We’ve already noted that the Obama administration’s demands for a settlement freeze wreaked havoc on the peace process by undermining the moderate Palestinian leadership.
The demand was ridiculous – Obama wanted not just a geographic freeze to the size of settlements, which Bibi Netanyahu gave him, but a demographic freeze. Israel was not to build kindergartens for the 960 children born each year in settlements. And “settlements” included Jerusalem.
No Israeli leader, on Left or Right, could agree to this as a pre-negotiation concession. And once uttered by the Americans, no Palestinian leader could demand any less. By undermining the Palestinians, Obama has set back all of us.

Dr. Alex Yakobson
But now I’m starting to wonder if my thinking on this may have been premature. Yes, the Obama administration goofed as only self-righteous fools can. But maybe that’s not such a bad thing.
Dr. Alex Yakobson of Hebrew University, my teacher on these issues and a family friend, made some important points in Ha’aretz last week, suggesting that acceding to Obama’s demands now would leave Israel better off strategically even in the short term.
First, he notes, the American public’s support for Israel is strong and getting stronger:
…According to the poll, 64% of Americans continue to believe that Israel is serious about reaching a peace agreement with the Palestinians. By a 3:1 ratio, the American people express more sympathy with Israel than with the Palestinians: 45% to 15%.
This support, however, is based on the perception that Israel genuinely sought and continues to seek peace. The settlement debate, says Yakobson, is getting in the way:
The support of a majority of Americans is still a much more important factor than all the attacks on Israel and the calls for a boycott. The American people would never have awarded such support to a country they viewed as not pursuing peace.
This is an asset of enormous importance, and it should not be wasted on a dispute with the Obama administration over the expansion of the settlements. The settlements are the main cause for questioning Israel’s desire for peace and its willingness for a two-state solution. Even among our best friends in the United States and elsewhere, the great majority disagrees with Israel over this issue.
…
There is no real gap between the Obama administration’s positions on the settlements and those of the Bush administration. The only difference is that Obama has decided to focus public and diplomatic attention on this issue. From the moment this happened it became clear – beyond any ideological or political dispute – that it is an essential Israeli interest to find a way to reach an agreement with the Americans on a formula for a settlement freeze.
He concludes:
Such a prolonged and public dispute with the United States over the settlements harms Israel. It is a battle where even victory would be a serious defeat. Netanyahu understands America well enough to know that. The question is whether such a critical national interest is a good enough reason in his eyes to confront the extremists within his coalition and party.
Devil’s advocate for a moment: What can Bibi give Obama on settlements without paying an exorbitant political price? And is it worth the trouble just to make the Palestinians willing to talk?
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