EDITORIAL: Has Obama already caved on the settlements issue?
By Paul Woodward, War in Context, July 8, 2009

The United States talks today about freezing settlements and the Palestinian state is well and good, but it is not new. Many administrations have spoken about freezing settlements. Furthermore, this talk is not enough. More important is the extent of the response to the rights of our people and the reality of the Palestinian state they are talking about, its borders, and its sovereignty. For this reason, we are still assessing the Obama administration. Khalid Meshaal, Head of the Hamas Political Bureau, Damascus, June 25, 2008

From Maya Bengal in Israel’s Ma’ariv (via IPF) we learn:

Rather surprisingly, the Americans have agreed to allow Israel to construct some 2,500 housing units in the settlements. This is in complete contrast to statements relayed to Israel in recent months, since the new administration took office.

The agreement was secured after Defense Minister Ehud Barak was able to convince the Americans to allow Israel to continue and build those units whose construction had already started. In other words, the Americans gave their consent to letting the construction continue of some 700 buildings, which amount to some 2,500 housing units.

So, while unrest in Iran might have initially looked like a major distraction from the administration’s efforts to apply pressure on Netanyahu to freeze settlements, instead the distraction turns out to have provided cover for the administration to reach a compromise. The recent period of dischord between two old friends is now all water under the bridge — or so some Israelis would like everyone to believe.

It seems though that Barak’s victory might not be as assured as Ma’ariv would like its readers to believe.

According to Reuters:

A report in the Yedioth Ahronoth daily, Israel’s most popular newspaper, was more cautious, saying Israel and the United States were “close to an agreement on settlements.” It also cited the same housing figures.

Barak has been seeking a deal with the United States that would include initial steps by Arab states to normalize relations with Israel in return for limiting settlement activity.

Yedioth Ahronoth quoted unidentified cabinet ministers, who attended Barak’s briefing, as saying reports a U.S.-Israeli agreement on settlement had been sealed were wishful thinking on the part of the defense chief.

Reuters also said: “Western officials said the United States was moving in the direction of making allowances so Israel could finish off at least some existing projects which are close to completion or bound by private contracts that cannot be broken.”