Remarks by Ambassador Richard H. Jones
to the Monterrey Institute of International Studies

November 14, 2006

I would like to thank the members of the Israel Club and Friends of the Middle East Club, as well as the UN Club for inviting me to speak here at MIIS this evening. It's a pleasure to be able to share some of my insights on the current state of affairs in the Middle East, particularly with regard to the Israeli-Palestinian dispute and the recent conflict with Hizballah in Lebanon. During my Foreign Service career I have served throughout the Middle East and beyond, including assignments in Saudi Arabia, Kuwait, Iraq, Kazakhstan, and Lebanon. I've had responsibility for issues ranging from trade with developed countries to Egyptian-American relations, to counter-proliferation efforts in the former Soviet Union, and played key diplomatic roles in preparations for Desert Shield/Storm, OEF and OIF. I've also helped deal with the aftermath of several conflicts.

I'm sure that the most interesting part of our discussion this evening will be your questions, but to set the stage, please allow me to make a short tour of the horizon of the main security issues confronting Israel today. I welcome your questions about Middle East and other foreign policy issues, as well as about the life and work of U.S. Foreign Service Officers overseas.

Israel's security and well-being is of vital interest to the United States. Our bilateral relations are unique in world affairs because they are based on shared democratic and moral values, not just Realpolitik calculations of national interest.

Israel today, with its booming high-tech industries, diverse cultural and intellectual life, and gleaming skyscrapers, represents a remarkable human achievement by any standard. Israel has come a long way from the desperate days of the founding of the state, despite the constant threat of war and terrorist attack.

Notwithstanding its prosperity and military strength, however, Israel continues to face serious challenges to its existence. Iran's President openly calls for wiping Israel off the map, and Hamas leader Khalid Mish'al stubbornly refuses to accept that Israel has a right to exist. The same ideology of hate and destruction that threatens Israel also threatens Europe and the U.S., but Israel is situated at the locus of this ideology, and indeed serves as a lightening rod for it. When you add to this mix Iran's drive to develop a nuclear bomb, the serious nature of the challenges to Israel's security becomes clear. However, as real as these challenges are, I am confident that Israel will continue to thrive for many generations to come. In this regard, I want to assure you that the United States remains steadfastly committed to Israel's security and President Bush's vision of two democratic states, Israel and Palestine, living side by side in peace.

Let me now turn to some observations on specific matters. First,

Efforts to Resolve the Israeli-Palestinian Dispute.

President Bush met with Palestinian Authority President Mahmoud Abbas in September in New York City. In that meeting the President reiterated our view that for the sake of his own people Abbas must succeed in producing a Palestinian Authority government with which we and others in the international community can work -- that is, one that has recognized Israel's right to exist, abandoned violence and terrorism, and agreed to respect all previously signed Israeli-Palestinian agreements.

Last month, Secretary Rice visited Ramallah and Jerusalem in response to the President's charge -- which he announced at the UN on September 14 - to lead a diplomatic effort to engage moderate leaders across the region, to help the Palestinians reform their security services, and to support Israeli and Palestinian leaders in their efforts to resolve their differences. In Ramallah she met with Abbas and other senior Palestinians committed to peace to reiterate the President's message. In Jerusalem, she had fruitful discussions with Prime Minister Olmert, Foreign Minister Livni and Minister of Defense Peretz. All agreed that there is a pressing need to move forward with work to realize President Bush's vision, with the Roadmap as the pathway toward that vision.

In addition to the Secretary's visits, I've had the privilege of taking part in both of the President's meetings with Prime Minister Olmert, last May and again yesterday morning.

After their May meeting, President Bush called Olmert's "convergence" plan "bold," and said that it "could lead to a two-state solution if a pathway to progress on the Roadmap is not open in the period ahead." The President also said that "a negotiated final status agreement best serves both the Israelis and the Palestinians, and the cause of peace." This is still our view, and it is one we believe the Government and people of Israel share.

Unfortunately, the successful kidnappings of Israeli troops, by Hamas in June and Hizballah in July, have clouded prospects for progress toward the President's vision of a two-state solution. However, there really is no attractive alternative to the progress he seeks. Nature always seeks to fill a vacuum. This is just as true in the political world as it is in the natural world. And in the Middle East, political vacuums are invariably filled by violence. Although it would be premature for me to go into details at this juncture, yesterday's talks produced some interesting ideas for possible political steps that might help to fill the political vacuum created by this summer's events.

Meanwhile, the American Embassy in Israel continues to look for practical ways to make progress. We see several possible steps that Israel can take vis a vis the Palestinians that would greatly improve the quality of life for ordinary people without entailing costs to Israel.

One example of the win-win opportunities that we are encouraging the Government of Israel to explore is the security plan for the Karni crossing between Gaza and Israel that has been prepared by the U.S. Security Coordinator LTG Keith Dayton and the U.S. Agency for International Development in conjunction with Palestinian and Israeli experts. Karni is a critical lifeline for the Palestinian economy through which most of its trade flows. Its repeated closure due to terror alerts has severely damaged the economy in Gaza and exacerbated living conditions there. LTG Dayton's Karni security plan aims to reduce opportunities for extremists to sabotage the future of the Palestinian people without exposing Israelis to increased risk.

U.S. and Israeli officials are also now engaging in discussions to implement provisions of the Agreement on Movement and Access, which Secretary Rice negotiated exactly one year ago tomorrow. The "AMA" as we call it succeeded in securing the opening of the Rafah crossing linking Gaza to Egypt, but, since the abduction of Israeli soldier Gilad Shalit in June of this year, the crossing has been closed most of the time. The AMA also addressed "obstacles to the freedom of movement" of Palestinians living in the West Bank. We believe that many checkpoints and other obstacles can be safely removed, which would spur economic activity and improve the quality of life in West Bank towns and villages.

Unfortunately, by continuing to detain CPL Shalit, the militants from the military wing of Hamas are also holding hostage such possible Israeli initiatives to improve daily life in Gaza and the West Bank. For our part, we continue to insist that CPL Shalit should be released immediately. We are confident that this step would help facilitate progress on issues for the benefit of Palestinians and Israelis alike.

The U.S. likewise continues to urge Israel and the Palestinians to meet their Roadmap obligations, and to avoid taking steps that could be viewed as predetermining the outcome of final status negotiations.

For the Palestinians, that means putting a stop to terror attacks and creating a PA government that accepts the three principles articulated by the Quartet early this year (rejection of violence, recognition of Israel's right to exist and agreement to abide by previous agreements). These principles have been endorsed by PA President Abbas. For the Israelis, that means halting expansion of settlements and fulfilling their bilateral commitment to dismantle illegal outposts.

I would now like to touch briefly on a few other key issues, the strategic threat posed by Iran and the situations in Lebanon and Syria.

Strategic Threat Posed by Iran.

Israelis and Americans alike have been shocked and revolted by the discourse of the current Iranian president, who routinely denies the Holocaust and calls for Israel's destruction. Yesterday, the Prime Minister also reviewed the strategic threat to Israel posed by Iran. Iran's nuclear program deeply alarms Israelis, who consider it an existential threat. Of course, the program is a potential threat not only to Israel, but to the entire international community, especially Europe and other states in the Middle East region which are already in range of Iranian missiles. The Prime Minister and the President agreed to continue their close cooperation in the search for a diplomatic solution embodied in a UN Security Council Resolution endorsed by the international community. They also agreed that the world must not stand by if Iran continues on the path to a nuclear weapons capability.

If there is a silver lining in this troublesome situation, it is that Iran's bellicosity, including Ahmadinejad's attempts to mobilize Arab publics against their leaders, is alarming leaders of moderate Arab states as well. This may well create opportunities worth exploring to promote cooperation between Israel and those states on a variety of issues. At the same time, many Israelis believe that stimulating political pressure from within Iran is the best way to force a change in its course.

The Situation in Lebanon.

My first Ambassadorship began in Lebanon more than a decade ago. Six weeks after I arrived in Beirut, Hizballah sparked an outbreak of violence that resulted in the Israeli military operation known as Grapes of Wrath. I received a commendation from Secretary of State Albright for my role in negotiating an end to that conflict. Therefore, it pained me a great deal to witness the hostilities this summer, which began with Hizballah's kidnapping of two Israeli soldiers on July 12. Before it was over, some 110 Israeli soldiers and 43 Israeli civilians died in the conflict. About 1200 Lebanese, nearly half of them civilians, were killed. Economic losses in the billions of dollars were recorded on both sides. Environmental damage -- in the form of oil slicks in Lebanon and forest fires in Israel -- constituted yet another high cost of this war.

On August 14, UN Security Council Resolution 1701 brought the conflict to a halt, by calling for a cessation of hostilities and the deployment of the Lebanese and multinational forces ("enhanced UNIFIL") into southern Lebanon, barring the open display of arms by militias (e.g., Hizballah) south of the Litani River, and imposing an embargo on the transfer of arms into Lebanon, except for use by the Lebanese government or UNIFIL.

We believe that UNSCR 1701 represents a significant step towards restoring Lebanon's sovereignty. Enhanced UNIFIL and Lebanese Armed Forces troops started deploying to southern Lebanon shortly after the August 14 cessation of hostilities, and, according to press reports, have confiscated some weapons belonging to Hizballah. After Germany agreed to assist in enforcing the arms embargo, Israel lifted its air and maritime blockade of Lebanon in September. Italian, French and Greek naval forces immediately took up positions offshore Lebanon pending deployment of German vessels, which has now occurred. The last Israeli troops left Lebanon shortly before Yom Kippur (October 2). Together with other members of the international community we are ramping up our efforts to assist the Government of Lebanon to reestablish its authority throughout south Lebanon.

To help the Lebanese people and their government, President Bush has authorized $230 million in humanitarian and reconstruction assistance for persons affected by the conflict in Lebanon -- from Tripoli in the north to Tyre in the south. Some $90 million has already been disbursed. Our goal --as President Bush stated in September, " is to help Lebanese citizens and Lebanese businesses not only recover, but to flourish, because we believe strongly in the concept of a democracy in Lebanon."

Although press reports invariably tout the financial largesse of Hizballah and its social welfare network, I want to assure you that we have not ceded the battle for Lebanese hearts and mind to them. The US also has an important infrastructure of support for communities in Lebanon. After Grapes of Wrath ten years ago, the US quadrupled its then aid to Lebanon and I helped establish a permanent USAID office in our Embassy, which set up a pioneering program to offer assistance to clusters of villages throughout Lebanon. As a result, a network of experienced and dependable NGOs is present and active in Lebanon, including in the South.

Current U.S. support for Lebanon includes payment by USAID of $14.5 million to UN agencies for relief and recovery supplies and services, $13.5 million to the ICRC for food, health and water sanitation services, and $3.3 million for removal of landmines and unexploded ordnance. U.S. funding will also help rebuild the war-damaged Mudeirej Bridge near Zahleh, one of the tallest bridges in the Middle East, and support clean-up of an oil spill which damaged the coastal area between Byblos and Beirut.

All our humanitarian relief and reconstruction efforts are designed to support the underlying goals of Security Council Resolution 1701-changing the unstable status quo that precipitated the conflict, strengthening Lebanon's sovereign, democratic government, and ensuring lasting peace and security for the entire region.

Many of our Israeli interlocutors and analysts view the recent conflict with Hizballah as a war-by-proxy between Iran and Israel, rather than "just" another Arab-Israeli war. There may well be considerable truth in this assessment, but I think it errs in suggesting that Hizballah's role was limited to that of a mere pawn. To minimize Hizballah's scope for independent action would be a mistake. Hizballah is a sophisticated adversary, an organization that plays its cards carefully -- and often plays its sponsors off one another. Its leader, Hassan Nasrallah, aspires not merely to be Iran's muse, but to become the preeminent cleric-revolutionary in the Shi'a world. We should not exaggerate their capabilities but neither should we dismiss the possibility that Nasrallah and his organization may sometimes pursue their own interests contrary to the wishes of their patrons.

I'd like to end my remarks by touching briefly on the Situation in Syria. Recent statements by Syrian President Asad about his desire to negotiate peace with Israel have generated considerable media attention in Israel as well as in the U.S. I would note, however, that Syria has yet to match its actions to Asad's words. As long as Syria arms, supplies and provides safe havens to terrorist organizations, we will doubt the sincerity of its professed "peaceful" intentions. Some have suggested that the U.S. is preventing Israel from negotiating with Syria. I do not believe that this is the case. As Assistant Secretary of State for Near Eastern Affairs David Welch has pointed out, Israel is a sovereign country and will make its own decisions about how best to deal with Syria.

The floor is now open for your questions.