Passing along an update from a hawk-eyed FWer:  Merci beaucoup. Domo arigato. 

 

Ha'aretz - Article Sharon  warns of financial sanctions over security fence
The U.S. State Department has prepared a proposal, awaiting the approval of President George W. Bush, that calls for cuts in loan guarantees to Israel matching its outlays for the construction of the security fence east of the Green Line.  

The proposal also calls for cuts in the loan guarantees matching the sums spent by Israel on bypass roads in the West Bank, because the State Department views the roads as an effort at establishing facts on the ground while the two sides are negotiating within the parameters of the road map.

The State Department and Secretary of State Colin Powell, in particular, have emphasized that the opposition in Washington to the outlines of the security fence continues, contrary to the efforts of the Prime Minister's Office in Jerusalem to suggest that an understanding has been reached on the matter between Bush and Ariel Sharon.  In addition to a press conference after Sharon departed Washington, Powell also gave an interview to Maariv reporter in which he reiterated that the U.S. did not agree with Israel on the outline of the security fence.

The State Department's opposition to the Israeli security fence is based on the view that it may result in a worsening of relations with the Palestinians and endangers the fragile nature of the cease-fire and the continuation of negotiations.  The opposition to the fence is also a response to a disdain for Israel's tactic of establishing facts on the ground, a method used in the past following the Oslo Accords and also after the Mitchell Report in 2001.

Sources in Washington say that the proposal calls for cuts in the precise amounts that Israel expends on the construction of the security fence east of the Green Line, over Palestinian territory that is the subject of negotiations. In a sense, the formula is based on a dollar-for-dollar basis in the loan guarantees.  It is still not clear how the U.S. will make the calculation in relation to the outlays and the territory confiscated east of the Green Line.  It is also doubtful whether the American sanctions will include the fencing of individual settlements in the territories.

Sources in the State Department insist that now is the time for Washington to press Israel on about bypass roads, used to avoid concentrations of Palestinian populations in the territories, and in the process confiscate land in the West Bank.

Prior to his departure for Washington earlier last week, Sharon said that he would not agree to any changes in the outline of the fence. But he promised Bush that the Palestinians living by the fence would not suffer because of its construction.  Some sources here suggest the government should avoid further conflict with the U.S. on the fence and concentrate on fencing various settlements individually. In any case, the sources say, the budget for the completing the security fence is no where to be found.

 

also Israel Bows to U.S. Pressure, Planning Change in Fence Route - (in Hebrew)
A
bstract
Responding to American pressure, the IDF is planning a new route for the fence closer to the "green line," which will not encompass the city of Ariel and the towns of Shevei Shomron and Kedumim as previously planned. According to State Department sources, Israel agreed to delay construction of the fence in problematic areas.

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