A US PEACE envoy’s suggestion that Washington could penalise Israel financially to force it to make concessions to the Palestinians drew Israeli ire on Sunday, Reuters reported.
“Under American law, the United States can withhold support on loan guarantees to Israel,” George Mitchell said on US television on Wednesday after being asked about the kind of pressure that could be brought to bear on Israel.
Over the past two decades, Israel has received US guarantees covering billions of dollars in loans, underwriting that has enabled it to raise money overseas more cheaply.
Although such guarantees have slipped in importance and Mitchell made clear in the US public television interview that no sanctions against Israel were being considered, his remarks added more discord to Israeli relations with President Barack Obama’s White House.
In a statement late on Saturday “in reaction to media inquiries after Mitchell’s interview”, Prime Minister Benjamin Netanyahu’s office blamed the Palestinians for a peacemaking impasse which the envoy, due back in the region later this month, has been unable to break.
“Everyone knows that the Palestinian Authority refuses to renew peace talks, while Israel took significant steps to restart the process,” the statement said.
Speaking to reporters in Jerusalem, visiting US Senators Joe Lieberman and John McCain rejected Mitchell’s remarks.
“Any attempt to pressure Israel, to force Israel, to the negotiating table by denying Israel support will not pass the Congress of the United States,” said Lieberman, an independent.
Republican Senator McCain, who lost the 2008 presidential election to Obama, added: “We disagree, obviously, with that comment and I am sure that you will see the administration in the future say that is certainly not the administration’s policy.”
‘Bombshell’
Israeli media seized on Mitchell’s remarks as reminders of a low point in US-Israeli relations - President George Bush’s withholding of $10 billion in guarantees in 1991 after Prime Minister Yitzhak Shamir refused to freeze settlement expansion.
“Mitchell’s threat,” said the main headline of Israel’s mass circulation Maariv newspaper, which described the envoy’s comments as a “bombshell”.
Obama and Netanyahu have clashed over the president’s demand - since softened - that Israel halt all settlement activity on land occupied in the 1967 war, in line with a 2003 US-backed peace “roadmap” that also called on the Palestinians to rein in fighters.
Nabil Abu Rdaineh, a spokesman for Palestinian President Mahmoud Abbas, rejected the accusation that the Palestinians were to blame for a lack of progress towards a statehood deal.
“Israel continues settlement building in violation of the roadmap,” Abu Rdaineh said.
Under pressure from Obama, Netanyahu imposed a limited, 10-month moratorium on November 25 on housing starts in West Bank settlements, saying he hoped this would help restart negotiations suspended for the past year.
But he excluded East Jerusalem and nearby annexed areas of the West Bank, and Abbas has not budged from his demand for a complete settlement freeze before talks can resume.
Asked about Mitchell’s remarks, Israeli Finance Minister Yuval Steinitz called US loan guarantees a “token of friendship” but said Israel had no plans to use those available for 2010 and 2011.
In 2002, the United States provided a package of $9 billion in loan guarantees. The package included a formula that deducts a dollar of guarantees for every dollar Israel spent on settlement building.
As of December 15, Israel still had $3.148 billion of the guarantees available after issuing $4.1 billion in bonds backed by the United States and a $1.1 billion deduction for settlement building and concerns over the barrier Israel is building in the West Bank.
West Bank demolition
Israeli forces on Sunday knocked down shelters that were home to about 150 Palestinians in the Israeli-occupied West Bank, Palestinian officials told Reuters.
A spokesman for the Israeli authorities in the West Bank, occupied by Israel since a 1967 war, said 14 “illegally constructed structures were removed”. They had been built on a military training ground, “endangering the lives of those present”, Lee Hiromoto, the spokesman, said.
Atef Hanini, a local Palestinian official, disputed the Israeli justification and said the Palestinian farming community had lived in the area of Tana, east of Nablus, for decades.
A mechanical digger ploughed through what remained of one of the shelters and a Palestinian woman remonstrated with Israeli soldiers at the scene. The structures included homes, stables and a school.
Hanini said the residents had defied Israeli instructions to demolish the structures themselves. Hiromoto said numerous warnings and evacuation orders had been issued.
Under interim peace agreements with the Palestinians, Israel exercises full military and civil control over some 60 per cent of the West Bank, a zone known as “Area C”.
The UN Office for the Coordination of Humanitarian Affairs said in a December report that Israel’s restrictive planning regime in Area C meant tens of thousands of Palestinians were left with no choice other than to build without authorisation, risking the demolition of their homes.
The UN body said it recorded the demolition of 180 Palestinian-owned Area C structures in 2009. The demolitions displaced 319 Palestinians, including 167 children.
The Palestinians want the West Bank and Gaza Strip to form an independent Palestinian state with East Jerusalem as its capital.
Gaza air strike
Israeli warplanes killed three Islamic Jihad gunmen on Sunday after Netanyahu warned the military would use maximum force to counter attacks by Palestinian fighters in Gaza, Agence France-Presse reported.
The aircraft targeted a group of fighters in the central Gaza Strip, killing the three with air-to-ground missiles, Palestinian medics said.
The Israeli military said they targeted the group “as they were preparing to fire rockets into Israel”. Earlier on Sunday, Netanyahu warned that Israel would react harshly after a recent upsurge in rocket and mortar attacks from the Islamist Hamas-ruled enclave.
“Our government’s policy is clear,” he said before the weekly Cabinet meeting. “We will respond to any firing into our territory strongly and immediately.” Fighters fired four mortar rounds at southern Israel on Sunday, without causing casualties.
Later in the day the air raid struck east of Deir Al Balah in central Gaza. Muawiya Hassanein, head of Gaza emergency services, said the bodies of three men were later taken to a hospital in the town.
The dead were all members of the Islamic Jihad group, he said.
It was the latest violence along Gaza’s border, which has been mostly quiet since a war Israel launched on the Islamist Hamas in Gaza on December 27, 2008, in response to rocket fire ended with mutual ceasefires on January 18, 2009.
The ceasefires have largely held, despite violations by both sides, and Hamas has largely succeeded in restraining Islamic Jihad, a smaller rival Islamist group.