Bahrain to normalize ties with Israel, Israeli media say

JERUSALEM/DUBAI (Reuters) – The Gulf state of Bahrain is to normalize relations with Israel, the diplomatic correspondent for Israel’s public broadcaster Kan said on Friday, without citing sources.

Another Israeli reporter, Raphael Ahren of the Times of Israel, said U.S. President Donald Trump would on Friday announce that Bahrain was joining its neighbor the United Arab Emirates in formally establishing ties with Israel.

The White House had no immediate comment. Trump will on Tuesday host a White House ceremony solemnizing the Israel-UAE deal, which was announced on Aug. 13.

The Kan reporter, Amichai Stein, said in a tweet that Bahrain Crown Prince Salman bin Hamad Al Khalifa would be in Washington on Monday.

Neither Bahrain’s government communications center nor Bahrain’s embassy in Washington immediately responded to a request for comment.

Last week Bahrain said it would allow flights between Israel and the UAE to use its airspace. This followed a Saudi decision to allow an Israeli commercial airliner to fly over it on the way to the UAE.

Bahrain, a small island state, is a close ally of Saudi Arabia and the site of the U.S. Navy’s regional headquarters. Riyadh in 2011 sent troops to Bahrain to help quell an uprising and, alongside Kuwait and the UAE, in 2018 offered Bahrain a $10 billion economic bailout.

The Trump administration has tried to coax other Sunni Arab countries concerned about Iran to engage with Israel. The most powerful of those, Saudi Arabia, has signaled it is not ready.

Such a move would make Bahrain the fourth Arab country to reach such an agreement with Israel since exchanging embassies with Egypt and Jordan decades ago.

(Writing by Dan Williams; Additional reporting by Alex Cornwell and Lisa Barrington; Editing by Kevin Liffey and Angus MacSwan)

Seven countries issue Iran-related sanctions on 25 targets

Seven countries issue Iran-related sanctions on 25 targets
WASHINGTON (Reuters) – The United States and six other countries imposed sanctions on Wednesday on 25 corporations, banks and people linked to Iran’s support for militant networks including Hezbollah, the U.S. Treasury Department said in a statement.

The targets were announced by the Terrorist Financing Targeting Center (TFTC) nations – which also include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – as Treasury Secretary Steve Mnuchin was on a Middle East trip to finalize details of an economic development plan for the Palestinians, Jordan, Egypt and Lebanon.

All 25 targets were previously sanctioned by the United States.

“The TFTC’s action coincides with my trip to the Middle East, where I am meeting with my counterparts across the region to bolster the fight against terrorist financing,” Mnuchin said in the Treasury statement.

In Jerusalem on Monday, Mnuchin said the United States would increase economic pressure on Iran over its nuclear program, making the pledge during a Middle East trip that includes visits to U.S. allies Israel and Saudi Arabia.

Sanctions reimposed on Tehran by President Donald Trump after he withdrew the United States from world powers’ 2015 nuclear pact with Tehran have dried up Iranian oil revenues and cut Iranian banks’ ties to the financial world.

Twenty-one of the targets announced Wednesday comprised a vast network of businesses providing financial support to the Basij Resistance Force, the Treasury said.

It said shell companies and other measures were used to mask Basij ownership and control over multibillion-dollar business interests in Iran’s automotive, mining, metals, and banking industries, many of which have operate across the Middle East and Europe.

The four individuals targeted were Hezbollah-affiliated and help coordinate the group’s operations in Iraq, it said.

(Reporting by Doina Chiacu and Daphne Psaledakis; editing by Jonathan Oatis)

Palestinians reject U.S. peace plan as Kushner keeps silent on political details

White House senior adviser Jared Kushner gives a speech at the opening of the "Peace to Prosperity" conference in Manama, Bahrain, June 25, 2019 in this still image taken from a video. Peace And Prosperity conference pool/Reuters TV via REUTERS

By Matt Spetalnick

MANAMA (Reuters) – Palestinians poured scorn on the Trump administration’s much-touted peace plan for the Israeli-Palestinian conflict on Wednesday, saying its framework for a trade and investment boost ignored their political aspirations for statehood.

Gulf states attending an international meeting in Bahrain, orchestrated by the plan’s architect, U.S. President Donald Trump’s son-in-law Jared Kushner, gave it qualified support.

But they also stressed that any peace settlement must be based on two-state solution.

Kushner told reporters his team would release the plan’s political details, which remain secret, “when we’re ready”, adding: “We’ll see what happens”.

He said a peace deal would happen when both sides are ready to say “yes”. He acknowledged that they may never get there.

Neither the Israeli nor Palestinian governments are attending the meeting, which takes place amid a years-long stalemate in other international efforts to resolve a conflict that has lasted more than 70 years.

Senior Palestine Liberation Organisation official Hanan Ashrawi, speaking in the West Bank city of Ramallah, said the Manama conference was “quite disingenuous”.

“It is totally divorced from reality. The elephant in the room is the (Israeli) occupation itself,” she told a news conference.

Several thousand Palestinians demonstrated in the Hamas-controlled Gaza Strip and burned posters of Trump and Israeli Prime Minister Benjamin Netanyahu. “No to the conference of treason, no to the conference of shame” read one banner.

The chief of the Islamist Hamas, Ismail Haniyeh, criticized the plan as a ruse against the Palestinian people.

“This money must not come at the expense of our enduring rights, or at the expense of Jerusalem or the right of return or at the expense of sovereignty and resistance,” he said.

The foreign minister of Bahrain said the plan, nearly two years in the making, was an “opportunity not to be missed”.

He reiterated the need for a two-state solution, which has underpinned every peace plan for decades, but Trump’s team has consistently refused to commit to it.

“I think if we take this matter seriously it could be a very important game-changer,” Sheikh Khalid bin Ahmed al-Khalifa told Israeli public broadcaster Kan in English.

Netanyahu, a close Trump ally, has said Israel was open to the economic proposals.

But many Arab states, including Lebanon, stayed away from the event while others including Jordan and Egypt, the two Arab nations that have reached peace agreements with Israel, sent deputy ministers.

The Lebanese government and parliament both oppose the U.S. plan, Prime Minister Saad al-Hariri said on Wednesday.

 

Randall Stephenson, Chairman and CEO, AT&T is seen during the "Peace to Prosperity" conference in Manama, Bahrain, June 25, 2019. Peace to Prosperity Workshop/Handout via REUTERS

Randall Stephenson, Chairman and CEO, AT&T is seen during the “Peace to Prosperity” conference in Manama, Bahrain, June 25, 2019. Peace to Prosperity Workshop/Handout via REUTERS

HARD SELL

Washington hopes the wealthy Gulf states will bankroll the plan, which expects donor nations and investors to contribute $50 billion to Palestinian and neighboring Arab state economies.

Saudi Finance Minister Mohammed al-Jadaan said the kingdom would support whatever brings prosperity to the region but that it was important that it was driven by the private sector.

UAE Minister of State for Financial Affairs Obaid Humaid al-Tayer said: “We should give this initiative a chance”.

Riyadh said on the eve of the conference that any peace deal should be based on a Saudi-led Arab peace initiative that calls for a Palestinian state drawn along borders which predate Israel’s capture of territory in the 1967 Middle East war.

It also envisages a capital in East Jerusalem and refugees’ right of return – points rejected by Israel.

It is not clear whether the Trump team plans to abandon the two-state solution, which is backed by the United Nations and most countries. Kushner has said the plan would not adhere to the Arab initiative.

Any solution must settle long-standing issues such as the status of Jerusalem, mutually agreed borders, Israel’s security concerns, Palestinian demands for statehood, and the fate of Israel’s settlements and military presence in territory where Palestinians want to build that state.

Palestinian leaders are refusing to engage with the White House, accusing it of pro-Israel bias. Breaking with the international consensus, Trump in 2017 recognized Jerusalem as Israel’s capital, infuriating the Palestinians and other Arabs.

SOUND POLITICS

Former British Prime Minister Tony Blair also emphasized the need for a two-state solution and said peace required both political and economic tracks.

“It’s absolutely foolish to believe you can have economics without sound politics, but it’s likewise completely futile to think politics will work without economics buttressing it,” he told the gathering.

International Monetary Fund managing director, Christine Lagarde, said generating economic growth in conflict-riven countries can be a struggle.

The IMF puts unemployment at 30% in the West Bank and 50% in Gaza, which has suffered years of Israeli and Egyptian blockades and recent foreign aid cuts and sanctions by the Palestinian Authority, Hamas’ rival in the Israeli-occupied West Bank.

“Gaza right now is feeling a lot of pain because of bad leadership and the sanctions that have been imposed on them because of it,” Kushner said.

“So the question that (Hamas)leadership has to ask themselves is…do they hate their neighbor in Israel more than they love their citizens and their people?”

The 179 proposed infrastructure and business projects in the plan include a $5 billion transportation corridor to connect the West Bank and Gaza, which has been floated before and stalled for lack of underlying political or security agreements.

Palestinian businessman Ashraf Jabari, chairman of the Palestinian Business Network, told the gathering it was difficult to build an economy with a “siege and unstable situation”.

“Frankly, we demand an independent Palestinian state on the territories occupied by Israel in 1967,” said the businessman from Hebron, who has co-founded a trade group to boost business between Palestinians and Israeli settlers.

(Story was refiled to remove extraneous words from headline)

(Reporting by Matt Spetalnick in Manama, Dan Williams in Jerusalem, Rami Ayyub in Ramallah, Nidal al-Mughrabi in Gaza, Davide Barbuscia, Lisa Barrington, Aziz El Yaakoubi, Nafisa Taher, Hadeel AlSayegh and Alexander Corwnwell in Dubai; Writing by Ghaida Ghantous; Editing by Angus MacSwan)

U.S. seeks funds for Middle East peace plan but details are vague and Palestinians unhappy

Palestinians burn a picture of U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, and representations of Israeli flags during a protest against Bahrain's workshop for U.S. Middle East peace plan, in Gaza City, June 25, 2019. REUTERS/Mohammed Salem

By Matt Spetalnick

MANAMA (Reuters) – The Trump administration prepared to launch its $50 billion economic formula for Israeli-Palestinian peace in Bahrain on Tuesday but the Palestinian leadership reiterated its disdain for the plan and Saudi Arabia, envisaged as one of its main bank-rollers, also indicated some reservations.

Bahraini armoured vehicle takes up position on bridge leading to Manama’s Four Seasons hotel for first day of U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

Bahraini armoured vehicle takes up position on bridge leading to Manama’s Four Seasons hotel for first day of U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

The two-day international meeting, led by Trump’s son-in-law and senior advisor Jared Kushner, has been billed as the first part of Washington’s broader political blueprint to resolve the Israeli-Palestinian conflict.

But the political details of the plan, which has been almost two years in the making, remain a secret. Neither the Israeli nor Palestinian governments will attend the curtain-raising event in Manama, which Lebanon and Iraq are staying away from.

Palestinian President Mahmoud Abbas, whose Palestinian Authority exercises limited self-rule in the Israeli-occupied West Bank, was scathing about its prospects of success.

“Money is important. The economy is important. But politics are more important. The political solution is more important.”

Washington will be hoping that attendees in Manama such as wealthy Gulf states will show a concrete interest in the plan, which expects donor nations and investors to contribute $50 billion to Palestinian territories, Jordan, Egypt and Lebanon.

Saudi Arabia – a close U.S. ally which shares a common foe with Israel in Iran – voiced support on Tuesday for “international efforts aimed at improving prosperity, investment and economic growth in the region”.

But Riyadh reiterated that any peace deal should be based on the Saudi-led Arab peace initiative that has been the Arab consensus on the necessary elements for a deal since 2002.

That plan calls for a Palestinian state drawn along borders which predate Israel’s capture of territory in the 1967 Middle East war, as well as a capital in East Jerusalem and refugees’ right of return – points rejected by Israel.

Kushner said the plan would not adhere to the Arab initiative. “It will be somewhere between the Arab Peace Initiative and between the Israeli position,” he told Al Jazeera TV in an interview to air on Tuesday.

Chief Palestinian negotiator Saeb Erekat said Kushner is “committed to the initiatives of Israel’s colonial settlement councils.”

Israeli Prime Minister Benjamin Netanyahu, a close Trump ally, said Israel was open to the plan. “We’ll hear the American proposition, hear it fairly and with openness,” he said on Sunday.

White House senior adviser Jared Kushner and Treasury Secretary Steven Mnuchin arrive at Manama's Four Seasons hotel, the venue for the U.S.-hosted "Peace to Prosperity" conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

White House senior adviser Jared Kushner and Treasury Secretary Steven Mnuchin arrive at Manama’s Four Seasons hotel, the venue for the U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

Expectations for success are low. The Trump team concedes the economic plan – billed “Peace to Prosperity” – will be implemented only if a political solution to one of the world’s most intractable conflicts is reached.

Jordan and Egypt, the only Arab states to have reached peace with Israel, are sending deputy finance ministers. Kushner’s plan has hit a political nerve in Jordan, home to millions of citizens of Palestinian refugee origin.

Saudi Arabia and the United Arab Emirates want to move on from a Palestinian conflict they believe has held back the Arab world. Other Gulf states such as Kuwait, Qatar and Oman have not said who they are sending to the conference.

“If there is a one percent chance we do something good here, we should get together and try,” billionaire Mohamed Alabbar, one of Dubai’s most prominent businessmen, said after arriving at the venue in Manama and embracing two American rabbis.

POLITICAL PLAN?

It is not clear whether the Trump team plans to abandon the “two-state solution,” which involves creation of an independent Palestinian state living side by side with Israel.

The United Nations and most nations back the two-state solution and it has underpinned every peace plan for decades.

But Trump’s team has consistently refused to commit to it, keeping the political stage of the plan a secret.

U.N. Secretary-General Antonio Guterres urged the pursuit of “peace efforts to realize the vision of two States, Israel and Palestine, living side by side in peace and security”.

Any such solution would have to settle long-standing issues such as the status of Jerusalem, mutually agreed borders, satisfying Israel’s security concerns and Palestinian demands for statehood, and the fate of Israel’s settlements and military presence in territory in Palestinians want to build that state.

In Gaza, businesses closed doors in a general strike called by the ruling Islamist Hamas group and other factions.

In the West Bank on the outskirts of Ramallah, where a small crowd of protesters was dispersed by Israeli troops firing tear gas, Palestinian lawmaker Mustafa Barghouti said: “There can be no economic solution as a substitute for our freedom.”

The workshop is being held in Bahrain, home of the U.S. Navy’s Fifth Fleet, at a time of heightened tension between Tehran and Washington and its Gulf allies. Trump on Monday imposed sanctions on Iran’s Supreme Leader and other officials after Iran downed an U.S. drone last week.

Palestinian leaders have boycotted the conference, and are refusing to engage with the White House – accusing it of pro-Israel bias. Breaking with international convention, Trump in 2017 recognized disputed Jerusalem as Israel’s capital – a move that infuriated the Palestinians and other Arabs.

Seven Palestinian businessmen gathered in the lobby of the Four Seasons hotel, the conference venue. They estimated that 15 to 20 Palestinian business representatives would be present.

“The politicians will not bring us anywhere,” said conference attendee Shlomi Fogel, an Israeli entrepreneur. “We, the business people, should be able to show them there might be another way.”

(Reporting by Matt Spetalnick and Stephen Farrell; Additional reporting by Nidal al-Mughrabi in Gaza and Rami Ayyub in Ramallah; Writing by Ghaida Ghantous; Editing by Angus MacSwan)

U.S. to unveil ‘economy first’ approach to Mideast peace at Bahrain conference

FILE PHOTO: A footbridge leads from the Western Wall to the compound known to Muslims as the Noble Sanctuary and to Jews as Temple Mount, in Jerusalem's Old City June 2, 2015. REUTERS/Ammar Awad/File Photo

By Matt Spetalnick and Stephen Farrell

MANAMA/JERUSALEM (Reuters) – The first stage of President Donald Trump’s Middle East peace plan will be launched in Bahrain on Tuesday at a conference the White House touts as a bid to drum up $50 billion in investment but which Palestinians deride as an “economy first” approach doomed to fail.

The two-day international meeting, led by Trump’s son-in-law Jared Kushner, has been billed as the first part of Washington’s long-delayed broader political blueprint to resolve the Israeli-Palestinian conflict, to be unveiled at a later date.

But neither the Israeli nor Palestinian governments will attend the curtain-raising event in the Bahraini capital Manama.

And there will be close scrutiny as to whether attendees such as Saudi Arabia and other wealthy Gulf Arab states show any interest in making actual donations to a U.S. plan that has already elicited bitter criticism from Palestinians and many others in the Arab world.

Bahrain, a close American ally and home to the U.S. Navy’s Fifth Fleet, has been making preparations for weeks.

Though the event is supposed to focus on economics, Gulf Arab states hope it will also be used to show their solidarity with the Trump administration over its hard line against Iran, a senior Gulf diplomat said on condition of anonymity.

Under the plan, donor nations and investors would contribute about $50 billion to the region, with $28 billion going to the Palestinian territories – the Israeli-occupied West Bank and the Gaza Strip – as well as $7.5 billion to Jordan, $9 billion to Egypt and $6 billion for Lebanon.

Among 179 proposed infrastructure and business projects is a $5 billion transport corridor to connect the West Bank and Gaza.

“I laugh when they attack this as the ‘deal of the century’,” Kushner told Reuters, referring to the lofty nickname that Trump’s peace plan has assumed over the last two years.

“This is going to be the ‘opportunity of the century’ if they have the courage to pursue it.”

Kushner, a senior Trump adviser who like his father-in-law comes from the world of New York real estate, is presenting his plan in a pair of slick pamphlets filled with graphs and statistics that resemble an investment prospectus; in fact, he has repeatedly called it a “business plan.”

PEACE TO PROSPERITY

Expectations for success are low. The Trump team concedes that the economic plan – billed “Peace to Prosperity” – will be implemented only if a political solution to one of the world’s most intractable conflicts is reached.

Any such solution would have to settle longstanding issues such as the status of Jerusalem, mutually agreed borders, satisfying Israel’s security concerns and Palestinian demands for statehood, and the fate of Israel’s settlements and military presence in territory in Palestinians want to build that state.

Hanging over the entire initiative are persistent questions about whether the Trump team plans to abandon the “two-state solution” – the long-standing international formula to bring about peace by creating an independent Palestinian state living side-by-side with Israel.

The United Nations and most nations back the two-state solution and it has underpinned every peace plan for decades.

But the Trump team – led by Kushner, Trump’s Middle East envoy Jason Greenblatt and U.S. Ambassador to Israel David Friedman – has consistently refused to commit to it, keeping the political stage of the plan a tightly guarded secret.

Israeli Prime Minister Benjamin Netanyahu, a close Trump ally, has his own domestic problems, facing an election, and possible corruption charges after a long-running police investigation. He denies any wrongdoing.

“We’ll hear the American proposition, hear it fairly and with openness,” Netanyahu said on Sunday. Although no Israeli government ministers will attend, an Israeli business delegation is expected.

But Palestinian leaders have boycotted the workshop, and are refusing to engage with the White House – accusing it of pro-Israel bias after a series of recent Trump decisions. Kushner told Reuters “some” Palestinian businessmen would be present but declined to name them.

Palestinian President Mahmoud Abbas, whose Palestinian Authority exercises limited self-rule in the Israeli-occupied West Bank, was scathing about its prospects of success.

“Money is important. The economy is important. But politics are more important. The political solution is more important,” he said.

Hamas, the Islamist militant group that controls Gaza, has found itself in rare agreement with its arch-rival Abbas.

“The Palestinian people only and no one else can represent the Palestinian cause,” Hamas official Mushir al-Masri said.

He said the Trump approach “seeks to turn our political cause into a humanitarian cause, and to merge the occupation into the region.”

Kushner said that even without the Israeli and Palestinian governments represented, the presence of Israeli businessmen and journalists with their counterparts from the Arab world would be significant at a time of rising tensions with Iran.

“People realize that the real threat to that region is Iran and their aggression, and Israel and a lot of the other Arab states have a lot more in common today than they did before,” he said.

David Makovsky, a Washington-based Middle East expert, agreed that although the principal focus of the event was the Israeli-Palestinian conflict, “Iran is higher on the chain of interest right now.”

But Makovsky, who the White House has invited as an observer, said the Trump/Kushner plan would ultimately succeed or fail on how it addressed the big underlying issues, not the money. “No one believes you can solve this thing economically without addressing the political issues.”

(Writing by Stephen Farrell. Additional reporting by Nidal al-Mughrabi in Gaza and Rami Ayyub in Ramallah.)

Palestinians rally against Kushner’s economic peace plan

A Palestinian boy hurls stones at Israeli forces during clashes at a protest against Bahrain's workshop for U.S. peace plan, near Hebron, in the Israeli-occupied West Bank June 24, 2019. REUTERS/Mussa Qawasma

By Nidal al-Mughrabi and Rami Ayyub

GAZA/RAMALLAH (Reuters) – Palestinians burned portraits of President Donald Trump as they protested in both the Gaza Strip and the Israeli-occupied West Bank on Monday against U.S.-led plans for a conference on their economy in Bahrain.

Many Palestinian business groups have said they will boycott the June 25-26 event, billed as part of Washington’s long-awaited Israeli-Palestinian peace plan and spearheaded by Trump’s adviser and son-in-law Jared Kushner.

“Down with Bahrain, down with Trump, down with the Manama conference,” chanted crowds in Gaza, which is ruled by the armed Islamist group Hamas. Some burned large paintings of Trump marked with the words: “Deal of the devil”.

Leaders in both territories have accused Washington of pro-Israel bias and railed against the conference’s focus on economics, rather than their aspirations for an independent state.

Kushner told Reuters on Saturday the plan would create a million jobs, halve Palestinian poverty and double the Palestinians’ GDP.

In the West Bank, hundreds marched through Ramallah’s main squares, waving posters in support of President Mahmoud Abbas, whose Western-backed Palestinian Authority exercises limited self-rule in the territory.

Protesters there burned posters of both Trump and Bahrain’s King Hamad bin Isa Al Khalifa.

The rallies marked a moment of political unity against the Bahrain conference, despite a 12-year political feud between Abbas’s Fatah party and Hamas.

“A WEDDING WITHOUT THE BRIDE”

“The Manama conference is a comedy show, a wedding without the bride (the Palestinians) … it will not succeed,” said a protester who gave her name as Siham in Gaza City.

The Bahrain conference will be attended by Gulf Arab states as well as Jordan and Egypt. Israel is expected to send a business delegation but no government officials.

Mahmoud Barhoush, 25, said he didn’t know whether to laugh or cry at what he called Arab states’ “treasonous” participation.

“Enough of your running into the arms of Trump and (Israeli Prime Minister Benjamin) Netanyahu,” he said at the Ramallah protest.

Other demonstrators criticized the lone Palestinian businessman named as an expected attendee in Bahrain, Ashraf Jabari. A U.S. official told Reuters that at least 15 Palestinians were expected to attend.

“Whoever attends is not a Palestinian and is not welcomed in Palestine. There should be measures taken against them,” said Maisoon Alqadoomi, 32, a Fatah activist from Ramallah.

Palestinian leaders on Monday renewed their calls for a boycott of the conference.

“This workshop is simply a political laundry for settlements and a legitimization of occupation,” Palestinian Prime Minister Mohammad Shtayyeh told journalists ahead of a cabinet meeting.

In Gaza, Hamas spokesman Hazem Qassem said: “They (Palestinians) will not sell out their rights for all treasures on earth”.

(Reporting by Nidal Almughrabi in Gaza and Rami Ayyub in Ramallah; Editing by Andrew Heavens)

Palestinians say U.S. ‘deal of the century’ will finish off their state

FILE PHOTO: Palestinian President Mahmoud Abbas meets with White House senior advisor Jared Kushner in the West Bank City of Ramallah in the Israeli-occupied West Bank June 21, 2017. Thaer Ghanaim/PPO/Handout via REUTERS/File Photo

By Samia Nakhoul

BEIRUT (Reuters) – The U.S. blueprint to end the conflict between Israel and the Palestinians, still in draft form after almost two years, is seen by Palestinians, and by some Arab officials and politicians, as a plan to finish off the Palestinian cause.

The initiative, driven by Jared Kushner, Donald Trump’s son-in-law and White House adviser, was billed by the U.S. president as the “deal of the century”.

While its precise outlines have yet to be revealed, Palestinian and Arab sources who have been briefed on the draft plan say Kushner has jettisoned the two-state solution – the long-standing U.S. and international formula that envisages an independent Palestinian state alongside Israel in the West Bank, east Jerusalem and Gaza.

After several postponements, Washington plans a first formal outing of the economic components of the plan at a “Peace for Prosperity” workshop in June in Bahrain.

The plan faces possible delays due to political upheaval in Israel, where Prime Minister Benjamin Netanyahu must fight another election after failing to form a government.

Kushner and Trump, with backgrounds in real estate rather than diplomacy, seem to be approaching this hitherto insoluble conflict as a transaction, three Arab officials briefed on the plan said.

If the politics keep failing, the reasoning seems to be, then try dangling tens of billions of dollars before the Palestinians and Israel’s Arab neighbors and do a deal that could unlock prosperity for the Palestinians and security for Israel, these officials said.

Politically, the deal envisages an expansion of Gaza into part of northern Egypt, under Egyptian control, Palestinian officials briefed on the plan told Reuters. Palestinians would be left with a smaller share of the West Bank and some areas on the outskirts of Jerusalem and no control over their borders. Western and Arab sources confirmed the outline of the plan.

Jason Greenblatt, Trump’s Middle East envoy, said “rumors” about an expansion into Egypt’s Sinai desert were false. He declined to give details of the political plan before it is released.

On the decision not to use the term “two-state solution”, Grenblatt said: “We believe that using certain phrases and labels is not helpful because they lack detail and nuance – they mean different things to different people. The detailed plan, once released, will show what we think may be best solution for the two parties.”

NOT BUYING IT

The Palestinians are not buying it.

“What we’re seeing from the plan is that it will blow up the Palestinians,” one Arab official told Reuters. “The plan doesn’t give justice to the Palestinians.”

“The Palestinian cause is being liquidated – no Jerusalem (as capital), no right of return for refugees, no sovereign state. That is why this American project is dangerous,” one senior Palestinian leader told Reuters.

The deal as outlined so far has been dismissed by President Mahmoud Abbas’ western-backed Palestinian Authority in the Israeli-occupied West Bank.

Abbas has boycotted political dealings with the Trump administration for 18 months. This followed Trump’s decisions in 2017 to recognize Jerusalem as Israel’s capital and move the U.S. embassy there from Tel Aviv.

    Since then, the Trump administration has curtailed aid to the Palestinian Authority, shuttered the Palestine Liberation Organisation (PLO) delegation in Washington and cut off finance to UNRWA, the U.N. agency supporting Palestinian refugees. Washington meanwhile endorsed Israel’s sovereignty over the Golan Heights.

“In practice, they have already started implementing ‘the deal of the century’,” the senior Palestinian leader said, “on the ground, step by step”. “Today, the two-state solution has been scuttled”.  Abbas is not alone in his view of the U.S. deal.

It was rejected by the Islamist Hamas movement, which does not recognize Israel’s right to exist and has only given conditional consent to a state in the occupied Palestinian territories.

The PLO has dismissed the Kushner effort as an attempt to bribe Palestinians into accepting Israeli occupation of the West Bank, a prelude to Israel annexing about half their territory and leaving them with scattered cantons.

Hanan Ashrawi, a moderate Palestinian leader, tweeted that the Kushner plan and the Bahrain conference were just “a handout to make our captivity palatable”.

Palestinian businessmen have opposed the Bahrain gathering despite a plea by Washington to attend, saying their political demands must be addressed in any peace plan.

Qatar said economic prosperity cannot be achieved without political solutions acceptable to Palestinians. Oman said anything that precludes the establishment of a Palestinian state will not be acceptable.

“We are not proposing an economic peace,” Greenblatt said. “We know that is not acceptable to the Palestinians. We’ve been very clear that the full plan includes a political component as well. But the economic plan is an essential component to the full plan.”

MOVING ON

Robert Satloff, executive director of the Washington Institute for Near East Policy, an influential think-tank and supporter of Israel, wrote after interviewing Kushner this month that the deal is a political disaster that should be abandoned.

He said positive economic proposals could be lost by the attempt to skirt around Palestinian rights.

“The only way to protect the long-term viability of the plan’s best aspects is to kill it,” he said.

Satloff wrote that “unlike a real estate transaction in which one party gets the property and the other party gets the cash, a Middle East peace deal starts and ends with the two parties as neighbors, stuck with each other sharing a duplex for eternity”.

Kushner meanwhile visited the Middle East this week seeking support for the June 25-26 Bahrain conference.

The meeting is to talk about the cash. The U.S. plan expects almost all of this  “$50 billion to $70 billion” to be put up by Gulf Arab allies, Saudi Arabia and the United Arab Emirates, Palestinian sources said. Yet even that is now moot.

Saudi Arabia, under Crown Prince Mohammed bin Salman, and the UAE, under Abu Dhabi Crown Prince Mohammed bin Zayed, want to move on from a Palestinian conflict they believe has held back the Arab world.

That means uniting with Israel against Iran and concentrating on domestic challenges such as economic reforms and confronting Islamist radicals.

The Saudi crown prince maintains close ties with Kushner. But his father, King Salman, has twice said there will be no deal unless Israel meets Palestinian rights to a state.

“Kushner has been taken by surprise in his meetings in Riyadh recently, where there has definitely been a change in tone – in private and in public – by the Saudis,” said a senior western diplomat.

Asked for comment, the White House referred to its earlier official statement on Kushner’s February meeting with the crown prince and the king which said they discussed “increasing cooperation” and efforts to facilitate peace between Israelis and Palestinians.

NEW REALITY

The Palestinian official said it is clear that Israel “is creating a new reality on the ground” with the Trump administration’s help – not least by paving the way for the annexation of Jewish settlements in the West Bank.

The Palestinian and Arab officials briefed on the Kushner- Trump plan said its political contours, as explained to them, look like non-starters unless there is a peace deal.

The essential part is Gaza: where 2 million Palestinians are shut into a strip between Israel and Egypt. The idea is to expand it into the north of Egypt’s Sinai peninsula, creating an area where Palestinians can live and work under Egyptian control.

“The plan envisions Gaza stretching from Rafah (its southern border) to El Arish and some parts of Sinai. This area will be a Palestinian expansion in which Palestinians can reside,” the Palestinian leader said.

Big projects, such as an airport, a seaport, an industrial zone and power stations are envisaged, Palestinian sources briefed on the plan said.

On the West Bank, the plan is for Israel to annex and join up the settlements, take the Jordan valley and make it the Israeli border with Jordan, and leave the Palestinians a bit less than half as “an autonomous mini-state under some form of self-government”, the senior Palestinian leader said.

As for Jerusalem, Palestinians would get neighborhoods on the outskirts such as Abu Dis and Beit Hanina and Silwan: “not the real Jerusalem (but) they will tell them this is your Jerusalem”, the Palestinian leader added.

Western diplomats and intelligence sources worry about how the plan might affect Egypt and Jordan. However much money is offered, these sources question whether Egyptians would happily relinquish territory.And Jordan fears a Trump-backed Israel is returning to an old theme: Jordan is Palestine and that is where the Palestinians of the West Bank should go, they say.

 

(Additional reporting by Ghaida Ghantous, Eric Knecht, Suleiman Al-Khalidi and Matt Spetalnick; Editing by Giles Elgood)

Saudi and Bahrain welcome Trump’s scolding of Qatar

FILE PHOTO: A view shows buildings in Doha, Qatar, June 9, 2017. REUTERS/Naseem Zeitoon

RIYADH (Reuters) – Saudi Arabia and Bahrain welcomed on Saturday U.S. President Donald Trump’s demand for Qatar to stop supporting terrorism, but did not respond to a U.S. Department of State call for them to ease pressure on the Gulf state.

After severing ties with Qatar on Monday, Saudi Arabia said it was committed to “decisive and swift action to cut off all funding sources for terrorism” in a statement carried by state news agency SPA, attributed to “an official source”.

And in a separate statement issued on Friday, the United Arab Emirates praised Trump’s “leadership in challenging Qatar’s troubling support for extremism”.

Trump accused Qatar of being a “high level” funder of terrorism on Friday, even as the Pentagon and U.S. Secretary of State Rex Tillerson cautioned against the military, commercial and humanitarian effects of a blockade imposed by Arab states and others.

A separate SPA report on Saturday acknowledged Tillerson’s call for Qatar to curtail support for terrorism, but did not mention his remarks that the crisis was hurting ordinary Qataris, impairing business dealings and harming the U.S. fight against the Islamic State militant group.

Saudi Arabia said its action followed the conclusions of last month’s Arab Islamic American Summit in Riyadh, where Trump delivered a speech about Islamic extremism.

Trump said he helped plan the move against Qatar, although a senior administration official told Reuters earlier this week that the U.S. had no indication from the Saudis or Emiratis during the visit that they would sever ties with Qatar.

(Reporting by Katie Paul; editing by Alexander Smith)

Three countries urge caution traveling to U.S. amid protests

Demonstrators block traffic to protest the shooting death of Alton Sterling near the headquarters of the Baton Rouge Police Department in Baton Rouge, Louisiana

WASHINGTON (Reuters) – Three countries have warned their citizens to stay on guard when visiting U.S. cities rocked by sometimes violent protests that erupted after a string of police shootings of black Americans.

The United States regularly issues travel warnings urging Americans to either avoid or exercise caution in countries marred by violence or political instability.

Now America is the focus of concern by foreign governments in the Middle East and Caribbean as protesters marched in U.S. cities throughout the weekend after police killed black men in Louisiana and Minnesota.

The protests have led to numerous arrests, scuffles and injuries in confrontations between police and demonstrators. America was also tense after a lone black gunman on Thursday shot dead five police officers during a protest in Dallas.

The U.S. embassy of Bahrain, a tiny Middle Eastern island nation, on Saturday urged citizens via twitter to “be cautious of protests or crowded areas occurring around the U.S.”

Bahamas, a Caribbean nation where most people identify as being of African heritage, on Friday warned its people to be careful when visiting U.S. cities rocked by “shootings of young black males by police officers.”

“In particular young males are asked to exercise extreme caution in affected cities in their interactions with the police. Do not be confrontational and cooperate,” Bahamas foreign ministry said in a travel advisory.

The United Arab Emirates urged its students and other citizens in the United States to also be careful, using similar language the U.S. State Department employs when warning Americans about countries that have fallen victim to attacks by extremists.

“Please be aware of immediate surroundings and avoid crowded places when possible,” the UAE embassy said in a statement that urged people to stay away from any U.S. demonstrations. “Exercise particular caution during large festivals or events, be alert and stay safe.”

In July alone, the United States has issued travel warnings for Bangladesh, Venezuela, Iraq and Mali.

On Sunday, some tourists in New York’s bustling Times Square said they were nervous about the tension and recent violence in America. “I don’t like to be in crowded places anymore,” said Eleanor Fairbrother, who was visiting from Ireland.

(Reporting by Jason Lange in Washington; Additional reporting by Lauren Hirsch in New York; Editing by David Gregorio)

Bahrain Weaponizing Tear Gas

The US-based rights group Physicians for Human Rights is claiming the government of Bahrain is weaponizing tear gas in an attempt to quell protests in the nation.

Activists in Bahrain say 30 people have been killed as a result of the specialized tear gas. Many more have been injured, maimed or blinded by toxic chemicals inside the canisters. Continue reading