas: The Israelis would be crazy not to accept this initiative. It would give them peace with the Muslim world from Indonesia to Morocco.Kurtzer submitted a paper to Obama on the question before this month’s presidential elections. He argued that trying to reach bilateral peace agreements between Israel and individual countries in the Middle East, was a recipe for failure as the record of Bill Clinton and George W Bush showed. In contrast, the broader Arab plan had a lot of appeal. A leading Democratic expert on the Middle East said: There’s not a lot of meat on the bones yet, but it offers recognition of Israel across the Arab world.Livni, the leader of Kadima, which favours the plan, is the front-runner in Israeli elections due in February. Her rival, Benjamin Netanyahu, the leader of Likud, is adamantly against withdrawing to borders that predate the Six Day war in 1967. Ehud Olmert, the prime minister, last week expressed his support for Israel’s withdrawal from the West Bank Golan and east Jerusalem.

Israeli PM's final offer to Palestinians revealed
www.chinaview.cn 2009-03-27 06:20:04 Special Report: Palestine-Israel Conflicts by Xinhua writer Deng Yushan

JERUSALEM, March 26 (Xinhua) -- Israeli Prime Minister Ehud Olmert proposed to return 93 percent of the West Bank to the Palestinians and to handle the Jerusalem question under an international framework as his final offer, local news service Ynet reported Thursday.Olmert made the promises to Palestinian National Authority (PNA)Chairman Mahmoud Abbas during a meeting in September, said the report, quoting senior officials as saying that the pledges marked Olmert's final offer to end the conflict.

There was one point when I put things on the table and offered Abbas something that had never been offered and dealt with the crux of the problem, with the most sensitive issues that touch the most exposed nerves and historical obstacles, Olmert was quoted as telling a political conference held near Tel Aviv on Thursday. In the offer, Israel would return 93 percent of the West Bank and evict over 60,000 settlers, while retaining large settlements in the Palestinian territories, according to the report, which added that the deal would also see the Jewish state cede control over some peripheral neighborhoods and refugee camps on the outskirts of Jerusalem.

As for the sovereignty of Jerusalem, which is regarded by Israel as its permanent and inalienable capital, and the east part of which is termed by Palestinians as the capital of their future state, Olmert proposed to tackle it under an international framework, revealed the report. The plan was also presented to the United States, an influential player in the Israeli-Palestinian peace process, and Olmert's office said that the staunch ally of Israel supported it, added the report. I told him (Abbas) let's sign.It was half a year ago and I'm still waiting, said Olmert on Thursday, who is set to be replaced by hawkish Benjamin Netanyahu as early as next week. Olmert and Abbas resumed the long-stalled peace talks at a U.S.-hosted international conference in Annapolis on Nov. 27, 2007, and pledged to reach a comprehensive peace deal in 2008.Yet the ambitious goal proved to be out of reach as both sides were largely paralyzed, respectively by an internal feud between Abbas' Fatah in the West Bank and the Hamas movement in the Gaza Strip and by a political turmoil that forced scandal-enveloped Olmert to leave office and Israel to hold a general election. Now that Netanyahu is set to present a new Israeli government dominated by right wingers, who traditionally hold hardline stances toward the peace process with the Palestinians, the peace prospect of the two neighbors seems increasingly blurry. Although the premier-designate has recently repeated his readiness to advance the Israeli-Palestinian peace process, Netanyahu stopped short of committing himself to the two-state solution, which both the United States and the PNA are backing. Meanwhile, his argument that Israel should first help develop the Palestinian economy before the two sides settle the core issues has also run into closed doors, triggering Palestinian criticism that he intends to obscure political issues with economic topics.

EU urges new Israeli government to accept Palestinian state Fri Mar 27, 5:19 pm ET

HLUBOKA NAD VLTAVOU, Czech Republic (AFP) – The European Union on Friday told Israel's incoming new government that there would be consequences if it does not accept the principle of a Palestinian state.Relations would become very difficult indeed, said Czech Foreign Minister Karel Schwarzenberg, whose country holds the rotating EU presidency.At one of our next ministerial meetings we would have to discuss what consequences the EU would draw from that, he told reporters on the sidelines of a meeting with his European Union counterparts at Hluboka castle in the southern Czech Republic.

Schwarzenberg did not elaborate.

One thing that could be jeopardised would be an idea to formally upgrade EU-Israeli ties.Israel's hawkish prime minister-designate Benjamin Netanyahu, of the right-wing Likud party, plans to present his new government to parliament next week, following the Labour party's decision to join his coalition, which includes other right-wing and religious formations.The United States has warned that peace efforts, which have barely budged in recent years, will not be any easier under the hardline Netanyahu, who opposes the creation of a Palestinian state.Several other EU foreign ministers judged that an Israeli government which does not accept a two-sate solution would not be acceptable itself.We Europeans believe that the putting in place of a two-state solution remains the plan, said German Foreign Minister Frank-Walter Steinmeier.The foreign ministers must send a clear message saying that if this is not the case, the EU cannot accept it,added Luxembourg's Jean Asselborn.Last year the EU decided to enhance ties with Israel but the idea has been a dead letter since the Israeli offensive in the Gaza Strip earlier this year.

Earlier the European Commission pledged to support the new Israeli government as long as it accepts certain benchmarks, including the principle of an autonomous Palestinian state.The European Commission is looking forward to working with the new Israeli government in pursuit of a common agenda, the EU executive's head Jose Manuel Barroso said in a message to Netanyahu.It stands ready to assist and support you in your search for peace, prosperity and security for the people in Israel and the region, based on the vision of two states living side by side in peace and prosperity, he said.The Europeans are the biggest donors of aid to the Palestinians but they hold little sway over Israel, which is backed firmly by the United States.

Turkish President Abdullah Gul, on a visit to Brussels, said he hoped that the new government would tone down the rhetoric that its parties have used while they were in opposition.If those statements are carried on in the government and they become government policy, then I have to warn that things would turn for the worse and it would create more suffering, he told reporters.It is for that reason that I believe that the Israeli leaders, when they form the government, will act responsibly.

7 YR TREATY
http://www.youtube.com/watch?v=4Nhdsa0Is_I

EUROPEAN NEIGHBOURHOOD AND PARTNERSHIPINSTRUMENT ISRAELSTRATEGY PAPER 2007 - 2013 & INDICATIVE PROGRAMME 2007 - 2010

Executive Summary This Country Strategy Paper (CSP) for Israel covers the period 2007-2013. Support to Israel over thatperiod will be provided under the new European Neighbourhood and Partnership Instrument (ENPI) which is being established to provide assistance for the development of an area of prosperity and good neighbourliness involving the European Union and the partner countries covered by the European Neighbourhood Policy (ENP).1Under this new instrument, specific assistance is provided to all partner countries that have concluded an Action Plan with the EU to support the implementation of the Action Plan. Funding levels for Israel under the national ENPI envelope are currently estimated at €14 million for the period 2007-2013. Israel will also be eligible under the ENPI regional and cross-border cooperation programmes. Given the scope of the allocation, the most suitable approach seems to be to concentrate on support activities for the implementation of the Action Plan priorities, mainly in the form of institutional cooperation. The principal objective of EU-Israel cooperation is to develop an increasingly close relationship between the EU and Israel, going beyond previous levels of cooperation, including a significant level of economic integration, and a deepening of political cooperation including in the area of foreign andsecurity policy and in the resolution of the Middle East conflict and on human rights issues, on the basis of the EU-Israel Action Plan. EC support over the period covered by this strategy will aim at supporting the attainment of the above policy objectives. Under the National Indicative Programme (NIP) 2007-2010 this translates into support for those areas identified as priorities of mutual interest, based on the ENP Action Plan. 1Regulation (EC) No 1638/2006 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument

3EUCOOPERATION OBJECTIVESOverall external policy goals of the EU The EU promotes its values and interests by operating as a global economic and political player, using various instruments ranging from the Common Foreign and Security Policy (CFSP), assistance and trade to the external dimension of the EU’s internal policies.In particular, the EU strives to promote prosperity, solidarity, security and sustainable developmentworldwide. It is of the utmost importance to the EU to define the right policy mix. That means that, in the light of the EU’s strategic external relations objectives, policy coherence needs to be ensured between all available instruments in dealing with Israel. Strategic objectives of EU/EC cooperation with Israel The EU/EC approach to cooperation with Israel is shaped by a combination of country-specific, regional and global strategic objectives: In the Association Agreement of 20 November 1995 the EU and Israel committed themselves to establishing a partnership which provides for close political and mutually beneficial trade and investment relations together with economic, social, financial, civil scientific, technological and cultural cooperation. The objective of the ENP, which was launched in the context of the 2004 enlargement round, is to share the EU’s stability, security and prosperity with neighbouring countries, including Israel, in a way that is distinct from EU membership. The ENP is designed to prevent the emergence of new dividing lines within and in the vicinity of Europe by offering neighbouring countries closer political, security,economic and cultural cooperation. It also addresses one of the European Union’s strategic objectives set out in the European SecurityStrategy of December 2003, namely to bolster security in the EU neighbourhood. ENP partners expect to gain closer cooperation with the EU, the chance to participate in EU programmes and a stake in the EU’s internal market. In the case of Israel, specific objectives have been established in the EU-IsraelENP Action Plan which was jointly endorsed in December 2004. Relations between the EU and Israel are also part of the Union’s wider efforts to contribute to a resolution of the Middle East conflict. The achievement of lasting peace in the Middle East is a central aim of the EU, whose main objective is a two-State solution leading to a final and comprehensive settlement of the Israeli-Palestinian conflict based on implementation of the Road Map, with Israel and a democratic, viable, peaceful and sovereign Palestinian State living side-by-side in peace within secure and recognised borders and enjoying normal relations with their neighbours.

ISRAEL’S POLICY AGENDAIsrael, from the outset, expressed a keen interest in the ENP as an opportunity to improve and deepen bilateral relations. This is reflected in significant mobilisation of staff both in the Israeli Ministry ofForeign Affairs and in line ministries to follow and support implementation of the ENP Action Plan. The ENP is perceived in Israel as a useful complement to the Barcelona process, with its tailor-madeapproach allowing a focus on areas which have not been at the centre of the regional process, and providing the option of moving at its own pace in those areas identified by the EU and Israel as priorities. Israel’s level of ambition with regard to the ENP can therefore be considered as high. In the trade field, in particular, much emphasis is put by Israel on the parallelism between themultilateral and the bilateral track. Given its high level of development, the character of its traderelations with the EU, and the significance of the high-tech sector, the Israeli economy faces challenges that are different in some respects from those of the other Euro-Mediterranean countries. The discussions on conformity assessment agreements are one example of this specificity which calls for acustomised approach by the EU. Moreover, Israel is one of only two non-EU countries that are fully associated to the EU’s framework programmes for research and technological development. Apart from trade and research and innovation, Israel has shown special interest on a wide spectrum of sectors, in particular in the area of justice, freedom and security, education, and networks. ISRAEL’S OVERALL POLITICAL AND ECONOMIC SITUATIONIsrael is a parliamentary democracy. It does not have a written constitution; instead the Declaration of Independence (1948), Supreme Court precedents and a series of Basic Laws provide the body of law. Israel declared itself a Jewish state, with its Declaration of Independence proclaiming equality for all citizens, irrespective of religion, race or sex. Israel’s overall political and economic situation is affected by the continuing conflict with the Palestinians and the state of relations with the Arab world in general. Israel has diplomatic relations with Egypt and Jordan following the conclusion of peace agreements in 1979 and 1994 respectively. The resurgence of suicide bombings since the beginning of the second Intifada in September 2000 is amatter of the highest security concern for Israel. Some of the measures taken by Israel in response tothis situation have been criticised by the UN and the EU as disproportionate or incompatible with its obligations under international law, inter alia in the latter’s recent General Affairs and ExternalRelations Council conclusions. In the context of the Israeli-Palestinian conflict, concerns have also been expressed with regard to the human rights situation. Israel is constructing a separation barrier whose purpose, according to the government, is to protect theIsraeli population against terrorist attacks. The route of the barrier has been criticized by the EU, as it is built partially on occupied Palestinian land; Israel has made some adjustments to the route of the barrierin response to the High Court ruling that the barrier should take into account humanitarian needs of the Palestinians, the impact of which on the humanitarian situation has been limited.

Israel, once a traditional economy based on agriculture, light industry and labour-intensive production, evolved in the 1980s and 1990s into a knowledge-based economy, with internationally competitive services and industrial sector, investing 4,6% of GDP in Research & Development in 2004, making itone of the world’s biggest investors in R&D in GDP terms. The Israeli government continues to implement its Economic Recovery Plan, which it started in 2003, reducing corporate and income taxes, reforming the capital market, promoting foreign investment in Israel, and preparing tax reform to improve the competitiveness of the Israeli system. It also continues to implement welfare reform. The reduction of social transfers as part of this reform was aimed at increasing participation in the labour market. It has however also contributed to Israel’s position as one of the countries with the widest social gaps among developed countries. The EU is Israel’s largest trading partner. Israel is one of the EU’s biggest trading partners in the Euromed area, with total trade amounting to almost € 23 billion in 2005. The EU is the leading source of imports for Israel, and its second most important destination for exports. Excluding diamonds, total trade with the EU represented 35% of Israel’s total trade. Israel’s trade deficit with the EU amounts to 45% of its total trade deficit. The EU and Israel have officially launched the negotiations on the liberalisation of trade in services,agricultural products and processed agricultural goods. The services sector represents 77% of Israel'sGDP and already constitutes around one third of Israel's export. Similarly, services account for around three quarters of the EU's GDP. Trade in services is therefore instrumental in strengthening economic activity, attracting investment and enhancing the dynamics of the economy. OVERVIEW OF PAST AND ONGOING ECCOOPERATION (EXPERIENCE AND LESSONS LEARNT) To date, Israel has not received bilateral assistance owing to its high level of economic development.2Consequently, EC/EU cooperation with Israel has been limited to: programmes in support of civil society, mainly in the context of the EU Partnership for Peace programme and the European Initiative for Democracy and Human Rights regional programmes under MEDA. Given that Israel has not previously benefited from EU support, it does not have experience in the management of EU funding. Participation in regional activities has frequently proved difficult for Israeli representatives in theabsence of bilateral diplomatic relations between Israel and some Euromed partner countries. With the creation of the ENPI, a limited bilateral financial allocation for Israel has been set aside forthe first time to support the implementation of the ENP Action Plan. Given the scope of the allocation, the most appropriate approach seems to be to concentrate on targeted support activities for the implementation of the Action Plan priorities, mainly institutional cooperation through Twinning/Twinning light. 2Israel has received and continues to receive substantial bilateral assistance from the United States. The United States Congress approved aid for 2006 of $3. 16 bn. It is made up of $ 2. 28 bn of military aid, (mainly buy-back), $ 600 mfor joint defence projects and $280 m for civilian aid

EC RESPONSE STRATEGY The principal objective of cooperation between the EU and Israel is to develop an increasingly close relationship, going beyond past levels of cooperation towards gradual economic integration and deeper political cooperation, including on the Middle East peace process and on human rights issues. Against the background of the high level of economic development, the maturity of Israeli public institutions, and the limited scope of the bilateral allocation, EU cooperation with Israel places the emphasis on support measures for the implementation of the ENP Action Plan. The identification of priorities will be guided by the policy objectives defined in the jointly agreed EU-Israel Action Plan and will focus on those areas which are in the EU’s strategic interest and consistent with Israel’spriorities. Priorities for EC support will be identified on an annual basis in close consultation with the Israeli authorities. The focus of the EC’s activities should be to support regulatory approximation of Israeli legislation to EU legislation with a view to facilitating and improving cooperation. Possible areas for cooperation might include justice, freedom and security, networks, and people-to-people contacts and exchanges (including in the context of the Tempus and Youth in Action as well as the Erasmus Mundus programme). These areas were among those discussed and identified as priorities by both sides in the relevant subcommittee meetings. EC support under the bilateral allocation will be complemented by regional and interregional allocations and EIB activities, in particular in the areas of transport, energy and environment. It will also add to possible sub-regional activities. Support under the bilateral allocation in this context will aim to accompany and underpin EIB lending activities in particular to facilitate work on convergence of technical and legal frameworks. The volume of EIB loans currently envisaged in these sectors is around €500 millions. At the Barcelona Euro-Mediterranean Summit in November 2005, partners collectively committed to endorse a feasible timetable to depollute the Mediterranean Sea by 2020.3The EC response strategy for Israel could support national and regional measures that contribute to attaining the goals of Horizon 2020, which are to tackle all the major sources of pollution including industrial emissions, municipal waste and particularly urban waste water. 3Successful achievement of the goal to reduce pollution levels will require a combination of both regional and national actions with the support of all actors in the Mediterranean. In addition to regulatory convergence and general reform ofenvironmental administrations, investment projects financed by the International Financial Institutions can beencouraged through targeted investment preparation and support (such as interest rate subsidies).

NATIONAL INDICATIVE PROGRAMME 2007-2010 Budget and Phasing of the Programme Priority 2007 2008 2009 2010 Total NIP % Budget Support to the implementation of the joint priorities agreed in the EU-Israel Action Plan. This includes: Support to activities in the field of higher education on priority areas of common interest, in particular with a view to approximation of education and trainingpolicies in a global knowledge-based economy,includingworkshops, exchanges, and academiccooperation Support to acquis-relatedactivities in key Israeliministries, including throughTwinning/Twinning light, based on mutually agreedpriorities, in areas such as justice, freedom and security, issues related to the internalmarket, networks, environment, and people-to-people contacts Support to events for the exchange and dissemination of information on acquis- and Action Plan-related issues.

WEAPONS SMUGGLED TO GAZA BY TONS

Hamas leader gives unity talks a strong chance Sun Mar 29, 6:17 pm ET

GAZA (Reuters) – There is a strong chance talks resuming this week can help heal a rift between the Islamist Hamas group and Palestinian President Mahmoud Abbas's Fatah movement, a senior Hamas leader said on Sunday.We stress our interest in reaching an agreement to end the internal Palestinian division under Arab and Egyptian sponsorship,Ismail Haniyeh said on Hamas television in the Gaza Strip before an Arab summit convening in Qatar on Monday.Egyptian-sponsored talks aimed at forging a possible unity government that could end a Western blockade on aid to rebuild the battered Gaza Strip were expected to be an important item on the agenda at the two-day Arab League session.Talks between Western-backed Abbas's faction, which controls the West Bank, and Hamas, which seized Gaza in 2007, were expected to resume on Wednesday after adjourning on March 19 without a deal on how to share power or engage Israel.There is a strong chance for the Palestinian national dialogue to succeed for the Palestinian national reconciliation to be achieved, said Haniyeh, whose militant group and sponsor nation Iran won't be represented at Monday's summit.Haniyeh said differences with Abbas over policy toward Israel could be bridged by pledging to respect past agreements with the Jewish state, wording that has in the past fallen short of Western demands any Palestinian government recognize Israel.Hamas won a parliamentary election in 2006 but has been boycotted by the West for its charter calling for Israel's destruction and to supplant it with an Islamist Palestinian state. Hamas has also proposed a long-term truce, a bid that fell short of recognizing the Jewish state.Ahmed Qurie, head of the Fatah delegation to the talks, told Reuters last week he was exerting every possible effort... in order to reach agreement with Hamas.Prime Minister Salam Fayyad of Fatah has offered to step down this month so a unity government can be formed but Abbas has asked him to stay on until the talks have yielded results.(Reporting by Nidal al-Mughrabi; Writing by Allyn Fisher-Ilan; Editing by Andrew Dobbie)

Israel: Militants smuggled tons of weapons to Gaza By AMY TEIBEL, Associated Press Writer – Sun Mar 29, 12:08 pm ET

JERUSALEM – Palestinian militants have smuggled nearly 70 tons of explosives and bomb-making materials and other weapons into Gaza since Israel ended an offensive meant to choke off the arms flow, a senior Israeli defense official said Sunday.The assessment by the chief of Israel's internal security service, Yuval Diskin, reinforced a growing feeling among Israelis that the government ended the war too soon.Diskin told the Cabinet that since the three-week military operation ended Jan. 18, Gaza militants have smuggled into the territory 22 tons of explosives, 45 tons of raw materials for producing bombs, dozens of rockets, hundreds of mortar shells and dozens of anti-tank and anti-aircraft missiles.The weapons are coming in through Gaza's porous border with Egypt's Sinai Peninsula, despite improved Egyptian interdiction, Diskin said. His remarks were reported by meeting participants who spoke on condition of anonymity because the session was closed.There was no way to verify his assessment. Using sophisticated technology and human informants, Israel has kept close tabs on Gaza since it withdrew its forces from the area in 2005.

Israel launched its air and ground assault in late December in an effort to stop rocket and mortar attacks on Israel from Hamas-ruled Gaza and stanch the stream of arms reaching the territory through underground tunnels from Egypt. More than 1,400 Palestinians were killed, including 926 civilians, the Palestinians say. Thirteen Israelis also died.The attacks from Gaza have dropped off considerably but have not stopped: The military reported Sunday that a total of 185 rockets and mortars were fired since the military campaign ended. But the threat of escalation remains, as the reports of continued smuggling suggested.It is testimony that next time, we should go to something more complete in order to prevent the rearmament of Hamas, said Yuval Steinitz, a close associate of incoming Prime Minister Benjamin Netanyahu.In the long term, Israel cannot agree to the establishment of an Iranian military base 50 or 60 kilometers from Tel Aviv,said Steinitz, a lawmaker in Netanyahu's Likud party. Sooner or later, we shall have to put an end to it, he added, without elaborating.

Israel accuses Iran of funding and arming Hamas.

Netanyahu, who is expected to take office on Tuesday, has said the Gaza offensive did not go far enough and Hamas should be toppled. However, he stopped short of saying he would attack Gaza again to bring that about.During its Gaza offensive, Israeli warplanes destroyed dozens of smuggling tunnels, though many were quickly repaired. Egyptian-brokered negotiations on a long-term truce between Hamas and Israel centered in part on instituting measures to stop the smuggling.Last week, however, Israel came under suspicion of having dramatically escalated its attempts to cut off the flow of arms to Gaza militants with the emergence of reports that aircraft attacked weapons convoys in Sudan last month. Israeli officials have not commented publicly about the reports.However, outgoing Prime Minister Ehud Olmert has hinted that Israel did launch the strikes, saying the Israeli military would hit terror infrastructure wherever it may be.

Israel gets strict with Hamas prisoners Sun Mar 29, 9:47 am ET

JERUSALEM (AFP) – Israel has begun to impose stricter conditions on Hamas prisoners in its jails, the head of the prisons authority told the government on Sunday.

Prison officials have begun applying some of the findings of a commission established to study how Israel could impose harsher conditions on detained Islamists, a government official quoted Benny Kaniak as telling the cabinet.He did not outline what steps were being taken.Outgoing Justice Minister Daniel Friedman established the commission, which has yet to issue its findings, to study ways of making life harder for Hamas prisoners after the March 17 collapse of talks with the Islamists on a swap.

The indirect negotiations, which have since resumed in Egypt, centred on the release of Israeli soldier Gilad Shalit, seized by Gaza militants in June 2006, in exchange for hundreds of Palestinian prisoners.Angered by the collapse of the talks to free Shalit -- a 23-year-old who has not been seen in public or allowed Red Cross visits since his capture -- some Israeli officials called for a worsening of conditions for Hamas prisoners as a way of pressuring the Islamists.Among the steps reportedly being considered were limiting cash transfers to prisoners, restricting their access to television and radio, reducing visiting rights -- except for those from the International Committee of the Red Cross -- and opportunities for education as well as limiting contact between them.The human rights group Public Committee Against Torture in Israel called on the justice minister to avoid steps that would worsen prison conditions, branding any such move as unlawful collective punishment.The commission is due to present its findings to the new Israeli government next week.
More than 11,000 Palestinian prisoners are currently being held in Israeli jails, according to official figures.

Israeli drones attacked Iranian convoys in Sudan Sun Mar 29, 8:02 am ET

LONDON (AFP) – Israel used unmanned drones to attack clandestine Iranian convoys in Sudan that were attempting to smuggle rockets into Gaza, Britain's Sunday Times newspaper reported.The paper said that western diplomats confirmed that Israel attacked the Iranian truck convoys in late January and the first week of February in the remote Sudan desert, just outside the Red Sea town of Port Sudan.The convoys had been tracked by agents from Mossad, Israel's overseas intelligence agency, the report added.The Sudanese government said this week it was investigating the possibility that Israel was behind the deadly air strikes, but so far had found no proof.

Foreign ministry spokesman Ali Sadiq said there were two separate bombing raids against smugglers, killing about 40 people.The Sunday Times said that had the rockets been delivered to Hamas, the militant Islamic group that controls Gaza, they would have raised the stakes in the conflict with Israel.It quoted defence sources as saying the convoys were carrying Fajr-3 rockets, which have a range of more than 40 miles (65 kilometres), and were split into sections to be smuggled through tunnels into Gaza from Egypt.They built the Fajr in parts so it would be easy to smuggle them into Gaza, then reassemble them with Hamas experts who learnt the job in Syria and Iran,a source told the paper.The main reason for using drones instead of manned aircraft to attack was that a convoy forms a slippery target, a source said.When you attack a fixed target, especially a big one, you are better off using jet aircraft. But with a moving target with no definite time for the move UAVs (unmanned aerial vehicles) are best, as they can hover extremely high and remain unseen until the target is on the move,the source said.

Israel will continue peace process: Peres by Jean-Luc Renaudie – Sun Mar 29, 6:29 am ET

JERUSALEM (AFP) – President Shimon Peres on Sunday gave assurances that Israel's new government will keep up peace talks, following EU warnings of consequences if it failed to commit to the creation of a Palestinian state.The new government is bound by the decisions of the preceding one, Peres told public radio. There will be a continuity and the continuation of peace negotiations.Israeli prime minister-designate Benjamin Netanyahu is to present his government to parliament this week, although an exact date has not yet been named.Netanyahu's premiership has sparked concern, as the hawk opposes the creation of a Palestinian state and has picked as his foreign minister firebrand Avigdor Lieberman, whom critics brand a racist for his diatribes against Israeli Arabs.Outgoing premier Ehud Olmert echoed the sentiment, saying at the start of his final weekly cabinet meeting that there is no doubt that the new government will do all it can to reach Israel's political dream of living in peace and security.Peres -- Israel's veteran statesman and Nobel peace laureate -- spoke on the eve of his visit to the Czech Republic, which as current president of the European Union warned last week Israel of consequences if its new cabinet did not accept the principle of a two-state solution.In the face of concern by the EU and much of the Arab world about prospects for peace with Netanyahu at the helm, Peres plans to kick off a media campaign after the new government is confirmed, the Haaretz daily reported.To that end, he was to travel to the Czech Republic on Monday for a one-day visit, his spokeswoman told AFP.The government that will be formed will respect the engagements undertaken by the preceding cabinet, Peres said in Sunday's comments, adding that this also applied to ongoing talks over a prisoner swap with Hamas.The Czech Republic on Friday warned of consequences if the government of Netanyahu did not accept the principle of a two-state solution of the Middle East conflict.Relations would become very difficult indeed, said Czech Foreign Minister Karel Schwarzenberg.At one of our next ministerial meetings we would have to discuss what consequences the EU would draw from that, he told reporters on the sidelines of a meeting with his European Union counterparts at Hluboka castle in the southern Czech Republic.He did not elaborate what the consequences may be, but one thing that could be jeopardised would be an idea to formally upgrade EU-Israeli ties.Netanyahu opposes the creation of a Palestinian state for the moment, saying economic conditions in the occupied West Bank must be improved before negotiations take place on other issues.

Netanyahu put the brakes on the Oslo peace process during his first stint as prime minister in 1996-1999, but signed several agreements with the Palestinians under US pressure.Last week he said he would pursue peace talks with the Palestinians after US President Barack Obama -- who has vowed to pursue the peace process vigorously -- said peace prospects under him would not get any easier but that the process was just as necessary.Peace... is a common and enduring goal for all Israelis and Israeli governments, mine included. This means I will negotiate with the Palestinian Authority for peace, Netanyahu told a Jerusalem conference on Wednesday.I think that the Palestinians should understand that they have in our government a partner for peace, for security, for the rapid development of the Palestinian economy,he said.

Palestinians say Olmert offered land swap for peace Sat Mar 28, 4:16 pm ET

RAMALLAH, West Bank (AFP) – The Palestinian Authority on Saturday said outgoing Israeli Prime Minister Ehud Olmert verbally offered a land swap if a peace deal could be reached.Olmert proposed in talks with Palestinian president Mahmud Abbas that Israel would withdraw from 90 percent of land it occupies in the West Bank, Palestinian chief negotiator Saeb Erekat told AFP.The outgoing premier offered to swap 6.5 percent of West Bank land for 5.8 percent territory in Israel as part of an Israeli-Palestinian peace agreement, Erekat said.On top of that, Olmert suggested adding a corridor representing the difference, or 0.7 percent of these territories, to link the south of the West Bank with the Gaza Strip, Erekat said.The Israeli leader also proposed shared sovereignty of Jerusalem's holy places, though Jewish settlements in the eastern part of the city would remain under Israeli control, he added.In return, Arab neighbourhoods and Palestinian villages on the outskirts of Jerusalem would transfer to Palestinian control, he said.Olmert made the proposals in a meeting with Abbas on November 17, Erekat said, noting that questions posed by Abbas, chiefly about the allocation of water and the treatment of refugees, were never answered.The Palestinian negotiator unveiled Olmert's offer as Benjamin Netanyahu, who refuses to back plans for a Palestinian state, prepares to take over as prime minister.

Olmert said publicly in early March that there will be no peace without the division of Jerusalem, of which part should become the capital of a Palestinian state.He also urged an almost complete withdrawal from Judea and Samaria (the West Bank).Israel annexed east Jerusalem after occupying it in June 1967 but the Palestinians seek to make it the capital of their future state.And on March 15 Olmert said that his government had been ready to sign a peace deal with the Palestinians but that they had lacked the courage to do so.

EU urges new Israeli government to accept Palestinian state Fri Mar 27, 5:19 pm ET

HLUBOKA NAD VLTAVOU, Czech Republic (AFP) – The European Union on Friday told Israel's incoming new government that there would be consequences if it does not accept the principle of a Palestinian state.Relations would become very difficult indeed,said Czech Foreign Minister Karel Schwarzenberg, whose country holds the rotating EU presidency.At one of our next ministerial meetings we would have to discuss what consequences the EU would draw from that, he told reporters on the sidelines of a meeting with his European Union counterparts at Hluboka castle in the southern Czech Republic.

Schwarzenberg did not elaborate.

One thing that could be jeopardised would be an idea to formally upgrade EU-Israeli ties.Israel's hawkish prime minister-designate Benjamin Netanyahu, of the right-wing Likud party, plans to present his new government to parliament next week, following the Labour party's decision to join his coalition, which includes other right-wing and religious formations.The United States has warned that peace efforts, which have barely budged in recent years, will not be any easier under the hardline Netanyahu, who opposes the creation of a Palestinian state.Several other EU foreign ministers judged that an Israeli government which does not accept a two-sate solution would not be acceptable itself.We Europeans believe that the putting in place of a two-state solution remains the plan,said German Foreign Minister Frank-Walter Steinmeier.The foreign ministers must send a clear message saying that if this is not the case, the EU cannot accept it,added Luxembourg's Jean Asselborn.Last year the EU decided to enhance ties with Israel but the idea has been a dead letter since the Israeli offensive in the Gaza Strip earlier this year.Earlier the European Commission pledged to support the new Israeli government as long as it accepts certain benchmarks, including the principle of an autonomous Palestinian state.The European Commission is looking forward to working with the new Israeli government in pursuit of a common agenda, the EU executive's head Jose Manuel Barroso said in a message to Netanyahu.

It stands ready to assist and support you in your search for peace, prosperity and security for the people in Israel and the region, based on the vision of two states living side by side in peace and prosperity,he said.The Europeans are the biggest donors of aid to the Palestinians but they hold little sway over Israel, which is backed firmly by the United States.Turkish President Abdullah Gul, on a visit to Brussels, said he hoped that the new government would tone down the rhetoric that its parties have used while they were in opposition.If those statements are carried on in the government and they become government policy, then I have to warn that things would turn for the worse and it would create more suffering,he told reporters.It is for that reason that I believe that the Israeli leaders, when they form the government, will act responsibly.

U.S. surveys flashpoint West Bank settlement By Adam Entous Adam Entous – Fri Mar 27, 10:16 am ET

JERUSALEM (Reuters) – U.S. diplomats assessed Jewish settlement activity at an Israeli-occupied district near Jerusalem on Friday, in a public signal of greater activism by the Obama administration in the Israeli-Palestinian conflict.A spokeswoman for the U.S. consulate in Jerusalem, Micaela Schweitzer-Bluhm, confirmed the visit took place as part of our ongoing observation activities in the area, which Israel sees as a critical link between Jerusalem and the sprawling settlement of Maale Adumim.Palestinians say building in what Israel calls E1, an area of occupied land between Jerusalem and the Dead Sea, would deny them a viable state by cutting the West Bank in two and isolating Arab East Jerusalem, which they want as their capital.An assessment of Israeli activities, prepared by the diplomats, will be sent to Washington.The visit comes just days before Benjamin Netanyahu takes over as Israeli prime minister with a coalition government dominated by right-wing and Jewish Orthodox religious parties who advocate settlement building on occupied land.Avigdor Lieberman, an ultranationalist who is slated to become Netanyahu's foreign minister, lives in a small settlement near Maale Adumim and advocates a hard line on annexing parts of the West Bank to Israel if a Palestinian state is ever created.Western diplomats said Israeli building in E1 could become a major source of tension with Netanyahu, who has shied away from endorsing the U.S.-backed goal of creating a Palestinian state in the West Bank and Gaza Strip, alongside Israel.

According to Israeli political sources, Netanyahu's hawkish Likud party agreed in coalition talks with Lieberman's Yisrael Beiteinu to the construction of some 3,000 housing units in E1.Palestinian negotiator Saeb Erekat urged U.S. President Barack Obama to intervene with Israel to prevent any construction from going forward, calling it the last nail in the coffin for peacemaking.The long-stalled peace road map,monitored by the United States, calls on Israel to halt all settlement activity, and for the Palestinians to rein in militants.Israel froze most of its activities in E1 under pressure from the administration of President George W. Bush.Hagit Ofran of the Israeli Peace Now organization, which tracks settlement growth, said the Obama administration was concerned about future building plans under Netanyahu.She said Friday's visit was a signal to say to the new Israeli government that the Americans are interested in what's going on the ground and that they don't want to see the Israelis constructing in E1.U.S. diplomats frequently visit East Jerusalem and the West Bank to monitor Israeli settlement building, but such visits are rarely public.

We keep track of all developments in the West Bank and Jerusalem on an ongoing basis and report regularly to Washington,Schweitzer-Bluhm said.In addition to Friday's visit to E1, the Obama administration has lobbied Israel to remove restrictions on aid shipments to the Hamas-ruled Gaza Strip and has criticized the demolition of Palestinian homes in East Jerusalem.(Editing by Alastair Macdonald and Dominic Evans)

Israel successfully tests anti-rocket system By MATTI FRIEDMAN, Associated Press Writer – Fri Mar 27, 7:30 am ET

JERUSALEM – Israel has successfully tested a high-tech system designed to protect civilians from rocket attacks by militant groups in Gaza and south Lebanon, the Defense Ministry said.Defense officials said Friday in the wake of the test that the Iron Dome system's development is on schedule and will likely meet its target date of 2010, when it is due to begin shooting down incoming rockets fired by Gaza militants.

A ministry statement released Thursday evening said that in a series of tests this week the system faced rockets of the type fired by Palestinian and Lebanese militants, and operated successfully regarding the targets of the test.The statement termed the tests a milestone.It did not say specifically what the tests entailed and stopped short of saying the Iron Dome had actually shot rockets down with an interceptor missile, which it is designed to eventually do.The officials, speaking on condition of anonymity in line with defense ministry regulations, said there has yet to be an intercept by the system.They have said in the past that the first intercept is expected at the end of 2009.Developed at a cost of over $200 million, the system is intended to eventually fire missiles that home in on incoming short and medium-range rockets of the type used by militant groups Hamas and Hezbollah.Hamas and other Palestinian militant groups have launched thousands of rockets into Israel from Gaza since 2001, sparking numerous Israeli military incursions, most recently the devastating three-week Gaza war that ended Jan. 18. Rocket fire has continued since the war, though it has dropped off in recent weeks.In 2006, Hezbollah and Israel fought a monthlong war that saw the Shiite militants launch thousands of medium-range rockets into northern Israel as Israeli forces pushed into south Lebanon.

Both militant groups have close ties to Iran.

Around one million Israelis live within range of Hamas rockets. Israel believes that Hezbollah possesses rockets that can reach the country's center in Tel Aviv, meaning that most Israelis are now in range of rockets from the north and the south. That makes the development of an anti-rocket system a priority for Israel.

Turkey willing to revive Israel-Syria talks: PM Fri Mar 27, 3:56 am ET

ANKARA (AFP) – Turkey is ready to mediate between Israel and Syria if the two agree to resume stalled indirect talks, Prime Minister Recep Tayyip Erdogan was quoted as saying Friday.Turkey mediated four rounds of indirect talks between Israel and Syria last year, but the process was suspended in December after the Jewish state launched a deadly offensive in the Gaza Strip.Erdogan said the negotiations could be revived if both countries wished, adding the prospect would depend also on the attitude of the new Israeli government, which is yet to take office after elections in February.

If they make such a request to Turkey, we will do our best, Anatolia news agency quoted Erdogan as saying in a television interview.We are determined to do whatever we can for peace in the Middle East... All issues should be resolved at the negotiating table,he said.The Gaza offensive also strained Israel's ties with Turkey, which has been the Jewish state's main regional ally since the two signed a military cooperation agreement in 1996.In January, Erdogan stormed out of a heated debate on Gaza at the World Economic Forum in Davos after clashing with Israeli President Shimon Peres and accusing the Jewish state of barbarian acts against the Palestinians.

Brown concerned about east Jerusalem demolitions Thu Mar 26, 1:56 pm ET

RABAT (AFP) – Prime Minister Gordon Brown said Thursday that he shared Moroccan King Mohammed VI's concern about the mooted demolition of 90 Palestinian houses in sensitive East Jerusalem.I share your Majesty's concerns about the threat of destroying about 90 homes in this district,Mr Brown said in a message reported by Morocco's MAP news agency.If the demolition goes ahead it could deprive more than 1,000 Palestinians of their homes and would be the largest operation destroying Palestinian property in the mainly Arab part of Jerusalem since 1967, MAP quoted Brown as saying.King Mohammed VI, who chairs the Al Qods (Jerusalem) Committee of the Organization of the Islamic Conference has urged the United Nations, the EU presidency and the Vatican to speak out against planned demolitions that have led Israeli authorities to issue eviction notices to families living in the Al Bustan district near the Great Mosque.Britain strongly supports the March 11 declaration by the Czech presidency of the European Union, calling on Israeli authorities to stop the demolition of Palestinian homes in a zone as sensitive as East Jerusalem, the statement quoted by the news agency said.UN Secretary General Ban Ki-moon also issued a statement of support to the Moroccan king, MAP said Thursday, in which he pledged to continue to exhort all parties to abstain from any unilateral action in this town.

Last week the Palestinian Authority accused Israel of ethnic cleansing after it delivered dozens of eviction orders to residents of annexed, mostly Arab east Jerusalem.In February, Palestinian officials and residents told AFP that Israel had ordered hundreds of Palestinians to leave their homes in the area, warning their houses were illegal.Israel, which considers the whole of Jerusalem its eternal, undivided capital, rarely grants building permits to Arab residents of east Jerusalem, which the Palestinians want to make the capital of their promised state.

POPE VISITS MIDEAST MAY 8-15

Pope will visit Mideast May 8-15 Thu Mar 26, 11:20 am ET

VATICAN CITY – The Vatican has set May 8-15 for Pope Benedict XVI's long-awaited first visit to the Holy Land, with stops in Jordan, Israel and the Palestinian territories.Details of the trip were previously released but the Vatican announcement Thursday was the first confirmation of the dates and all the stops.Among the highlights are a visit to a mosque in Jordan, stops at the Western Wall and the Dome of the Rock — key Jewish and Muslim shrines — and a visit to a Palestinian refugee camp in Bethlehem. He will also celebrate Mass in Bethlehem, the traditional birthplace of Christ.His visit is expected to help ease sometimes strained relations between Israel and the Vatican and between the Vatican and Muslims.His visit will be similar to Pope John Paul II's groundbreaking 2000 pilgrimage, the first official visit by a pope to the Jewish state.It begins in Amman, Jordan, where Benedict is scheduled to visit the Hussein bin Talal mosque. In 2006, Benedict prayed at Turkey's famed Blue Mosque.During his three-day stay in Jordan, Benedict will also visit biblical sites including Mount Nebo, where Moses is said to have first seen the promised land.Doubts had been raised about the visit by the German-born pope because of several controversies.Jewish groups were angered when Benedict lifted the excommunication of an ultraconservative bishop who is a Holocaust denier. Benedict condemned the bishop's stance and spoke out against anti-Semitism.World War II Pope Pius XII is also a figure of controversy. Some historians say he did not do everything in his power to stop the Holocaust, while the Vatican defends his actions and is considering him for possible beatification.Benedict will visit Israel's Yad Vashem Holocaust memorial. He will also meet with Israel and Palestinian leaders and visit Nazareth, the town where Jesus lived as a boy.

Israel's Olmert cleared in real estate deal By IAN DEITCH, Associated Press Writer – Thu Mar 26, 10:33 am ET

JERUSALEM – Israeli police on Thursday said they had dropped a criminal investigation into a real estate deal by Prime Minister Ehud Olmert, just days before he leaves office, citing lack of sufficient evidence.Four other cases against Olmert are still pending.In the real estate inquiry police investigated allegations that Olmert bought a home in an exclusive Jerusalem neighborhood at a steep discount in exchange for granting favors to the builder. The alleged deal occurred while Olmert was Jerusalem mayor, years before he became prime minister in 2006.Police spokesman Micky Rosenfeld said the case was closed on Thursday after an investigation showed no concrete evidence of illegal acts in this case.Olmert paid $325,000 less than market value for the property, leading to suspicions of fraud and bribery.A series of corruption investigations led Olmert to announce his resignation last September. Following national elections, he is set to step down next week.Earlier this month Attorney General Meni Mazuz said he was considering putting Olmert on trial over a separate case alleging that he unlawfully accepted cash-stuffed envelopes from a Jewish-American businessman.Police also wound up an investigation into suspicions that during his 2003-2006 term as trade and industry minister Olmert used his position to channel development grants to a company run by his attorney. Police called it a deep conflict of interest and recommended that the state prosecutor's office bring charges.

In late November, Mazuz notified Olmert that he would indict him in a different case, where he allegedly double-billed Jewish groups for trips abroad, then pocketed the difference or financed trips for relatives.Olmert is also being investigated in connection with allegedly corrupt political appointments.All the investigations predate his becoming prime minister in Jan. 2006, and he has denied wrongdoing in each case.Allegations of corruption have swirled around Olmert throughout his three-decade political career, but he has never been convicted of a crime.

The New Israel: Still No Easy Task for Obama By TONY KARON – Thu Mar 26, 8:00 am ET

Unsustainable.That was President Barack Obama's blunt assessment on Tuesday night of the current state of affairs between Israel and the Palestinians. Acknowledging the obstacles in his path given the political changes on both sides, the President pledged to follow a philosophy of persistence in pursuit of a two-state solution, citing Northern Ireland's once unthinkable rapprochement as his inspiration. It may, however, take more than persistent cajoling to bridge a gulf that is widening rather than narrowing.Israel's leaders on Tuesday night concluded a political deal that will put the hawkish Likud leader Benjamin Netanyahu in power, with the centrist Labor Party of Ehud Barak and the far-right Yisrael Beitenu Party of Avigdor Lieberman as his main partners. Barak narrowly won his party's endorsement to join a government whose leader is not committed to a two-state solution, and whose Foreign Minister–designate, Lieberman, expresses harshly anti-Arab views. The Labor leader insisted that the presence of his party would put a brake on the more belligerent instincts of some of the government's coalition partners. But even if that proves to be true, there is still a recipe for paralysis on the question of peace with the Palestinians. Barak may be able to talk Netanyahu out of certain actions in respect to expanding the settlements that are most likely to antagonize Washington, but Netanyahu is unlikely to be persuaded to move in any meaningful way to end Israel's occupation of the West Bank. So, Netanyahu's comment that a unity government will bring stability to Israel may mean that it will simply stabilize the deadlock. (See pictures of Israel's Gaza offensive.)

While anxious observers in Washington and elsewhere have decried Netanyahu's victory as a setback for the prospect of a two-state solution, it's worth remembering that progress on that front had been scant even under the outgoing centrist Prime Minister Ehud Olmert and his Foreign Minister, Tzipi Livni, who is now the leader of the Kadima opposition. And the Bush Administration, rather than press for the implementation of a peace deal, had confined itself to staging talks between Olmert's government and Palestinian Authority (PA) President Mahmoud Abbas in search of what was termed a shelf agreement - a detailed draft of a two-state peace plan that could serve as a kind of eyes-on-the-prize political horizon to be implemented at a more favorable moment. But even that proved elusive, as Olmert's government, certainly more centrist than the incoming one, could not agree with the moderate Abbas leadership on where to draw the borders between Israel and a Palestinian state, the fate of Jerusalem and that of Palestinian refugees, and other key questions. It's not only on the Israeli side that positions have hardened since then. Abbas' popularity has declined steadily to the point where few believe he could win a Palestinian election that must be held sometime within next year. Abbas is involved in talks to create a unity government with Hamas, which remains the ruling party in his legislature (it is unable to meet because of the number of lawmakers in Israeli detention). Abbas' influence is declining even within his own Fatah movement, many of whose members believe he achieved nothing for the Palestinians in his decade of patient negotiations under Washington's tutelage. His aides say he won't negotiate with Netanyahu unless the Likud leader embraces a two-state solution.

While Netanyahu will put on his friendliest face for Washington's benefit - I will negotiate with the PA for peace, he told an Israeli business conference on Wednesday - his idea of peace has largely focused on building up the Palestinian economy and institutions of self-government in the various enclaves of the West Bank that are controlled by the Palestinian Authority. Netanyahu has stressed his belief that Israel's security needs are incompatible with sovereign independence for the Palestinians in the West Bank and Gaza. And he has made clear that he will not deal with a government that includes Hamas, and expects Washington to do the same. Indeed, his goal remains toppling the Hamas government in Gaza. But Abbas is seeking a unity agreement with that same group, which is likely to eclipse the Palestinian President at the polls the next time Palestinians are allowed to vote - that is, if Abbas remains Fatah's candidate. He could even lose a primary challenge to a more Hamas-friendly leader like the imprisoned Marwan Barghouti. Prospects for advancing by consensus to a two-state solution on the basis of the current political alignments are hard to see. Indeed, Netanyahu, in dealing with Washington, will emphasize reversing Iran's nuclear development, rather than making peace with the Palestinians, as his top concern. And in that position he has the unanimous backing of most of Israel's political spectrum.The problem is that the Palestinians are likely to make sure they're higher on Israel's - and Washington's - agenda. As things stand, there is no cease-fire agreement in Gaza, where Palestinians are chafing under an ongoing economic siege that prevents reconstruction. Meanwhile, Israel and Hamas have failed to agree on a prisoner exchange to secure the release of captured Israeli Corporal Gilad Shalit. There are growing signs that the population of the Fatah-controlled West Bank may be beginning to stir in renewed rebellion against Israel's security wall, checkpoints and expanding settlements. And Israel's moves to consolidate its grip on East Jerusalem, its planned settlement activity in the West Bank and this week's unrest in the Israeli-Arab town of Umm al-Fahm all suggest the region remains a tinder box. By this summer, the challenge facing Washington may be less about a long-term peace than on putting out the fires of an immediate upsurge in violence on any or all of those fronts. The status quo is, indeed, unsustainable, but you wouldn't want to bet against it getting worse.

Israeli army denies charges over phosphorous use Thu Mar 26, 7:20 am ET

JERUSALEM (AFP) – The Israeli army denied on Thursday charges by a human rights group that its bombardment of heavily populated areas of Gaza with white phosphorous munitions violated international law and could constitute a war crime.Based on the findings (of an internal investigation) at this stage, it is already possible to conclude that the IDF's (Israel Defence Forces) use of smoke shells was in accordance with international law,it said in a statement.These shells were used for specific operational needs only and in accord with international humanitarian law. The claim that smoke shells were used indiscriminately, or to threaten the civilian population, is baseless,the army said.New York-based Human Rights Watch (HRW) said in a report released on Wednesday that the army during its 22-day in Gaza in December-January repeatedly exploded white phosphorous munitions in the air over populated areas, killing and injuring civilians and damaging civilian structures, including a school, a market, a humanitarian aid warehouse and a hospital.The (military's) repeated firing of air-burst white phosphorous shells from 155mm artillery into densely populated areas was indiscriminate and indicates the commission of war crimes,it said.

International law allows the use of white phosphorous, which ignites upon contact with oxygen and burns at extremely high temperatures, to be used on open battlefields to create a smoke screen to obscure troop movements.But the weapon's use is prohibited in densely populated areas, where it can light fires that are virtually impossible to extinguish and inflict severe burn wounds.The Israeli military didn't just use white phosphorous in open areas as a screen for its troops, Fred Abrahams, a co-author of the HRW report said.It fired white phosphorous repeatedly over densely populated areas, even when its troops weren't in the area and safer smoke shells were available. As a result civilians needlessly suffered and died.In its statement, the army said that contrary to the claims in the report, smoke shells are not an incendiary weapon.The third protocol of the Convention on Certain Conventional Weapons -- which defines particular limitations on incendiary weapons -- makes it clear that weapons intended for screening are not classed as incendiary weapons.The state of Israel is not a signatory of the third protocol, however, in any, case, as noted this protocol does not ban the use of smoke shells for the purpose of screening.
Israel launched a war on Gaza's Hamas rulers on December 27 in retaliation for consistent rocket fire from the territory. The 22-day offensive killed more than 1,300Palestinians and 13 Israelis. It ended on January 18 with mutual ceasefires called by Hamas and Israel.

Netanyahu vows to pursue peace talks by Yana Dlugy – Thu Mar 26, 5:21 am ET

JERUSALEM (AFP) – Israeli prime minister-designate Benjamin Netanyahu vowed on Wednesday to pursue peace talks with the Palestinians as he prepared to present his new government to parliament next week.Peace... is a common and enduring goal for all Israelis and Israeli governments, mine included. This means I will negotiate with the Palestinian Authority for peace,the hawkish Netanyahu told a Jerusalem conference.

Washington has warned that peacemaking will not be any easier under Netanyahu -- who will head a right-leaning government and opposes the creation of a Palestinian state.

I think that the Palestinians should understand that they have in our government a partner for peace, for security, for the rapid development of the Palestinian economy,he said.Netanyahu has succeeded in pulling together a government six weeks after Israel's election, following Tuesday's agreement by the centre-left Labour party to join his coalition.I intend to present the Knesset with the national unity government next week,he said at a meeting of his Likud party's parliamentary faction.

A senior Likud official said the swearing-in should take place on Monday or Tuesday.

His right-wing Likud was due to sign a fourth coalition agreement with the three-member far-right faction Jewish Home on Wednesday, a senior MP said, giving him a majority of 69 MPs in the 120-seats Knesset or parliament.The Likud leader, who was premier between 1996 and 1999, opposes the creation of a Palestinian state for the moment, saying economic conditions in the occupied West Bank must first be improved.

Peace talks were revived to great fanfare in November 2007 but made little visible progress and finally ground to a halt during Israel's three-week war on Gaza in December and January.Building peace needs actions and not words, senior Palestinian negotiator Saeb Erakat told AFP.Any Israeli government that freezes settlement construction and accepts a settlement based on a two-state solution and to negotiate on all final status issues, including Jerusalem, will be considered a partner for peace,he said, listing issues opposed by several members of Netanyahu's cabinet.US President Barack Obama said on Tuesday that peace efforts with a Netanyahu-led government were not any easier but that they were just as necessary.It is critical for us to advance a two-state solution where Israelis and Palestinians can live side by side in their own states with peace and security,Obama told a press conference. The status quo is unsustainable.Obama was asked about prospects for peace with a Netanyahu cabinet, whose chosen foreign minister Avigdor Lieberman has been dubbed a racist by critics because of repeated diatribes against Israeli Arabs.Palestinian president Mahmud Abbas's spokesman said Abbas's comments showed the new US administration is serious about the peace process.Labour voted to join Netanyahu's cabinet despite the opposition of many in the veteran party that launched the Oslo peace talks in the early 1990s.Netanyahu's coalition comprises 27 MPs from Likud, 15 from Lieberman's ultra-nationalist Yisrael Beitenu, 11 from ultra-Orthodox Shas, 13 from Labour and three from Jewish Home. In their coalition agreement, Netanyahu and Labour leader Ehud Barak remained vague on the issue, saying the cabinet will work to reach a comprehensive regional peace agreement and respect previous international agreements Israel has signed. But the deal did not address the issue of a Palestinian state -- the creation of which is at the heart of the international roadmap to peace that has made little progress since its launch by major world powers in 2003. And discord between the partners emerged on Wednesday, with Labour MPs saying peace talks will be continued while Likud MPs said the party would not accept the idea of creating a Palestinian state. Despite his hardline rhetoric, Netanyahu signed several deals with the Palestinians during his first stint as premier. But he also authorised a major expansion of Israeli settlements in the West Bank, one of the thorniest issues of the Israeli-Palestinian conflict. Army radio said that as part of his coalition deal with Yisrael Beitenu, Netanyahu pledged to expand settlements in a highly contentious area just outside annexed Arab east Jerusalem.

Syria leader explains failure of talks with Israel By BASSEM MROUE, Associated Press Writer – Wed Mar 25, 1:47 pm ET

BEIRUT – Syria's president said indirect peace talks with Israel failed last year because the Jewish state would not make an unambiguous commitment to return all the territory captured in the 1967 Middle East war, according to an interview published Wednesday.The comments to the Lebanese daily As-Safir were Bashar Assad's first on why the Turkish-mediated negotiations collapsed. Previously, Syrian officials said they suspended the talks in protest against Israel's war in Gaza, which began in late December.However Assad outlined another major point of contention. He suggested Syria insisted on the complete return of the strategic Golan Heights, while Israel wanted to keep some disputed land around the Sea of Galilee, its main water source.Assad said Syria had specified some points of land on the Galilee shores and the Jordan River he wanted returned.We asked the Israelis to prove their seriousness on these points and of course they agreed in principle, Assad said. But when it came to drafting, they wanted to draft it in a way that is somehow ambiguous and obscure,he added.We said no. We do not discuss. These points are either approved or not. ... The discussions ended at this point and the talks failed,Assad said. The president's office confirmed to The Associated Press that the As-Safir report was accurate.

Syria and Israel held direct talks in the late 1990s and early 2000. They also broke down over the extent of a withdrawal from the Golan Heights, a strategic plateau captured from Syria in 1967. Israel sought lines closer to the 1923 colonial border and insisted on retaining sovereignty over the strip of land also claimed by Syria along the Galilee shores.The late Syrian President Hafez Assad, the current president's father, also insisted on the return of all the Golan, including the eastern shore of the Sea of Galilee. At a meeting with then-U.S. President Bill Clinton in Geneva in March 2000, the elder Assad spoke nostalgically of his own visits to the sea.I would swim in the Sea of Galilee, I would have barbecues there, I ate fish,he told Clinton.Israelis have argued in the past that a 21-square-mile area along the sea was originally Palestinian, not Syrian, and therefore need not be returned to Syria with the rest of the Golan.Bashar Assad was also asked in the interview what concessions Israel wanted for peace with Syria.No Iran, no Hezbollah and no Hamas, he said, referring to Syrian alliances with Tehran and the Lebanese and Palestinian militant groups. He did not say how he responded to those demands.The two Mideast foes held four rounds of indirect talks mediated by Turkey last year.

Recounting how the contacts came about, Assad he agreed to Israeli Prime Minister Ehud Olmert's overtures after we reached a point when Olmert was ready to fully return the Golan Heights.Olmert's office did not immediately comment on the interview. Government spokesman Mark Regev said the basis of the talks with the Syrians was a formula that we know exactly what the Syrians expect from negotiations and they know exactly what we expect.No progress was achieved with the Turkish mediation unfortunately,Regev said.Associated Press Writer Ian Deitch in Jerusalem contributed to this report.

Labor Joins Netanyahu's Likud in Israel's Unlikely New Government By TIM MCGIRK / TEL AVIV – Wed Mar 25, 11:55 am ET

In a stormy meeting of Israel's Labor party on Tuesday night, Ehud Barak dragged his party into joining a rightwing coalition government led by Likud's Benyamin Netanyahu. With Labor on board, Netanyahu's coalition, stitched together with an array of ultra-orthodox and nationalist parties, now has a majority in the 120-seat Knesset. The hawkish Likud leader is likely to be sworn in as prime minister on Tuesday, ushering out his disgraced predecessor, Ehud Olmert, who faces possible charges of corruption. Having Barak, currently defense minister, at his side will give Netanyahu a veneer of international respectability. The Obama Administration and European capitals are horrified that the other members of Netanyahu's coalition oppose the idea of Palestinian statehood. (See pictures of heartbreak in the Middle East.) Convincing Laborites to join ranks with their longtime ideological rivals on the right was a tough sell for Barak. During his speech at the party convention in Tel Aviv, Barak's voice sounded squeaky and defensive. He called for national responsibility, but this was dismissed by booing younger cadres as rank opportunism - Barak wanting to hanging onto his berth as defense minister at the expense of his party's ideals and character. As Labor party secretary Eitan Cabel told TIME: The ambitions of Barak are killing the Labor party, and I told him that.Labor was the party of Israel's socialist founders, and at the convention there were glimpses of the old stalwarts: sun-creased kibbutzniks, leather-capped union men, teachers and a few men and women of dogged ideals. But they were outnumbered by party apparatchiks, with their cologne and insipid handshakes, few of whom appeared ready to give up their cushy government posts and influence. Says Shelly Yachimovich, a hard-hitting, ex-radio journalist who is now one of Labor's rising stars, A strong motive was clinging to power and the good life. Some Labor people believe their genetic code cannot survive outside the government.Labor's younger cadres squawked like slaughtered chickens,according to Haaretz columnist Yossi Sarid. In the end, though, Barak got his mandate to join Netanyahu, with 680 delegate votes to 507. (See pictures of 60 years of Israel.)

Had he lost the vote, Barak, the diminutive ex-general and decorated war hero, would likely have been driven out as party leader, his political career at an end. This way Barak stays in power and Labor will get the ministries of defense, agriculture, industry, trade, and welfare. But the cost has been high. One respected columnist, Ben Caspit in Ma'ariv, wrote: The Labor Party signed its own death certificate.The younger cadres, the so-called rebels who opposed the marriage with Likud, say they won't split the party for now. But they may choose to vote against Netanyahu, and their own party chief Barak, on key issues. (See pictures of Israeli soldiers in Gaza.)Netanyahu has finally pieced together a majority of at least 66 Knesset seats. But there are no guarantees that his coalition will last its four-year term. Members of his own Likud party are grumbling that Netanyahu has given away too many ministerial portfolios to woo both Labor and the hard-right party Yisrael Beitenu of Avigdor Lieberman, who is likely to become the next Israeli foreign minister, despite his extreme anti-Arab views. (See a TIME video on Lieberman.)On the upside, with Barak as his ally, Netanyahu has a strong defense minister to stand up to the Iranian nuclear threat and to Hamas militants ruling Gaza. Barak also says that while Netanyahu is against a two-state solution with the Palestinians, Barak has persuaded him to make key concessions that will please Washington: ending the building of illegal Jewish settlements in the Palestinian territories, and a promise that the hawkish Netanyahu will abide by the U.S-sponsored peace accords Israel signed with the Palestinians. On Wednesday, with Barak's support in mind, Netanyahu toned down his usual hawkishness, telling Israeli and Arab businessmen, I'm a partner for peace. Next week, Israelis will have a new Prime Minister and cabinet, and a season or two of political stability. But Barak's opportunism may have set the historic Labor party on a slide into irrelevance. - With reporting by Aaron J. Klein / Tel Aviv.

Rights group says Hamas beat man to death Wed Mar 25, 11:20 am ET

GAZA CITY, Gaza Strip – A Gaza-based human rights group is calling on Hamas to investigate the beating death of a Palestinian man in the militant group's custody.
The Palestinian Center for Human Rights says Jamil Assaf died Wednesday after he was beaten to death by security forces belonging to Hamas, the Islamic group ruling Gaza.

The rights group says a forensic report shows he was harshly beaten and died of kidney failure.Assaf's family says their son was arrested in early March.The group said Assaf is the fifth to die in detention since Hamas overran Gaza in June 2007. During the same period, al-Haq, another Palestinian rights group, says four people have died in custody in the West Bank, which is ruled by Hamas rival Fatah of President Mahmoud Abbas.

Netanyahu plans to expand settlement Wed Mar 25, 7:58 am ET

JERUSALEM (AFP) – Israeli prime minister-designate Benjamin Netanyahu has struck a secret deal with one of his coalition partners, pledging to expand settlements in a highly-contentious area of the West Bank, army radio said on Wednesday.The agreement is not included in the official coalition deal between Netanyahu's right-wing Likud and the ultra-nationalist Yisrael Beitenu party of firebrand Avigdor Lieberman but the two men struck the understanding during their coalition talks, the radio said.

According to the plan, some 3,000 housing units are to be constructed in the so-called E1 Sector in the occupied West Bank which runs between annexed east Jerusalem and the Maale Adumim settlement.There was no immediate comment on the report from either party.Israel had pledged to freeze the E1 project as part of its commitments under the international roadmap for peace which was launched in 2005 but has made little progress since then.Palestinians bitterly oppose the project as it effectively cuts the occupied West Bank in two, making the creation of a viable Palestinian state highly problematic.

Obama cites complexities of Mideast peace effort By ROBERT BURNS, Associated Press Writer – Tue Mar 24, 10:22 pm ET

WASHINGTON – The emergence of an Israeli government led by a strong skeptic of peace negotiations with the Palestinians makes it no less necessary for the U.S. to push for a resolution of the generations-old conflict, President Barack Obama said Tuesday.

In his most direct public comments on the evolving makeup of the Israeli government, following inconclusive national elections in February, Obama told a White House news conference that he remains committed to pushing for a two-state solution: separate Israeli and Palestinian states existing side-by-side in peace.When a reporter asked how realistic it is to hope that such a solution can be achieved, given the political shifts in Israel, the president replied, It's not easier than it was, but I think it's just as necessary.It was the only foreign policy issue raised in the nearly hour-long news conference. Remarkably, the wars in Iraq and Afghanistan were never raised and no one mentioned Pakistan, which is at the center of U.S. efforts against al-Qaida terrorism. Obama is expected to unveil on Friday a new strategy for stabilizing Afghanistan, in a campaign linked to combatting Islamic extremism in neighboring Pakistan.In response to the question about Israel, Obama noted that there is uncertainty not only about the makeup of a new Israeli government but also of Israel's negotiating partner, the Palestinian Authority, which is badly divided. On March 7, Palestinian Prime Minister Salam Fayyad submitted his resignation in a move meant to enable the early formation of a new caretaker government to oversee new elections.The designated Israeli prime minister, Benjamin Netanyahu, has been given until April 3 to form a governing coalition.We don't yet know what the Israeli government is going to look like, Obama said. And we don't yet know what the future shape of Palestinian leadership is going to be comprised of. What we do know is this: that the status quo is unsustainable, that it is critical for us to advance a two-state solution where Israelis and Palestinians can live side-by-side in their own states with peace and security.

On Tuesday, Israel's Labor Party voted to join the incoming Netanyahu government, lending a moderate voice to a coalition dominated by hard-liners and easing concerns of a head-on confrontation with Washington over Mideast peacemaking.Obama mentioned that he had appointed former Sen. George Mitchell as his special envoy for Mideast peace talks and that this demonstrated the administration's determination to press ahead regardless of the obstacles. Mitchell is expected to return to the region in a further effort to get peace talks under way shortly after the Israeli government is fully in place in April.How effective these negotiations may be, I think we're going to have to wait and see,Obama said.The past year of U.S.-backed talks, prior to Obama taking office in January, produced no discernible results, because the leadership of both sides appeared too weak to make the necessary concessions on vital issues like borders, refugees and settlements.