Prime Minister Ehud Olmert announced Wednesday night that he would not run in his Kadima party's September 17 leadership primary and would step down afterward to give the new party chairman a chance to form a different government. In his speech, Olmert lashed out at political opponents for having chased him out of office, while remaining adamant in his refusal to take responsibility for any of his shortcomings, failures or improprieties. In fact, Olmert maintained his innocence in each of the six ongoing corruption investigations against him. A calculating politician who once called himself indestructible, Olmert has battled longer than expected to cling to his job, even as he works to engage some of Israel's enemies in peace talks. The leading candidates to head his party are Foreign Minister Tzipi Livni, Israel's chief negotiator with the Palestinian Authority (PA/PLO), and Transportation Minister Shaul Mofaz, a former defense minister.

Closer analysis of what some reports said amounted to a resignation, however, suggest that Olmert may have perpetrated a clever ruse aimed at keeping himself in office for at least another nine months. While Olmert did promise to step down following the Kadima primary, that move was conditioned on the winner of the internal election successfully forming a new majority government. It is widely believed that either Livni or Mofaz would have great difficulty accomplishing that task. Should the winner of the primary fail to form a new majority government, Olmert would by default remain prime minister of the current government until new national elections can be held, probably in March or April of next year. Olmert made no commitment to refrain from running in that election, if it takes place. Also sidestepped was the fact that Olmert made no promise to leave politics, but only to step down as prime minister for the time being. Even if his successor as Kadima chairman manages to form a new government, Olmert is expected to remain a Knesset member and representative of the party, free to contest the leadership position at some future date. Giving credence to the theories that Olmert is planning to retain or regain power in the future is his insistence on continuing to make far-reaching commitments and concessions to the Arabs in order to hastily conclude a peace deal by the end of the year. [Los Angeles Times, Israel Today]
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Olmert's resignation announcement will not disrupt efforts by the United States to push through a two-state solution by the end of the Bush administration, stated US Secretary of State Condoleezza Rice [Bush's reign ends January 20, 2009]. "We continue to be committed to the goals of Annapolis", Rice said July 30 following a meeting with Israeli and Arab negotiators. "We continue to watch parties and to work with parties who are working very, very hard toward an agreement.... The Middle East is not going to get better without the creation of a Palestinian [sic] state to live side-by-side with Israel in peace, security and democracy," Rice said. "It simply isn't going to get better. And so the question is, if not now, when?" Rice said the Israeli government has pledged to continue working for peace. She will return to the Middle East to meet negotiators again in a few weeks. Among the goals of the Annapolis process are settlement of final status issues, including the location of borders, the future of Arab "refugees", the status of Jerusalem and water rights; efforts by the Quartet (United Nations, Russia, the European Union, and the United States) to help Arabs build strong governing institutions for their future state; and implementation of a series of diplomatic and security measures outlined in the Quartet's Road Map plan. Since the Annapolis conference, held in November 2007, Rice has frequently met with Israeli and Arab negotiators while visiting the region or on the sidelines of international conferences to help them bridge differences at key junctures or to highlight areas of agreement that might otherwise be overlooked, said State Department spokesman Sean McCormack.

In another development, Israeli and Arab officials have confirmed that Rice is putting heavy pressure on both sides to hammer out a "document of understandings" detailing progress in the peace process before the United Nations General Assembly convenes in September. According to HA'ARETZ, Rice wants to present the document, which amounts to a preliminary peace deal, as evidence of headway the Bush Administration made in the peace process. Some fear it may also be used to ram through a hasty final status peace agreement before the end of US President George W. Bush's second term. During his first term, Bush vowed on several occasions that his administration would be the one to oversee an Israeli-Arab peace deal and the birth of an Arab state carved out of the midst of Israel.

Meanwhile, in her first public appearance since Olmert's announcement, FM Livni said Thursday that she will continue to push for a peace deal with the Arabs this year, despite the uncertainty of the domestic political situation. Speaking to reporters after meeting with UN Secretary-General Ban Ki-moon in New York, the foreign minister said that the internal political procedures in Israel did not change the security problems or the need to work for kidnapped soldier Gilad Shalit's return.

A spokesman for PA/PLO President Mahmoud Abbas said that Abbas considered Olmert's decision an "internal Israeli matter", adding: "The Palestinian Authority deals with the prime minister of Israel, regardless if he is Olmert or somebody else." [US Department of State, YnetNews, The Guardian, Israel Today]
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Some 200 youths and adults on a week-long "Land of Hilltops Trek" were attacked by Arabs with clubs and rocks. The police arrested Jews, including one who fired in the air. The trek, which began on Sunday, was being led by veteran settlement pioneer Daniella Weiss, former Mayor of Kedumim. She described what happened: "This is the third day of our beautiful march through the hilltops of the Land of Israel, which we began in Sa-Nur [one of four Jewish communities in Samaria that were destroyed in Ariel Sharon's Disengagement plan.--ed], and are planning to end up in Asa'el in southern Judea. We have already been to Shvut Ami [adjacent to Kedumim], Kol Tzion near Adei Ad [just outside Shilo], and we are now at Maoz Esther, near Kokhav HaShachar. The plan is to continue to Migron, then Sha'ar HaMizrach (Gateway to the East) between Jerusalem and Ma'aleh Adumim, and then we will sleep in Shdemah (south-eastern Jerusalem, near Har Homa), and then to Ma'aleh Halhoul and Asa'el. Each of this places has important significance in terms of Jewish presence in the area. Everything was going very well, until we arrived in Maoz Esther. A bunch of Arabs swooped down upon us with rocks and clubs, and three of our people were injured; they have just been evacuated by ambulance. At one point, one of our escorts tried to protect one of our boys, and he shot in the air. Right then, something amazing happened: From behind a little hill suddenly emerged some cars and policemen wearing civilian clothes, but with police hats - and they arrested the one who shot in the air, as well as some of our other escorts who were carrying weapons! Apparently, the police were waiting and watching the whole time, doing nothing until our boy shot in the air. They want to leave us without weapons, and thus cause us to call off our entire trek, because they see - and want to discourage - the wonderful and pioneering spirit that we bring. But we will of course not stop, though we are now trying to figure out the best course of action. I can tell you that there will be some sharp measures and protests against the security forces." Other participants accused the police of outright cooperation with the Arabs in their ambush of the Jews. When told of a report that two Arabs were also arrested, Daniella seemed surprised and skeptical. "We saw no such thing," she said. [Arutz Sheva]
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US Senator Barack Obama seems to have purposely leaked the contents of a prayer that he placed in the Kotel (Western Wall) while he was in Jerusalem recently. What initially seemed to be a journalistic scoop of dubious moral propriety now seems to be a case of an Israeli newspaper -- along with the Western Wall -- being used for political purposes by the Barack Obama presidential campaign. MA'ARIV, the second most popular newspaper in Israel, was criticized for publishing the note Obama allegedly left in the Kotel. But a MA'ARIV spokesperson now claims that publication of the note was pre-approved by the Obama campaign, leading to the conclusion that the "private" prayer was intentionally leaked for public consumption. YEDIOT AHARONOT, the country's most popular daily, published an article Friday saying it had also obtained the note but decided not to publish it. It now appears that MA'ARIV had collaborated with the Obama campaign in getting the "private" prayer out to the public, in an attempt to bolster his Christian credentials and show his "humility." A MA'ARIV spokesman was quoted in the JERUSALEM POST as saying that "Barack Obama's note was approved for publication in the international media even before he put in the Kotel, a short time after he wrote it at the King David Hotel in Jerusalem." [I won't reprint the prayer here as it seems to be nothing more than a blasphemous, cheap publicity stunt, completely devoid of any meaning.--ed] [Israel Insider, Arutz Sheva]
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The Palestinian Authority (PA/PLO), the largest recipient of financial aid per capita in the entire world, is on the verge of bankruptcy, Arab officials told THE JERUSALEM POST on Monday. While the PA/PLO receives hundreds of millions of dollars each year from the US and the European Union, Arab officials said that Arab donor states have failed to make good on their generous financial pledges. The officials said that without an immediate influx of funds, the PA/PLO, which is the largest employer in Judea and Samaria, will be unable to pay July salaries to its 150,000 public servants and police officers. That raised fears that Hamas, which is flush with cash from Iran and other supporters, could make further inroads into Judea and Samaria, which the government of US-backed Arab leader Abbas still controls. Throughout its entire history, up to and including today, the PA/PLO has been a money pit for donor states, with top officials stealing most of the funds for their own personal use. The worst offender was Yasser Arafat, whose wife and closest confidantes are still believed to be in possession of over $1 billion of donor funds.

Meanwhile, Itamar Marcus, director of the watchdog Palestinian Media Watch (PMW) organization, made a recent trip to Norway that sparked a national political debate about whether Norway should continue funding the PA/PLO. Marcus supplied convincing evidence that the PA/PLO uses its budget to glorify terrorism and terrorists, and to promote hatred and violence. The opposition Progress Party, which recent polls indicate is Norway's most popular party, responded with a call to freeze all Norwegian funding to the PA/PLO. [Israel Today, Arutz Sheva]
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Israel expressed its concern about the new US position on Iran in recent US-Israeli talks and urged the US to stand firm against the Iranian nuclear program. Israeli concerns come after a dramatic shift in US foreign policy, in which top US diplomat William Burns joined foreign envoys from around the world in a July 19 meeting with an Iranian delegate. In the meeting the international delegates gave Iran two weeks to answer calls to curb uranium enrichment or face more sanctions. The shift in US-Iran relations raised eyebrows in Israel, which has looked to the US to lead efforts to isolate Iran. [The US has recently been encouraging Israel to take a tough stance against Iran, suggesting an Israeli military strike. However, it now seems that the US is backing down after seeing that Iran is not easily shaken, leaving Israel holding the bag, as usual.--ed] Israeli Deputy Prime Minister Shaul Mofaz, was hosted by Burns on Thursday for routine bilateral consultations known as the strategic dialogue. Mofaz's spokeswoman, Talia Somech, said he used the forum, as well as separate meetings with US Vice President Dick Cheney and US Secretary of State Condoleezza Rice, to raise Israel's objections to the direct US-Iranian talks. The US State Department issued a statement after the Mofaz-Burns meeting that said nothing about the possibility of using force against Iran.

Meanwhile, Syrian president Bashar Assad, who was due to visit Tehran in a week's time, moved the trip forward to Shabbat, August 2, to coincide with the deadline the West gave Iran for an answer to its offer of benefits in return for its consent to suspend uranium enrichment -- or face a fourth round of sanctions. DEBKAfile's Middle East sources report that Iranian and Syrian rulers are so pleased with their unforeseen success in outmaneuvering the West that they called an urgent summit for follow-up planning. When a line of Iranian leaders rejected the ultimatum on their right to develop a nuclear program, Washington responded mildly "we are not counting the days", while the European Union said there was no hurry. In any case, a large German energy deal with Iran has drawn the sting of any prospective penalties. The Syrian-Iranian get-together also follows the failure of top Israeli leaders traveling to Washington in the past three weeks to persuade the Bush administration of the urgency of considering military action against Iran's nuclear installations -- or at least backing an Israeli operation [see above--ed]. Israeli diplomatic officials, meanwhile, dismissed the meeting as "Syrian spin" intended for Western ears. But diplomatic sources in Jerusalem said the real purpose of Assad's visit was to strengthen the ties between the two countries. Indeed, Syria's official news agency, SANA, said economic ties between the countries would be a focus of the talks, adding that such ties had resulted in over a dozen projects in Syria, worth $896 million. SANA, a mouthpiece for the government, said both Teheran and Damascus were "seriously seeking to increase the size of joint investments to more than $3 billion over the next years." Beyond these investments, however, Israeli officials maintain that Iran has become instrumental in propping up Syria's limping economy. [infolive.tv, DEBKAfile, Jerusalem Post]
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In the Gaza Strip, as in Israel, children are currently in the midst of summer vacation, and the Hamas and Islamic Jihad's summer camps are in full gear. In the past few weeks, the Arab terrorist groups have been holding camps throughout the strip, some of them proudly displaying rockets and other weaponry. Hamas itself is currently conducting no less than 300 summer camps for tens of thousands of children, and the focus is on familiarizing kids with Arab towns and cities destroyed in 1948, as well as instilling Islamic religious fervor in them. The camps also feature sports and military-type training such as crawling under barbed-wire. Islamic Jihad has also launched its own summer camps, offering some 10,000 children activities similar to those of Hamas. The kids study passages from the Koran and participate in quizzes on religious matters, with emphasis on the required commitment to political prisoners and alleged Arab land. They also learn how to hold a Qassam rocket-launcher. An Islamic Jihad operative told YNET that the students were not exposed to real rockets but to ones made of plastic. "In the camps we emphasize the need to unite and put an end to the internal struggles. We called them 'unity and principle maintaining camps.'" YNET reported that between Hamas and Islamic Jihad, the groups are hosting around 50,000 Arab children at some 400 camps throughout the small coastal territory. The third organization conducting summer camps in the Gaza Strip is United Nations Relief and Works Agency (UNRWA), an agency which has worked very closely with the terrorist organizations. SKY NEWS correspondent Emma Hurd reported that at another camp run by the Popular Resistance Committee, she witnessed a training session during which an adult instructor dressed as a Jew, complete with skull cap, was ambushed and dragged from his vehicle to be executed by a group of children dressed in military fatigues. [YnetNews, Israel Today]
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Israeli humanitarian organization Save a Child's Heart (SACH) announced this week that a 3-year-old Angolan boy had become the 2,000th foreign child heart patient saved by Israeli doctors. The child was operated on by the team of doctors at Wolfson Medical Center in Holon, who donate their time to SACH in an effort to build bridges of trust with surrounding nations by helping their children. SACH and its partner organizations have brought children to the Israeli doctors from 33 countries. But the greatest international attention has been given to those cases that involved children from nations in a state of conflict with the Jewish state, like Iraq. SACH always brings the parents along with the sick child. In statements to Israeli media, Arab parents who travel to the Jewish state so their child can be saved by Israeli doctors have expressed shock upon learning that tales of cold-blooded Israeli heartlessness are untrue. In addition to operating on and caring for these children in Israel, SACH is also working with Israeli doctors to improve the quality of pediatric cardiac care in their countries of origin. [Israel Today]
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A seal impression, or bulla, with the name Gedalyahu ben Pashur, who served as minister to King Zedekiah (597-586 BCE) according to the Book of Jeremiah, was found just meters away from a separate seal impression of another of Zedekia's ministers, Yehukual ben Shelemyahu, which was uncovered three years ago, said Prof. Eilat Mazar who is leading the dig at the site. The excavation at the history-rich City of David, which is located just outside the walls of the Old City near the Dung Gate, has proven, in recent years, to be a treasure trove for archaeologists. The first bulla was uncovered inside an impressive stone structure, which Mazar believes is the Palace of David, while the second bulla was found at the foot of the external wall of the same structure, under a tower that was built in the days of Nehemiah. Both of the bullae with the names of the two ministers, measuring 1 centimeter in diameter each, were found among the debris of the destruction of the First Temple period. The letters are in ancient Hebrew and are very clearly preserved, Mazar said. Both ministers are mentioned in the Book of Jeremiah (Jeremiah 38 1-4) along with two other ministers when they came to King Zedekiah demanding the death of the prophet Jeremiah for preaching to the besieged city to surrender. Mazar said it was "absolutely fantastic" to have uncovered the seals "complete and in perfect condition" after 2,600 years, affording scholars a clear read of the names that were impressed on them. [Jerusalem Post]
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Shin Bet Director Yuval Diskin painted a bleak picture of recent occurrences in Gaza and east Jerusalem during the weekly government meeting on Sunday. "Since the ceasefire began, four tons of explosives have been transferred into the Strip for Hamas, as well as 50 anti-tank missiles, light arms, and materials for Qassam manufacture - metal rods and gunpowder," he said. "Most of the smuggling is taking place by land, through tunnels. Hamas has taken control of the tunnels in the area. There is Egyptian action aimed to prevent the smuggling, but there have been no special reports lately." The Shin Bet chief said the recent prisoner exchange deal with Hizb'Allah has encouraged terror groups to plan additional kidnappings of Israeli soldiers. "Hamas is continuing its massive defense operation. They are exploiting the truce in order to increase their training. They are bringing in weapons for their military wing, and cement has been imported, which the Shin Bet analyzes as a means for building bunkers." He added that Hamas had completed the first step in the construction of its institutions, which will prepare the foundations for seizing control of all of the Arab-occupied territories, which has been Hamas' declared vision for years. Regarding the situation in east Jerusalem, Diskin said that residents holding an Israeli ID were attempting to move into Jerusalem due to the construction of the fence that threatens to disengage them from the rest of the country. For this reason the neighborhoods were slowly emptying out, he said. According to the Shin Bet director, "the area is out of the IDF's hands. Israel Police is not active in the area, so there is no police activity. This creates phenomena such as arms dealing and Molotov cocktails in southern Jerusalem, and in Abu Dis and Azaria Hamas is beginning to move in. Palestinian [sic] forces have also begun to infiltrate the north." Diskin also informed the government that since the beginning of the year Shin Bet and police forces have managed to thwart the banding together of 12 different terror organizations in east Jerusalem. [YnetNews]
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