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Jerusalem: Latest Bombing Claimed by Arafat's Organization; Bush Increases Pressure on Arafat; Israeli, Palestinian Economies Pay the Price

Aired March 21, 2002 - 20:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CHRISTIANE AMANPOUR, CNN CORRESPONDENT: I'm Christiane Amanpour in Jerusalem. Two massive suicide bombs in Israel this week. The latest in the heart of the capital city here. It is being claimed by militants within Yasser Arafat's own organization. Will the latest attempts of a truce survive? All that ahead in our report LIVE FROM JERUSALEM.

ANNOUNCER: A deadly detonation in the heart of Jerusalem.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It is, as you can imagine, a scene of panic. There are (UNINTELLIGIBLE) people running away.

(END VIDEO CLIP)

ANNOUNCER: A strong condemnation from Yasser Arafat. But a group linked to the Palestinian leader claims responsibility for the attack. Amid fears the suicide bombing will strike a stake in the heart of any peace talks, President Bush turns up the heat.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Mr. Arafat must do more to stop the violence in the Middle East.

(END VIDEO CLIP)

ANNOUNCER: Live from Jerusalem, Christiane Amanpour.

Three people dead, at least 40 injured as talks toward a truce teeter on the brink of survival. Israel blames Yasser Arafat squarely for what just happened but Israel also expressing restraint for now. Arafat for his part condemning the attack and all attacks against Israeli civilians.

But it turns out as both Israeli officials and Palestinian sources till us, this latest suicide bomber had been in jail by the Palestinian authorities and had been released after an Israeli incursion into the West Bank just a week ago.

(BEGIN VIDEOTAPE) (voice-over): It was about 4:15 in the afternoon. Israelis have tried to keep away from this commercial district in the heart of West Jerusalem because of previous suicide bombings, but on this day those who had to be there were caught in yet another attack.

GIL KLEIMAN, ISRAELI POLICE SPOKESMAN: The suicide bomber entered a main street in Jerusalem, King George Street, blew himself up outside an eatery and a shoe store.

AMANPOUR: This attack comes just a day after another suicide bomber killed seven Israelis and wounded dozens more aboard a bus in the north of the country. Palestinian sources told the media the latest suicide bomber was a member of the Al Aqsa Martyr's Brigade, a militant wing of Yasser Arafat's Fatah movement.

(on camera): The terrible irony is that this attack comes at a time when Yasser Arafat is perceived to have been scoring points, not only being involved in cease-fire talks, but also being offered a political horizon as well.

This attack also comes right at a time when Israeli and Palestinian security officials are meeting to try to hammer out that cease-fire.

(voice-over): A third meeting between security officials and U.S. envoy Anthony Zinni scheduled for Thursday night was immediately postponed. An Israeli government spokesman blamed Yasser Arafat for the carnage, even as Arafat condemned the bombings and all attacks against Israeli civilians.

YASSER ARAFAT, PRESIDENT, PALESTINIAN AUTHORITY (through translator): We strongly condemn this operation that happened in Jerusalem today, especially that it was directed against innocent Israeli civilians. We will take all immediate necessary measures to stop those kind of actions and to stop those behind it.

AMANPOUR: As Israel ponders its next move, some citizens on the scene are urging harsh retaliation.

UNIDENTIFIED FEMALE: I think the Arabs only understand force and that's what needs to be done.

AMANPOUR: And Israelis who believe in the peace process are once again plunged into despair.

UNIDENTIFIED MALE: It just makes he want there to be peace. I want them to put a stop to it. I don't know whether that means using more force or more negotiation. But neither one seems to be working.

AMANPOUR: This suicide bomber detonated his deadly charge right below a banner that proclaimed "we want to live in peace." The blood on the wall shows how far away peace still is.

(END VIDEOTAPE)

As we mentioned, the U.S. special envoy, the former Marine commandant Anthony Zinni has been in Israel for the better part of a week trying to bring the two sides together. The latest cease-fire and truce talks of course have been postponed. An Israeli minister is quoted in the Israeli press as saying this is essentially the last chance for American mediation efforts. As CNN's Mike Hanna reports, this was one of the rare moments in so many months of violence where there was a slow but sure momentum towards a truce and a cease-fire and perhaps even a political track ahead.

(BEGIN VIDEOTAPE)

MIKE HANNA, CNN CORRESPONDENT (voice-over): U.S. envoy Anthony Zinni has seen this all before. His two previous missions marked by an upsurge in violence ended in failure. The man who had come to broker a peace then ended up mourning more dead.

But this time there were distinct signs of progress in the cease- fire talks that took place before the bombing between Palestinian and Israeli security chiefs behind closed doors. Ariel Sharon had dropped his insistence that there would be no cease-fire talks until there was a complete end to violence and had declared he would hold discussions with any Palestinian leader once a cease-fire was implemented. Before the Jerusalem attack, Israel's foreign minister was optimistic about an agreement.

SHIMON PERES, ISRAELI FOREIGN MINISTER: There was a fair chance for it. (UNINTELLIGIBLE) to tell the truth. And opportunity is more attractive than before because for the Palestinians, they have or they ask for a salt of a political horizon.

HANNA: Each side has presented Zinni with a position paper outlining its view of how the Tenet cease-fire plan should be implemented. The plan, drawn up by the CIA director last year provides for a series of tangible actions that Israel and the Palestinian Authority must be seen to take.

SAEB ERAKAT, CHIEF PALESTINIAN NEGOTIATOR: We hope now since the American side now has the Palestinian plan and the Israeli plans that the guiding lines will be a very simple principle. Tenet as was written, no fragmentation, no admissions, no additions, no selectivity.

HANNA: But the Jerusalem is seen by the Israeli government as evidence that Arafat will not or can not meet a key Tenet dictate; that there be a crackdown on militant groups and that every effort be made to end attacks against Israeli targets.

Within hours of the Jerusalem bombing, Arafat pledged to hunt down those responsible. But Israel and the U.S. are looking for more than pledges.

(on camera): Anthony Zinni has a clear mandate to determine whether each side is meeting its commitment to the cease-fire. It's a broad mandate given to the envoy by the president of the United States and acknowledged by both Israelis and Palestinians. At this stage an announcement on the fate of the cease-fire process will be made by Anthony Zinni. Mike Hannah, CNN, Jerusalem.

(END VIDEOTAPE)

AMANPOUR: As we mentioned, both the Israeli prime minister and indeed the United States appeared to be offering incentives to Yasser Arafat this week saying that if he reined in the violence, on the one hand he would be able to have peace negotiations and go to the Beirut summit next week.

Also from the United States, a promise of a meeting with Vice President Dick Cheney if he only reined in this violence. Now with a militant group allied to his own movement claiming responsibility, the next move are not at all clear. What is clear though is that the United States has designated the Al Aqsa Martyr's Brigade a foreign terrorist organization.

But time is short now before the Beirut summit to see whether this violence will be reined in, whether or not there will be a meeting with Vice President Dick Cheney. CNN's John king traveling with President Bush reports on America's next moves.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): Aboard Air Force I, destination, El Paso, Texas. An urgent discussion of the latest deadly bombing in Israel and a decision to make clear a meeting between Vice President Cheney and Palestinian leader Yasser Arafat is no sure thing.

BUSH: Mr. Arafat must do more to stop the violence in the Middle East.

KING: A Palestinian group called the Al Aqsa Martyr's Brigade took responsibility for Thursday's attack. Al Aqsa is affiliated with Arafat's Fatah movement and senior officials say Mr. Bush deliberately added this line to his speech in Texas just after his call for Mr. Arafat to do more.

BUSH: If you harbor a terrorist, if you hide a terrorist, if you feed a terrorist, you're just as guilty as the terrorists themselves.

KING: Secretary of State Powell called Mr. Arafat from Air Force I demanding that he publicly denounce the latest violence and immediately arrest those responsible if he wants the Cheney meeting to take place.

The administration believes a Cheney-Arafat meeting just before next week's Arab summit in Beirut would give Israeli Prime Minister Ariel Sharon political cover to lift travel restrictions on the Palestinian leader, allow the vice president to make clear that Mr. Arafat must say nothing at the summit that might incite violence. Encourage the summit debate to focus on the new Saudi peace initiative, not public condemnation of Israeli or the United States, and allow Arab leaders to directly pressure Mr. Arafat to do what is necessary to reach a lasting cease-fire. At a morning Oval Office session, both the president and vice president said special Mid East envoy Anthony Zinni will make the final decision on the meeting based on progress and implementing security improvements required in the so-called Tenet plan.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: He'll make his judgment based on whether or not Arafat is in fact implementing Tenet, not just promising to implement but implementing Tenet.

KING: The State Department upped the stakes on Mr. Arafat, by announcing its designation that the Al Aqsa Brigade as a foreign terrorist group.

(on camera): That designation blocks any fund-raising in the United States or any travel to the United States by Al Aqsa Brigade members. But senior officials say the bigger meaning of the designation is that it gives a green light for an Israeli military response if Mr. Arafat does not dismantle the group and quickly.

John King, CNN, the White House.

(END VIDEOTAPE)

AMANPOUR: Well, we reported that the Israelis, so far, are showing restraint. When we come back, the sad and familiar accusations and counter-accusations from both sides.

ANNOUNCER: Later on LIVE FROM JERUSALEM, when just going out can mean finding yourself on the front lines. Many are opting to stay at home.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This place is normally teaming with tourists, the shops full, but not anymore. These days even Israelis are reluctant to come here.

(END VIDEO CLIP)

ANNOUNCER: We're back in two minutes. But first, is Yasser Arafat capable of reining in factions carrying out the terror campaign against Israel? To take the quick vote head to cnn.com. The AOL keyword is CNN. A reminder, this poll is not scientific.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

AMANPOUR (voice-over): It is, as can you imagine, a scene of panic. And of some (UNINTELLIGIBLE). There are quite a few people running away, as you can imagine and there a lot of security personnel and medical personnel on the scene. I am looking right now at a stretcher on which has been laid out a body that is now being covered by a blacktop (UNINTELLIGIBLE). Medical examiners have been examining, it looks to me, from here, to be the body of a woman.

(END VIDEO CLIP)

It was, as can you imagine, quite a terrible scene down in the heart of West Jerusalem this afternoon, or rather yesterday afternoon Jerusalem time. And, of course, immediately the Israeli government blamed Yasser Arafat, squarely putting the onus and the burden for peace on his shoulders. At first, we didn't know who had claimed responsibility or who might have done this. Was it the groups historically opposed to peace? Hamas, Islamic Jihad or was it a group linked with Yasser Arafat's movement itself -- it turned out that that was the case.

The Al Aqsa military brigade, the martyr's brigade, claimed responsibility. And the Israeli spokesman said now it is time for Yasser Arafat to stop making declarations condemning these kinds of attacks and do something concrete to rein in the terrorists.

(BEGIN VIDEO CLIP)

RA'ANAN GISSIN, SHARON ADVISER: Let's look eighteen months ago, wasn't there a political horizon for the Palestinian? Israel has offered more than any other Arab country offered. They were on the way to establish peace, real peace. Yasser Arafat rejected it and opted for a strategy of terror. And Ever since then there have been 10 cease-fires all violated by Yasser Arafat. There have been 10 suicide attacks inside Jerusalems. We did not go into the Palestinian camp or into the Palestinian cities because we wanted to harm Palestinians. We extended an open hand for peace and what we get in return every time, is another suicide bomber.

Well, time is running out. This organization that sent today this suicide bomber, the suicide bomber was supposed to be in prison. We were told when we identified him five days ago that he's going to be put in prison in Ramallah. We allowed him to be transferred to Ramallah, he disappeared in Ramallah, this is the sort of revolving door. And then when does he show up again? He shows up in the street of Jerusalem with a suicide bombing of killing three people and wounding 40. This is repeatedly the pattern. Arafat can not bask in his neutrality, he can not bask and exonerate himself from deeds or misdeeds conducting terrorist activity.

(END VIDEO CLIP)

AMANPOUR: So Yasser Arafat, immediately after this bombing did come on television in a rare appearance condemning the attack, condemning all attacks against Israeli civilians, and vowing to do all that he could and that the Palestinian Authority could to bring those people responsible to justice. But for the Palestinian side, they claim that Yasser Arafat does not have total control over all the militants in the territories.

(BEGIN VIDEO CLIP)

HASSAN ABDEL RAHMAN, CHIEF PALESTINIAN REP. TO U.S.: Yasser Arafat can not have full control over them, even if he has the will to do it. Because logistically and politically, it is extremely difficult. He will try, and I'm sure that the one who wants quiet more than anyone else is Yasser Arafat, because neither he nor the Palestinians will win anything as a result of violence.

But the Israelis are not happy when they deploy thousands of their soldiers and tanks and helicopters, and kill and destroy. They create more suicide bombers, that's why we ask Israel, what do you benefit from killing more Palestinians? The bitter situation and the hopelessness of the Palestinians living in refugee camps, and the Israeli occupation, they are killed, they are tortured, their homes are demolished, turn those people into a violent people.

It is -- those people are not born suicide bombers. They are the product of the conditions in which they live. I feel so angry and sad when I see a young Palestinian killing himself, and killing Israelis in the process.

(END VIDEO CLIP)

AMANPOUR: Just earlier this week we spoke to members of the Al Aqsa Martyrs Brigade. They said that they would abide by a cease-fire if one was called by Yasser Arafat, one hasn't been called yet. They claim responsibility for yesterday's suicide attack. What will that mean now for Arafat's ability to go to the Beirut summit or for the broader ability to bring a truce and a political talk back on the table?

We'll have more after this commercial.

ANNOUNCER: Next, dealing with daily violence.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We are afraid and they are afraid.

UNIDENTIFIED FEMALE: Something happens, the kids, have I to call the kids to tell them, OK, I'm still alive. And it's bad, bad.

(END VIDEO CLIP)

ANNOUNCER: Both sides paying a price.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Do you feel that ironically, if you like, you have something in common with Palestinians?

UNIDENTIFIED MALE: Definitely.

UNIDENTIFIED MALE: Economically?

UNIDENTIFIED MALE: Certainly. I'm sure that -- whether we agree with their politics or not, or what's going on, they're obviously feeling it too.

(END VIDEO CLIP)

ANNOUNCER: LIVE FROM JERUSALEM is back in two minutes.

(COMMERCIAL BREAK)

AMANPOUR: Some of the most crowded streets usually in Israel are virtually empty these days. When we return after a break, we'll have a report on one of the clearest signals of whether there is war or peace.

(COMMERCIAL BREAK)

ANNOUNCER: The increase in violence between Israelis and Palestinians is hurting tourism. The number of people visiting Israel dropped 52 percent from September of last year to the beginning of this year.

AMANPOUR: It may seem strange to talk about tourism on a day like this, but tourism, of course, is a bellwether of normalcy. It was meant to be a bonanza for both the Palestinians and the Israelis, not just for their economies, but for mutual understanding as well, and for a few years, during the last decade of peace negotiations, it was. But not any longer. As CNN's Michael Holmes reports, very few visitors today have souvenirs or sight-seeing in mind.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT (voice-over): Stroll around Jerusalem and you'll have plenty of room to do so. It's quiet, very quiet.

(on camera): What sort of change have you seen in these streets in the last month or so?

UNIDENTIFIED FEMALE: Oh, big, big change. I mean, every day it's getting worse.

HOLMES: This is a Ben Yahuda (ph) pedestrian mall in West Jerusalem, and it's not the rain that's keeping people away. This area has been the scene of several suicide bombings, the most recent in December. This place is normally teaming with tourists, the shops full. But not anymore. These days, even Israelis are reluctant to come here.

ETTIE EPSTEIN, STORE WORKER: No tourists. No. Even Israelis, you know. If they do want something, they call us to bring them if they saw something or they know what they want.

HOLMES: They don't want to come?

EPSTEIN: They don't want to come.

HOLMES (voice-over): Ettie Epstein works in a deserted jewelry store, but it's not just economics she worries about.

EPSTEIN: Something happens, the kids, I have to call the kids to tell them I'm still alive. And it's bad, bad.

HOLMES: A little way up the street, past empty cafes and closed ones, we meet Gerry Stevenson, seller of, among other things, black humor T-shirts.

GERRY STEVENSON, VENDOR: I opened up around 7:30, which is normally a busy time. I would say there were about eight people in the entire mall. And of those eight, maybe six were shop owners.

HOLMES: Security is tight; nerves frayed. Enter one of the coffee shops still open, and you'll do so only after a search, even at McDonald's.

(on camera): Do you feel that, ironically, if you like, that you have something in common with Palestinians economically?

STEVENSON: Definitely. Certainly. I'm sure they're having -- they're feeling -- whether we agree with their politics or not or what's going on, or -- they're obviously feeling it too.

HOLMES (voice-over): Cross into Arab East Jerusalem, and you'll see that Gerry Stevenson is right.

TONY KATANASHO, RESTAURANT OWNER: We are afraid and they are afraid.

HOLMES: Meet Tony Katanasho, owner of a once bustling restaurant. You're looking at the lunchtime rush.

(voice-over): A few years ,ago how many people would have been here?

KATANASHO: A lot.

HOLMES: Would have been full?

KATANASHO: Full.

HOLMES: Full?

KATANASHO: Extremely full.

HOLMES: Yeah.

KATANASHO: Yeah.

HOLMES: And how's business now?

KATANASHO: Now it's completely dead, you know. Nothing.

HOLMES (voice-over): In alley ways where tourists once jostled for space, store owners play backgammon, sleep, sit or don't bother to open up at all.

(on camera): During our filming in East Jerusalem, we got a call to come here for perhaps the best example of why there were no tourists. A suicide bomber detonates his explosives in front of a bus.

(voice-over): The bomber literally blown to pieces. Nine Israelis in hospital with understandable shock. More tourists decide to stay home.

(on camera): Did you make any money today?

UNIDENTIFIED MALE: No. Only five shekels since 7:00.

HOLMES: Five shekels. That's about a bit over $1.

(voice-over): In this place of complexity and nuance, both sides have a simple solution to ending their economic pain.

(on camera): What will bring it back?

KATANASHO: Peace.

STEVENSON: That's all. Peace.

UNIDENTIFIED MALE: Peace, we hope.

HOLMES (voice-over): Michael Holmes, CNN, Jerusalem.

(END VIDEOTAPE)

AMANPOUR: So what will happen next? The Israelis have hinted that they will be restrained for now, but they say time is running out for any peace negotiations. What will Yasser Arafat do? Can he rein the militants within his own organization? And what will this mean for the fragile truce that was already under way? Will this country sink back and settle back into yet another cycle of violence? We'll wait to see.

I'm Christiane Amanpour, CNN, reporting live from Jerusalem.

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