EGYPT TALKS TO EUROPE

Egypt talks to Europe, US on Palestinian unity By SALAH NASRAWI, Associated Press Writer – Mon Mar 16, 7:39 pm ET

CAIRO – Egypt has dispatched two of its top officials to convince the Americans and the Europeans to accept a weaker commitment by the militant Hamas group to peace with Israel for the sake of forging a united Palestinian government, officials said Monday.

Hamas and the more moderate Fatah group have been trying for nearly a week to reconcile and form a national unity government, but have been wrangling over the language of how to address past Palestinian agreements with Israel. The formation of a unity government is key to moving ahead with reconstruction in Gaza after Israel's recent offensive there.Egypt has been mediating the talks, which have hinged on whether Hamas has to commit itself to past PLO agreements with Israel or if it could just respect them. The language is sensitive because Hamas, which calls for Israel's destruction, is wary of wording that could convey an implicit recognition of Israel.

Egyptian officials and Fatah's leader, Palestinian President Mahmoud Abbas, have repeatedly said that any new Palestinian government should accept previous peace agreements with Israel and Arab peace efforts with the Jewish state.But Egypt's decision to dispatch Foreign Minister Ahmed Aboul Gheit to Brussels and the country's powerful intelligence chief, Omar Suleiman, to Washington indicates officials have had little success convincing Hamas to change its stance.Omar Suleiman and Aboul Gheit were sent to convince the Americans and the Europeans that a softer language in the political program might do,said one Egyptian official.A Palestinian official participating in the reconciliation talks in Cairo said, Egypt has exhausted all its efforts and that is the only attempt left.The officials said Egypt is suggesting to the U.S. and the Europeans that they accept that Hamas respect the PLO past agreements rather than commit itself to them. The officials spoke on condition of anonymity because they were not authorized to talk to the media.Aboul Gheit held talks in Brussels on Monday with British Foreign Secretary David Miliband and EU Development Commissioner Louis Michel, according to Egypt's official news agency. He met with Javier Solana, the EU's foreign and security affairs chief, on Sunday.I found full agreement with the Europeans on the issue of the peace process and the Palestinian national reconciliation,Aboul Gheit was quoted as saying.

Suleiman left for Washington on Sunday, said an Egyptian official.

The reconciliation talks are aimed at ending divisions going back to Hamas' violent takeover of the Gaza Strip in June 2007, which left Fatah in charge only of the West Bank. Previous unity accords have collapsed in mistrust and infighting, but this time both sides appear to have a strong incentive to reach an accord.Hamas is under pressure to mend fences with Fatah to help end the devastating blockade of Gaza imposed by Egypt and Israel and obtain foreign funding to rebuild Gaza.Fatah and Abbas, whose popularity took a beating due to his perceived lack of decisiveness during the Gaza war, need to find a way to blunt the challenges from Hamas.

Olmert says Hamas hardens stance on prisoner swap Mon Mar 16, 7:32 pm ET

JERUSALEM (AFP) – Israeli Prime Minister Ehud Olmert on Monday accused Palestinian Islamist movement Hamas of taking an extremist stance in last-ditch talks on a prisoner exchange in Cairo.Olmert's comments signaled the talks had not reached a deal and came as two Israeli envoys returned home from Egypt.According to briefings on the discussions in Cairo, it turns out that Hamas has hardened its stance ... and presented extremist demands, despite the generous (Israeli) propositions that were made,a statement from Olmert's office said.He will present full details to a cabinet meeting on Tuesday, according to the statement.His comments seemed at odds with an earlier report on Israeli public television that spoke of significant progress in the talks.We're very close to the moment of truth, a source close to the negotiators said after the 11th-hour talks that had prompted the postponement until Tuesday of an emergency Israeli cabinet meeting summoned to take a final decision.The two Israeli envoys -- special negotiator Ofer Dekel and the head of Israel's Shin Beth internal security service Yuval Diskin -- met Egypt's go-between in the negotiations, intelligence chief Omar Suleiman.Israel refuses to have any direct dealings with Hamas, which it boycotts as a terrorist organisation in common with the European Union and the United States.

Israel is seeking the release of Gilad Shalit, a conscript seized by Gaza militants in a deadly cross-border raid in June 2006.Hamas wants the release in exchange of hundreds of Palestinian prisoners in Israeli jails, including some convicted of attacks against Israelis in what would mark a major change in Israeli government policy.Olmert's outgoing government has warned Hamas that this is its final opportunity to strike a deal before a new, more hawkish cabinet is formed by prime minister designate Benjamin Netanyahu following last month's general election.

Olmert had called a cabinet meeting for earlier Monday but he postponed it at the last minute in the face of the continuing talks in Cairo.In light of the negotiations that are currently continuing in Cairo regarding the release of Gilad Shalit, Prime Minister Ehud Olmert decided ... to postpone by 24 hours the cabinet meeting, an earlier statement from his office said.It should be emphasised that as of yet, there is no sign that indicates a result in any particular direction in the negotiations, it added.Olmert has insisted that without Shalit's release, there will be no agreement on a long-term truce in and around Gaza to formally draw a line under Israel's three-week offensive against the territory at the turn of the year.Israel and Hamas, which controls the Gaza Strip, separately adopted unilateral ceasefires on January 18.Shalit's prolonged captivity -- now nearing its 1,000th day -- has become a cause celebre in Israel and Olmert is thought keen to secure the serviceman's release before he stands down.A corporal at the time of his capture, Shalit has since been promoted to staff sergeant. His family have set up a protest camp near Olmert's office to maintain pressure on the government.

Analysis: Mideast peace up to interlocking deals By STEVEN GUTKIN, Associated Press Writer – Mon Mar 16, 6:38 pm ET

JERUSALEM – The fate of the Israeli-Palestinian conflict has become a collection of moving parts that somehow need to come together in a single package: an Israel-Hamas prisoner swap, a truce for Gaza, and new governments on both sides of the firing line that could pursue peace.Prospects for success decreased significantly on Monday, when Egyptian-mediated talks for a prisoner swap — exchanging a captured Israeli soldier for hundreds of jailed Palestinian militants — ended without agreement, according to Israeli officials, dashing hopes that a deal was close.Such a swap could have helped pave the way for a longterm Israel-Hamas truce deal that in turn might have opened the Gaza Strip's blockaded borders to allow for reconstruction after Israel's punishing offensive there.Rebuilding Gaza will almost surely also depend on the success of current reconciliation talks in Egypt between Hamas militants and the Western-backed Fatah movement in efforts to reverse the results of a brief 2007 civil war that left rival Palestinian governments in Gaza and the West Bank.Getting Hamas and Fatah to reconcile is also key to the success of U.S.-backed Mideast peace talks, as it's unlikely Israel would sign on to a deal if moderates are in control of just the West Bank while militants rule Gaza. The latest news from Egypt is that the Hamas-Fatah talks are not going well.The biggest question now is whether Israel would sign a deal under any circumstances. Prime Minister-designate Benjamin Netanyahu, a political hawk, early Monday initialed a coalition agreement with the ultranationalist Yisrael Beitenu Party — increasing the likelihood that Israel's next government will spurn peace talks.The bottom line is that the obstacles to Palestinian unity, open borders for Gaza and a peace deal that would usher in Palestinian statehood seem as formidable as ever.

Contacts in Cairo between Israel and Hamas for a prisoner swap have ended without agreement after Hamas hardened its position and retracted earlier understandings, the Israeli government said in a statement late Monday.The statement came after two high-level Israeli negotiators returned home after two days of intensive talks in Cairo.

The statement said that during the negotiations, Hamas hardened its positions, retracted understandings reached during the last year and raised extreme demands, despite generous Israeli offers.Winning the release of Gilad Schalit, a 22-year-old Israeli sergeant captured by Hamas-allied militants in June 2006, would have given Olmert a key diplomatic victory in his final days as prime minister. The kidnapping took place shortly after Olmert took office and has clouded his tenure.Hamas has demanded the release of hundreds of Palestinian prisoners, including dozens convicted of killing Israelis.Hamas officials were not available for comment late Monday. Some Mideast watchers had predicted the group would be eager to reach a deal before Netanyahu takes office. The Israeli politician is putting together what is shaping up to be a right-wing coalition that will almost surely be less accommodating to Hamas demands — even though a broad-based Israeli unity government including centrists is also still possible.A prisoner swap could have strengthened Hamas by creating the impression that militants and their violent acts are the best way to get Israel to budge. However, a swap could also help boost Fatah by securing the release of that group's most popular politician, Marwan Barghouti.For Hamas, a prisoner swap would also be an important step toward ending Israel's crushing economic blockade of Gaza. Following a bloody Israeli military offensive in Gaza earlier this year, Hamas is desperate to reopen the area's borders to allow in reconstruction supplies. Israel says it won't enter a longterm truce deal easing the sanctions until Schalit comes home.Even if a prisoner swap could somehow be salvaged and lead to a permanent truce deal for Gaza, it's unlikely all the money and materials needed to rebuild the territory could come in unless Fatah regains a foothold there. That's because international donors are loath to send money to a militant regime and because Israel suspects reconstruction materials could be used for warfare.Fatah and Hamas factions meeting in Cairo agreed over the weekend that Palestinian elections should be held in the West Bank and Gaza by next January. But that appeared to be their only agreement amid many disputes — including whether Hamas could accept the key demands that it renounce violence and honor past peace accords with Israel.If Hamas sticks by its refusal to recognize the Jewish state, as seems likely, a new right-wing Israeli government could use that as an excuse to shun a future Palestinian unity government, and perhaps even intensify the blockade of Gaza.EDITOR'S NOTE: Steven Gutkin is AP's bureau chief for Israel and the Palestinian territories.

Israel's Netanyahu inks deal with far-right party by Yana Dlugy – Mon Mar 16, 4:51 pm ET

JERUSALEM (AFP) – Israeli prime minister-designate Benjamin Netanyahu inked a coalition deal with an ultra-nationalist party on Monday, in the first step toward forming a right-wing government.Netanyahu's Likud signed an agreement with the Yisrael Beitenu party of Avigdor Lieberman, a controversial firebrand labelled a "racist" by critics who is due to become the foreign minister in the new government.

The deal came as prosecutors told the supreme court that police were continuing their inquiries into longstanding graft allegations against the foreign-born ultra-nationalist amid suspicions he was continuing to break the law, army radio said.The accord struck by the Likud with Lieberman's party was careful not to shut the door on the formation of a broader coalition, specifying that if agreement was reached with centrist parties the distribution of portfolios might change.Netanyahu later on Monday met President Shimon Peres in Jerusalem ask him to encourage the centrist Kadima party and centre-left Labour to join a unity government, public radio said.A narrow right-wing coalition would be likely to put Israel at odds with its main ally the United States, where President Barack Obama has vowed to vigorously pursue the peace process with the Palestinians.Egyptian Foreign Minster Ahmad Abul Gheit expressed concern that Israel's shift to the right could have dire consequences for such efforts.If they would implement what they've been talking about over the last few years, we would all of us face dire difficulties and face the most extreme of situations,he told members of the European Parliament in Brussels.Israeli party officials said that in addition to the foreign ministry, Yisrael Beitenu will also get internal security, infrastructure, tourism and integration of new immigrants.

The agreement marks the first Netanyahu has reached since being tasked with forming a new government in the wake of a February 10 parliamentary election.Lieberman, an immigrant from ex-Soviet Moldova, has taken a hard line on Israeli Arabs that has earned him accusations of racism from critics and a reputation as a needed strong hand from supporters.His lawyers petitioned the supreme court on Monday alleging harassment by the authorities over nine-year-old accusations of fraud, abuse of confidence, money-laundering and illegal campaign financing.There was no immediate ruling from the court but prosecutors insisted that police would continue their inquiries after refraining from summoning Lieberman in recent weeks because of the coalition talks involving his party.Prosecutors alleged that he had received very large sums of money from abroad through front companies, army radio reported.Ahmed Tibi, an MP with the United Arab List, urged the European Union to boycott Lieberman if he becomes foreign minister.I urge European foreign ministers not to recognise this fascist who advocates the expulsion of Arabs,he told AFP.Lieberman supports keeping Israel's largest settlement blocs in the occupied West Bank in exchange for transferring heavily Arab populated areas in Israel to Palestinian control.He also wants Arab Israelis to take a loyalty oath as a condition for receiving government benefits.

Netanyahu is hoping to present his government to parliament by the end of this week to avoid asking for an extension that will give him until April 3 to form a cabinet.

When he became Israel's youngest premier in 1996, he presided over a right-wing government that collapsed three years later after small parties quit in protest against deals he signed with the Palestinians under US pressure. Keen to avoid such a scenario a second time around, he wants to head a broad-based cabinet that will have a better chance of surviving the notoriously tumultuous world of Israeli politics. The agreement (with Yisrael Beitenu) will note that we are interested in a unity government and, should this transpire, there will be changes, Gideon Saar, the head of the Likud negotiating team, told reporters. Outgoing Foreign Minister Tzipi Livni's Kadima and the Labour party of outgoing Defence Minister Ehud Barak have repeatedly rejected Netanyahu's overtures to join his cabinet. But in a last-ditch effort to woo them, Netanyahu held talks with Livni over the past week, officials said on Sunday.The two main sticking points are Kadima's demands for Netanyahu and Livni to take turns as prime minister and for the new government to endorse a two-state solution to the Israeli-Palestinian conflict, reports said.

Morocco and Jordan urge Palestinian reconciliation Mon Mar 16, 2:06 pm ET

RABAT (AFP) – Kings Mohammed VI of Morocco and Abdullah II of Jordan urged rival Palestinian factions Monday to work together and expressed their opposition to the extension of Israeli settlements.In a joint statement during a working visit to Morocco by Jordan's monarch, both men also expressed their "unbreakable and permanent will to defend the holy city (Jerusalem) and protect it against Israeli bids to Judaize it and change its Arab-Muslim status.With Palestinian factions pitted against one another, the kings pressed for the re-establishment of Palestinian unity, by both talks and action to bring about a united Palestinian government ahead of legislative and presidential elections.The monarchs totally reject the construction and expansion of Israeli colonies and demanded the lifting of all forms of blockade imposed against the Palestinian people.At the heart of conflict, Jerusalem had through all time been a place for coexistence and tolerance among the three monotheistic religions and it was a vital necessity to preserve this status, the statement said.King Abdallah II arrived Sunday in Fes in central Morocco to discuss both bilateral relations and the situation in the Middle East.

Two Israeli policemen shot dead in West Bank by Jean-Luc Renaudie – Sun Mar 15, 6:33 pm ET

JERUSALEM (AFP) – Two Israeli policemen were shot dead in an attack on Sunday near a Jewish settlement in the occupied West Bank, police spokesman Micky Rosenfeld said.

Two policemen who were travelling in the Jordan Valley were shot dead. According to the initial investigation it is an attack,Rosenfeld told AFP.He said the attack took place near the Jewish settlement of Massua in the northern Jordan Valley.An anonymous caller claimed responsibility for the attack on behalf of the Imad Mughniyeh Group in a telephone call to AFP.The group is named after a Hezbollah commander who was killed by a car bomb in Damascus in February 2008 that was blamed on Israel. It denied involvement.Police and the army sent reinforcements to the scene of the attack and a search began in a bid to track down the assailants, Rosenfeld said.Haaretz newspaper reported on its website that one policeman was killed on the spot and that the other died of his wounds shortly after emergency services arrived.Their car was found on Highway 90 which skirts the border with Jordan to the east. Police said the driver lost control when he was hit by gunfire.The Jordan Valley shares a 70-kilometre (43-mile) border with Jordan and represents a third of the West Bank which has been occupied by Israel since 1967. Some 7,000 settlers live in 30 Jewish settlements there.

Israel has banned Palestinians from using Highway 90 since the start of the second intifada in September 2000.There are several permanent military checkpoints in the Jordan Valley, and only Palestinian residents and those working in the Jewish settlements have access to the area.US President Barack Obama has vowed to vigorously pursue peace efforts in the region, and Israeli settlements have long been a key obstacle to an Israeli-Palestinian peace deal.Middle East peace talks were relaunched at a US conference in November 2007 but made little tangible progress.The government coalition that hawkish former prime minister Benjamin Netanyahu is trying to form is expected to be more settler-friendly than the outgoing administration of Prime Minister Ehud Olmert.Even so, Olmert has repeatedly said that the Jordan Valley must remain under Israeli control, although he has indicated a readiness to pull out of most of the West Bank.On March 2 the anti-settlement group Peace Now said Israel's housing ministry has plans that would nearly double the number of settlers in the territory.It gave the estimate in research issued on the day US Secretary of State Hillary Clinton arrived in Israel on her first trip since taking office.Peace Now calculates that there are a total of more than 280,000 Israeli settlers now living in some 121 settlements in the West Bank. Another estimated 200,000 live in annexed east Jerusalem.Tens of thousands of Palestinians who had fled their homes after the creation of Israel in 1948 initially moved to camps in the Jordan Valley before fleeing once more after the West Bank was occupied in 1967.

Palestinian groups agree to hold elections by January By Alaa Shahine – Sun Mar 15, 5:43 pm ET

CAIRO (Reuters) – Rival Palestinian groups agreed on Sunday to hold presidential and legislative elections by January 2010 but remained deadlocked over the key issue of forming a unity government that would prepare for the polls.Diplomats and analysts see the success of the Egyptian-sponsored talks as key to reuniting Palestinians after 21 months of schism between Hamas-ruled Gaza and the West Bank, where the Fatah group of President Mahmoud Abbas holds sway.Fatah and Hamas, the largest two Palestinian groups, differ fundamentally on how to deal with Israel. Hamas believes in armed struggle, though it is willing to consider a truce, while Abbas backs negotiations with the Jewish state.The groups agreed on holding presidential and legislative elections by January 25, 2010, Wasil Abou Youssef, secretary-general of the Palestine Liberation Front, told Egypt's state-run Middle East News Agency.But participants said differences remained between Fatah and Hamas on whether the unity cabinet that would emerge from the talks be composed of political groups or non-partisan technocrats, as demanded by Western powers and Egypt.It is a standstill on the issue of the government, said Walid al-Awad of the communist People's Party.The groups agreed on February 26 to form five committees to also tackle issues such as the composition of security agencies in the Gaza Strip and the West Bank.The groups have yet to agree on an electoral law and whether it would be based on proportional representation or constituencies, Awad and Abou Youssef told Reuters.

Awad said two committees discussing national reconciliation and the reform of the Palestine Liberation Organization (PLO) concluded their work on Saturday.The PLO, dominated by Abbas and the groups loyal to him, have represented the Palestinians since 1964 but the more recently created Islamist movements, such as Hamas and Islamic Jihad, have never been part of it despite a 2005 agreement to bring them under its umbrella.In Gaza, Hamas official Taher al-Nono told Reuters: There was progress in some issues last night. There is an optimism, a cautious optimism.The West had shunned a previous unity government headed by Hamas after it won parliamentary elections in 2006.Palestinian Prime Minister Salam Fayyad said this month he intended to resign by the end of March to pave the way for the formation of a unity cabinet. Abbas, who appointed Fayyad after Hamas routed Fatah in Gaza in June 2007, asked him to remain in office until results emerged from the talks in Cairo.

The new government is also expected to lead efforts to reconstruct the Gaza Strip after Israel's three-week military offensive, which ended in January.Awad said his party has put forward a suggestion that the prime minister and six cabinet posts -- foreign affairs, interior, reconstruction, education, information and finance -- be held by independent ministers. The remaining seats would be decided on political basis, he added.(Additional reporting by Nidal al-Mughrabi in Gaza, writing by Alaa Shahine; Editing by Giles Elgood)