PM Netanyahu
PM NetanyahuIsrael news photo

Prime Minister Netanyahu's office has denied Egyptian reports that he agrees to discuss a future Palestinian Authority capital in Jerusalem. Some analysts believe the denial is too little, too late.

Egypt’s Foreign Minister Abu Al-Gheit told a group of European and Arab foreign ministers last week that Prime Minister Netanyahu is willing to discuss enabling parts of Jerusalem to serve as the capital of a future PA state. Al-Gheit said that Netanyahu said as much to Egyptian President Hosni Mubarak during his visit to Cairo two weeks ago.

Netanyahu’s office issued an official denial on Tuesday morning: “The Prime Minister stands firm, and has made this clear in all his diplomatic contacts with world leaders, that in any future peace arrangement, Jerusalem will remain united under Israeli sovereignty, and that the security borders of Israel will not include a return to the pre-1967 lines.”

Weak Initial Reaction

Earlier this morning, however, aides in the PM’s office did not strenuously refute the reports, but noted only that a position of this nature was not presented by Netanyahu in Egypt.

Following Netanyahu’s recent visit to Egypt, Egyptian officials also stated that the Israeli leader had agreed to return to the 1967 borders with just minor adjustments. Netanyahu said these claims were “not true.”

Prior to the 10-month Jewish construction freeze in Judea and Samaria that was announced in November, Netanyahu frequently denied that he was planning to implement such a policy.

Netanyahu's Evolution

Steven J. Rosen, a top AIPAC official for 23 years and currently the director of the Washington Project at the pro-Israel think tank Middle East Forum (MEF), opined recently that Netanyahu “has gone through a personal evolution… He continues to be profoundly skeptical that signing a piece of paper can put an end to this conflict. He is a fierce advocate of defensible borders and military strength as the true guarantors of Israel's security. Nevertheless, he has come back to a second term as prime minister with a deeper appreciation of the reality that his relations with the United States, Europe, and moderate Arab neighbors depend on the perception that he can be a partner in the search for diplomatic progress with the Palestinians. And he certainly knows that many harbor doubts about him.”

Rosen explains that this is why Netanyahu agreed to the “unprecedented” step of “putting a freeze on ‘natural growth’ of settlements. He has drastically curtailed the volume of construction starts, even in the ‘consensus’ settlement blocs that he believes were conceded to Ariel Sharon by George W. Bush.”

Furthermore, Rosen writes, “Now, below the radar, Netanyahu is making a series of additional concessions to Barack Obama and his Mideast peace envoy, George Mitchell… While no one was watching, Netanyahu has in fact agreed to language that Mitchell can accept. With the Israeli agreement in his pocket, Mitchell is now working to bring Abbas around, according to sources close to the discussions.”

Netanyahu Accepts '67 Lines, Minus Agreed Swaps

For instance, Rosen explains, the PA position is that the pre-1967 boundary must be the basis for all border agreements, while Netanyahu and Israel have long held that the future frontiers must both meet Israel's security imperatives and reflect post-1967 demographic realities.  In the event, “Netanyahu has accepted a solution based on Secretary of State Hillary Clinton's formulation: ‘an outcome which ends the conflict and reconciles the Palestinian goal of an independent and viable state based on the 1967 lines, with agreed swaps, and the Israeli goal of a Jewish state with secure and recognized borders that reflect subsequent developments and meet Israeli security requirements.’"

In other issues, such as Jerusalem, refugees, negotiation timelines, and the like, Mitchell has apparently obtained the language he feels he needs in order to get Mahmoud Abbas to agree to resume talks with Israel. Several weeks ago, Mitchell announced that many “gaps had been closed” regarding “terms of reference for negotiations.” Rosen concludes that as of shortly afterwards, “the work on the Israeli side is done. Netanyahu has put the ball in the Palestinian court.”

HaEtzni Warns: Back Nearly to the '67 Lines

This is cause for great alarm in the nationalist camp, of course. Long-time activist and former MK Elyakim HaEtzni wrote last week, “It appears that the die has been cast. Netanyahu is giving [Abbas] everything he asked for even before the negotiations have started, and in his characteristic manner: Outwardly he proclaims that negotiations must start without pre-conditions, while at the same time an American letter of guarantee to Abbas – every word of which was coordinated in advance with Netanyahu – promises the Arabs the 1967 borders with minor changes.”