Another contradiction for Israel to deal with: the collapse of the
Palestinian Authority. If it disappears, Israel has the responsibility under
international law as the occupying power to administer and support the
residents of the West Bank and Gaza . Israel, of course, has brought itself
to this point through its refusal to deal with Hamas and its subsequent
physical destruction of PA offices and other Palestinian infrastructure,
arrest of government ministers, and witholding of transfer payments.

Now Hamas leaders are threatening to make official what already exists on
the ground: the formal dissolution of the PA. What logically follows from
this is the concept of a single binational state which, according to the WSJ
report below, is "gaining traction among Palestinians of many shades" -
including Hamas militants. As the Journal notes, "the idea of dismantling
the PA was once a marginal idea, championed in the 1990s by left-wing
intellectuals such as Edward Said, who advocated civil disobedience against
Israeli occupation and a campaign for 'one person, one vote'. The model was
the antiapartheid protests in South Africa that paved the way for
black-majority rule there."

The irony is that any time interest in a binational state has manifested
itself in the occupied territories, it turns Israel into a fierce champion
of an "independent" Palestine because of racially-motivated demographic
fears for the Jewish character of the Zionist state. Fatah has exploited
these Israeli fears before to encourage it to negotiate around its program
for a viable independent Palestinian state. Now Hamas, which is not
programatically committed to a two-state solution, but whose trajectory is
in that direction, seems to be employing the same tactic to pressure the
Israelis into releasing funds to the PA and agreeing to negotiate the terms
of its withdrawal. "Any breakdown in government could thwart Israeli Prime
Minister Ehud Olmert's plan to withdraw unilaterally from large parts of the
West Bank", the report observes.

There is virtually no chance the Israelis would juridicially absorb the
Palestinians into their own state, knowing they would immediately be
confronted with an enormous Arab-Jewish anti-apartheid campaign along South
African lines. That is why they built a wall to retreat behind, threatening
to leave the immiserated Palestinians to fend for themselves in an enclosed
unguarded prison until they finally capitulate to Israel's terms for a peace
settlement.
=========================================

August 11, 2006

Chaos Could Doom
Palestinian Authority

Leadership Void in Territories Would Put Onus Back on Israel, Thwart
Withdrawal Plan
By GUY CHAZAN
Wall Street Journal
August 11, 2006; Page A4

RAMALLAH, West Bank -- Israel's war with Hezbollah has overshadowed a
looming crisis in the West Bank and the Gaza Strip, where conditions have
deteriorated to the point that some in the Palestinian government are
exploring the prospect of its self-dissolution.

The economic and political breakdown has put new stresses on a population
already racked by falling incomes and high unemployment. But the unraveling
of the Palestinian Authority, starved of cash and with several of its
ministers in Israeli jails, could have disastrous consequences for Israel as
well: International law dictates that as an occupying force, it would have
to take over full responsibility for the well-being of 3.9 million
Palestinians.

An aid freeze by donors, initiated when Hamas won January elections in Gaza,
has left the PA virtually penniless. More than 150,000 public-sector workers
have gone unpaid for the past five months, and some ministries have ceased
to function.

That has prompted an increasing number of Palestinians to call for the
dismantling of the PA and a transfer of its powers back to Israel, which
continues to occupy the West Bank and controls Gaza's borders despite last
year's military pullout.

Even Palestinian Prime Minister Ismail Haniyeh has hinted at the idea.
Following Israel's arrest of parliament speaker Abdel Aziz Dweik last
weekend, Mr. Haniyeh on Wednesday said, "All political elites, the
presidency, the factions and the government are invited to discuss the
future of the Palestinian Authority following this...attack. Can [the PA]
function under the occupation, kidnappings and assassination?"

Established in 1994 under a peace deal with Israel, the PA was conceived of
as an interim self-governing body and steppingstone to full statehood. But
that prospect has receded since Hamas took control in March after a stunning
election victory over rival Fatah, the party of Yasser Arafat that had
dominated Palestinian politics up to that point.

After Hamas, an Islamist organization with political, social-services and
militant wings, won a dominant majority in January elections, international
donors led by the U.S. -- which deems Hamas a terrorist organization --
froze aid and demanded that the group recognize Israel, renounce violence
and accept existing peace deals with Israel. So far, Hamas has refused.

The idea of dismantling the PA was once a marginal idea, championed in the
1990s by left-wing intellectuals such as Edward Said, who advocated civil
disobedience against Israeli occupation and a campaign for "one person, one
vote." The model was the antiapartheid protests in South Africa that paved
the way for black-majority rule there. Self-dissolution was also raised by
Fatah supporters in the aftermath of their election defeat.

But there also is now some support for the idea among Hamas activists, who
in the past few months have become disillusioned by political power and may
prefer to return to their armed struggle against Israel.

Israel says it isn't its policy -- nor in its interest -- to see the PA go
out of business. "Those that should disappear from the political arena are
Hamas, not the PA," said government spokesman Avi Pazner.

Any breakdown in government could also thwart Israeli Prime Minister Ehud
Olmert's plan to withdraw unilaterally from large parts of the West Bank.
"The existence of a political entity in the West Bank and Gaza is essential
for Israel to achieve its objective of ending its control of the Palestinian
population," said Gidi Grinstein, head of the Reut Institute, an Israeli
think tank. "That's why dismantling the PA could severely compromise
Israel's interests."

Yet the idea is gaining traction among Palestinians of many shades. One is
Hafez Barghouti, the influential editor in chief of the Palestinian
newspaper Al-Hayat Al-Jadida. "We should just accept that we are under
military rule," he said. "We should turn to civil disobedience, burn our ID
cards and struggle until we get our rights."

In recent months, there had been hopes of a lifeline to rescue the PA from
its international isolation. In late June, Palestinian political factions
reached an agreement to create a unity government that implied recognition
of Israel by Hamas. The deal could have paved the way for a release of donor
aid to the PA.

But then the Israel-Hezbollah war broke out, knocking the Palestinian issue
off all radar screens. "Lebanon has hijacked Palestine," says Mohammed
Shtayye, the PA's former housing minister and the head of Pecdar, a big
Ramallah-based aid and investment organization.

The fighting in Lebanon has also largely eclipsed the continuing violence in
Palestinian areas. Gaza has been reeling from an Israeli ground and air
offensive unleashed after militants captured an Israeli soldier in a
cross-border raid on June 25. The fighting has left more than 170
Palestinians dead, more than half of them civilians. Even more disruptive
was Israel's arrest in late June of 64 Hamas officials, including eight
government ministers -- a third of the cabinet -- on charges of "belonging
to a terrorist organization."

Wasfi Izzat Kabaha, the PA prison-affairs minister and one of two Hamas
officials released by the Israelis in the past few days, is trying to get
his department back up and running after a monthlong stint behind bars.
Every day brings new complications: He waves a letter from Mr. Haniyeh
requesting that he take over the Labor portfolio, replacing the present
labor minister, who remains in Israeli custody.

His ministry used to disburse about $4.5 million in monthly allowances to
the roughly 10,300 Palestinian prisoners held in Israeli jails and their
families. But for three months, it has had no budget. The ministry's civil
servants and lawyers aren't being paid, either.

"Will the PA collapse?" he asks. "I don't know. But if they don't recognize
our rights and our government, then the situation can only get worse."

The European Commission has tried to avert the collapse of essential
services, allocating $135 million over three months under a "temporary
mechanism" that bypasses the Hamas government. It includes "social
allowances" for about 13,000 health workers and will be paid directly into
their bank accounts. But considering the PA's basic wage bill is nearly $100
million a month, it hardly solves the problem.

Meanwhile, Israel still refuses to transfer the roughly $55 million a month
of value-added tax and customs duties it collects on behalf of the PA --
about half of the Palestinians' monthly budget.

For Mr. Shtayye, the outlook for the PA is bleak. "The PA is not a
supermarket which can just go bust and close down," he says. "But the people
are saying if it can't protect the lives of its citizens, deliver services
or pay salaries, then what's the point of it?"

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