France launches ‘urgent’ conference on Israeli-Palestinian peace

French President Francois Hollande delivers a speech during an international and interministerial conference in a bid to revive the Israeli-Palestinian peace process, in Paris

By John Irish

PARIS (Reuters) – France’s president said on Friday that spiraling Middle East upheaval since the collapse of the round of Israel-Palestinian peace talks has complicated the process and makes it even more urgent bring the two sides back to the table.

With U.S. efforts to broker Israeli-Palestinian peace in deep freeze for two years and Washington focused on its November presidential election, France lobbied for an international conference that began on Friday with the aim of breaking the apathy over the impasse and stir new diplomatic momentum.

While Palestinians have supported the French initiative, Israeli officials have said it is doomed to fail and that only direct negotiations can lead to a solution to the generations-old conflict.

Neither Israel nor the Palestinians have been invited to the conference, though the objective is to get them to negotiate after the U.S. elections.

“The discussion on the conditions for peace between Israelis and Palestinians must take into account the entire region,” Francois Hollande told delegates at the opening of the conference in Paris.

“The threats and priorities have changed,” he said, alluding to escalating Middle East conflict that has engulfed Syria, Iraq, Yemen, Turkey’s mostly Kurdish southeast and the spread of Islamic State insurgents through wide swathes of the region.

“The changes make it even more urgent to find a solution to the conflict, and this regional upheaval creates new obligations for peace,” Hollande said.

“TWO-STATE SOLUTION” FADING -MOGHERINI

The European Union’s foreign policy chief, Federica Mogherini, seconded Hollande’s call and said it was the duty of

international and regional players to find a breakthrough since the two sides appeared incapable of doing so alone.

“The policy of settlement expansion and demolitions, violence, and incitement tells us very clearly that the perspective that Oslo opened up is seriously at risk of fading away,” Mogherini told reporters.

The interim 1993 Oslo peace accords forged by Yitzhak Rabin and Yasser Arafat were meant to yield a Palestinian state in Israeli-occupied territory within five years – the so-called “two state solution”.

She said the Middle East Quartet of the EU, Russia, the United States and United Nations was finalizing recommendations on what should be done to create incentives and guarantees for Israel and the Palestinians to negotiate in good faith.

“The policy of settlement expansion and demolitions, violence, and incitement tells us very clearly that the perspective that Oslo opened up is seriously at risk of fading away,” Mogherini added.

Previous attempts to coax the foes into a deal have been fruitless. The Palestinians say Israeli settlement expansion in occupied territory is dimming any prospect for the viable state they seek in the West Bank and Gaza Strip, with a capital in Arab East Jerusalem.

Israel has demanded tighter security measures from the Palestinians and a crackdown on militants who have attacked Israeli civilians or threaten their safety. It also says Jerusalem is Israel’s indivisible capital.

U.S. Secretary of State John Kerry, whose exhaustive mediation of the last peace talks stumbled on the two sides’ intransigence, appeared lukewarm to the French initiative when asked if it could lead to fresh face-to-face talks.

“We’ll see, we’ll have that conversation, we have to know where it’s going, what’s happening. We’re just starting, let’s get into the conversations,” he told reporters.

(Additional reporting by Dan Williams in Jerusalem and Yeganeh Torbati in Washington; Editing by Mark Heinrich)

Archaeologists vs robbers, Israel’s race to find ancient scrolls

The Wider Image: Searching for remains of the Dead Sea Scrolls

By Ari Rabinovitch

TZEELIM VALLEY, Israel (Reuters) – The disposable paper face masks offer little protection from the clouds of dust that fill the cliffside cave where Israeli archaeologists are wrapping up the largest excavation in the Judean desert of the past half-century.

Clipped into safety harnesses, volunteers stand at the cave opening, 250 meters (820 feet) above a dry river bed that leads to the lowest spot on earth, the Dead Sea.

They sift through an endless supply of dirt-filled buckets, and the dust they throw in the air reaches the far corners of the cave where a dozen workers crawling on hands and knees can’t help but cough.

The three-week excavation was the first part of a national campaign to recover as many artefacts as possible, particularly scrolls, left behind by Jewish rebels who hid in the desert some 2,000 years ago, before they are snatched up by antiquity robbers.

“These looters that operate in the area are experts at finding scrolls. We go after them, look for what they are looking for and try to catch them,” said Guy Fitoussi, head of the Israel Antiquities Authority robbery prevention unit in southern Israel. “This is the game. Like cat and mouse.”

The Dead Sea Scrolls, a collection of ancient texts written on papyrus and parchment, have already been rescued by scholars. They are among the earliest texts written in the Hebrew language and are on display in the Israel Museum in Jerusalem as a national treasure.

Now Israel wants to uncover whatever may remain in the desert hideouts before it is destroyed or ends up on the black market.

For a Wider Image photo essay on the excavation click: http://reut.rs/25zc4ZK

PISTOL-PACKING ARCHAEOLOGIST

According to Israeli law, all relics found on land or at sea belong to the state. Fitoussi, a pistol-packing archaeologist with authority to arrest looters, and his team catch about 100 of them each year. Most are fined; some are sent to jail.

In 2014, they arrested six people who were plundering this particular cavern, known as the Cave of Skulls, where seven skulls had been found from Jews of the Bar Kokhba rebellion against Rome in the 2nd century.

That raid, Fitoussi said, helped spur the multi-year government-backed excavation program and focused their initial efforts at this site, about a two-hour drive southeast from Jerusalem.

To access the cave, diggers don climbing gear and descend 20 minutes from their campsite along a steep path that hugs the rocky cliff. Inside, the grotto expands 160 square meters (1,720 square feet), including a number of cramped tunnels that extend deep into the mountain.

The limestone walls of the dry desert cave are perfect for preservation, said Uri Davidovich, an archaeologist from Tel Aviv University who was one of the dig’s directors.

One 19-year-old volunteer, working flat on her belly in a dark crawl space, dirt mixed with sweat covering her face and digging with her fingers, unearthed a thin, 25 centimeter (10 inch)-long rope that most likely was used by the Bar Kokhba rebels. A rope this length was a rare discovery, Davidovich said.

They haven’t found any scrolls yet, he said, but the artefacts found in this cave, and countless others nearby, will provide historians rare insight into how people lived 2,000 to 8,000 years ago.

(Editing by Jeffrey Heller/Jeremy Gaunt)

Israel has homegrown Islamic State threat in hand

An Israeli soldier is silhouetted as he takes part in an open-fire scenario training in which soldiers respond with laser-firing rifles to a simulated Palestinian attack

By Dan Williams

JERUSALEM (Reuters) – Israel’s crackdown on Arab citizens trying to join Islamic State in Syria or Iraq or to set up cells at home have prevented the threat reaching the scale seen in the West, an adviser to Prime Minister Benjamin Netanyahu said in a magazine interview.

About 18 percent of Israel’s population are Muslim Arabs, many of whom identify with the Palestinian struggle, although they seldom take up arms against the majority Jewish country.

However, a rash of defections to Islamic State-held areas of Syria and Iraq and trials of Israeli citizens for identifying with the militant group prompted President Reuven Rivlin to warn in January that “considerable radicalization” was taking root among Israel’s Arab minority.

Eitan Ben-David, head of the Counter-Terrorism Bureau in Netanyahu’s office, told the bi-monthly journal ‘Israel Defense’that “more than a few dozen, but not more than 100” Israeli Arabs had joined Islamic State’s ranks – and some might return.

“These foreign fighters can certainly pose a grave danger internally, so the Shin Bet (security service) and all the state system is doing very good work in foiling this threat, which could be a kind of spreading cancer,” Ben-David said.

“To our satisfaction, the situation is reasonable. It is not like any European country, nor even America, or places like China or Russia which have had a great number of homegrown ISIS fighters,” he said, using an acronym for Islamic State.

Israel formally outlawed Islamic State in 2014 and negotiated the repatriation for trial of several Arab citizens who had joined or tried to join the insurgents via Turkey or Jordan.

But government policy hardened last year after one Israeli Arab used a paraglider to fly into an Islamic State-controlled part of southern Syria and after another who had served as a volunteer in Israel’s army defected to the insurgents.

Further raising alarm, two video clips surfaced in October in which Islamic State gunmen vowed in Arabic-accented Hebrew to strike Israel. The group’s leader, Abu Bakr al-Baghdadi, echoed the threat in an audiotape released in December.

But Ben-David sounded circumspect about that prospect, citing potentially more pressing dangers from Lebanon’s Hezbollah guerrillas or Palestinian militants.

In an incident on Thursday, a Palestinian woman tried to stab an Israeli soldier in the occupied West Bank and was shot dead, the military said.

In the last half year, Palestinian attacks have killed 28 Israelis and two visiting U.S. citizens. Israeli forces have shot dead at least 196 Palestinians, 134 of whom Israel has said were assailants. Others were killed in clashes and protests.

“When it comes to Islamic State, we worry about terrorist attacks against Israeli or Jewish targets, including abroad, but we are not a main target right now,” he said.

(Writing by Dan Williams; Editing by Jeffrey Heller and Gareth Jones)

Netanyahu says willing to discuss Arab initiative for peace

Israeli prime minister Benjamin Netanyahu enters to a media conference together with Israel's new Defence Minister Avigdor Lieberman, head of far-right Yisrael Beitenu party, following Lieberman's swearing-in ceremony at the Knesset, the Israeli parlia

By Ori Lewis

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu held out the prospect on Monday of reviving a 2002 Arab peace initiative that offers Israel diplomatic recognition from Arab countries in return for a statehood deal with the Palestinians.

Netanyahu’s comments were a formal response to a speech last week by Egyptian President Abdel Fattah al-Sisi, who promised Israel warmer ties if it accepted efforts to resume peace talks.

“The Arab peace initiative includes positive elements that can help revive constructive negotiations with the Palestinians,” Netanyahu said, echoing comments he made a year ago to Israeli reporters.

“We are willing to negotiate with the Arab states revisions to that initiative so that it reflects the dramatic changes in the region since 2002 but maintains the agreed goal of two states for two peoples,” he added.

His comments were made also in English in a speech that was mostly in Hebrew – a device Netanyahu often uses when he wants to make a statement to the international community.

Netanyahu spoke moments after ultra nationalist Avigdor Lieberman was sworn in as Israel’s new defense minister and Israel’s fragile right-wing coalition gained vital support in parliament.

Lieberman concurred and Netanyahu appeared to indicate that the new far-right defense minister’s inclusion in the government did not spell an end to peace efforts with the Palestinians.

The original Arab plan offered full recognition of Israel but only if it gave up all land seized in the 1967 Middle East war and agreed to a “just solution” for Palestinian refugees.

But in 2013, after the initiative’s terms were softened to include possible land swaps between Israel and the Palestinians, Netanyahu signaled a readiness to consider it.

Previous attempts to engage the adversaries have come to nought. The Palestinians say Israeli settlement expansion denies them a viable state they seek in the occupied West Bank, the Gaza Strip and a capital in Arab East Jerusalem.

Israel has demanded tighter security measures from the Palestinians and a crackdown on militants who have attacked or threaten the safety of Israeli citizens.

In the last half year, Palestinian attacks have killed 28 Israelis and two visiting U.S. citizens. Israeli forces have shot dead at least 195 Palestinians, 134 of whom Israel has said were assailants. Others were killed in clashes and protests.

France is set to host a peace conference of to revive peace efforts on June 3 with the participation of ministers from the Middle East Quartet – the United States, Russia, the European Union and the United Nations – the Arab League, the U.N. Security Council and about 20 countries.

Neither Israel, which has opposed the gathering, nor the Palestinians, who have welcomed it, have been invited.

(Additional reporting by Jeffrey Heller, writing by Ori Lewis)

Shake up in Israeli politics prompts ‘seeds of fascism’ warning

Former Israel Deputy Prime Minister and Defence Minister Ehud Barak and his wife Nili Priel arrive on the red carpet during the 2nd annual Breakthrough Prize

By Luke Baker

JERUSALEM (Reuters) – A military affairs commentator interrupts his broadcast to deliver a monologue: I’m alarmed by what’s happening in Israel, he says, I think my children should leave.

Former Prime Minister Ehud Barak warns of “the seeds of fascism”. Moshe Arens, who served as defense minister three times, sees it as a turning point in Israeli politics and expects it to cause a “political earthquake”.

The past five days have produced tumult in Israeli politics, since conservative Prime Minister Benjamin Netanyahu unexpectedly turned his back on a deal to bring the center-left into his coalition and instead joined hands with far-right nationalist Avigdor Lieberman, one of his most virulent critics.

Lieberman, a West Bank settler, wants to be defense minister. So on Friday, Netanyahu’s former ally and confidant, Defence Minister Moshe Yaalon, resigned and quit Netanyahu’s Likud party in disgust.

After a weekend to digest the developments, which are expected to be finalised in an agreement between Netanyahu and Lieberman on Monday to form the most right-wing government in Israel’s 68-year-old history, commentators have tried to put it in perspective and found themselves alarmed.

Arens, who has served as defense minister, foreign minister and ambassador to the United States, and is one of Netanyahu’s early political mentors, said the machinations would have far-reaching repercussions.

“Yaalon’s ouster is likely to be a turning point in Israel’s political history,” he wrote in the left-leaning Haaretz newspaper. “A political earthquake is in the offing. It may take a little time, but it is coming. The law of unforeseen consequences is at work.”

The decision to jettison Yaalon in favor of Lieberman was all too much for Roni Daniel, a veteran military affairs commentator on Channel 2.

“I cannot urge my children to stay here, because it is a place that is not nice to be in,” he said in his monologue, going on to name a number of far-right politicians.

“HOSTILE TAKEOVER”

By bringing the Yisrael Beitenu (Israel Our Home) party into the fold, Netanyahu strengthens his coalition from 61 to 67 seats in the 120-member parliament.

Lieberman’s brand of politics — pro-settlement, wary of peace negotiations, tough on the Palestinians — sits far more comfortably with Netanyahu and his right-wing partners than the center-left does.

But it means there is no countervailing voice in the government, and the person in charge of defense — the most important portfolio in Israel after the prime minister — is a civilian with little military experience.

At a time when the command of the Israel Defense Forces is already at odds with the government over policies it feels are too hard-line, Lieberman’s appointment risks creating more tension between the political leadership and the military. Palestinians in Gaza and the West Bank are on edge too.

“What has happened is a hostile takeover of the Israeli government by dangerous elements,” Ehud Barak, Israel’s most decorated soldier and a former defense minister following his spell as head of government, told Channel 10 TV.

Israel has been “infected by the seeds of fascism”, he said, adding that it should be “a red light for all of us regarding what’s going on in the government.”

Netanyahu sought to quell the rising criticism at a new conference on Sunday, describing himself as in charge and as having the nation’s interests at heart.

“I’m looking out for the country’s future. I have proved that as prime minister. I hear a lot of voices; many things are said in politics,” he said.

“Ultimately, it’s the prime minister who directs everything together with the defense minister, with the chief of staff, and apparently I haven’t done such a bad job during my years as prime minister — that’s the way it is going to be now.”

Some allies leapt to Netanyahu’s defense, saying the appointment of Lieberman was a sound decision and that he would offer “fresh thinking” as defense minister, but the focus of commentary was on the broader direction that Israel is taking.

A DECADE IN POWER

Netanyahu has held power for more than 10 years, spread over four terms. In that time, politics has moved steadily to the right, with his coalition now hinging on support from Orthodox religious and ultra-nationalist parties.

There has been no progress in efforts to negotiate peace with the Palestinians, with Netanyahu saying Palestinian President Mahmoud Abbas is not the right partner because he rejects Israel’s demand to recognize it as a Jewish state.

At the same time, the building of Israeli settlements in the West Bank and East Jerusalem, which the Palestinians seek for their own state together with Gaza, continues apace.

Ties between Israel and the United States, its closest ally, have become strained, with Vice President Joe Biden saying last month that the U.S. administration felt “overwhelming frustration” with the Israeli government.

For Daniel, who is regarded as a stalwart of the right, something has changed fundamentally.

“It’s over. I will not persuade my children. They will decide where they want to live. But if that once looked like a terrible tragedy to me, today it doesn’t,” he said.

(Additional reporting by Jeffrey Heller,; Editing by Timothy Heritage)

The past five days have produced tumult in Israeli politics, since conservative Prime Minister Benjamin Netanyahu unexpectedly turned his back on a deal to bring the center-left into his coalition and instead joined hands with far-right nationalist Avigdor Lieberman, one of his most virulent critics.

Lieberman, a West Bank settler, wants to be defense minister. So on Friday, Netanyahu’s former ally and confidant, Defence Minister Moshe Yaalon, resigned and quit Netanyahu’s Likud party in disgust.

After a weekend to digest the developments, which are expected to be finalised in an agreement between Netanyahu and Lieberman on Monday to form the most right-wing government in Israel’s 68-year-old history, commentators have tried to put it in perspective and found themselves alarmed.

Arens, who has served as defense minister, foreign minister and ambassador to the United States, and is one of Netanyahu’s early political mentors, said the machinations would have far-reaching repercussions.

“Yaalon’s ouster is likely to be a turning point in Israel’s political history,” he wrote in the left-leaning Haaretz newspaper. “A political earthquake is in the offing. It may take a little time, but it is coming. The law of unforeseen consequences is at work.”

The decision to jettison Yaalon in favor of Lieberman was all too much for Roni Daniel, a veteran military affairs commentator on Channel 2.

“I cannot urge my children to stay here, because it is a place that is not nice to be in,” he said in his monologue, going on to name a number of far-right politicians.

“HOSTILE TAKEOVER”

By bringing the Yisrael Beitenu (Israel Our Home) party into the fold, Netanyahu strengthens his coalition from 61 to 67 seats in the 120-member parliament.

Lieberman’s brand of politics — pro-settlement, wary of peace negotiations, tough on the Palestinians — sits far more comfortably with Netanyahu and his right-wing partners than the center-left does.

But it means there is no countervailing voice in the government, and the person in charge of defense — the most important portfolio in Israel after the prime minister — is a civilian with little military experience.

At a time when the command of the Israel Defense Forces is already at odds with the government over policies it feels are too hard-line, Lieberman’s appointment risks creating more tension between the political leadership and the military. Palestinians in Gaza and the West Bank are on edge too.

“What has happened is a hostile takeover of the Israeli government by dangerous elements,” Ehud Barak, Israel’s most decorated soldier and a former defense minister following his spell as head of government, told Channel 10 TV.

Israel has been “infected by the seeds of fascism”, he said, adding that it should be “a red light for all of us regarding what’s going on in the government.”

Netanyahu sought to quell the rising criticism at a new conference on Sunday, describing himself as in charge and as having the nation’s interests at heart.

“I’m looking out for the country’s future. I have proved that as prime minister. I hear a lot of voices; many things are said in politics,” he said.

“Ultimately, it’s the prime minister who directs everything together with the defense minister, with the chief of staff, and apparently I haven’t done such a bad job during my years as prime minister — that’s the way it is going to be now.”

Some allies leapt to Netanyahu’s defense, saying the appointment of Lieberman was a sound decision and that he would offer “fresh thinking” as defense minister, but the focus of commentary was on the broader direction that Israel is taking.

A DECADE IN POWER

Netanyahu has held power for more than 10 years, spread over four terms. In that time, politics has moved steadily to the right, with his coalition now hinging on support from Orthodox religious and ultra-nationalist parties.

There has been no progress in efforts to negotiate peace with the Palestinians, with Netanyahu saying Palestinian President Mahmoud Abbas is not the right partner because he rejects Israel’s demand to recognize it as a Jewish state.

At the same time, the building of Israeli settlements in the West Bank and East Jerusalem, which the Palestinians seek for their own state together with Gaza, continues apace.

Ties between Israel and the United States, its closest ally, have become strained, with Vice President Joe Biden saying last month that the U.S. administration felt “overwhelming frustration” with the Israeli government.

For Daniel, who is regarded as a stalwart of the right, something has changed fundamentally.

“It’s over. I will not persuade my children. They will decide where they want to live. But if that once looked like a terrible tragedy to me, today it doesn’t,” he said.

(Additional reporting by Jeffrey Heller,; Editing by Timothy Heritage)

Netanyahu tells France’s Ayrault he opposes peace conference

Israeli Prime Minister Benjamin Netanyahu shakes hands with French Foreign Minister Jean-Marc Ayrault

By Jeffrey Heller

JERUSALEM (Reuters) – Prime Minister Benjamin Netanyahu told France’s foreign minister on Sunday that Israel remained opposed to a French initiative for an international conference to try to revive peace talks.

Palestinians welcomed the proposal but Israel is concerned that the conference that France seeks to hold in the autumn would try to dictate terms for a peace deal.

In public remarks to his cabinet after meeting France’s Jean-Marc Ayrault, Netanyahu said: “I told him the only way to advance genuine peace between us and the Palestinians is through direct negotiations between us and them, without preconditions.”

Israel made the same argument in the formal response it gave last month. France hopes an international conference would set out a framework for peace negotiations, after U.S. efforts to broker a two-state deal collapsed in April 2014.

“I know that Netanyahu does not agree (to the French proposal),” Ayrault told reporters after his talks with the Israeli leader in Jerusalem and a meeting with Palestinian President Mahmoud Abbas in the occupied West Bank.

Ayrault said France would continue to pursue the initiative and that its ultimate goal was for both sides to return to direct talks, with international intervention laying the groundwork.

“It is very clear to us, and I said this today to both the prime minister and to President Abbas, that we cannot take the place of the two parties,” he said at Tel Aviv’s Ben-Gurion airport at the end of a one-day visit to promote the plan.

“Only they can conduct direct negotiations to achieve a solution,” Ayrault said. “But because things are currently stuck … external intervention is necessary to provide renewed momentum.”

An international gathering of ministers, tentatively planned for May 30 in Paris, is set to include the Middle East Quartet (the United States, Russia, the European Union and the United Nations), the Arab League, the U.N. Security Council and about 20 countries, without Israeli or Palestinian participation.

Diplomats say that meeting will package all economic incentives and other guarantees that various countries have offered in previous years to create an agenda for an autumn peace conference.

While objecting to the French initiative, Netanyahu, a right-winger, has stopped short of saying Israel would boycott it.

Keeping his options open could help Netanyahu in preliminary contacts with the main opposition Zionist Union party – a centre-left group likely to favour participating – on expanding his ruling coalition that has a mere one-seat parliamentary majority.

(Additional reporting by John Irish in Paris; Editing by Robin Pomeroy)

Iranian minister denies recent mid-range ballistic missile test

Iranian Defence Minister Dehghan delivers a speech as he attends 5th Moscow Conference on International Security in Moscow

DUBAI (Reuters) – Iran’s minister of defence denied on Monday that the Revolutionary Guards had recently tested a medium-range ballistic missile but reiterated that Tehran had not stopped bolstering what it insists is a purely defensive arsenal.

Earlier, the Tasnim news agency quoted Brigadier General Ali Abdollahi as saying Iran had successfully tested a precision-guided missile two weeks ago with a range of 2,000 kms (1,240 miles).

The Islamic Republic has worked to improve the range and accuracy of its missiles over the past year, which it says will make them a more potent deterrent with conventional warheads against its enemy Israel.

“We haven’t test-fired a missile with the range media reported,” Iranian Defence Minister Hossein Dehghan was quoted as saying by the state news agency IRNA.

The United States and some European powers have said other recent tests violate a United Nations resolution that prohibits Iran from firing any missile capable of carrying a nuclear warhead. Iran says the missiles are not designed to carry nuclear warheads, which it does not possess.

Washington has imposed new sanctions on Tehran over recent tests, even after it lifted nuclear-related sanctions in January as Tehran implemented the nuclear deal it reached with world powers last year.

Iran’s top leader Ayatollah Ali Khamenei said in March that missile development was key to the Islamic Republic’s future, in order to maintain its defensive power and resist threats from its enemies.

(Reporting by Bozorgmehr Sharafedin; Writing by Sam Wilkin; editing by Richard Balmforth)

Israel discovers 2nd cross border tunnel built by Hamas

An entrance to a tunnel which Israel's military said it had discovered is seen just outside the southern Gaza Strip

By Eli Berlzon

SUFA, Israel (Reuters) – Israel’s military said it had discovered a cross-border tunnel on Thursday built by the Islamist group Hamas from the Gaza Strip during a rare flare-up of violence along a border that has been largely quiet since a 2014 war.

Gaza hospital officials said a 54-year-old woman had been killed and a man wounded by fragments of an Israeli tank shell fired near Rafah during the violence, which erupted on Wednesday.

Israel’s Shin Bet undercover intelligence agency said a Hamas operative arrested last month had provided useful information about the tunnel networks in the area, though it did not explicitly attribute Thursday’s discovery to his data.

Gaza analysts said the flare-up of violence, the most intense since the 2014 war, threatened the truce that has largely held in the area for nearly two years.

Israeli Prime Minister Benjamin Netanyahu was set to convene senior ministers on Friday to discuss the situation. Defence Minister Moshe Yaalon said after touring the area that Israel would not be deterred by Hamas’s threats and would continue to search “until all the tunnels are found.”

A senior Hamas official, Khalil al-Hayya, said efforts by Qatar and Egypt were ongoing to try to restore calm, but he warned that “Israeli incursions into Gaza would not be tolerated.”

Militants fired mortar shells at Israeli forces working to unearth the tunnel and Israel responded with tank fire and air strikes, an army spokeswoman said. The violence had subsided by late Thursday night and there was a period of calm toward midnight.

Israeli aircraft earlier targeted four Hamas positions in the vicinity of the tunnel, the military said. During Wednesday and Thursday, there were 10 instances of Hamas fire against Israeli forces operating in the area, it added.

Hamas, Gaza’s de facto ruler, has not confirmed responsibility for the shelling and did not comment on the announcement of the tunnel’s discovery.

TUNNEL SEARCH

Lieutenant-Colonel Peter Lerner, an Israeli military spokesman, said the tunnel unearthed on Thursday was situated 28 meters (31 yards) below the surface and that an investigation was under way to determine whether it was dug before or after the war.

Lerner said the militants may have started firing mortars at the Israeli forces to prevent them discovering the tunnel. Last month a first tunnel was unearthed without incident.

But the armed wing of Hamas said the tunnel was not new and had been in use in the early part of the war in 2014.

Israel has been wary about discussing what means it has employed to uncover the tunnels but the arrest of Mahmoud Atouna, 29, from Jabalya in the northern Gaza Strip early last month may have helped.

“Atouna provided his interrogators much information about the tunnel routes in the northern Gaza Strip, its tunnel-digging methods, the use of private homes and public buildings to bore tunnels and materials used,” Shin Bet said in a statement on Thursday.

More than 2,100 Palestinians, mostly civilians, were killed during the 2014 Gaza conflict. Sixty-seven Israeli soldiers and six civilians in Israel were killed by rockets and attacks by Hamas and other militant groups.

(Additional reporting by Nidal al-Mughrabi in Gaza, Writing by Dan Williams and Ori Lewis; editing by Gareth Jones, G Crosse)

Israeli, Palestinian violence flares along Gaza border

Israeli Prime Minister Benjamin Netanyahu attends the weekly government cabinet meeting in Jerusalem

By Nidal al-Mughrabi

GAZA (Reuters) – Violence erupted along the Israel-Gaza border on Wednesday as Israeli forces and Palestinian militants exchanged fire and Israeli war jets bombed targets in the enclave, ruled by the Islamist Hamas group.

There were no immediate reports of casualties in the rare flare-up along the frontier, which has been largely quiet since a 2014 war.

The outbreak of violence coincided with work by the Israeli military to uncover tunnels being built by Gaza militants that Israel fears could be used to infiltrate its territory. The Palestinians fired mortar bombs at Israeli forces operating near the border fence, prompting fire from Israeli tanks and warplanes that bombed open areas in the northern and southern sectors of the Gaza Strip. “Our efforts to destroy the Hamas terror tunnel network, a grave violation of Israel’s sovereignty, will not cease or be deterred,” military spokesman Lieutenant-Colonel Peter Lerner said.The Hamas armed wing, Izz el-Deen Al-Qassam Brigades, said the raid was a violation of the 2014 ceasefire and demanded that Israel pull out its forces “immediately”.”The enemy must not make pretexts and must leave Gaza immediately, they should deal with their fears and concerns outside the separation line,” the group said in a statement.

A senior Hamas official in exile, Moussa Abu Marzouk, said calm along the Gaza-Israel border was being restored following intervention with the two sides on the part of Egypt, which brokered the truce that stopped the 2014 war.

“Contacts were made with Egyptian brothers, who sponsored the last ceasefire agreement. Their response was quick, serious, which helped restore things to where they were before,” Abu Marzouk in a post on his official Facebook page.

On Tuesday Israeli Prime Minister Benjamin Netanyahu inspected a large tunnel discovered in April on the Israeli side of the border. Israel said it had been dug by Hamas.

Israeli security sources say half a dozen classified anti-tunnel technologies have long been under development, though held up by funding problems that were partly alleviated by a U.S. research grant of $40 million this year.

Hamas leaders, while stressing they do not seek an imminent war, see tunnels as a strategic weapon in any armed confrontation with Israel and have vowed not to stop building them.

More than 2,100 Palestinians, mostly civilians, were killed during the 2014 Gaza conflict. Sixty-seven Israeli soldiers and six civilians in Israel were killed by rockets and attacks by Hamas and other militant groups.

(Reporting by Nidal al-Mughrabi, Ari Rabinovitch; Editing by Mark Heinrich)

Negotiations for U.S. Defense aid for Israel have hit a snag

Israeli soldiers observe the area where the Israeli army is excavating part of a cliff to create an additional barrier along its border with Lebanon, near the community of Shlomi in northern Israel

By Dan Williams, Patricia Zengerle and Matt Spetalnick

JERUSALEM/WASHINGTON (Reuters) – Negotiations meant to enshrine U.S. defense aid for Israel over the next decade have snagged on disputes about the size, scope and fine print of a new multibillion-dollar package, officials say.

Five months into the talks, several U.S. and Israeli officials disclosed details about the disputes to Reuters on condition of anonymity. The U.S. and Israeli governments said negotiations were continuing, declining to elaborate.

Israel is seeking up to $10 billion more than the current 10-year package and billions more than the U.S. administration is offering, partly by asking for guaranteed funding for missile defense projects hitherto funded on an ad hoc basis by the U.S. Congress, the officials said.

U.S. President Barack Obama wants to ensure the funds, thus far spent partly on Israeli arms, are eventually spent entirely on U.S.-made weapons.

The differences partly reflect Israeli Prime Minister Benjamin Netanyahu’s vocal opposition to the international nuclear deal with Iran championed by Obama. The two sides are also at loggerheads over the Palestinians.

Israel has long been a major recipient of U.S. aid, most in the form of military assistance against a backdrop of an ebbing and flowing conflict with the Palestinians and Israel’s neighbors, as well as threats from Iran. Obama has pushed hard for a resolution to the conflict, but has made little headway.

In seeking a sharp increase in military funding, Israel argues it needs to offset military purchases by Iran, Israel’s regional arch-foe, after it secured sanctions relief in the accord limiting its nuclear program.

Israel also wants the U.S. administration to support missile defense projects that have so far relied on ad hoc assistance by the U.S. Congress, citing arms acquisitions by neighboring Arab states as well as Iran as conflicts rage in Syria and Yemen.

Obama’s administration, which has fraught relations with Netanyahu, is offering what it says is a record sum to Israel to assuage fears expressed both there and among his Republican rivals at home that the deal with Iran will endanger Israel.

But the officials say it is less money than Israel has sought overall and Obama also wants changes to allow U.S. defense firms to reap greater benefits from a new deal.

If unresolved before Obama leaves office in January, the impasse could deny him a chance to burnish his legacy with the aid package to Washington’s closest Middle East ally. That would also leave Netanyahu to await the next U.S. president in hopes of securing a better deal.

$10 BILLION MORE

The current Memorandum of Understanding (MOU), signed in 2007 and due to expire in 2018, gave Israel a total of about $30 billion, or an average of $3 billion annually, in so-called “Foreign Military Financing.”

The Israelis, whose annual defense budget is $15 billion, want at least $3.7 billion annually under the same rubric in the new MOU, officials say.

Israel also wants guaranteed missile defense aid built into the MOU for the first time, which could mean hundreds of millions of dollars more per year, bringing the full package to more than $40 billion over the next decade.

U.S. negotiators have proposed a total of between $3.5 billion and $3.7 billion in annual aid to Israel, but it was not clear if this included any money for missile defense.

The Obama administration has balked at Israel’s request to stipulate a separate funding track in the MOU for missile defense projects, one official said. It was not known how much Israel had proposed under the missile defense clause.

Israel wants the missile defense component to be “viewed as the ‘floor’ amount, as Congress can be asked for more on an ad hoc basis if circumstances require,” said one official.

U.S. lawmakers have in recent years given Israel up to $600 million in annual discretionary funds for missile defense, well beyond the $150 million requested by the Obama administration.

Palestinian rocket salvoes in the Gaza wars of 2008-9, 2012 and 2014 helped Israel drum up American sympathy and support for its anti-missile systems, Iron Dome, Arrow and David’s Sling.

More than four-fifths of the U.S. Senate signed a letter last week urging Obama to conclude an increased 10-year aid package.

“These discussions are continuing and we remain hopeful we can reach agreement on a new MOU that will build on the United States’ historic and enduring commitment to Israel’s security,” a White House official said in response to a Reuters request for confirmation of the latest negotiating terms.

The official declined to comment directly on the terms.

The current MOU allows Israel to spend 26.3 percent of the U.S. funds on its own defense industries. The United States wants to phase this provision out gradually so that all of the money is spent on American military products, the sources said.

Israel wants to keep the provision in place, or only partly reduced, they said. It fears a devastating blow to Israeli arms firms that glean some $800 million a year from the current MOU.

In another move to shore up its own defense industries, the United States wants to end a provision allowing Israel to spend around $400 million in annual MOU funds on military fuels.

One official paraphrased Washington’s message to Israel as: “We want (you) to be spending this money on actual security, on weapons systems, ways to make you safer.”

(Writing by Dan Williams and Matt Spetalnick; Editing by Jeffrey Heller and Philippa Fletcher)