VZCZCXRO1048
PP RUEHBC RUEHDE RUEHDIR RUEHKUK RUEHROV
DE RUEHTV #3631/01 3621212
ZNY CCCCC ZZH
P 281212Z DEC 07
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 4776
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RHEHNSC/NSC WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 003631 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/26/2017 
TAGS: PREL PTER PAL KWBG IR IS
SUBJECT: CODEL SPECTER'S MEETING WITH BINYAMIN NETANYAHU 
 
 
Classified By: CDA Luis Moreno. Reason 1.4 (B/D) 
 
1.(C) Summary: Likud Party Chairman Binyamin Netanyahu told 
CODEL Specter December 24 that the United States could help 
Israel by "neutralizing" Iran's nuclear program.  Arguing 
that "nobody in Israel believes Iran has stopped its nuclear 
program," Netanyahu said the first step is increasing 
economic pressure on the Iranian regime.  He suggested that 
US state pension funds divest from companies doing business 
with Iran and said it was important that the US not take the 
military option off the table.  Asked about the current 
situation in the Palestinian Territories, Netanyahu replied, 
"Bring down the Hamas regime."  He said Israel should create 
an economic peace with President Abbas using concrete 
projects that give Palestinians hope in the West Bank and 
argued that Palestinian PM Salam Fayyad would be a partner in 
this endeavor. Former Israeli Ambassador to the US Zalman 
Shoval joined Netanyahu in the meeting. End summary. 
 
--------------------------------------------- ---- 
Greater Economic Pressure Is the Way to Stop Iran 
--------------------------------------------- ---- 
 
2.(C) Netanyahu told Senator Arlen Specter (R-PA) and 
Representative Patrick Kennedy (D-RI) that Iran is still 
working to develop nuclear weapons and said the US should 
apply greater economic pressure on the regime in order to 
neutralize the Iranian nuclear program.  He noted that in the 
US, eight states have passed bills requiring state pension 
funds to divest from European and other companies doing 
business with Iran.  Netanyahu suggested Pennsylvania do the 
same, adding that intelligence reports show the measure is 
having an effect. He told the CODEL that Israel is passing a 
similar bill.  Senator Specter agreed with Netanyahu that 
despite the recent National Intelligence Estimate (NIE), Iran 
continues to develop its nuclear program.  In response to 
Specter's question about other measures the USG could take, 
Netanyahu advised checking whether divestment was possible 
for federal pensions.  He suggested that Congress examine the 
recipients of funding and other benefits to ensure the USG is 
not aiding companies doing business with Iran, particularly 
in the gas and oil industries.  Ambassador Shoval noted that 
the efforts of international banks and financial institutions 
to restrict their dealings with Iran were succeeding as well. 
 
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The International Community's Role 
---------------------------------- 
 
¶3. (C) Netanyahu dismissed the idea of letting the Russians 
enrich Iranian uranium and said IAEA inspections did not 
reveal the true state of Iran's nuclear program.  Calling the 
nuclearization of Iran "the greatest danger to the world," 
Netanyahu said it was important to convince 4-5 major 
European countries to take stronger measures to prevent Iran 
from developing nuclear weapons.  He emphasized the 
importance of preventing not only investment in Iran but also 
the transfer of western technology to the Iranians.  Adding 
that it would be difficult to get the Russians on board in 
the wake of the NIE, Netanyahu said that the issue of Iran 
was not a "political football" in Israel, as compared with 
the US. He noted, however, that he does not believe the NIE 
reflects US policy on Iran. 
 
--------------------------------------------- -------------- 
Bring Down Hamas, Create Economic Projects in the West Bank 
--------------------------------------------- -------------- 
 
¶4. (C) In response to a question from Senator Specter, 
Netanyahu replied that it was necessary to bring down Hamas, 
and that leaving Gaza in Hamas' hands was like signing a 
death warrant for the Palestinians.  Netanyahu argued that 
any place Israel leaves will be taken over by Hamas or Iran. 
He advocated creating an economic peace with Palestinian 
President Mahmoud Abbas using concrete projects to show 
Palestinians tangible examples of success in the West Bank. 
This would contrast with the negative consequences of Hamas 
rule in Gaza.  Netanyahu said he believed it would be 
possible to have real economic projects underway within 
months, and that Palestinian Prime Minister Salam Fayyad 
would be a good partner for such efforts.  In response to 
Senator Specter's mention of congressional interest in 
conditioning aid to the Palestinians, Ambassador Shoval said 
there were rumors of a Fatah-Hamas coalition again.  He 
advocated making it clear to President Abbas and Prime 
Minister Fayyad that the US will not provide them with 
assistance if they join with Hamas. 
 
¶5. (U) CODEL Specter did not clear this cable. 
 
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