BEST LAID PLANS: Foreign Minister Tzipi Livni rejected a new peace initiative sponsored by Spain, Italy, and France, protesting that the initiative was launched without coordination with Israel. At the same time Livni encouraged commencing a political process with moderates within the Palestinian Authority. Spanish Prime Minister Jose Luis Rodriguez Zapatero had announced the initiative, which is to be presented at an EU summit next month, at a summit with French President Jacques Chirac on Thursday. The plan has five components: an immediate cease-fire, formation of a Palestinian national unity government that can gain international recognition, an exchange of prisoners - including the three IDF soldiers kidnapped this summer, talks between Prime Minister Ehud Olmert and Palestinian Authority (PA) Chairman Mahmoud Abbas, and an international mission in Gaza to monitor a cease-fire. PA spokesman Nabil abu-Rudeineh welcomed the initiative, particularly its emphasis on international intervention.

A unanimous decision by the foreign ministers of the Arab League earlier last week also called for convening a peace conference with the participation of the Arab countries, Israel and the permanent members of the UN Security Council to search for a solution to the Arab-Israeli conflict based on the principle of land for peace.

Israeli press reports of last week's Bush-Olmert meeting include discussion of an Israeli-American plan in the works with the goal of renewing bilateral negotiations. Olmert's Chief of Staff Yoram Turbowicz and his political adviser Shalom Turjeman have reportedly been engaged in talks about this with the American administration for some time already. According to Ma'ariv's Ben Caspit, "The idea is not to hold another international conference, but to try to harness the axis of the moderate Arab states to pressure the future Palestinian government to find a formula that will allow for recognizing Israel and the agreements that were signed with it, and a resumption of the political negotiations." The plan may incorporate elements of an outline formulated by Livni which was presented to Olmert before he left for Washington. Livni's ideas reportedly include a consensual partial West Bank "realignment" and negotiations with Abbas as the first stage of a comprehensive peace plan. (Israel Radio, 11/13/06; Ma'ariv 11/14 & 11/15/06; AP 11/16; Yedioth Ahronoth 11/17/06)

MILITARY MEANS ALONE: Former Mossad Director and Knesset Member (Labor) Danny Yatom wrote this week that "the time has come to internalize the basic truth: There is no way to defeat terror through military means only. Terrorism will be defeated when we utilize diplomatic moves alongside uncompromising war, and the time is not playing in Israel's favor. As time passes, the Iranian threat continues to grow, the situation in the Palestinian Authority deteriorates and could result in chaos that won't help us, the siege on Syria is being eroded, and the United States is directing more resources to addressing the Iraq situation.

"Syrian President Bashar Assad has called several times in recent years for the renewal of negotiations with Israel. His calls were rejected with a contemptuous hand gesture. The government demands that before talks are renewed, Assad remove terror elements from his country, curb his assistance to Hizbullah, and eliminate his strategic ties with Teheran. Those are legitimate demands, but they must not become a precondition for renewing negotiations. Those who object to renewed talks with Syria are telling us that Washington is unwilling; if this is the case, I call on Prime Minister Olmert to raise the issue in his talks with President Bush and explain that renewed contacts with Damascus would serve Israeli interests.

"We should also be talking with Palestinian leader Abbas. The Hamas government is a terror government and we must not engage in dialogue with it. Yet the Palestinian Authority chairman's powers allow for dialogue in the aim of at least securing a ceasefire. Engaging in dialogue with Syria and the Palestinians will return the diplomatic initiative to the Israeli side and boost our level of freedom in our war against terror." (Ynet, 11/14/06)

GOOD FAITH: Justice Minister Meir Sheetrit accused the Defense Ministry of dragging its feet in handling the evacuation of illegal outposts. He said that evacuating outposts is not just a Palestinian matter, but that it is in Israel's interest to uphold the law. In his view, Israel's failure to remove illegal outposts depicts Israel as not coming with clean hands in efforts to resolve the conflict with the Palestinians. A tour of five outposts near Ramallah by Ynet revealed few people but much construction. Ynet reports that the illegal outpost of Givat Assaf - with around 20 structures, including a recently constructed permanent building - is visible to Civil Administration employees on their drive to and from work. The reporters found 15 structures - some permanent - in Neve Erez, an outpost which had been previously dismantled under an agreement between the settlers and then-Prime Minister Barak. Ynet also found new trailers and recently finished permanent structures at the three other illegal outposts they visited: Palgei Mayim, Zayit Raanan, and Nofei Porat. Benyamin Regional Council Chair Pinhas Wallerstein, who has jurisdiction over the outposts, explained that "in the context of the discussion with the Defense Ministry and our willingness to show good will, we will be willing during negotiations to freeze the development of said outposts."

Knesset members from the National Union-NRP faction have approached Prime Minister Olmert with a request to open a Yeshiva at the site of Rachel's Tomb in Bethlehem. Yeshivat Nehamat Rahel had been located at that site until it was forced to leave to accommodate fortification work several years ago. The Knesset Members also protested the route of the separation barrier south of Bethlehem because future land reserves for the growth of the settlement of Efrat are on the other side of the barrier. (Ynet, 11/16/06; Hatzofe, 11/15/06; Israel Radio, 11/14/06)

PA SEEKS ORIENT HOUSE DOCUMENTS: A number of foreign officials have asked Israel to consider a Palestinian Authority (PA) request for the return the documents seized by Israeli security services in an August 2001 raid on the Orient House in East Jerusalem. Up to that point the building had served as the de facto PA headquarters in Jerusalem and housed a number of PA departments, including the Geography Department that researched settlement expansion and recorded land ownership in Jerusalem. The PA's Political Department, which was responsible for political talks, also worked out of the building. The Palestinians claim that the documents in question are not only of great historical significance, but will be needed for future political negotiations. The Israeli security establishment and senior political echelon is reviewing the request. (Yedioth Ahronoth, 11/13/06)

BEILIN'S NEW PEACE INITIATIVE: Not to be outdone by the Europeans and the Arab League, Yossi Beilin unveiled a new four-phase peace plan last week "to bridge Olmert's willingness to withdraw from significant areas in the West Bank and Abu Mazen's need of a credible political horizon for a final-status agreement." In Phase I, both parties would agree to a cease-fire. Israel would withdraw from - and stop military operations in - the Gaza Strip and release the Hamas officials it arrested on June 29th. The Palestinians would cease all anti-Israel violence and release Cpl. Gilad Shalit.

In Phase II, the Palestinians would welcome an Israeli decision for a significant West Bank withdrawal by 2008. Israel and the Palestinians would coordinate security, civil, economic, and environmental matters related to the withdrawal, which would constitute the fulfillment of Israel's obligations to the Palestinians made under the Interim Agreement of 1995 and/or Phase II of the Roadmap. The value of Israeli assets left behind would be taken into account during negotiations over Palestinian refugees. Israel would also free a significant number of Palestinian prisoners.

In Phase III, the Palestinians would claim the evacuated territories by either declaring a Palestinian state, which would be demilitarized, or extending the rule of the PA over these territories. If the Palestinians chose to declare an independent state, Israel would recognize Palestinian sovereignty over the territories that Israel no longer occupies and would recognize that all the borders between the two states are provisional, subject to future agreement.

Phase IV constitutes negotiations on permanent status, leading to the establishment of a two-state solution. The final border would be based on the 1967 line with mutually agreed adjustments reflecting security and demographic realities. Jewish areas of Jerusalem would be under Israeli sovereignty, while Arab areas would be under Palestinian sovereignty. Special arrangements for the Old City and the Holy Basin would ensure free access of worship to all religions. A just and agreed-upon solution to the Palestinian refugee problem would be found, where no Palestinian refugee would be denied the option of returning to the Palestinian state. Mutually agreed-upon security arrangements would be designed. Palestine would be a non-militarized state.

Beilin's plan also includes a role for the international community and the Quartet to monitor the implementation of each side's obligations under Phase I of the Road Map and to commit significant resources toward the success of the withdrawal, focusing on facilitating free movement and access for the Palestinians inside the West Bank, between the West Bank and Gaza, and between the West Bank and Jordan. (Meretz Party website, 11/17/06; Ha'aretz, 11/17/06; Ynet, 11/18/06)

ISRAEL TO COMPENSATE ISRAELI-ARAB FAMILIES: An Israeli court approved a settlement reached between the State of Israel and the families of eleven Israeli Arabs killed by police during riots in northern Israel in October 2000. The families of two others killed in the riots did not participate in the legal proceedings, and are not be parties to the settlement. Under the terms of the settlement, the state will reportedly pay NIS 800,000 ($193,000) to each of the families. The Ministry of Justice said in a statement that "in light of the tragic outcome of the events, and out of a genuine wish to bring the lawsuit to a just and dignified closure, the State has agreed, beyond the letter of the law and despite its belief that it is not responsible for damages caused during the events, and without confirming the plaintiff's allegations, to pay the amount..." Eight of the families today announced that they reject the settlement. They are reportedly reviewing their legal options.

Justice Minister Meir Sheetrit also unveiled new affirmative action legislation to compel public service institutions to employ Arab-Israeli staff. This initiative aims to make member of the Arab sector eight percent of the public service workforce by the end of 2008, (Israeli-Arabs constitute one-fifth of the Israel's population).

Meanwhile, in the proposed Education Ministry budget for 2007 funding for the "program for the advancement of minority education" has been reduced from NIS 39 million ($9 million) to NIS 29 million ($7 million), and the budget for the advancement of Druze education has been reduced from NIS 532,000 ($123,000) to NIS 389,000 ($90,000). Another NIS 5 to 6 billion is needed over a five-year period to close existing gaps in educational infrastructure between Jews and Arabs, according to the Israeli Union of Local Authorities. The group also fears that extra funding for rehabilitating Israel's north, where Israeli-Arabs account for 55% of all students, will discriminate against Arab schools. (Ha'aretz 11/16, 11/19 & 11/20/07; Ma'ariv 11/15/06)

GILAD SHALIT'S FATHER VISITS BEIT HANOUN INJURED: The father of kidnapped soldier Gilad Shalit met with families of Palestinians from Beit Hanoun who are receiving treatment in Israel. "I have met the families, and I can see that the people of Beit Hanoun are peace-seeking and not involved in terror, and they only want to provide for themselves," said Noam Shalit. "I feel that the Athamna family and the other families who lost their loved ones are exactly like the Slotzker family in Sderot and my family in the Galilee. We are all victims of the same madness, the same incessant wars and illogical violence, from firing rockets towards populated centers, to two terribly erroneous shells, the common denominator is that the civilian population pays the price," Shalit said.

Rasan Gasan, whose brother Basem died of his wounds in the hospital Friday after being injured in Beit Hanoun, said, "I want to thank Gilad's father for coming to visit us. It breaks our hearts, more than they are already broken, that this man's heart breaks for us. I hope his son is brought to him soon, and I ask both governments, enough, stop. They are continuing negotiations through blood shed when it's better to sit at a table of peace and speak eye to eye. We can reach an agreement through peace not bloodshed." (Ynet, 11/16/06)