(AFP) – Mar 28, 2009

CAIRO (AFP) — Egypt is not optimistic about the Israeli government which premier-designate Benjamin Netanyahu is expected to unveil next week, Foreign Minister Ahmed Abul Gheit said on Saturday.

Abul Gheit's comments to reporters came after Netanyahu's office said the hawkish leader had sought to reassure Cairo after he tapped Avigdor Lieberman to head the foreign ministry in the new administration.

"The formation they are speaking of for a new government does not inspire optimism... we have not heard until now any encouraging commitments at all from people expected to join the upcoming government," Abul Gheit said.

Netanyahu, leader of Israel's right-wing Likud, plans to present his new government to parliament next week after striking a coalition deal with Lieberman and with defence minister Ehud Barak, who heads the Labour party.

Lieberman, head of far right party Yisrael Beitenua, has suggested that Israel should bomb Egypt's Aswan Dam in the event of a war and that Egyptian President Hosni Mubarak should "go to hell" if he does not visit Israel.

Abul Gheit called on the new government to "clearly declare ... its intention and capability to stop all settlement building and to dismantle all settlements in the Palestinian people's land."

Israel began constructing settlements in the West Bank shortly after occupying it in the 1967 war with Egypt, Syria and Jordan. There are roughly 450,000 settlers in the West Bank, including in annexed East Jerusalem.

The settlements violate international humanitarian law, which forbids the colonising of occupied territories with civilians from the occupying power, according to the United Nation's International Court of Justice.

Outgoing Israeli Prime Minister Ehud Olmert had proposed dismantling some settlements in the West Bank while retaining the main settlement blocs that house the majority of settlers.

But Israeli media reported last week that Netanyahu and Lieberman have agreed to expand settlements in an especially contentious part of the West Bank near East Jerusalem.

Abul Gheit welcomed the EU's call on Friday for Israel's prime minister-designate to accept the principle of the creation of a Palestinian state.

The 27-nation EU warned Israel's incoming new government to be led by Netanyahu of unspecified "consequences" if it did not accept the principle of a Palestinian state.

Egypt signed a peace treaty with Israel in 1979, but it ignored the 30th anniversary of the peace deal last week, although its ambassador in Tel Aviv attended a reception held by the Israeli foreign ministry to mark the anniversary.

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