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

UNCLAS SECTION 01 OF 07 TEL AVIV 006121 
 
SIPDIS 
 
STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
NSC FOR NEA STAFF 
 
JERUSALEM ALSO FOR ICD 
LONDON ALSO FOR HKANONA AND POL 
PARIS ALSO FOR POL 
ROME FOR MFO 
E.O. 12958: N/A 
TAGS: IS KMDR MEDIA REACTION REPORT
SUBJECT: ISRAEL MEDIA REACTION 
 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
¶1.  Mideast 
 
¶2.  U.S.-Israel Relations 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media led with the release Sunday of Azzam Azzam, 
the Israeli Druze who was convicted of espionage in 
Egypt, where he was spent eight years in jail.  He was 
exchanged for six Egyptian students who were captured 
in August on suspicion of planning terrorist attacks in 
southern Israel.  Ha'aretz reported that Israel also 
stated that it is considering the release of dozens of 
Palestinian prisoners who do not have "blood on their 
hands."  Ha'aretz quoted PM Sharon as saying Sunday 
that Egypt believes in the seriousness of his 
disengagement plan and wants to contribute to it.  The 
newspaper quoted Foreign Ministry sources as saying 
that Egypt would probably appoint an ambassador to 
Israel after the elections in the PA on January 9. 
This morning, Israel Radio quoted FM Silvan Shalom as 
saying that over the past Israel has successfully been 
coordinating its disengagement plan with Egypt. 
Several media reported that right-wing groups 
questioned how it is possible that Israel can negotiate 
and swap prisoners with Egypt but not with its closest 
ally, the U.S. -- referring to Jonathan Pollard. 
 
Israel Radio cited London's Daily Telegraph as saying 
that late this month or early next month, a conference 
of Middle Eastern leaders, probably at foreign-minister 
level, will convene in London.  The Daily Telegraph 
quoted an Israeli source as saying that, should Marwan 
Barghouti be elected PA chairman, the conference would 
not take place.   Israel Radio reported that efforts 
are going on within Fatah to convince Barghouti to 
renounce his candidacy. 
 
On Sunday, Jerusalem Post reported that Palestinian PM 
Ahmed Qurei (Abu Ala) on Saturday accused Israel of 
escalating tensions by pursuing its policy of targeted 
killings and settlement construction. 
 
Ha'aretz quoted Knesset Member Omri Sharon, the PM's 
son, as saying that a "broad-based government" with the 
Labor Party will not be a "national-unity government of 
equals."  The newspaper says that his remark is 
directed at the members of the Likud Convention, which 
will Thursday debate the Labor Party's entry into the 
government. 
 
On Sunday, Jerusalem Post quoted Efraim Inbar, Director 
of the Begin-Sadat Center for Strategic Studies at Bar- 
Ilan University as saying: "We [Israel] don't have to 
open negations with Syria since the Americans aren't 
interested in this track.  The Americans don't want us 
to smile at [Damascus]." 
Israel Radio reported that co-initiator of the Peoples' 
Voice peace initiative and former Shin Bet head Ami 
Ayalon joined the Labor Party today.  Maariv reported 
that Ayalon associates have suggested he vie for a 
ministerial portfolio. 
 
All media reported on the visit of the three most 
senior PA leaders to Damascus, scheduled for today, 
which Ha'aretz views as "historical, possibly signaling 
the change underway in the Middle East since the death 
of Yasser Arafat last month."  Ha'aretz quoted PLO head 
Mahmoud Abbas as saying that the PA will negotiate a 
hudna (truce) with the Hamas leadership in the West 
Bank, rather with than the organization's leaders 
overseas.  Senior Palestinian security official Jibril 
Rajoub, who is visiting Egypt, told Israel Radio this 
morning that Israel is prepared to advance 
disengagement in coordination with the PA.  On Sunday, 
leading media quoted senior Hamas member in the West 
Bank Hassan Yousef as saying over the weekend that he 
is prepared to establish a long-term hudna in exchange 
for Palestinian statehood.  On Sunday, Maariv wrote 
that the relatively moderate statements emanating 
recently from the territories reveal the beginnings of 
a crack in the Hamas's leadership, as it appears that, 
for the first time in a long period,  the local 
leadership of Hamas does not see eye-to-eye with the 
expatriate leadership based in Damascus.  On Sunday, 
leading media reported that Abd a-Natif Muhammad Tayeh, 
the leader of Hamas in Tulkarm, was arrested during the 
weekend. 
 
Jerusalem Post quoted Defense Minister Shaul Mofaz as 
saying at Sunday's cabinet meeting that the number of 
attempted terrorist attacks has dropped since Yasser 
Arafat died three weeks ago, with Palestinian terror 
groups in "waiting mode" to see how things develop on 
the ground.  Maariv reported that following Arafat's 
demise and the possibility that Abbas could be elected 
PA chairman, Israel could reconsider its decision to 
physically dismantle the settlements it intends to 
evacuate in the Gaza Strip and the northernmost part of 
the West Bank.  On Sunday, Maariv quoted Labor Party 
Chairman Shimon Peres as saying that Israel must 
disengage from all the territories. 
 
On Sunday, Ha'aretz reported that Iran and Hizbullah 
have intensified their efforts to operate in the 
territories in order to prevent a cease-fire. 
 
On Sunday, leading media reported that Syria has asked 
the international community to pressure Israel to agree 
to talks without preconditions. 
Jerusalem Post quoted O/C Chaplaincy Corps Brig. Gen. 
Yisrael Weiss as saying Sunday he has received a series 
of threatening letters form anti-disengagement 
activists.  Leading media also reported that three 
right-wing extremists were arrested Sunday for 
allegedly stoning the home of Rabbi Menahem Froman -- 
known for holding talks with Arafat and Hamas leaders - 
- in the West Bank settlement of Tekoa. 
 
Maariv reported that the Likud's Moshe Kahlon, who is 
of Libyan origin, could soon visit Libya, thus becoming 
the first Knesset member ever to meet with Libyan 
leader Muammar Qadhafi.  The newspaper also writes that 
in two weeks senior representatives of the Libyan 
government will attend a world conference of Jews of 
Libyan origin in Rome.  Maariv also reported that 
Sunday a senior member of Tunisia's Parliament, who is 
a close associate of Zine el Abidine Ben Ali, contacted 
Likud MK Majalli Whbee, telling him that Israel-Tunisia 
links are expected to warm up soon. 
 
Leading media quoted Industry, Trade and Labor Ehud 
Olmert as saying Sunday that Israel, Egypt, and the 
U.S. are set to sign a free trade area agreement next 
week, similar to the qualified industrial zone (QIZ) 
Israel shares with Jordan. 
 
On Sunday, leading media reported that over the weekend 
the U.S. Administration has finally approved the sale 
of 50 sophisticated air-to-air missiles to Jordan. 
 
Leading media quoted nuclear whistleblower Mordecai 
Vanunu as saying, in an interview with the British Sky 
News TV Sunday, that Israel's nuclear weapons are 
pushing other countries in the Middle East to develop 
similar arms. 
 
On Sunday, Ha'aretz reported that the police have 
reopened an investigation into a deal between the 
Hachsharat Hayishuv company, controlled by the Nimrodi 
family, and the Sycamore Ranch, owned by Sharon's sons. 
The company may have illegally given 1.3 million 
shekels (about USD 300,000) to the Sharon family. 
 
------------ 
¶1.  Mideast: 
------------ 
 
                       Summary: 
                       -------- 
 
Independent, left leaning Ha'aretz editorialized: 
"Egyptian obstinacy in the Azzam case has now been 
replaced by a gesture that must be understood within 
the political context: in the last few days there has 
been a significant improvement in the personal and 
public ties between Egypt and Israel." 
Liberal op-ed writer Ofer Shelach opined in the 
editorial of mass-circulation, pluralist Yediot 
Aharonot: "Now, after Arafat's death and thanks to 
Egyptian interests, an escape hatch has been found for 
Sharon." 
 
Arab affairs correspondent Jackie Hoogie wrote in 
popular, pluralist Maariv: "The freedom of Azzam Azzam 
is the blessing that Mubarak is giving to Sharon and 
himself in the light of the new chapter that has been 
started." 
 
Conservative, independent Jerusalem Post editorialized: 
"Cairo has hitherto apparently failed to absorb the win- 
win nature of true normalization.  Let's hope the 
overdue release of Azzam Azzam is an early indicator 
that Egypt is finally getting the message." 
 
Nationalist, Orthodox Hatzofe editorialized: "[Mubarak] 
continues to produce strategic weapons in other 
domains." 
 
                     Block Quotes: 
                     ------------- 
 
¶I.  "Foundations of the New Hope" 
 
Independent, left leaning Ha'aretz editorialized 
(December 6): "The news of Azzam Azzam's release from 
prison in Egypt contains both joy and hope.  Joy that 
an Israeli citizen -- who was sentenced by an Egyptian 
military tribunal to 15 years in prison after being 
convicted on dubious charges -- was released after 
serving a little more than half his sentence.... It is 
also joy over the success of tireless diplomatic 
efforts initiated by Israel together with the United 
States.  Azzam's arrest and trial became, in time, a 
symbol of the cool relations between Egypt and 
Israel.... Egyptian obstinacy in the Azzam case has now 
been replaced by a gesture that must be understood 
within the political context: in the last few days 
there has been a significant improvement in the 
personal and public ties between Egypt and Israel.... 
These developments did not begin with Azzam's release. 
They have been going on for several months, and for the 
Israeli public they culminated on Sunday.  Once again 
there is hope that what was seen Sunday as a rare 
expression of friendship will soon become the norm. 
Sharon's disengagement plan, the new voices among the 
Palestinians, even among radical groups like Hamas, and 
especially Egypt's willingness and desire to change the 
political reality in the region, are the foundations of 
the new hope." 
II.  "We Didn't Abandon Him for a Moment" 
Liberal op-ed writer Ofer Shelach opined in the 
editorial of mass-circulation, pluralist Yediot 
Aharonot (December 6): "Sharon marketed disengagement 
to a people bleeding and in pain, which didn't want to 
hear about a partner.  He thus managed to turn an 
initiative which most of the military and political 
establishment opposed into a popular public initiative 
and was supported by a majority in the Knesset.  But on 
the ground, unilateral disengagement is liable to be 
disastrous.... And now, after Arafat's death and thanks 
to Egyptian interests, an escape hatch has been found 
for Sharon.  Under Egyptian sponsorship, the 
Palestinians will be able to reach an agreement among 
themselves, an agreement that Israel will profess not 
to take into account, but in practice, will cooperate 
with.  The Egyptians will help the Palestinians take 
responsibility and will provide a cover for 
controversial security moves, such as leaving 
Philadelphi Road.  They will be the responsible adult 
behind which hides the partner, in a way that allows 
all the sides to pretend that they are only talking to 
themselves.  From moment to moment, from step to step, 
the sides are approaching the moment of truth.  At that 
moment they will have no choice but to relinquish their 
convenient narratives, behind which they have 
barricaded themselves for the last four years.  They 
will again have to recognize their common interests, 
despite the hatred and the blood, and even admit 
responsibility, each on his own side, for some of the 
bloodshed.  Will this indeed happen?  It's difficult to 
know.  But Azzam Azzam's return home, a joyful human 
occasion, is another step in this greater move, and the 
final step has yet to be taken." 
 
III.  "Hoping For More" 
 
Arab affairs correspondent Jackie Hoogie wrote in 
popular, pluralist Maariv (December 6): "In contrast to 
Netanyahu, with whom he had exchanged childish taunts, 
or Barak, who did not know how to appease [events on] 
the ground, Sharon has displayed to the Egyptian 
President the wisdom of tribal elders.  He is engaged 
in actions, speaks little, and reaps the rewards -- the 
elimination of Hamas, the destruction of the tunnels, 
the suppression of the Intifada.  Mubarak is also fed 
up with this whole war.... Since [Arafat] passed on, 
there has been no one to give friendly support to Hamas 
or disturb the disengagement process.  In the absence 
of Arafat, there is no one to punish Sharon for the 
boycott he imposed upon him by dispatching cells from 
Gaza after the withdrawal.  Neither is there anyone to 
stand firm against the security rehabilitation plan of 
the Gaza Strip conceived by Egyptian Intelligence 
Minister Omar Suleiman.  Here is an opportunity to 
establish a Palestinian state, said Osama Sariyeh, a 
senior Egyptian journalist yesterday.  It needs the 
propulsion of processes, and Azzam Azzam is one of 
them.... The freedom of Azzam Azzam is the blessing 
that Mubarak is giving to Sharon and himself in the 
light of the new chapter that has been started.  It is 
a humble gift that was frozen for eight years, only in 
order to be pulled out for exactly these purposes.  The 
Egyptian hope is that the gift will leave the desire 
for more here." 
 
IV.  "A First Step" 
 
Conservative, independent Jerusalem Post editorialized 
(December 6): "While Mubarak's praise for Sharon is 
gratifying, the president has yet to consent to the 
simple, face-to-face contact with our prime minister 
that is the foundation of good relations.... Progress 
here is crucial if Egypt -- which has played a spoiling 
role at crucial moments of Israeli-Palestinian contact, 
like the July 2000 Camp David talks -- wants to be 
perceived as a constructive force toward Arab 
acceptance of, and genuine reconciliation with, Israel. 
Were Egypt now to truly press for such a goal, it would 
not only benefit Israel.  And it would not only echo 
positively with a U.S. government that provides Egypt 
with vast financial aid. It would also, self-evidently, 
benefit Egypt itself -- not least in its own fight 
against Islamic extremism.  None of this should need 
saying, yet Cairo has hitherto apparently failed to 
absorb the win-win nature of true normalization.  Let's 
hope the overdue release of Azzam Azzam is an early 
indicator that Egypt is finally getting the message." 
 
 
 
 
¶V.  "Don't Be Blinded" 
 
Nationalist, Orthodox Hatzofe editorialized (December 
6): "Hosni Mubarak felt that there was growing 
criticism of Egypt in Israel.  He decided to throw some 
'small change' and to calm the waters.  Indeed, the 
words worked, but he continues to produce strategic 
weapons in other domains.  Mubarak is interested in an 
Israel-Syria agreement that would most certainly bring 
about a significant pullout from the Golan.  Arab 
states will provide words, whereas Israel will give 
territories, bringing it to the 'Auschwitz borders.' 
[reference to the 1967 borders]" 
 
-------------------------- 
¶2.  U.S.-Israel Relations: 
-------------------------- 
 
                       Summary: 
                       -------- 
German Ambassador to Israel Rudolph Dressler wrote in 
independent, left leaning Ha'aretz: "Israel must decide 
-- economic relations [with the EU] only or also a 
renewed political approach?  Israel will not be spared 
a debate over partially freeing itself from the United 
States." 
 
                     Block Quotes: 
                     ------------- 
 
"A German National Interest" 
 
German Ambassador to Israel Rudolph Dressler wrote in 
independent, left leaning Ha'aretz (December 5): 
"Nearly 60 years after the demise of Nazi Germany and 
almost 40 years since diplomatic relations were 
established between Israel and the second German 
republic -- in May 1965 -- the German Embassy in Tel 
Aviv operates in a unique environment for German 
diplomacy.  Germany is today seen in the eyes of many 
Israeli leaders as the second most important partner 
after the United States in the fields of politics, 
economics, research and technology.... We are the 
second most important partner in Israel's foreign 
trade.... The enlargement of the European Union to 25 
countries is a historic event.  The single currency, 
the euro, is something akin to a miracle.  The economic 
power this generates is still unfathomed.  The inherent 
possibilities have only been partly elaborated -- more 
people than in the U.S., greater purchasing power than 
in the U.S., more economic strength.  These facts and 
possibilities are now at Israel's doorstep.  This also 
has political significance: whether one likes it or 
not, Europe is destined to play a more important role 
in the Middle East.  And herein lies the implication: 
Israel must decide -- economic relations only or also a 
renewed political approach?  Israel will not be spared 
a debate over partially freeing itself from the United 
States.... My country wants to assist Israel.  This 
assistance relates to the principle we defined during 
the visit of the president of the State of Israel in 
Berlin last spring: ensuring the existence of Israel is 
a German national interest and is thus one of the 
centerpieces of our political thinking." 
 
CRETZ