This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 002643 
 
SIPDIS 
 
E.O. 12958: DECL: 06/30/2016 
TAGS: PREL PGOV PTER KWBG KDEM KPAL MOPS EG IR IS ISRAELI PALESTINIAN AFFAIRS GOI INTERNAL
SUBJECT: (C) LIKUD MK STEINITZ ADVOCATES DISMANTLING AND 
ISOLATING THE HAMAS GOVERNMENT 
 
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b,d). 
 
¶1.  (C) Summary:  In a June 29 meeting with the Ambassador, 
Likud MK Yuval Steinitz advocated dismantling the Hamas-led 
Palestinian Authority (PA) and the Palestinian Legislative 
Council (PLC) and isolating them much the same way that 
former PM Sharon had isolated Yasser Arafat.  The IDF should 
respond to the kidnapping of IDF Corporal Gilad Shalit and 
the continued Qassam fire from Gaza into Israel, Steinitz 
said, with a short-term, wide-scale operation in Gaza 
designed to wipe out the terrorist infrastructure there, 
similar to that of Operation Defensive Shield in the West 
Bank in April 2002.  Steinitz expressed strong opposition to 
PM Olmert's "realignment plan," although, he noted, he had 
supported Sharon's disengagement.  He called for the USG to 
press Egypt to prevent what Steinitz referred to as 
wide-scale weapons-smuggling operations across the Egypt-Gaza 
border.  Steinitz said that pressure from Arab countries has 
hardened Palestinian resolve not to compromise with Israel on 
certain issues, such as Jerusalem and the law of return.  On 
Iran, Steinitz said that the danger of Iran developing 
nuclear weapons is not its actual use of such weapons, but 
its use of that threat as a tool to wield power in the 
region.  Steinitz noted that he hopes to continue his role as 
chairperson of the informal joint interparliamentary forum 
between the U.S. and Israel on security and defense issues. 
End summary. 
 
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Isolate Hamas 
------------- 
 
¶2.  (C) Likud MK Yuval Steinitz, former chairman of the 
Knesset's Foreign Affairs and Defense Committee, began his 
discussion with the Ambassador June 29 on the current IDF 
operations in Gaza by criticizing the GOI for ever having 
allowed the PLC elections to have taken place with Hamas on 
the ballot.  Steinitz advocated two courses of action for the 
GOI now, in light of the kidnapping of IDF Corporal Gilad 
Shalit and the continued firing of Qassam rockets from Gaza 
into Israel: 1) dismantling the Hamas-led PA and PLC and 
isolating their members much the same way that Arafat was 
isolated in Ramallah, and 2) conducting a wide-scale, 
short-term military operation in Gaza similar to that of 
Operation Defensive Shield to wipe out the terrorist 
infrastructure there.  Steinitz said that the latter should 
have really been conducted before disengagement was 
completed.  He noted that he supported disengagement -- 
although it damaged his popularity within Likud -- but 
stressed that he is vehemently opposed to PM Olmert's 
"realignment" plan.  Steinitz said that "realignment" would 
open up the center of Israel to threats, including to Ben 
Gurion Airport. 
 
¶3.  (C) Steinitz reasoned that the PA is currently violating 
the Oslo Accords and argued that a wide-scale military 
operation to attack the "terrorist infrastructure" in Gaza 
could take at a maximum three weeks since the GOI already has 
much of the intelligence it would need to conduct the 
operation.  In response to the Ambassador's query, Steinitz 
assessed that the operation could be accomplished without 
much fighting between the IDF and Palestinians as the IDF has 
the technology to do this, as he claimed was done in Khan 
Younis about one year ago.  The Ambassador said that both the 
PA and Israel have been in breach of the Oslo Accords, with 
continued militant actions by the Palestinians and continued 
construction of illegal outposts by Israelis.  Steinitz said 
that it was not possible to enforce the agreement since the 
PA could not be pressured into compliance. 
 
¶4.  (C) In response to the Ambassador's query about what 
would take place after any wide-scale military operation, as 
Steinitz had described, Steinitz said that he does not have 
an answer.  "I don't see a bright forecast," Steinitz said 
adding, "things look gloomy."  He said that the IDF could 
expel Hamas government members to Gaza and that this might 
lead to a new Palestinian government. "But," he added, "we 
can't proceed with a Hamas-led government."  Steinitz warned 
against continuation of the status quo, since in one year the 
situation will be more "volatile," with more long-range 
weapons reaching Gaza and better-trained terrorists. 
 
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Arab Influence 
-------------- 
 
¶5.  (C) Steinitz continued that Arab countries as well as the 
Arab media exert "significant pressure" on the PA not to 
compromise with Israel.  Steinitz commented that the 
situation in Iraq and with Iran could also affect the 
Israeli-Palestinian conflict.  On Iran, Steinitz said that 
the real threat of an Iran with nuclear weapons is not that 
Iran would use the weapons against another country, but that 
it would use the threat of such weapons to exert its 
influence on other countries in the Middle East.  Steinitz 
assessed that Libya had decided to give up its nuclear 
weapons program because of the U.S. military operation in 
Iraq. 
 
---------------------------- 
Weapons Smuggling from Egypt 
---------------------------- 
 
¶6.  (C) Steinitz asserted that wide-scale weapons smuggling 
continues across the border from Egypt into Gaza, with 
10,000-15,000 guns being smuggled annually and, he said, 
referring to Shin Bet data, 500-1,000 anti-tank missiles and 
launchers.  Steinitz blamed the GOE for "allowing this to 
happen," unlike Jordan, which has cracked down on smuggling. 
In response to the Ambassador's point that the Camp David 
accords limit the number of Egyptian troops on the Sinai 
border, Steinitz said that Egyptian police officers could be 
used, as they are exempt from this limitation.  Steinitz said 
that Egypt should intercept the weapons to be smuggled, 
which, he said, comes from various sources, before they reach 
the border.  He commented to the Ambassador in confidence 
that if Egypt really wanted to crack down on smugglers, the 
GOE knows who they are.  In response to the Ambassador's 
question as to why Egypt would want to enable Hamas in this 
way, Steinitz said that Egypt wants the Palestinians and 
Israel "to bleed together."  Steinitz also asserted that the 
GOE "doesn't like Abu Mazen."  Steinitz called on the USG to 
do more to pressure Egypt to crack down on smuggling. 
 
-------------- 
Security Forum 
-------------- 
 
¶7.  (SBU) Steinitz noted that he had been chairman of a joint 
parliamentary security forum between U.S. members of Congress 
and Knesset members to discuss defense and security issues. 
He said that that he had led a delegation of Knesset members 
for meetings in Washington, D.C. with congressional 
counterparts last fall.  Steinitz said he "assumed" he would 
remain in this role, and said he is seeking the backing of 
Knesset Speaker Dalia Itzik.  He added that a decision on the 
chairmanship would likely be reached within three weeks.  He 
could not comment as to whether the current chairman of the 
Knesset Foreign Affairs and Defense Committee, Tzachi 
Hanegbi, might seek to take on this role. 
 
¶8.  (C) Steinitz said that the joint parliamentary forum had 
also promoted joint U.S.-Israel projects.  He highlighted one 
project, the THEL (Tactical High Energy Laser), which 
produced laser weapons that could intercept incoming rockets 
and artillery shells.  Steinitz claimed that two years ago, 
the laser had successfully engaged incoming fire in all of 
its 22 tests, including at least one with multiple targets. 
He said that the project had been canceled one year ago 
because the laser weapon was considered too large for 
practical use and could only defend a rather restricted area. 
 Steinitz commented that it was a "great mistake" to cancel 
the project, noting its possible use to defend a town like 
Sderot, which has been the target of Qassam rocket attack 
from Gaza. 
 
 
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