
Strained
relations between US & Israel
HA'ARETZ 3/3/99: "In a further aggravation of the already strained relations
between Israel and the United States, the Clinton Administration is holding up the
transfer of the $1.2 billion in special aid promised Israel upon the signing of the Wye
accord last October, citing Israel's announcemet that it was delaying implementation of
the agreement.
However, the Palestinian Authority will get the $400 million a year in aid pledged to
it by the United States in the wake of Wye. (Prior to the Wye accord the PA received $100
million a year.) The issue was addressed recently by Stuart Eizenstat, U.S. undersecretary
of state for economic affairs, on a visit to Israel.
Eizenstat met with Defense Minister Moshe Arens, among other officials. Israel was told
that the special assistance to the Palestinians, who in Washington's assessment have
fulfilled their part of the Wye accord, will be formally approved and the funds will be
made available to the PA.
When Eizenstat was asked why the special financial aid was being withheld from Israel,
he reiterated a previous declaration by the State Department that the Palestinians had
carried out their obligations under the agreement, whereas the Israelis had not.
In reply to Israel's contention that it had implemented the first of the three West
Bank pullbacks stipulated by the accord and therefore should receive a commensurate
percentage of the funds, Eisenstadt replied that this was not possible.
He maintained that Israel had to carry out all its obligations in order to receive the
aid. Israel had originally asked for $2.3 billion to cover the costs of implementing the
Wye agreement, but settled for $1.2 billion.
About half the sum was earmarked for various deployments in connection with the
three-part pullback, while the rest was to be used to upgrade Israel's military capability
in the war against terrorism and in other areas.
Congress will not hold deliberations over releasing the special aid (of which Jordan is
also a recipient) until July, by which time Israel hopes to be able to persuade its
friends in the House and Senate to overturn the administration's decision.
Clearly, this will be virtually impossible if the new Israeli government that is
elected in May continues the policies of the present government. At most, in that case,
Israel will perhaps be able to bring about a delay in the transfer of the aid to the
Palestinians as well.
Israel suspended its implementation of the Wye accord indirectly, when the government
stated that it would carry out its obligations only if the Palestinians did likewise.
However, the government added a new condition, which does not appear in the Wye
agreement: that the PA must abandon its intentions to unilaterally declare a Palestinian
state with Jerusalem as its capital. [ED NOTE: That is part of the Oslo Accords.]

Stolen military documents
YEDIOT AHARONOT 3/2/99: "The IDF [Israel Defense Forces] is shocked: Top secret
documents were stolen from the office of Major General Gabi Ashkenazi, commander of the
Northern Command.
The theft occurred some three weeks ago but was reported only last week, and in its
wake the Military Police set up a special investigatory team.
The Military Police is reportedly treating the affair very seriously. A source close to
the investigation said yesterday that all the possibilities are being investigated
including one that the documents, which included data on IDF activities in south Lebanon,
reached hostile elements.
The IDF, however, is ruling out the possibility that the documents reached Hizballah.
The same source said that the fact that the announcement on the theft was made only some
two weeks after the incident "makes the investigation much more difficult since it is
now hard to look for fingerprints and other data that could have been collected
immediately after the event.
The incident recalls the theft of classified documents from a naval base about six
months before the naval commando's fiasco in south Lebanon, when information called
"very sensitive" was stolen and time passed before the investigation began.
Nothing was found. The entire story was silenced and a major effort was made to prevent
its publication, until it was disclosed by Yedi'ot Aharonot following the commando fiasco.
The IDF spokesman said then: "There is no link between the operation's failure and
the theft of the documents."
Two months ago, the home of Deputy Mosad director 'Amiram Levin was broken into and his
computer was stolen. The Mosad claimed that "the computer did not contain any
secrets."

Solution to Lebanon?
IDF RADIO 3/3/99: [Yokhpaz][the reporter] Good morning, Defense Minister Moshe Arens.
Minister Sharon said we must set up a national emergency government under the Likud and
Labor to find a solution to the Lebanon problem. What's your opinion about that?
[Arens] I understand Minister Sharon's reasoning. When we face difficult problems and
decisions, which happens often in our small country, it is preferable to have a national
unity government, so that decisions can be made jointly and have wide-ranging support, at
least from the two large parties. On the other hand, those who consider the steps that
have to be taken -- convening the Knesset to approve legislation postponing the elections
-- will reach the conclusion that it is impractical.
[Yokhpaz] We heard that Minister Sharon updated Prime Minister Binyamin Netanyahu about
his proposal. Did he also update you?
[Arens] I heard it from Minister Sharon several days ago, and I said then that it is
not practical.
[Yokhpaz] But it might contain something. Perhaps it is motivated not by politics, but
by a real desire to reach an achievement that ends the killing in Lebanon?
[Arens] I have no doubt that it expresses a genuine desire to achieve national unity in
order to make it easier to reach decisions, but as I said, it is impractical, and on the
other hand decisions have to be made and can be made within the framework of the present
government...
[Yokhpaz] Criticism was voiced yesterday that the attack on Hizballah was not fierce
enough. Where do you stand on this issue?
[Arens] We attacked, but we mainly signaled, and I believe that this signal was
understood by the other side, especially by the Syrians -- since without a Syrian
agreement nothing occurs in Lebanon, and Hizballah acts only with Syrian agreement -- that
we have the capability to reach long distances -- and we reached a target as far away as
Ba'labakk.
[Yokhpaz] Are you pleased with the results?
[Arens] I am definitely pleased. The question is how results are measured. I measure
them according to the message transmitted to the other side that we reached distant
targets and that if the attacks do not stop, we will reach even further...
[Yokhpaz] One of the newspaper headlines refers to your direct involvement in the talks
with the United States over the past few days urging it to apply pressure on Syria.
[Arens] Certainly, in addition to the message sent through the Air Force action, we
also sent oral messages via the United States to let the Syrians know that we are in the
midst of a very unstable situation which can escalate, and that the Syrians must enter the
picture and stabilize it otherwise the outcome will be terrible."

Sharon proposal rejected
GLOBES 3/3/99: "The Labor Party has rejected Minister of Foreign Affairs Ari'el
Sharon's proposal to form a national emergency government and postpone the elections by a
few months. Senior Labor Party figures said the proposal showed that even Sharon realized
that Prime Minister Binyamin Netanyahu was a failure.
Sharon said in response that his proposal was not a vote of no-confidence in the Prime
Minister or the government's performance, but a serious attempt to deal with the real
problems and dangers facing the State of Israel, which are becoming graver even while the
country is in an election period, and perhaps precisely because of that.
Sharon said that, after the painful events in Lebanon, he decided to suggest as broad
as possible a national consensus as the only possible means of arriving at a solution to
Israel's main, difficult problems in this period.
Sharon added that it was a must to defer the political wrangling for a few months, for
the sake of the security of the country, its citizens and its soldiers.
Minister of Finance Me'ir Shitrit said today that forming a national emergency
government was no longer a realistic option, following the proposal's rejection by the
Labor Party."

Al-Shara: Syrian-Russian relations
Beirut'a AL SAFFIR 3/3/99: "Syrian diplomacy is a book of secrets. It cannot be
easily opened but it is not closed on any subject. The scope of interest has no limits and
the horizon of hot issues is extremely wide. Syrian diplomacy and the character of
[Foreign] Minister Faruq al-Shar' intermingle.
He is a brilliant diplomat, a calm intellectual, an avid reader, and an accurate
analyst. But he is much cautious, and this is dictated by his position and by Syria's
circumstances and priorities...
Replying to a question on the prospects of a large-scale Israeli aggression against
Lebanon, al-Shar' said: Israel must now be thinking that such an aggression will prompt
response by the Resistance. Attacks on Lebanon could bring Netanyahu down as they did to
Peres.
The stay of tens of thousands of the Israelis in shelters in northern Israel for many
days and weeks will unseat the strongest Israeli government in the elections. As much as
we are worried because of the Israeli muscle-flexing,
Netanyahu too must be concerned about a response of the same or higher caliber.
Escalation is not in the interest of any party, but the resumption of the April
Understanding Monitoring Committee meetings is in the interest of all the parties.
Therefore, al-Shar' believes that the magnitude of concern in the Israeli street about
the suspension of the peace process must not be overlooked. This is especially true
because the stagnation of this process has produced nothing, particularly in terms of
security.
The Israelis' fear of Hamas cannot be ended by arrests because Hamas is a popular
phenomenon...Minister al-Shar' expects Iraq to become another Palestinian issue if there
is no decisive change in the Iraqi and Arab positions. He notes that at the recent meeting
of the Arab Foreign Ministers in Cairo Iraq had a unique chance to have the embargo
lifted, which was the only item on the meeting's agenda.
The meeting could have witnessed a major Arab development had the Iraqi officials not
committed the mistake of launching a media offensive against their Arab neighbors in the
south and in Egypt. This made everybody helpless and nobody could defend them until the
end.
In my belief, the Iraqis wasted a precious opportunity to open an important dialogue
with the Saudis and Kuwaitis. However, we will continue to be in touch with them until
they realize that their interest lies in cooperating with the Arab Follow-up Committee...
Minister al-Shar' is a bit reserved when he talks about Russia. This is because his
recent trip to Moscow, similar to all trips made by Russia's friends. represents an
attempt to find out what is actually going on in this major state, which lacks the
political will but continues to possess all the prerequisites for a major power.
The political scene is changing and the balance of power between the Duma and President
Boris Yeltsin has recently been tipped in favor of the first. Prime Minister Primakov is a
professional who recently obtained the President's signature on a constitutional amendment
preventing the dismissal of the government without the Duma's request.
That was in exchange for Primakov's verbal promise not to try to oust Yeltsin. But is
it reasonable to say that Primakov is a serious contender for the Presidency in the year
2000?
Al-Shar' says that "Primakov is an extremely intelligent person who now says that
he is not after the Presidency, but who knows what might happen tomorrow?
What is important is for Russia to regain its will. Then it could restore the US
respect for it and become once again a global center of polarity for many of the countries
that have no chance to deal or are not interesting in dealing with the United
States."
As for the complete file of the Syrian-Russian relations that al-Shar' carried with him
to Moscow, which included political, economic, and military (armament) issues, the Syrian
Foreign Minister keeps his secret and would never talk about it. However, he expresses
satisfaction at what seems to be a new beginning between the two countries."

Al-Hasan and a PA State
Gaza's AL HAYAH AL JADIDAH 2/27/99: "Fatah Central Council member Hani al-Hasan,
who is responsible for external relations, said in a speech he delivered the day before
yesterday at the Arab Studies Center in London that if the Palestinian state is not
proclaimed in May 1999, which is the date the transitional stage ends as stipulated by the
Oslo Agreement, a political vacuum will result in the West Bank and the Gaza Strip.
He expressed his view that this idea will push the Palestinians toward proclaiming
their state at the above-mentioned date and on the territory that Israel occupied in 1967.
Al-Hasan affirmed that stability in the region cannot be guaranteed except through the
establishment of a Palestinian state.
It will unite the Palestinians. He added that the Palestinians are currently exerting
efforts to convene a meeting attended by the five Arab countries neighboring Israel in
order to discuss various issues. He pointed out that the issues relating to the final
status talks, such as the borders, water, Jerusalem, and the security measures, are not
Palestinian issues only, but regional issues too.
Al-Hasan's speech was followed by a long session of questions, through which some
serious fears were expressed regarding the timing and method of declaring the Palestinian
state.
Sir Cyril Townsend, director of the Council for Advancing Arab-British Understanding
[CAABU], said that 'Arafat's negotiating position will improve immensely if he holds a
referendum in order to consult the Palestinian people on the establishment of an
independent state.
He added that if he asks Europe to fund or organize such a public referendum it will be
very difficult for Europe to reject such a request.
Al-Hasan said the Palestinian leadership is preparing to hold a referendum in which it
will not ask the people to express their opinion on one issue only, but many issues. In
addition, they are preparing a human rights declaration that addresses the relations
between the various religions...
Regarding the unity of the Palestinians and the Arabs, al-Hasan said that 4 May will
create a new situation and that the Fatah Movement has actually started negotiations with
other organizations.
A meeting will be held with the Democratic Front for the Liberation of Palestine in
Cairo. In addition, talks with the Popular Front for the Liberation of Palestine have
started. Answering a question on a confederacy with Jordan, al-Hasan said: Unity with
Jordan is a Palestinian objective.
William Morris from the Future Century Institute wondered: Then, would it be better for
the Palestinians to declare their state without any firm borders as Israel did in 1948,
instead of declaring their state within the 1967 borders?
He said that this will leave all options open before the Palestinians and place them in
a really strong position. It would enable them to declare Jerusalem as the joint capital
of Palestine and Israel.
Al-Hasan clarified that the Palestinian leadership studied the option of proclaiming
the state without any borders, but if it does so, then some sides will claim that the
Palestinians want to establish their state on the whole of Palestine. This will only
weaken the Palestinian stance on the international level."

May 4: US, France, Germany?
AGENCE FRANCE PRESSE 3/3/99: "Yasser Arafat will ask US President Bill Clinton
when they meet this month to formally recognize for the first time the Palestinians' right
to statehood, a senior aide said Wednesday.
Such US recognition could be part of a broader international deal under which the
Palestinians would agree to postpone a unilateral declaration of independence beyond May
4, when interim peace accords with Israel expire, said Tayeb Abdel Rahim, one of Arafat's
closest advisors.
"Arafat will ask Clinton at their summit on March 23 for American recognition of
the Palestinians' right to self-determination, which will clearly mean the establishment
of a Palestinian state," Abdel Rahim told AFP.
Palestinian officials said the Arafat-Clinton meeting at the White House would focus on
Palestinian conditions for delaying the independence declaration, which Israel has warned
would lead to a major crisis and potential violence.
Clinton has in the past recognized the Palestinians' right to self-determination, but
says the exact status of the Palestinian areas must be determined through negotiations
with Israel...
Shaath said European governments had already agreed "to raise the level of
Palestinian representative offices as part of a clearer recognition of the Palestinians'
right to self-determination."
He said that France and Germany, the latter considered the closest European state to
Israel, have also recently moved closer to recognition of a Palestinian state.
"France . . . Is prepared for immediate recognition of a Palestinian state whether
it is announced on May 4 or any other date which has been agreed upon," he said.
"And there has recently been progress in the German position after the meeting
between President Arafat and Chancellor Gerhardt Schroeder" last month, he
said."