Israel-Palestine: A Secret Deal to Start Direct Talks?

On Friday, talking to Israeli Defense Minister Ehud Barak, United Nations Secretary-General Ban Ki-moon asked for an extension of the settlement freeze and its application in east Jerusalem. Barak responded with a statement that went far beyond the request:

We are hoping to to start direct negotiations with the Palestinians soon, in order to move forward with an agreement which will be based on two nations for two peoples. The negotiations will not be simple, and courageous decisions will be required on our part and the Palestinians. I hope everyone understands that both sides will need to make difficult decisions to establish historic peace in the region. We will need the help of the UN to go forward with the negotiations.

Middle East Inside Line: Rockets Hit Eilat, Iran Responds to “US War Plan”, US $ for Israel Missile Defence

On Saturday, Palestinian Authority chief negotiator Saeb Erekat denied reports in the Arab media  that the Obama aministration had threatened sanctions against the PA --- perhaps even the severing of ties --- if PA leader Mahmoud Abbas did not agree to enter direct talks with Israel. Then he talked about a peace proposal, even "more generous" than the one offered to former Israeli Prime Minister Ehud Olmert. Erekat said:

I presented Senator George Mitchell with a series of official document. We gave him maps and papers that clearly state our positions on all the final-status issues: borders, Jerusalem, refugees, water and security. Thus far we have not received any answer from the Israeli side.

(Note: Erekat has stated that the PA offered Olmert a swap that would let Israel annex 1.9% of the West Bank in exchange for return to Palestine of Israeli settlements covering 1% of the territory.)

On Sunday, Prime Minister Benjamin Netanyahu said that he had not received any Palestinian peace programme but he announced that direct negotiations with the Palestinians will begin by the middle of August.

What does all this mean? How can the Israeli Prime Minister be so confident to announce the advent of direct talks while rejecting any proposal from the Palestinians? Has Netanyahu made a concession both on the status of East Jerusalem, including the Temple Mount, in response to a Palestinian concession on the percentage of West Bank land to be swapped?

Indeed, has Netanyahu given consent to gestures such as the transfer of some towns to the West Bank, transfer of some areas to the PA authority, the release of Palestinian prisoners, and the extension of the settlement freeze in the West Bank along with a freeze in East Jerusalem?

UPDATED Middle East Inside Line: Rockets Hit Eilat, Iran Responds to "US War Plan", US $ for Israel Missile Defence

UPDATE 0655 GMT: Israel Army Radio says between three and five explosions have hit the southern resort city of Eilat in a suspected rocket attack, Israeli army radio reports. There are no reported casualties.

One rocket also hit the nearby Jordanian port of Aqaba, injuring four people.

Israel-Palestine: A Secret Deal to Start Direct Talks?

US-Iran Front: On Sunday, Chairman of the U.S. Joint Chiefs of Staff Adm. Mike Mullen said that the U.S. military has a plan to attack Iran if necessary though he thinks this is a "bad idea".

In response, Iran's envoy to the United Nations, Mohammad Khazai, said: "If the Zionist regime commits the slightest aggression against Iranian soil, we will set the entire war front and Tel Aviv on fire."

US Commitment to Israel's Security: The House of Representatives, the junior chamber of the US Congress, has endorse funding of the Israeli missile defense programs to an unprecedented level, with $422.7 million now slated for 2011.

Israel-Palestine Analysis: What Message Has the Arab League Sent? (And To Whom?)

The package is more than twice as much as last year’s total and brings to nearly $1 billion joint US-Israel missile defense programs in the past four years.

Israel-Hamas Exchange of Fire: Both Israelis and Hamas exchanged fire for the second time in the last 48 hours. First, a rocket was fired from Gaza on Friday. Israel's Air Forces responded quickly and killed a militant/terrorist leader. Then, Hamas sent another Qassam rocket Saturday night. Israeli jets struck two smuggling tunnels in the southern Gaza Strip overnight Saturday.

There were two big developments in Gaza last week. Last Tuesday, the top security official in Hamas-ruled Gaza said that he was considering setting up a bigger military force, first with volunteers and eventually with a mandatory draft. Instead of a paid security force, Hamas can have a broader access to Gazans (about one-third of the labor force in Gaza is unemployed) through large number of potential recruits.

Secondly, following the Arab League's "yellow light" to the trio of Washington, West Jerusalem and Ramallah, Hamas criticized the decision harshly. Ismail Radwan, a senior Hamas leader, said:

We reject any cover for the resumption of the direct talks with the Zionist occupation. This committee is not authorized to make concessions over the rights of our people.

Meanwhile, after Israeli attacks, Islamic Jihad said on Sunday that it has decided to resume suicide attacks against Israel from the West Bank.