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

UNCLAS SECTION 01 OF 03 TEL AVIV 001938 
 
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 
 
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SUBJECTS COVERED IN THIS REPORT: 
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Mideast 
 
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Key stories in the media: 
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All major media lead with Sharon's new cabinet 
appointments as the Knesset votes for the 2005 state 
budget.  Also prominent are reports updating 
preparations for the execution of the Disengagement 
Plan. 
 
Ha'aretz reports that Finance Minister Benjamin 
Netanyahu strongly criticized the disengagement plan 
yesterday, saying it set a precedent for withdrawing 
without receiving anything in return, and advocating a 
formalization of Israeli control over the West Bank. At 
the same time, Netanyahu said he still believed a 
referendum was "the only way to tone down the great 
rift and fracture that threaten us. The absence of a 
referendum makes the situation more difficult." 
Netanyahu also said he was opposed to the arrangement 
under which Israel would transfer control of the 
Philadelphi route, in the southern Gaza Strip, to Egypt 
as part of the pullout.  He said depending on Egypt to 
fight terrorism and weapons smuggling to the Gaza Strip 
would be a mistake. 
 
Ha'aretz reported that Public Security Minister Gideon 
Ezra and Police Inspector General Moshe Karadi are to 
meet tomorrow with Yesha Council heads to discuss the 
possibility of collecting arms from the Gush Katif and 
northern Samaria settlers before the start of the 
evacuation.  Yediot Aharonot added that former NRP 
leader Efi Eytam, who recently relocated to the Katif 
Bloc, made the suggestion. Yediot added that security 
sources estimate Katif Bloc residents legally hold some 
3,300 guns for self-defense. 
 
Ha'aretz reported that 58 MKs voted in favor, 36 voted 
against, and one MK, Abdul Malik Dehamshe, abstained, 
passing the 2005 State Budget Bill.  In the 2005 state 
budget -- totaling NIS 266.6 billion, some NIS 2.2 
billion is earmarked for the disengagement, enabling 
the prime minister to move ahead with his plan.  The 
approval of the budget also removed the threat of early 
elections from the agenda. 
 
Ha'aretz reported that Military Intelligence chief 
Major General Aharon Ze'evi (Farkash) said yesterday 
that the terror organizations are trying to export 
technological know-how and arms experts from Gaza to 
make weapons in the West Bank.  In his report to the 
Knesset Foreign Affairs and Defense Committee, Ze'evi 
noted a discernible decreasing motivation to carry out 
attacks, which he attributed to the militant groups' 
agreements to maintain regional calm, but said that at 
the same time, the capability of terror groups has 
improved.  Ze'evi also accused Palestinian Prime 
Minister Ahmed Qureia of continuing in the footsteps of 
late Palestinian leader Yasser Arafat.  Ma'ariv added 
that Zeevi said that Hamas was trying now to establish 
a political party akin to the Irish Shin Fein, while 
maintaining military and social wings alongside. 
 
Prime Minister Ariel Sharon decided to reward Likud 
members who voted for the state budget yesterday and 
nominate them as ministers among them MK Roni Bar-On, 
Deputy Defense Minister Ze'ev Boim and probably MK 
Ephraim Sneh from the Labor Party.  Sharon also intends 
to reward five MKs who were loyal to him in recent 
months and give them deputy minister posts.  IDF Radio 
at 10:00 AM reported that, in reaction, Knesset 
Constitution, Law and Justice Committee Chairman 
Michael Eitan said the prime minister is paying 
prostitute's wages to those who vote against the 
positions of the Likud. 
 
In a series of articles on preparations for the Gaza 
Strip evacuation, Yediot Aharonot reported that the GSS 
are focusing on preventive intelligence gathering while 
coordinating with the IDF, seeking out the 'lone 
gunman' who might attempt to assassinate a prominent 
Israeli leader or attack Arabs.  Citing a senior IDF 
officer in the Gaza Strip, Yediot reports that the army 
will start thinning out its troops there.  The daily 
reveals that the Justice Ministry is recruiting legal 
experts and lawyers for quick processing of legal 
issues such as indictments against protesters and 
paying compensations. 
 
Ha'aretz carries a story on a report by B'Tzelem, 
Israeli human rights watch, which claims that Israel is 
maintaining a 'strangulation' policy in the Gaza Strip 
and may disavow its responsibility for Gaza residents 
following the planned disengagement. The reported 
violations are primarily related to restrictions of 
movement Israel places on people and goods traveling in 
and out of the Gaza Strip. 
 
Jerusalem Post said 'the nuclear reactor in Dimona can 
withstand even the harshest kind of quake,' that 
strikes the Middle East once a century, according to a 
report delivered yesterday by MK Yuval Steinitz 
(Likud), chairman of the Foreign Affairs and Defense 
Committee. 
 
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Mideast: 
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                       Summary: 
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Conservative columnist Yosef Harif wrote in popular, 
pluralist Maariv: "In two weeks, Sharon will travel to 
the United States and meet with President Bush.  Should 
he manage to attain an approval for leaving the large 
Judea and Samaria settlement blocs in Israel's hands, 
the Likud may quiet down and Sharon's status will 
remain stable." 
 
                     Block Quotes: 
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"A Split on Hold" 
 
Conservative columnist Yosef Harif wrote in popular, 
pluralist Maariv (March 30): "The cracks in the Likud 
walls have recently expanded to the point of 
collapsing.... Although Sharon came out victorious in 
both the referendum and the budget campaigns, there is 
doubt that peace in the Likud will be restored.  The 
real test will be the practical execution of the 
disengagement, and the key question is, what will 
tomorrow bring.  In two weeks, Sharon will travel to 
the United States and meet with President Bush.  Should 
he manage to attain an approval for leaving the large 
Judea and Samaria settlement blocs in Israel's hands, 
the Likud may quiet down and Sharon's status will 
remain stable.  If he does not, unrest will increase 
and there is doubt that Sharon, however popular he may 
be, would be able to subdue the rebellion against him. 
To regain unity, the Likud depends on just one person - 
Ariel Sharon.  With his leadership skills, he managed 
to overcome numerous difficulties outside and at home, 
gaining rare achievements on the diplomatic ring.  He 
cannot, however, abandon the domestic ring.  He will 
not be able to lean for long on his camp, comprising 
only 12 MK's most of whom lack power in the Likud 
Central Committee.  He will have to reach an 
understanding with dozens of MK's who did not identify 
with his stands.  Otherwise, the split might become a 
fact and the Likud will crash." 
KURTZER