Prepared for the Conference of Presidents of Major American Jewish Organizations by the Jerusalem Center for Public Affairs
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U.S. Says Syria Giving Terrorists Arms (AP/International Herald Tribune)
Christian Zionists: Ahmadinejad Is New Hitler - Yitzhak Benhorin (Ynet News)
Stolen U.S. Vehicles End Up as Bombs in Iraq, FBI Says - Bryan Bender (Boston Globe)
Molotov Cocktails Thrown at Israeli Bus (Jerusalem Post)
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News Resources - North America, Europe, and Asia:
The Palestinian militant group Hamas has contacts with al-Qaeda, French Foreign Minister Bernard Kouchner said on Wednesday, adding that this was not the result of Western pressure to isolate the movement. Kouchner was reacting to comments by Italian Foreign Minister Massimo D'Alema this week, who said the West's policy of isolating Hamas, which seized control of Gaza last month, could push it into the arms of al-Qaeda. "I think Hamas did not wait for this extreme situation - the current terrible situation in Gaza - to have contacts with al-Qaeda. And it would perhaps be too simple to think that we, the international community, are responsible," Kouchner said. (Reuters) The man responsible for ferrying messages between Osama bin Laden and Iraqi insurgents is in U.S. custody and is providing "significant insights" into the workings of al-Qaeda in Iraq. Brig. Gen. Kevin J. Bergner, the top American military spokesman in Iraq, said Wednesday that the July 4 capture of Khalid al-Mashhadani has yielded evidence of the relationship between bin Laden's al-Qaeda and al-Qaeda in Iraq. "There is a flow of strategic direction, of prioritization, of messaging and other guidance that comes from al-Qaeda senior leadership to the al-Qaeda in Iraq leadership," Bergner said. "The rank-and-file Iraqis in AQI [al-Qaeda in Iraq] believe they are following the Iraqi al-Baghdadi. But all the while they have been following the orders of the Egyptian Abu Ayyub al-Masri," Bergner said. Bergner said that Abu Omar al-Baghdadi, described in insurgent statements as leader of the Islamic State of Iraq, was a fictional creation of Masri. (Washington Post) China has become Iran's biggest customer, buying 15% or 335,000 bpd of Iran's oil exports last year, and Beijing uses its UN veto to blunt Washington's drive to squeeze Iran's oil industry and economy. European companies that export machinery, industrial equipment and commodities to Iran get loans from European banks and then receive European government guarantees for the loans on the ground that such transactions are risky in nature. European loans for business with Iran amounted to $18 billion last year, and the largest providers of such credits in Europe in 2006 were Italy at $6.2 billion, Germany at $5.4 billion, France at $1.4 billion, and Spain and Austria, at $1 billion. Germany was the biggest European exporter to Iran last year with 4.4 billion euros, and much of this trade is bound up with the lucrative Iranian oil industry. Some of Germany's biggest companies - Siemens, BASF, Lind - are active in Iran, in addition to 124 other publicly listed German firms. Iran is bidding $1.5 billion for Germany's Transrapid high-speed magnetic train. International traders ship about 210,000 barrels of gasoline per day to Iran, mainly from India, the Netherlands, France and the United Arab Emirates. (Seeking Alpha-Stock Market Analysis) News Resources - Israel and the Mideast:
Israel has decided to halt negotiations to expand a list of wanted Fatah operatives eligible for amnesty, after a number of members of the al-Aqsa Martyrs' Brigades - Fatah's military wing - refused to sign a document renouncing terror activities, Palestinian sources said Thursday. After an agreement granting amnesty to 178 wanted terrorists, Israel and the PA began negotiations to add another 206 wanted operatives to the amnesty list. Israel has refused to grant amnesty to 28 gunmen on the second list because of their ties with Hizbullah. (Ynet News) 17% of Palestinian prisoners who have been released return to terror activities, Justice Ministry Pardons Department head Emmy Palmor said Wednesday. Israel is scheduled to free more than 250 Palestinian prisoners on Friday in a confidence-building measure aimed at bolstering Mahmoud Abbas. Among those slated for release is Abdel Rahim Malouh, 61, second in command of the PFLP, which orchestrated the 2001 assassination of Tourism Minister Rehavam Ze'evi. Palmor said Malouh was not involved in the killing. Palmor also revealed that at least one Palestinian prisoner preferred to stay behind bars to continue receiving free arthritic medication. (Jerusalem Post) See also Israel to Free Terror Chief in Prisoner Release - David Byers (Times-UK) Global Commentary and Think-Tank Analysis (Best of U.S., UK, and Israel):
Tony Blair's mandate is narrow: he is to raise funds for the Palestinians, promote economic development and advise on building institutions. Blair needs to impress on Abbas that the West's decision to back him in his confrontation with Hamas is not without conditions. Western politicians know well that Hamas was elected to power last year largely because of widespread Palestinian anger at corruption among Fatah leaders. Palestinians do not want to see aid squandered or going to line the pockets of corrupt officials. Blair may find that, even with his present narrow mandate, the encouragement of good governance and building institutions quickly go to the heart of the peace process and the success of the Bush initiative. Already, Blair's role is proving pivotal. (Times-UK) In President Bush's speech on the Middle East on Monday, he called Jordan and Egypt "natural gateways for Palestinian exports" and urged them to be open to trade with their neighbors in the West Bank and Gaza. The economic model of Israel's disengagement from Gaza in 2005 assumed that the Gaza economy would depend on Israel's Ashdod port and the Karni crossing. After Hamas took over Gaza, Bush accepted the position that the Arabs must look after their kinfolk, and the trade in the territories must go through the Rafah crossing to Egypt and the Allenby Bridge to Jordan. This is a message to Tony Blair not to delude himself with the fantasies of his predecessor, James Wolfensohn, about economic cooperation on both sides of the Green Line. (Ha'aretz) U.S. intelligence agencies have concluded that al-Qaeda is growing stronger and that the threat that it will stage another major attack against the U.S. homeland is a serious one. That al-Qaeda has established a sanctuary in Pakistan's tribal areas has been known and discussed since last year. The Sept. 11 commission said the U.S. government must disrupt such bases in the future "using all elements of national power." If Pakistani forces cannot - or will not - eliminate the sanctuary, President Bush must order targeted strikes or covert actions by American forces. Such actions run the risk of further destabilizing Pakistan. Yet those risks must be weighed against the consequences of another large-scale attack on U.S. soil. (Washington Post) Observations: Hizbullah and Hamas Have Overplayed Their Hands - Mark Helprin (New York Times)
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