At first it seemed as if Israeli Prime Minister Netanyahu escaped his meeting in the White House with President Obama yesterday without a renewal of their long running feud. But before the day was over, it was clear that the administration’s predilection for picking pointless fights with the Israelis hasn’t faded away even as the president appears to be more interested in fighting ISIS than in brokering Middle East peace. By focusing once again on Jewish building in Jerusalem and representing Israel’s actions as an obstacle, the U.S. was not only allowing itself to be distracted from the real problems in the Middle East. By reaffirming its opposition to Jews living in part of their capital, the Americans are also adopting a standard that will make real peace impossible.

As Eugene Kontorovich wrote earlier today, the willingness of the Obama administration to use the essentially deceptive terminology of marginal Israeli left-wing groups about settlements distorts the discussion. If you count every apartment built as a “new settlement” you get the impression that Israel is building hundreds, if not thousands of new neighborhoods and towns every year. In fact all they are doing is building homes in existing Jewish communities, the vast majority of which are located in areas that would, even under the parameters that have been suggested by the Obama administration, remain inside Israel even in the event of a peace treaty with the Palestinians.

But the arguments raised yesterday by the administration about new Jewish homes in Jerusalem—which echoed widespread condemnation of these projects by most of the international community—is troubling for more than just the usual reasons. If President Obama and his State Department truly believe that the presence of Jews in some neighborhoods in eastern Jerusalem is an obstacle to peace that must be removed in order for an accord to be reached, then what they are doing is tacitly endorsing an Arab demand for Jew-free zones in the ancient capital as well as a Judenrein Palestine.

As Netanyahu pointed out, the notion that it is immoral for Jews to buy property or build homes in parts of the city but that there is nothing wrong with Arabs doing the same in neighborhoods that are predominantly Jewish is inherently prejudicial. The double standard here is appalling. Arabs build (often illegally) throughout the Arab majority neighborhoods of the city and no one thinks twice about it even though, if we were to use the same standard by which Israel is judged, that, too, could be construed as an obstacle to peace.

But the real problem is that treating Jewish building in the territories and especially in Jerusalem as offensive almost by definition confirms the Arab belief that there is something inherently illegitimate about the Jewish presence in the country. It is that concept and not Israeli actions that still constitutes the primary obstacle to peace.

After all, if the Palestinians’ main priority was in establishing an independent state alongside Israel they could have accepted peace offers from Israel that would have given them almost all of the West Bank, Gaza, and a large share of Jerusalem. But they turned those offers down in 2000, 2001, and 2008 and refused to negotiate seriously with Israel again this year even though Netanyahu had already signaled a willingness to compromise on territory. It wasn’t settlements that stopped them from grabbing independence but the fact that recognizing the legitimacy of a Jewish no matter where its borders are drawn was still anathema in their political culture. Indeed, when Hamas, which commands the support of the majority of Palestinians and far more than the Palestinian Authority and Mahmoud Abbas, speaks of the “occupation,” they are not referring to the West Bank but to all of pre-1967 Israel.

While the majority of Israelis have drawn the appropriate conclusions from Palestinian rejectionism and understand that peace is nowhere in sight, most still hope that someday this will change. But there is no chance that the political culture of the Palestinians will one day make it possible for compromise over the land until the West stops giving moral support to demands for Jew-free zones.

Netanyahu does well to ignore these latest complaints just as he has done in the past, to the applause of the vast majority of Israelis, when the U.S. attacked the right of Jews to live in Jerusalem. If the Palestinians someday make peace and Jerusalem is split, does President Obama really think it can be done on the basis that both Jews and Arabs would populate the Israeli parts but that the Palestinian areas will be ethnically cleansed of all Jews? If so, then their bitter criticism of Jews moving into Silwan or the mixed neighborhood of Givat Hamatos makes sense. But if the goal is to have an open city in which coexistence prevails, then these arguments are counter-productive.

There are reasons why Israelis are wary about the idea of leaving behind Jews in areas that will, at least in theory, become a Palestinian state. Most revolve around the fact that such holdouts will become immediate targets for terrorist murderers. But if the Palestinians are told by the United States that it is perfectly OK for them to demand that no Jew is allowed to live in areas that they might control, including in Jerusalem, then there is no incentive for them to make peace on any terms.

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