for what they saw as a deliberate slight
calculated to torpedo their peace efforts.
In an angry 43-minute telephone con-
versation, U.S. Secretary of State Hillary
Clinton reprimanded Netanyahu, insist-
ing that Israel freeze the Ramat Shlomo
project and agree to discuss all the core
issues in the proximity talks. Netanyahu
explained that the planning committee's
announcement had taken his govern-
ment by surprise as much as it had the
Americans, made it clear that there would
be no building in Ramat Shlomo for at
least two years, and agreed to put the core
issues on the table.
Parallel to the U.S.-led peacemaking
endeavor, the Palestinians stepped up
unilateral efforts to create a framework
for statehood, focusing on law and order,
economic viability and institution build-
ing. Palestinian Authority Prime Minister
Salam Fayyad made no secret of his inten-
tion to have "a well-functioning state in
just about every facet of activity" by mid-
2011, irrespective of whether any peace
agreement with Israel had been reached.
After weeks of bickering, the proximity
talks finally were launched in early May,
after the Palestinians received the go-
ahead from the Arab League. Neither side
expected to achieve much. It seemed both
had agreed primarily to engage to avoid
American censure.
With ties strained between Washington
and Jerusalem, Obama invited Netanyahu
to the White House for a meeting that was
to patch up the strains in the relationship
and provide a positive image in contrast
with an earlier, low-profile meeting in
March that included no public component
or photo opportunity.
The meeting was delayed several weeks
due to Israel's commando raid against a
Gaza-bound aid flotilla from Turkey on
May 31. But when the two leaders finally
met on July 6, the two projected a public
display of warmth. The meeting resulted
in no new pressure on Israel. Rather, the
Americans exhorted the Palestinians to

move from proximity talks,
among Israel's European
which were not making head-
critics came last December,
way, to direct negotiations
when Swedish Foreign
between the parties — the
Minister Carl Bildt led an
position favored by Israel.
initiative to have the EU
The meeting also cleared up
recognize east Jerusalem as
earlier tensions over Israel's
the capital of a Palestinian
presumed nuclear weapons
state — a move eventually
program. In late May, the
quashed by Israel's European
United States had backed the
allies, with France, Germany
final communique of a month-
and the Czech Republic play-
long Nuclear Non-Proliferation
ing dominant roles.
Treaty Review Conference call-
Israel suffered another
ing for a nuclear-free Middle
major public relations set-
East and calling specifically on
back when agents believed
Israel to sign the NPT.
to be from the Mossad intel-
In their meeting, Obama
ligence agency were accused
assured Netanyahu that despite
of using forged foreign
his long-term vision of a
passports in the January
world free of nuclear weapons,
assassination in Dubai
the United States would con-
of Mahmoud Mabhouh,
tinue to back Israel's policy
a senior Hamas official
of nuclear ambiguity under
= involved in arms smuggling.
which Israel does not confirm
2. Several countries expelled
or deny possession of nuclear
Israeli diplomats. Israel
weapons or sign the NPT.
has neither confirmed nor
The report on the Gaza war prepared by a United
Although Israel and the
denied its involvement in
Nations committee led by Richard Goldstone found
United States were in agree-
the assassination.
Israel guilty of possible war crimes and became a
ment that Iran must not be
The year's worst PR
diplomatic
headache for the Jewish state.
allowed to develop nuclear
disaster for Israel came in
weapons, Israel was skeptical
the May 31 flotilla inci-
about the international com-
dent: Nine Turkish citizens
munity's will to take significant action
Report on the Gaza war, released in
were killed when Israel intercepted ships
to prevent it. In mid-February, the chair-
September 2009, which accused Israel of
carrying aid material bound for llamas-
man of the U.S. Joint Chiefs of Staff, Adm.
possible "war crimes" and "crimes against
controlled Gaza, which was under Israeli
Mike Mullen, came to Israel to underline
humanity" in its war with Hamas in Gaza
blockade. Though Israel released videos
Washington's opposition to a pre-emptive
in December 2008 and January 2009.
showing its soldiers were attacked when
Israeli strike on Iran.
Although the report was widely dis-
they boarded the ship, a worldwide storm
"I worry a great deal about the unin-
missed as biased and deeply flawed, the
of protest erupted. The anger against
tended consequences" of an attack against damage to Israel's image was devastating,
Israel resulted in the first-ever Israeli
Iran, Mullen said. The prospect of an
and critics of Israel used the Goldstone
commission of inquiry with an interna-
Israeli strike, however, significantly dimin- report to hammer away at its reputation.
tional presence and the easing of Israel's
ished following the adoption in early June
The Israeli military refuted some of
blockade of Gaza.
of new, tougher sanctions against Iran by
the report's central accusations, but the
The main diplomatic casualty of the
the U.N. Security Council.
perception that Israel used disproportion-
flotilla affair was Israel's already strained
Perhaps the year's most prominent
ate force to quell the rocket fire from Gaza strategic relationship with Turkey. In
development was a major erosion of
remained embedded in international pub-
2008, the two countries had been close
Israel's international standing. The down-
lic opinion.
enough for Ankara to mediate between
ward trend began with the Goldstone
An early manifestation of new boldness
YIR I Israel on page 62

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