As the stage is being reportedly set for President Barack Obama to spell out his much-awaited ideas for a Palestinian-Israeli settlement at the opening of the UN General Assembly later this month, two issues remain regrettably overlooked or shortsightedly sidetracked. If this neglect persists, they have the potential of derailing a peaceful settlement.

The two issues are the failure of the Obama administration to engage Hamas, the Islamic Resistance Movement, and its inexplicable refusal to identify Israeli settlements in the occupied West Bank as illegal under international law.It is just like burying its head in the sand.

Several Egyptian attempts have been launched to reconcile the two key Palestinian groups, Hamas and Fateh, the latter led by President Mahmoud Abbas, but no headway has been achieved.Hamas, which won the first Palestinian parliamentary elections three years ago, much to the surprise of all, especially Fateh, feels it is entitled to a bigger slice of the ruling Palestinian Authority and its governing machine.The internecine squabbling that followed resulted in a successful coup by Hamas, whereby it controlled Gaza Strip and its strategic location on the eastern Mediterranean.

But this split has weakened the Palestinian side, castingdoubt that it will contribute to a fair and decent Palestinian-Israeli settlement, hopefully by the year 2011. And here is where the Obama administration should step forward.Why not try and engage Hamas, since several Hamas leaders in Damascus or Gaza have lately appeared eager to do so, voicing willingness to live alongside Israel.After all, Obama has time and again expressed his preference to engage rather than ostracise several regimes or Islamic groups that the Bush administration unwisely boycotted.

Besides Iran, there has been talk of opening links with the Taliban, as well as Cuba, among others.

Israel has also been in touch with Hamas, albeit indirectly, to come to an agreement on a prisoner exchange agreement.

Interestingly, senior US military officers have lately championed new ideas in tackling foreign policy issues and severely criticising past practices. Gen. David H. Petraeus, commander of the US Central Command, feels that the Arab-Israeli conflict is “very central” to the mission of US troops and US policy in the Middle East. This point has been repeatedly made by many Arab leaders, without much success.

Israel, on the other hand, always downplayed the significance of the relationship, preferring to have the Obama administration focus on Iran and its alleged nuclear ambitions.

Adm. Mike Mullen, the chairman of the joint chiefs of staff, also maintains that the US military is bungling its outreach to the Muslim world and squandering goodwill by failing to live up to its promises. He wrote recently in a US military journal that “each time we fail to live up to our values or don’t follow up on a promise, we look more and more like the arrogant Americans the enemy claims we are”.

Although the American president has admirably delivered on his promise to give top attention to the Arab-Israeli conflict upon assuming office last January, he has so far avoided resorting to more bluntness.It may be argued that he is overwhelmed by the domestic problems at home, but he could, nevertheless, still utter the magic word in discussing expanding Israeli colonisation in the occupied Palestinian territories: illegal. Yes, all these settlements are illegal and they have to be evacuated, sooner rather than later. Allowing for “natural growth” is certainly a waste of money.

For one, the American president can begin by cleaning the house as in the case of one American organisation, American Friends of Ateret Cohanim, a non-profit US organisation that has been sending millions of dollars worth of donations to Israel every year “for clearly political purposes, such as buying Arab properties in [occupied] East Jerusalem”. It is registered in the United States as an organisation that funds educational institutes in Israel, Haaretz revealed.

The US tax code enables non-profit organisations to receive tax-exempt status only if they engage in education, charitable, religious or scientific activity. To date, the paper reported, ithas bought dozens of Arab building for Jews to settle in.

“An America that will not pressure Israel is an America that will not bring peace,” commented Gideon Levy of Haaretz, hitting the nail on the head.