Communicated by Foreign Ministry Spokesman March 31, 1997 Foreign Minister Levy's comments to Knesset Foreign Affairs and Defense Committee Addressing the Knesset Foreign Affairs and Defense Committee on Monday, 31.3.97, Foreign Minister David Levy expressed concern over developments with the Palestinians. He noted that the current situation was inevitable and would have occurred in any case, due to the substantive difference between Israel's perception of the process and the expectations of the Palestinian side. According to the foreign minister, Israel is facing a crisis which could mean the end of the peace process if the situation is not resolved. After the Hebron redeployment, it was agreed with Abu Mazen that incitement and violence would be avoided, but the Palestinians are not living up to the terms of this agreement. Arafat has created a crisis, and dealt a serious blow both to the peace process and to the Israeli public's attitude towards it. The Israeli government is upholding its commitments and genuinely desires to reach a solution to the conflict. It has also formulated, along with the Palestinian Authority, ways to deal jointly with all outstanding issues. The root of the problem is that every time it seems to Arafat that his strategic goal -- a Palestinian state with Jerusalem as its capital -- is not being achieved in full, he reverts to the well-known pattern of violent behavior, including relaxing the restraints on terrorism, creating an overall crisis and mobilizing Arab and international support, with the intention of isolating Israel, causing public agitation and bringing down the government. Arafat must understand that violence is not an acceptable means of behavior. The future of the entire peace process will be called into question if it is not made absolutely clear that such a process cannot be advanced while violent measures are being used and known terrorist plots are not foiled. In this context, Foreign Minister Levy added that contrary to the loosening of the restraints on terrorism and the organization of demonstrations by Fatah, on Land Day the PA acted to calm the situation in the Palestinian street. This, he said, may have been the beginning of an understanding that progress cannot be made while violence is being used. Mr. Levy stated that the frequent conferences in the Arab world are returning us to the situation prevailing in the 1950s and 1960s, and are an expression of pan-Arabism. Egypt is playing a role in drawing together the Arab world, in an attempt to return Israel to its so-called "natural dimensions," and is making an intensive effort to halt normalization between Israel and the Gulf and North African states. This is an intolerable situation. Relations between Israel and Egypt are extremely important. Israel expects Egypt to play a positive role and to contribute to the improvement of the situation, not to its deterioration. The foreign minister sought to clarify the government's position, according to which Israel has a right to build throughout Jerusalem, including in Har Homa. The criticism regarding the timing of the beginning of construction in Har Homa is irrelevant, since this critical response would have come whenever construction began. Israel will uphold all agreements, but this does not mean that it must accept the Palestinian Authority's objective and compromise regarding Jerusalem. Jerusalem will remain the sovereign capital of Israel. Mr. Levy said that it has been proposed to the Palestinians that negotiations begin on the final status agreement. These negotiations would not replace the process, he added, but if principles for such negotiations can be agreed upon, it would help prevent future difficulties. Responding to a question by committee members, the foreign minister stated that the real test of the peace process does not lie in the gap between the positions of the two sides, but rather in the way in which the process is conducted from here on in. If violence, incitement and terror continue to be an inseparable part of the process, the minister added, then we will not wish to continue it. This is not the way in which peace will be achieved. Israel will not agree to being attacked in the name of peace in the Arab and international arena. This runs counter to the signed commitment given to the prime minister and to Israel. The frequent use of the term "spirit of peace" while commitments are being violated is deceptive and without basis. According to Mr. Levy, the situation on the ground has passed the boiling point and is beginning to calm down, since there is no alternative to the negotiation process. He concluded his remarks with a call for unity against violence and bloodshed, as well as a united stance by all parts of the public and the political spectrum against terrorism and those who permit it.