Obama Freezes Out the Pals.

At the press conference on the issue of "settlement freeze", Obama basically avoids the issue:

Q: Thank you, Mr. President. As far as the steps which need to be taken to move possibly - (off mike) - direct talks, do you think it will be helpful for Israel to extend the - (off mike) - settlement moratoriums set to expire in September?

President Obama: Well, let me first of all say that I think the Israeli government, working through layers of various governmental entities and jurisdictions, have shown restraint, over the last several months, that I think has been conducive to the prospects of us getting into direct talks.

And my hope is, is that once direct talks have begun, well before the moratorium has expired, that that will create a climate in which everybody feels a greater investment and success, not every action, by one party or the other, is taken as a reason for not engaging in talks, so there ends up being more room created by more trust. And so, you know, I want to just make sure that we sustain that over the next several weeks.

I do think that there are a range of confidence-building measures that can be taken by all sides, that improve the prospects of a successful negotiation. And I've discussed some of those privately with the prime minister. When President Abbas was here, I discussed some of those same issues with him.

I think it's very important that the Palestinians not look for excuses for incitement, that they are not engaging in provocative language; that at the international level, they are maintaining a constructive tone as opposed to looking for opportunities to embarrass Israel.

At the same time, I've said to Prime Minister Netanyahu --I don't think he minds me sharing it publicly - that, you know, Abu Mazen working with Fayyad have done some very significant things, when it comes to the security front. And so us being able to widen the scope of their responsibilities, in the West Bank, is something that I think would be very meaningful to the Palestinian people.

I think that some of the steps that have already been taken in Gaza help to build confidence. And if we continue to make progress on that front, then Palestinians can see in very concrete terms what peace can bring that rhetoric and violence cannot bring.

And that is people actually having an opportunity to raise their children and make a living and, you know, buy and sell goods and build a life for themselves, which is ultimately what people in both Israel and the Palestinian territories want.

So, he skipped over it, played it down, intimated the Pals. should lay off it and watch out not to be provocative themselves, i.e., their ethnic cleansing boycott, etc., and that their own improvement and benefit economically should be preferred over going after the residency of Jews in their historic homeland.