Middle East Inside Line: Israel Shifts on Settlements; Egypt & Hamas Ally on "Normalisation"

Israel Manoeuvres on Settlements Issue: Just one day after the approval of new 455 housing units in the West Bank, Israeli Defense Minister Ehud Barak (pictured) tacked back diplomatically and said that "freezing [settlement] construction is a correct national priority". He added, "Regarding the settlements, we need to act wisely and responsibly, not with harsh words and violence."

Barak's maneuver, coming just before US envoy George Mitchell's visit to Israel, both sends a signal to Washington and prepares the Israeli public for a policy shift.

Whether or not the US knew about Israel's construction of an additional 455 housing units, making Washington's protests in the last week posture rather than substance, it is now necessary for the Netanyahu Government to consider an alignment with the the US. And that in turns means convincing the public, and especially the core membership of the Likud Party,  that Israel needs to show "genorosity" on the settlements in return for Arab pledges to normalise relations.

Egypt and Hamas Ally to Slow "Normalisation" with Israel: Despite Saudi Arabia's explicit rejection of the normalization of ties with Israel, the Arab League's dismissal, and Israel's latest hesitations, Washington gave the good news: "Some Arab countries had agreed in normalizing their relations with Israel in exchange of the latter's temporary freeze in its settlements."

However, right after the US message, both Hamas leader Khaled Meshaal and Cairo sent contradictory signals. On Sunday, Meshaal warned Arabs not to accept a temporary freeze in exchange for the normalization of relations with Israel. Then on Tuesday, Egyptian Foreign Minister Ahmed Aboul Gheit said: "A settlement freeze in the West Bank is not of equal value to normalization, and will not bring this about alone."

Why this alliance of views, given recent hostility between Egypt and Hamas? Sources close to Hamas in the Gaza Strip stated that Meshaal's recent visit to Cairo "brought the Islamist movement and Fatah closer to ending their differences." The same sources added that Hamas agreed to sign a "reconciliation accord" with Fatah after the Egyptians promised to reopen the Rafah border crossing permanently .

In Cairo, both sides might have negotiated to slow the "normalization process between some Arab countries and Israel", or at least, on breaking up the "positive" atmosphere portrayed by Washington. This would not be a burden for Egypt both since the scope of these "normalization steps" is expected to be limited, and since Kuwait, Saudi Arabia, and Jordan had already rejected taking a step towards Israel unless it halted settlement constructions completely and permanently.

Middle East Inside Line: Israel and Hamas Manoeuvre on Settlements Policy

Israel Government Moves for Common Line on Settlements: On Sunday, Israeli Prime Minister Benjamin Netanyahu said that Israel would likely reach a final plan with George Mitchell during the American envoy's visit to Israel this week.

Dealing with increasing criticisms from his Likud Party, the Prime Minister held meetings with some Likud cabinet ministers and members of Parliament to get their support for a freeze on construction in the West Bank settlements. Netanyahu's meetings came as Defense Minister Ehud Barak gave partial approval for 500 new housing units to be constructed in the West Bank, with 2000 more to be approved on Monday morning. A source in the Prime Minister's office said Netanyahu did not use the word "moratorium" or "freeze" but described the proposed measure as "reducing the scale of construction".

While the European Union reiterated its call for a "total settlement freeze," Washington sharpened its tone:

Continued settlement activity is inconsistent with Israel's commitment under the road map.... The administration of President Barack Obama does not accept the legitimacy of continued settlement expansion and we urge that it stop. We are working to create a climate in which negotiations can take place, and such actions make it harder to create such a climate.

Meanwhile, Israel and Hamas Stand Tough: On Sunday, Deputy Prime Minister Eli Yishai told Likud Party members:

The postponement in construction is a strategic delay... We won't give up on building in Jerusalem and will still build hundreds of construction units. We are looking ahead, here.

On the other side, Hamas political chief Khaled Meshaal warned Arab states:

There is an Israeli effort to avoid the American demands... We warn against any Arab rush toward normalization.