Gambling with Conflict: How a neocon casino king from California funds the Israeli settler movement

Max Blumenthal | Mondoweiss

2 June 2009

The Israeli government has repeatedly announced plans to forge ahead with plans to expand settlements in the occupied West Bank in direct opposition to President Barack Obama’s demand for an absolute settlement freeze. On May 27, Secretary of State Hillary Clinton leveled strong criticism at Israeli policy, telling reporters that President Barack Obama “wants to see a stop to settlements – not some settlements, not outposts, not ‘natural growth’ exceptions.” Israeli government spokesman Mark Regev responded by declaring that “normal life” in the settlements would continue, using a phrase that is code for continued construction.

With neither side exhibiting willingness to back down, the stage is set for a contentious clash between Israel and the U.S. over settlement policy. At the center of the maelstrom is Israeli Prime Minister Benjamin Netanyahu, leader of the hawkish Likud Party, who has highlighted his unique understanding of the United States – he is Yale educated and speaks flawless English. Supporters of the settlement movement are an integral part of his governing coalition. How Netanyahu navigates between his far-right constituency and increasingly insistent demands from Obama will not only determine the fate of his government, but also the fate of Israel’s “special relationship” with Washington.

A gathering of the settlement movement’s leading figures in Jerusalem on May 22, documented in this exclusive Mondoweiss report, revealed the unprecedented influence of the settlers on Israeli policy. The event, a ceremony for the presentation of the Moskowitz Foundation Prize for Zionism, was organized and bankrolled by one of Netanyahu’s closest confidants and backers, the American casino tycoon Irving Moskowitz. For over a decade, Moskowitz has funneled millions in profits from his California-based Hawaiian Gardens casino, where he has been sued for exploiting undocumented workers, into settlement construction projects in the West Bank, including Palestinian neighborhoods in East Jerusalem. He has also funded several neoconservative think tanks including a research center named after Netanyahu’s brother, Yonatan, who was killed while leading the Entebbe rescue raid in 1976. Moskowitz and Netanyahu have remained close since he established the center.

In 1996, Moskowitz convinced Netanyahu, in his first round as prime minister, to open a tunnel adjacent to the Temple Mount, a controversial act that led to several days of rioting and 70 deaths. Four years later, Prime Minister Ariel Sharon’s provocative visit to the tunnel set off the so-called Al-Aqsa uprising, the opening salvo of the Second Intifada. Now, Moskowitz’s imprint on the West Bank’s landscape is most clearly reflected in the expansion of the settlement called Kiryat Arba, a hotbed of Orthodox Jewish radicalism located high above the occupied city of Hebron.

Kiryat Arba founder Noam Arnon is the recipient of the 2009 Moskowitz Prize, an honor that included $50,000 in cash. After receiving his prize before a cheering crowd of two thousand settlers, Arnon complained to me, “We think that somehow the Arabs have taken over the international media and the international mood, and they convinced the world to believe that there is a Palestinian people and these people deserve to have a Palestinian state — which is totally untrue.”

Despite the fanaticism of Arnon and his followers, who routinely rampage through Hebron, vandalizing Palestinian homes and attacking local residents (often under the watch of the Israeli army), they are not isolated as a rogue element in Netanyahu’s political world. Indeed, several of notables stood on stage to present Arnon with his prize. They included Professor Moshe Aumann, who won the Nobel Prize in 2005 for his work on understanding conflict through game theory, and Uzi Landau, the Israeli Minister of National Infrastructure. (Landau’s party, Yisrael Beiteynu, has introduced bills that would compel Arab citizens of Israel to take loyalty oaths and which would criminalize open discussion of what the Palestinians call “Nakbah,” or “catastrophe” of Israel’s founding). Also in attendance was Benny Begin, a leading Likud member of Knesset and the son of the late Prime Minister Menachem Begin, the first Likud prime minister.

After the ceremony, Landau mingled easily with settlement leaders, who beseeched him for support. Though Landau’s bodyguard attempted to prevent journalists from approaching him, my journalistic colleague Jesse Rosenfeld managed to ask him about Obama’s call for freeze on settlement construction. Visibly irritated by the mention of Obama’s demand, Landau issued an unequivocal statement. “Those who say, or are trying to suggest that Arabs can build anywhere and everywhere, and Jews can’t –it’s something that should be totally rejected.”

Since arriving in Israel, I have observed the battle over settlement expansion from an on-the-ground perspective. On May 16, I traveled with the Israeli peace group Ta’ayush to Hilltop 26, an illegal hilltop outpost constructed by settlers from Kiryat Arba – not an aspect of “natural growth.” Four angry settler youths confronted us upon our arrival; within minutes, a squadron of Israeli border police officers, soldiers and a Kiryat Arba security team were on the scene. The army swiftly issued a “closed military zone order,” ordering us to leave within five minutes or be arrested. While the soldiers initially allowed the settler youth to stay, the presence of international media apparently prompted them to briefly remove the teenagers while allowing their outpost to remain – an act that underscored the army’s collaboration with settlers to stifle the activities of peace groups. (See the confrontation in my exclusive Daily Beast video report here.)

On May 25, Ta’ayush member Joseph Dana detailed to me the continued development of Hilltop 26. Since I visited the outpost, Kiryat Arba settlers had wired it with electricity and established a security perimeter. Two days before, Dana and two other Ta’ayush activists were arrested by Israeli army officers for returning to the area to document conditions and not leaving rapidly enough. After interrogating the activists in Kiryat Arba police stations – “Why are you always creating chaos here?” Dana said the army commander angrily asked him – the commander ignored two calls from left-wing members of Knesset for the activists’ immediate release. In the end, Dana and his colleagues were released under the condition that they not return to the West Bank for two months.

Two days after I listened to Dana’s story, he called me with unexpected news: the army had dismantled Hilltop 26. Netanyahu had issued a list of 26 illegal outposts he planned to demolish — an unsuccessful tactic to mollify the Obama administration — but Hilltop 26 was not among them. Dana attributed the sudden demolition to intense coverage of the controversy, particularly my video for the Daily Beast and an editorial he authored for the Israeli daily Ha’aretz. “It seems like the government was so embarrassed by all the media coverage, and even though they tried to prevent us from even going to Hilltop 26 to document what was happening there, they decided they had to take action,” Dana told me.

The demolition, however, has sparked a furious backlash from the fanatics of Kiryat Arba. According to Dana, the settlers have initiated a new round of violence inside Hebron – already, an elderly Palestinian man has been beaten. And while the settlers hatched plans to rebuild the outpost, the following call for retribution appeared on a Kiryat Arba web forum: “The destruction of outposts and their surrender is the first step in the bigger scheme… we will not be silent any longer! We will not silently abided by false declarations, promises and temptations… Bribes blind the eyes of the righteous. We will stop the cleansing at the source.” The battle over Hilltop 26 appears to be just beginning. So does the struggle between Obama and Netanyahu.

Palestinian village sends pair to sue Quebec companies

CBC Canada

2 June 2009

Two representatives of a small West Bank Palestinian village will tour Canada this month, as they prepare a lawsuit against two Quebec-based companies for allegedly violating international law by building Israeli settlements on occupied territory.

Mohammed Khatib is a member of the Popular Committee Against the Wall in the town of Bil’in, west of Ramallah. He will hold a news conference on June 4 at Quebec Superior Court, along with Israeli lawyer Emily Schaeffer, who represents Bil’in.

The town’s claim was filed July 9 against sister companies Green Park International and Green Mount International. It also asks the Quebec Superior Court for an injunction to stop further construction and demolish apartment buildings already erected in Moddin Illit, a Jewish settlement northwest of Ramallah.

Bil’in alleges both companies committed war crimes by building housing in the settlement, Israel’s largest in the West Bank. The lawsuit also names Annette Laroche, who is named as the director of both companies.

The apartment buildings are built on land that was part of a Palestinian village until Israel seized the West Bank from Jordanian control in the Six-Day War in 1967.

The village is home to about 1,700 people.

In the lawsuit, the village’s municipal council and chief Ahmed Issa Abdallah Yassin allege Green Park and Green Mount acted as “agents of Israel” by building the housing.

The lawsuit asks the court to rule whether the construction violates the Fourth Geneva Convention, which deals with the protection of civilians in times of war and occupation; Canada’s Crimes Against Humanity and War Crimes Act; the Quebec Charter of Human Rights and Freedoms; and the Civil Code of Quebec.

The Fourth Geneva Convention forbids an occupying power from transferring its own civilians into occupied territory.

In a news release Tuesday, Lynn Worrell, a spokeswoman for the town of Bil’in, said preliminary court proceedings are scheduled to be held in Montreal June 22.

Settlements continue to expand in Hebron

25 May 2009

North of Hebron, in a Palestinian village named Al Bueire, settlers had built an outpost over one and a half months ago. When Israeli forces finally removed the illegal outpost on 25 May 2009, settlers coordinated attacks on the Palestinian residents.

Around 4pm, settlers began to throw stones at the house of the Palestinian resident who owns the land upon which the outpost was built. Several Israeli solidarity activists were present at the scene and pressured the Israeli army and border police to prevent another attack from the settlers.

During the night on 25 May 2009, a road which leads to the village was blocked by settlers with big rocks. However, the Palestinian residents were able to remove the rocks in the morning. Additionally, settlers hoisted Israeli flags at the site of the outpost.

26 May 2009

At 10am on Tuesday, 26 May 2009, settlers from Karmel settlement came unto remaining land from Umm Al Kher with bulldozers to clear the Palestinian land. The inhabitants of Umm Al Kher tried to go out to prevent the settlers, but were stopped by Israeli border police.

In an hour, some 20 residents alongside an UNRWA official who happened to be in the area went to the land. Shortly thereafter, the Israeli occupation forces declared the area a Closed Military Zone and forced the Palestinians away.

Settlers from Karmel are continously trying to expand their illegal settlement with structures to de-facto annex Palestinian land. Residents from Umm Al Kher are frequently harassed by settlers and are not allowed to build new homes, connect to an electrical circuit or connect to a water system.

Dubai, jewel in Israel’s sales crown

Alain Gresh | Le Monde

27 May 2009

With the exception of Egypt, all Arab states officially boycott Israel, blacklist Israeli companies and ban imports of Israeli products. The same countries frequently lead the voices calling for sanctions against Israel. But sometimes life gets in the way.

Just a few weeks after the world financial crisis broke, a super-luxury hotel, the Atlantis, opened its doors in Dubai in the United Arab Emirates. The French chatter website LePost.fr of 21 November 2008 trumpeted the headline: “2000 stars at the inauguration of Dubai’s Atlantis Hotel”. It wrote:

“Dubai, Dubai, Dubai! Arab princes, flying carpets, oil, dollars… and the Atlantis Hotel! An extraordinary palace, which cost more than $1.9bn to create, celebrated its opening yesterday in high style.

“This little junket cost a trifling $38m! That’s what it took to tell the entire world about the arrival of a luxury hotel which sees itself as the planet’s most incredible palace, with its giant in-house aquarium…

“The Atlantis is at the heart of Dubai’s Palm Island, an artificial island built in the shape of a palm tree. The world’s greatest architects and designers worked on the Pharaonic project.”

Like the hotel itself, the event bore all the hallmarks of mad money climaxing a spendthrift era. You need only to walk down its vast corridors, as I did earlier this month, to realise just how foolish an exercise this is, what bad taste it represents, and of course that it’s very empty. The expected tourists vanished with the crisis.

The corridors bulge with luxury boutiques, the sort of shops which sell priceless clothes and diamond jewels. One of them is called Levant. Its display cases promote Leviev diamonds, as shown in this photograph.

But just who is Leviev? Abe Hayeem, who is from Bombay, of Iraqi Jewish origin, knows. He wrote an article headlined “Boycott this Israeli settlement builder” in The Guardian of 28 April 2009. Hayeem points out that the British Foreign Office decided to cancel its rental contract for the British Embassy in Tel Aviv because the building was owned by Leviev.

Far from only selling diamonds, Leviev is busy inside the occupied territories, principally constructing a road which links the illegal settler colony of Zufim, which he owns, to Israel – part of the ongoing process of confiscating Palestinian land. His company is also active in Bil’in where, on 17 April, the Israeli army killed a peaceful protestor, Bassem Abu Rahmeh, 29. This same company now has two boutique outlets in Dubai.

Their presence in the UAE has raised eyebrows. On 30 April 2008 an article by Abbas al-Lawati in Gulf News, the English-language daily, headed “Israeli jeweller has no trade licence to open shop in Dubai”, quoted a top official denying that the UAE had ever granted Leviev a licence and saying that if an application came it would be rejected.

Gulf News followed up the story on several occasions, including one report of demos against Leviev, “Call to boycott Israeli jeweller” on 14 December 2008, also by al-Lawati.

During the Dubai Arab Media Forum meeting I attended in May I raised the issue with journalists from various Arabic-language dailies. They told me they were not allowed to reply to such questions.

At a time when Israel violates with impunity all the UN Security Council resolutions, a growing movement calls for sanctions, boycotts and disinvestment (withdrawing overseas investment from Israel and the occupied territories). It’s similar to the French campaign against Alstom and Veolia for their role in a tram project in occupied Jerusalem “Tramway à Jérusalem, mensonge à Paris”, 24 October 2007. It’s astounding, in the circumstances, that Arab countries collaborate with the very same companies which operate in the occupied territories.

France’s trade minister Christine Lagarde visited Saudi Arabia in mid-May principally to promote the bid by Alstom and the SNCF for a TGV-type fast rail link between Mecca and Media. One must hope that the Saudi authorities make it a condition of any agreement that Alstom backs out of the Jerusalem tram project.

Palestine urges withdrawal of rail contract

Abbas Al Lawati | Gulf News

31 May 2009

Dubai: Palestinian officials have intensified diplomatic efforts to persuade Saudi Arabia to withdraw a multibillion dollar rail contract awarded to a firm alleged to be complicit in Israel’s expansion in Occupied East Jerusalem, Gulf News has learnt.

Palestinian National Authority officials have said that they are in talks with the Saudis to find ways to block the Occupied Jerusalem light rail project.

The light rail project will link Occupied West Jerusalem to Occupied East Jerusalem and Jewish colonies in the Occupied West Bank when completed.

It has been described by Israeli leaders as the fulfillment of the Zionist dream and will be partly built by the French firm Alstom.

Alstom is part of a consortium awarded a $1.8 billion (Dh6.6 billion) civil works contract in March for the Makkah-Madinah railway, the Haramain Express.

“Back-channel talks with the Saudis are ongoing.” said a high ranking official at the Palestinian foreign ministry, speaking to Gulf News on condition of anonymity. He refused to divulge further details.

However, while Palestinian officials fear that Alstom’s Makkah contract will undermine their efforts to block the Occupied Jerusalem tramway, they also see it as an opportunity to put pressure on the company through Saudi Arabia.

They say that although the Occupied Jerusalem project is expected to be completed next year, Saudi Arabia could use its influence to derail its further expansion as well as its 30-year maintenance plan.

Palestinian efforts to fight the project started following a 2006 Arab League ministerial decision in Khartoum calling on states and international organisations to “stop the Occupied Jerusalem tram project and refrain from assisting in its execution”.

Since 2007 the Palestinian foreign ministry has been pressing Arab states to use their political and economic weight to pressure France into taking action against the companies that are involved in the Occupied Jerusalem project, but apparently has not had much success.

The foreign ministry requested Saudi Arabia to intervene in the matter in a letter dated December 2007.

“We received a reply from the ministry in early 2008 stating that Saudi officials intend to speak to the French on the matter,” said the Palestinian official.

Since the letter the Saudi government has awarded two contracts to Alstom. The company won a $2.6 billion contract to build a power plant in the kingdom last year.

This was followed by the Haramain Express contract earlier this year by the Saudi Railway Organisation (SRO).

The consortium is now bidding for two more contracts to supply the trains and maintain the stations. The SRO did not respond to Gulf News’ questions.

Alstom, Alstom Transport and Veolia are also facing a lawsuit in France for their involvement in the Occupied Jerusalem project, brought by French advocacy group Association France-Palestine Solidarité, which is working closely with the Palestinian Liberation Organisation’s (PLO) representative office in Paris.

Ambassador Hind Khoury, PLO representative and former minister of Occupied Jerusalem affairs, called the case a ‘breakthrough’. She said she often reminded Arab counterparts of their obligations as per the Arab League decision.

“I have a new mandate from the [Palestinian National Authority] president [Mahmoud Abbas] to pursue this case,” she said.

In an effort to avoid embarrassment, the French government reportedly distanced itself from the project when pressed by the Palestinian National Authority to intervene in 2005. It said it had nothing to do with projects private companies were involved in.

However, Alain Gresh, editor of Le Monde Diplomatique, said that the Occupied Jerusalem contract was signed in the office of the then French ambassador to Israel, Gerard Araud. “They can’t ignore that,” he said.

Such contracts are often politicised, with high level delegations often including heads of governments, being sent to the region to lobby on behalf of the bidding companies.

Palestinian officials have said that their discussions with Saudi Arabia will be based on the 2006 Arab League decision.

Eric Lenoir, communications manager at Alstom Transport said Gulf officials had not cited the Occupied Jerusalem project as a concern.

“Our job is to be compliant with specifications defined by local railway authorities. We don’t make politics,” he added.

Lenoir said that the Gulf region was an attractive market for Alstom due to congestion problems in its cities and a realisation by its governments that rail transport was a viable solution as the countries develop.

The company is currently eyeing projects in Qatar, Abu Dhabi and Dubai, and the planned GCC railway.

The credible case against Alstom

Dubai: Critics of French-based Alstom have accused it of violating international law for what they see as the company’s complicity in Israel’s occupation of Palestinian territory.

The company faces a lawsuit in France brought by French advocacy group Association France-Palestine Solidarité and the Palestine Liberation Organisation for its involvement in the Occupied Jerusalem light rail project which connects Occupied West Jerusalem to Occupied East Jerusalem and Jewish colonies in the West Bank.

Alstom and Veolia have repeatedly come under fire by advocacy groups in Europe for the project.

The Dutch ASN Bank decided in 2006 to exclude Veolia from its investment portfolios, and the Swedish national pension fund AP7 has blacklisted Alstom from its $15 billion (Dh55 billion) portfolio, according to media reports.

While the lawyers for the parties taking Alstom to court have avoided speaking to the media, Dubai based international humanitarian law expert Urs Stirnimann assumed that the Geneva Conventions are the principle basis in taking the company to court in France.

He said Israel’s practice of settling its population on occupied territory is widely considered to be a violation of Article 49 of the Fourth Geneva Convention, which, in accordance with article 147 is a grave violation of international humanitarian law.

“In other words, [it is] a war crime. Article 146 clearly stipulates that it is the responsibility of each country to act against grave breaches of the Geneva Conventions,” he said.

Alain Gresh, editor of Le Monde Diplomatique, said that while it is unlikely that the French court would force the two companies to withdraw from the project, it sets a precedent which will prevent firms from operating in occupied territories for fear of a backlash. Alstom and Veolia have won contracts worth billions in all six Gulf Cooperation Council states.

Adri Nieuwhof, a human rights advocate who has written extensively about the Occupied Jerusalem tramway, says that the project is part of an Israeli “master plan” for Occupied Jerusalem, which includes the confiscation of privately owned Palestinian land.

She said the tramway would consolidate Israel’s hold on occupied Palestinian territory.

“For colonists living in the Occupied West Bank, travel to Occupied Jerusalem can become faster and more efficient with the light rail, so the colonies can become more attractive for colonists to live in, besides being cheap.”