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YOSSI BEILIN (FORMER ISRAELI MINISTER) – 21st March 2010

Now to the Middle East where the spat between Israel and its normally close ally the US has been described as "a crisis of historic proportions". The current verbal punch-up was exemplified by Hillary Clinton's 45-minute bawling out of the hawkish Israeli Prime Minister, Benyamin Netanyahu. Predictably, this latest disagreement is centred on the provocative building of Jewish settlements in what is largely Palestinian-occupied East Jerusalem. It's left relations between the Israelis and the Americans at their lowest point in more than 35 years. Yossi Beilin is a former minister in the Israeli Government. He was one of the architects of the ill-fated Oslo Peace Accord. Two years ago he actually left government precisely over the settlements. So, how has this veteran Israeli peace negotiator reacted to the drastic falling out between the Israelis and the Americans?

YOSSI BEILIN, FORMER ISRAELI MINISTER: I believe that such a crisis can easily be solved because the real crisis is not today's relationship between Israel and the United States, but between the Palestinians and the Israelis, and the big question for me is whether we can heal these wounds and bridge the gaps which are there rather than if we're solving the misunderstanding between us and the United States - because this would be solved if not in this discussion, then in another meeting. This is not the big problem for us.

GEORGE NEGUS: But that said, some people have suggested that this is such a serious rift between Israel and the US that it could derail any chance whatsoever of a revived set of peace negotiations like people were looking forward to so much. That this has put things off track.

YOSSI BEILIN: Well, I believe that what is happening now could have happened and maybe should have happened a year ago when the Americans asked Israel to do several things and when Israel said, "No, we're not going to freeze the settlements, "neither in Jerusalem nor in the West Bank," then there was a waste of time for a whole year of negotiations between the United States and with Israel about the modalities of the non-freeze. Now the Americans are saying "Hey, enough is enough, "let you freeze the settlements," and we have to see whether Israel agrees to it or not because if, for example, Netanyahu is saying to the Americans today or tomorrow that he's ready for - imagine - three months of total freeze, then the crisis is over in one minute.

GEORGE NEGUS: But this announcement of 1,600 new settlement buildings, as it were, at a time when the US Vice-President was in the country, is about as provocative as Israel could have got. Was that just a foolish tactic, a mistake, or a deliberate attempt to - if you like - jab the Americans?

YOSSI BEILIN: The point here is the following one - there is a difference between the attitude of the current Israeli rightist government and the American administration. Israel decided not to stop the settlements. This is a decision - a political decision. Now, whether it happened during the visit of the Vice-President or the President or the Secretary of State is really secondary because the real gap is about the policies, not about the timing. I don't think that somebody deliberately did it, but so what? The question is whether this is the most important thing now for us to build new settlements or whether the most important thing for us is to negotiate peace. I think that Obama as a candidate said the most important thing about these things - he said, "In order to be a friend of Israel, I don't have to be a Likudnik." He is not a Likudnik. I think the views of the administration of the Obama presidency itself is the view of people like myself, which is the view of many Israelis. You see the polls today in Israel, the public opinion polls, and you see that most of the people are ready to go for peace, to freeze the settlements, and do not think that what Netanyahu did is the wisest thing. I mean, Netanyahu is losing a lot of support in the public opinion polls of this Friday.

GEORGE NEGUS: I would like to come back to you and the settlements themselves as I said, but I can't leave this American situation alone completely. A 45-minute bawling out, if you like, by the American Secretary of State Hillary Clinton of your Prime Minister - not necessarily yours, but the Prime Minister of Israel at the moment - is a pretty serious thing. I mean, the Americans are on the front foot. Why are the Americans being so aggressive right now in their response?

YOSSI BEILIN: First of all, it is about time. They didn't do a real thing for a year. I think the selection of Senator Mitchell as special envoy was a big mistake. I think we wasted a lot of time. I think that had Obama did something like that a year ago, it would have been much, much more significant when he was stronger and not now when many in the world and in Israel believe that he will not fight for his views. And so the big question for me is, why now, why not before? And I'm not worried about this crisis. This is not a real crisis between Israel and the United States. Israel is important for the United States, the United States is very, very important for Israel and this kind of a crisis - although it is a serious one - can easily be solved. The question is whether we are going to solve the real problem.

GEORGE NEGUS: I have heard it suggested that this could be an attempt by the Americans to, in fact, destabilise Binyamin Netanyahu - that a Democrat government led by Barack Obama is hardly ever likely to find accommodation with an Israeli government led by a Benjamin Netanyahu, and this is part of not a conspiracy, but a preference, that they would have not to have to deal with him and his kind of government - who they don't think is committed to the peace process.

YOSSI BEILIN: It is unrealistic. I do not think that the Administration in the United States is trying to replace Netanyahu with somebody else. Netanyahu was democratically elected by the Israelis and the Americans have to deal with Netanyahu. The point is that the Administration tries to change the policy of Netanyahu - not himself - and I think at the beginning they did it by somehow pushing him towards his declaration of the 2-state solution, which was a significant one. And I think it is more than logical and realistic that they will push policies that they believe are the most important thing for the world. I mean, they have to lead the world and they are in the Middle East - in Afghanistan, in Iraq, in other places - and they know the connection between the situation here, between us and the Palestinians and the situation in the Arab countries and the importance that the Arab countries attribute to the solution of the Israeli-Palestinian problem.

GEORGE NEGUS: Could you answer this for me? Could you make a comment about this anyway? You oppose the settlements, that is probably putting it too simply, but basically, that is your position, and clearly, the UN on any number of occasions now, since the Six Day War have declared the settlements as illegal and, in fact, an impediment to any peace in the Middle East. How do you feel then - when you hear men like Netanyahu saying, "I will continue with settlements just as I have for the past 42 years." Now, where does that leave Israel if on the one hand, the rest of the world thinks - or the UN at least - the settlements shouldn't be there, and he is saying he is going to continue building them despite the Americans, despite the UN.

YOSSI BEILIN: The problem is the following one - although the world did not recognise the existence of the settlements or the legitimacy of the settlements, the world understood after more than 40 years that they became a reality. As a result of it, the world is supporting ideas like the Clinton parameters of December 2000 or the Geneva initiative of myself and Yasser Abd Rabbo from 2003, which are leaving the settlement blocks where they are and compensating the areas which Israel will annex in the future by areas which are now under the Israeli sovereignty. Now, what I am saying is that rather than going for such a solution, which doesn't wipe out all the settlements, Netanyahu - who believes in the importance of the settlements unlike myself - is not progressing towards a solution which will legitimise part of the settlements, and this is something which I admit I cannot understand. He has now golden opportunity to find a solution with a Palestinian leadership which is ready to negotiate - Abu Mazen, Salam Fayat, and others - on a solution which will actually keep most of the settlers on the Israeli side of the sovereignty. Why does he give up this opportunity is beyond my understanding.

GEORGE NEGUS: Yossi Beilin, unfortunately we are out of time. I would like to talk to you for longer. It's good to talk to you again and we'll stay in touch, but thank you very much for your time today.