The Morning Beat - March 2

Secretary of State Clinton at the International Donor's Conference for Palestinian Aid

Secretary of State Hillary Clinton and Middle East Special Envoy both attended the international donor's conference for aid to the Palestinians today.

Clinton announced a U.S. pledge of over $900 million for the Palestinians overall and added that safeguards were in place to ensure no funds went to Hamas.

The World Bank said on Sunday it would urge international financial support for rebuilding the Gaza Strip through direct donation to both the Western-backed Palestinian Authority and to some independent Gazan groups.

Clinton's spokesman, Robert A. Wood, said on Sunday that the aid included $300 million in humanitarian aid for Gaza and about $600 million in budget and development aid to the West Bank based Palestinian Authority.

But humanitarian aid is not enough according to Secretary Clinton. She called for an Israeli-Palestinian peace agreement now:

Our response to today's crisis in Gaza cannot be separated from our broader efforts to achieve a comprehensive peace.

Only by acting now can we turn this crisis into an opportunity to move us closer to our shared goals.

We cannot afford more setbacks or delays - or regrets about what might have been had different decisions been made.

It is time to look ahead with an eye on the human aspects of what years of regional conflict have meant for the Palestinians and others. The United States is committed to a comprehensive peace between Israel and its Arab neighbors, and we will pursue it on many fronts.

Egypt's President, Hosni Mubarak, opened the donor's conference with a call for a Hamas-Israel cease-fire and Palestinian reconciliation.

According to Yediot Acharonoth:

Mubarak said the "priority is to reach a truce between Israel and Palestinians" and said Egypt would continue its mediation between the two, including for a more permanent Gaza truce.

"I see a momentum in peace efforts. I look forward that this year will be the year of peaceful settlement between Israelis and Palestinians," Mubarak said. He added that Egypt was trying to get Israel to "modify its position on reaching a truce" - comments referring to Israel's demand that a truce be linked to the release of a captured Israeli soldier.

A Cease-fire?

"The efforts to formulate a deal that will see hundreds of Palestinian prisoners released in exchange for the abducted IDF soldier were accelerated last week," Israeli analyst Ron Ben Yishai wrote in Yediot Acharonoth.

The contacts aimed at securing Gilad Shalit's release are in a critical stage. This is the main reason why Israel is currently avoiding a harsh response to the rocket and mortar attacks from the Gaza Strip.

Coalition Talks

Likud Chair Benyamin Netanyahu is still trying to bring centrist parties into a government coalition.

Labor's Ehud Barak seems to be considering joining the Netanyahu government.  If he does, the question is whether his party will join him.

"This decision completely goes against everything he has said to me and in other broader forums," Labor leader Sheli Yachimovich said of Barak"  "These statements were not made with the knowledge of the Labor Party or the knowledge of the voter."

Benyamin Netanyahu is also reaching to Americans. In an interview with Lally Weymouth in the Washington Post this weekend, he hinted at his acceptance of the idea of a Palestinian state, but without promising to advance the prospect:

I think there is broad agreement inside Israel and outside that the Palestinians should have the ability to govern their lives but not to threaten ours.

According to Aluf Benn's analysis in Ha'aretz the reason Netanyahu is careful about declaring support for a Palestinian State has everything to do with the ongoing coalition talks with right-wing parties. 

One of those negotiators, Yisrael Beitenu's Avigdor Lieberman, also spoke with Lally Weymouth this weekend.