REPORT ON ISRAELI SETTLEMENT IN THE OCCUPIED TERRITORIES A Bimonthly Publication of the Foundation for Middle East Peac e Volum e 19 N umber 5 September-October 2009 MOVING BEYOND A SETTLEMENT FREEZE By Geoffrey Aronson tion’s opening diplomatic effort. High- U.S. diplomacy, risks being seen as con - lighting settlements and Arab confi - ferring an ambiguous U.S. “stamp of The administration of Barack dence building measures as the twin approval” and further evidence of the Obama is setting the stage for the points of engagement was understood inability of diplomacy to challenge the resumption of talks, if not necessarily by the Obama team as the policy option settlement enterprise. Despite the fail - formal negotiations, between Israeli and most likely to impress upon Israelis and ure to win a credible suspension of all Palestinian leaders. Washington hopes Palestinians, as well as the international settlement activity, Obama still com - that a tripartite fall meeting of President community, the intention and the ability mands the international arena and he Barack Obama, Israeli prime minister of the new American leadership to end retains a powerful ability and interest in Benjamin Netanyahu and PLO chair - occupation, create a Palestinian state, setting the terms of Arab-Israeli diplo - man Mahmoud Abbas will mark the and normalize Israel’s place in the macy. A vigorous American effort that inauguration of a new phase in Obama’s region. Obama seized the policy initia - supercedes the spurned demand for a Middle East policy. tive by declaring in Cairo “the illegiti - comprehensive settlement freeze appears If Obama succeeds, the negotiations macy of continued Israeli settlements.” to be the White House’s next move. may be headlined by an Annapolis-like Washington’s demand for a settlement The Unrequited Demand for a summit conference that Russia and freeze overshadowed Netanyahu’s effort Settlement Freeze others are vying to host, leading to a to focus on “economic peace” and the resumption of bilateral talks aimed, interwoven crises between Israel and The complete cessation of all facets according to U.S. officials, at “advancing Hamas in Gaza that dominated the of settlement activity everywhere, a two-state solution where Israelis and agenda before Obama’s inauguration. defined by Secretary of State Hilary Palestinians can live side by side in their The new president won a quick affirma - Rodham Clinton as “a stop to the settle - own states with peace and security.” To tion from Netanyahu in support of the ments. Not some settlements, not out - embark on this effort, however, Obama principle (if not the content) of a two- posts, not natural growth exceptions,” must move beyond the diplomatic effort state solution and boosted Palestinian remains Washington’s stated policy. This led during the last three months by his confidence that recognition of their oft- demand is the standard for success special envoy George Mitchell to win repeated demand for imposition of a against which Obama’s settlement poli - from Israel the imposition of a complete settlement freeze was at last in sight. cies is being judged, by those who wish cessation of settlement expansion in the Netanyahu’s anticipated response to the new president well and by others West Bank, including East Jerusalem U.S. demands will not meet this test. who want to empty Obama’s two state and tangible demonstrations of normal - Israel is prepared, at most, to impose a vision, and the necessity of massive set - ization with Israel from the Arab world. temporary moratorium on certain types tlement evacuation, of real content. It was Obama’s decision to place set - of settlement expansion, an action simi - Leading Arab commentator Abdul tlements at the heart of his administra - lar to restrictions agreed to by Menac- Rahman al Rashid noted in Sharq al hem Begin in 1977. It will complete Awsat on July 8, 2009, more than 3,000 new dwellings in West “The battle to stop the [Israeli] con - Inside this Issue Bank settlements, enough to increase struction of settlements is a personal Fundraising for Settlement 3 the settler population of 500,000 by battle for Obama, and one that will U.S. Statements on the Freeze 5 12,000, and exclude East Jerusalem reveal whether the U.S. president is Settlement Construction Table 8 from any building limitations. Such an outcome, after months of high-powered FREEZE , continued on page 6 TO OUR READERS FOUNDATION FOR MIDDLE EAST PEACE As this issue reports, the Obama admin - the southern West Bank. A Palestinian istration hopes to shift the U.S. diplomatic state without these areas would be truncat - Merle Thorpe, Jr. agenda from the quest for a comprehensive ed, non-contiguous, economically non- Founder settlement freeze to long-awaited negotia - viable, and deprived of critical water (1917–1994) tions on final status issues with American sources that some of these settlements and mediation. This means that the U.S. will be their satellites dominate. The Palestinians Philip C. Wilcox, Jr. obliged to offer policy proposals to recon - would be most unlikely to accept this out - President cile polarized Israeli and Palestinian views come. Geoffrey Aronson on the issues that must be resolved to The U.S. as mediator will face a choice Director, Research and define peace and a Palestinian state: bor - of dealing with final status issues individu - Publications, Editor, Report on ders, settlements, Jerusalem, security and ally or with a comprehensive plan. An inte - Israeli Settlement in the Occupied refugees. grated approach has the strong advantage Territories By dealing with borders, negotiations of defining an outcome in a way that is Nitzan Goldberger will subsume the freeze issue and address credible and compelling to both sides by Waseem Mardini settlement evacuation, land swaps, and the demonstrating the advantages to each of Editorial Assistants ultimate status of Jerusalem. Such negotia - the otherwise painful tradeoffs they must tions would confront and define the issues make in return for peace that meets the Jonathan van Melle Intern of the settlement blocs that Israel hopes to fundamental needs of both. Whatever the annex. Among these are Ariel in the central format, the negotiating agenda is formida - TRUSTEES northern West Bank, others that surround ble, but the stakes could not be higher for and virtually cut off Arab East Jerusalem, Israelis, Palestinians and Americans. Landrum R. Bolling such as Maale Adumim and the proposed Calvin H. Cobb, Jr. E-1 bloc, which almost splits the West James J. Cromwell Bank in half; and Hebron in the heart of Peter Gubser Stephen Hartwell Richard S.T. Marsh —————— N —————— Richard W. Murphy Jean C. Newsom Gail Pressberg William B. Quandt Nicholas A. Veliotes The Foundation, a non- profit I.R.C. 501(c)(3) organization, supports peace and security for Israelis and Palestinians through mutual recognition and a negotiated division of historic Pales- tine. It publishes the bi- monthly Report on Israeli Settlement in the Occupied Territories . Copyright © 2009 Sign up to receive the Report by e-mail, to be notified of events in Washington, D.C., and more. Visit us at www.fmep.org. 2 O Report on Israeli Settlement September-October 2009 AMERICAN NON-PROFIT ORGANIZATION RAISES FUNDS FOR SETTLEMENT American Friends of Ateret Cohanim, a nonprofit organi - The Friends organization’s most recent return, filed in zation that sends millions of shekels worth of donations to 2008 for fiscal 2007, shows that it raised $2.1 million in Israel every year for clearly political purposes, such as buying donations that year. Of this, $1.6 million was transferred to Arab properties in East Jerusalem, is registered in the United Ateret Cohanim in Israel. States as an organization that funds educational institutes in The remainder was used to cover administrative overhead, Israel. including fund-raising expenses and an $80,000 salary for The U.S. tax code enables nonprofits to receive tax-exempt Shoshana Hikind, the American organization's vice president status if they engage in educational, charitable, religious or and de facto director, whose husband, Dov, is a New York scientific activity. However, such organizations are forbidden state assemblyman and well-known supporter of the Israeli to engage in any political activity. The latter is broadly defined right. as any action, even the promotion of certain ideas, that could The organization also raised substantial sums in previous have a political impact. years: $1.3 million in 2006, $900,000 in 2005 and about $2 million in 2004. Land Purchases in East Jerusalem By comparison, American Moskowitz has invested extensive funds Friends of Yeshivat Ateret Yeru- Financing land purchases in in setting up small enclaves within Arab shalayim raised only $189,000 in East Jerusalem would, therefore, 2007. neighborhoods in East Jerusalem. The seem to violate the organization’s In its IRS returns, American population he settles and subsidizes does tax-exempt status. Friends of Ateret Cohanim said its Daniel Luria, chief fund-raiser not come to live, it comes to establish polit - purpose is to “promote, publicize” for Ateret Cohanim in Israel, told ical facts on the ground. Is it conceivable, and “raise funds for” Ateret Ha’aretz Sunday that the American Netanyahu asked yesterday, that Jews not Cohanim institutions in Israel. organization's registration as an be permitted to settle in parts of New York These institutions, it continued, educational entity stemmed from or Washington? This is a hypocritical, “encourage and promote study and tax considerations. sanctimonious statement. A Jew who set - observance of Jewish religious tra - “We are an umbrella organiza - tles in the Bronx or in Queens lives in ditions and culture.” tion that engages in redeeming peace and happiness under the American land,” he said.