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UNCLAS SECTION 01 OF 08 TEL AVIV 006025 
 
SIPDIS 
 
STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
NSC FOR NEA STAFF 
 
SECDEF WASHDC FOR USDP/ASD-PA/ASD-ISA 
HQ USAF FOR XOXX 
DA WASHDC FOR SASA 
JOINT STAFF WASHDC FOR PA 
USCINCCENT MACDILL AFB FL FOR POLAD/USIA ADVISOR 
COMSOCEUR VAIHINGEN GE FOR PAO/POLAD 
COMSIXTHFLT FOR 019 
 
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.  Nobel Peace Prize to ElBaradei and IAEA 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Almost all media bannered the bestowing of the Nobel 
Prize in Economics on Monday upon Hebrew University 
Professor of Mathematics Robert J. Aumann for his work 
on the game-theory analysis.   Aumann, who emigrated 
from the U.S. in 1956, shares the prize with Thomas C. 
Schelling of the University of Maryland.  The media 
reported that Aumann holds hawkish views. 
 
Leading media cited an announcement made Monday by 
Israeli and Palestinian negotiators, according to which 
the meeting between PM Sharon and PA Chairman 
[President] Mahmoud Abbas, which was scheduled for 
today, was postponed until late October or early 
November.  The statement says that it was decided to 
resume the work of a number of joint Israel-PA 
committees, "to prepare the agenda for a successful and 
fruitful meeting between the two leaders."  On Sunday, 
Jerusalem Post reported that Sharon was to review a 
plan giving the PA expanded control of Gaza border 
crossings.  On Sunday, Ha'aretz quoted Mofaz as saying 
that Israel will not transfer any more West Bank cities 
to the control of the PA.  Leading media reported that 
on Monday, as a Ramadan gesture, Israel eased up a 
number of restrictions on Palestinians living in the 
West Bank. The measures include a softening of 
conditions to attend prayers at the Al Aqsa Mosque in 
Jerusalem, and freedom of movement for economic 
purposes.  Israel Radio quoted Vice Premier Shimon 
Peres as saying that Israel has not entirely rejected 
the PA's demands.  Maariv quoted senior sources in 
Jerusalem as saying that the Palestinians are only 
interested in immediate achievements. 
 
Leading media reported that Sharon is slated to meet 
today with A/S David Welch, who met with Abbas on 
Monday, followed by meetings with senior Sharon aide 
Dov Weisglass, FM Silvan Shalom, and Defense Minister 
Shaul Mofaz.  Ha'aretz says that in his meetings 
Monday, Welch reiterated the U.S. stand regarding the 
importance of strengthening Abbas's government. 
Leading media reported that the Shin Bet has arrested 
100 to 117 Hamas activists, members of three terrorist 
cells, who planned attacks during the lull period, 
including the abduction and killing of the Israeli 
civilian Sasson Nuriel in September. 
 
On Sunday, Yediot led with differences of opinion that 
have arisen between Mofaz and the Shin Bet regarding 
allowing the PA to equip itself with light weaponry. 
The newspaper wrote that while the Shin Bet is in favor 
of allowing the PA to do so -- albeit, only in the Gaza 
Strip -- Mofaz is opposed.  According to Yediot, Sharon 
is inclined to adopt Mofaz's position.  On Sunday, 
Ha'aretz wrote that the IDF and Shin Bet favor such a 
gesture. 
 
Ha'aretz and Israel Radio quoted FM Silvan Shalom as 
saying Monday after meeting with A/S Welch that the 
U.S. will resume its strategic dialogue with Israel 
after a hiatus of close to three years.  The first 
round of the renewed dialogue is scheduled for the 
second week of November.  The Israeli team will be 
coordinated by Tzachi Hanegbi, minister in the Prime 
Minister's Office, and Foreign Ministry DG Ron Prosor. 
The American team will be coordinated by Under 
Secretary for Political Affairs Nicholas Burns. 
 
SIPDIS 
Ha'aretz quoted a senior political source in Jerusalem 
as saying on Monday that the U.S. had apparently agreed 
to resume the talks following the disengagement and the 
end of the crisis between Israel and the U.S. regarding 
Israeli arms sales to China. 
 
On Sunday, Maariv's web site (NRG) reported that after 
several weeks of tough clashes between organizations in 
the Gaza Strip, especially Hamas and Fatah, an "honor 
treaty" was signed on Saturday by the armed groups. 
Its declared aim reportedly is to prevent deterioration 
into civil war and to establish that from now on 
weapons will be aimed only at Israel. 
 
Maariv cited the Israeli defense establishment's 
concern that Syria's increased revenues following the 
hike in oil prices allow it to purchase state-of-the- 
art weapons systems.  Maariv also quoted senior members 
of the Israeli defense establishment as saying that the 
pressure being applied on Syria is too heavy, and that 
it would be better not to push that country into a 
corner.  During the weekend, major media cited a 
Newsweek report, according to which the USG considered 
attacking camps and facilities in Syria that are being 
used by insurgents operating in Iraq.  According to the 
report, Secretary of State Condoleezza Rice opposed the 
attack and succeeded in persuading other senior 
officials to put it off. 
 
On Monday, Yediot quoted IDF Intelligence head Maj. 
Gen. Aharon Zeevi-Farkash as saying on Sunday, in an 
intelligence review to the cabinet ministers, that Al 
Qaida has set up a terror base in Sinai, and that Egypt 
knows about the terrorist base in its territory, but 
has been hard put to dismantle it.  FM Shalom said on 
Saturday in an interview to Israel Radio that Egypt is 
not doing enough to prevent the flow of weapons from 
Egypt into the Gaza Strip via the Rafah crossing 
between Sinai and the Gaza Strip. 
 
Ha'aretz reported that three Palestinians, including a 
15-year-old youth, were shot dead by IDF soldiers near 
the Gaza Strip border on Sunday night.  The three were 
unarmed.  The media reported that on Sunday, a Fatah 
activist was killed near Nablus in a gun battle with 
IDF troops. 
 
On Monday, Yediot reported that, "setting a historic 
precedent," Abbas is expected to deliver a speech 
before an international conference that the Netanya 
Academic College has planned to mark the tenth 
anniversary of the Rabin assassination, to be held on 
November 15 and 16.  Jerusalem Post also reported on 
Abbas's planned address. 
 
Citing AP, Jerusalem Post quoted Yahad-Meretz head 
Yossi Beilin as saying in Budapest Monday that the 
Roadmap is not being taken seriously by any of those 
involved with it. 
 
Ha'aretz reported that on Sunday, the Turkish 
government gave the PA a copy of the Ottoman archive 
containing all documents pertaining to land ownership 
in pre-state Israel through 1916.  The PA had requested 
the records to support Palestinian land claims. 
Citing AP, Jerusalem Post reported that Col. Ely Ould 
Mohamed Vall, Mauritania's post-coup leader, told 
reporters that his country will maintain diplomatic 
relations with Israel. 
 
Ha'aretz reported that the Israeli delegation to the UN 
was cautiously optimistic Monday that the UN's 
selection of five new rotating members of its Security 
Council -- the Congo Republic, Ghana, Peru, Qatar and 
Slovakia -- could bode well for Israel.  The newspaper 
quoted sources in the Israeli delegation as saying that 
Qatar, which has recently established strong ties with 
FM Shalom and Danny Gillerman, the Israeli 
representative to the UN, would treat Israel better 
than Algeria, which is one of five countries vacating 
their seats on the Security Council. 
 
On Sunday, Yediot reported that, at a meeting of the 
umbrella organization of the Palestinian factions in 
the West Bank, the Palestinian Public Works Minister, 
Mohammed Shatiye, announced that the U.S. will not 
extend any financial aid to renovation projects or 
other construction projects if they are named after 
terrorists who were killed. 
 
During the weekend, all media highlighted the 
earthquake in Pakistan and India.  Leading media 
reported that Israel has offered assistance to both 
countries. 
 
Ha'aretz published the results of a survey conducted on 
Sunday among Labor Party members by the Amanet Group's 
Dialogue Institute: 
-If the primaries for Labor leader were held today, 
whom would you vote for?"  Shimon Peres: 40.5 percent; 
Histadrut labor federation chief Amir Peretz: 22 
percent; Matan Vilnai: 12 percent; Binyamin Ben- 
Eliezer: 10.8 percent. 
-If a second round between Peres and Peretz were to be 
held today, the poll shows that Peres would beat Peretz 
by anywhere from 30 percent to 60 percent. 
 
Ha'aretz printed the results of a poll conducted 
jointly by the Dialogue Institute and Mina Zemach 
(Dahaf Institute), which shows that the religious Right 
would double its parliamentary representation if it ran 
as a single list in the next elections (i.e. Likud: 38 
seats; National Religious Party (NRP) and National 
Union: 26; Yisrael Beiteinu: 8).  In the current 
Knesset, Likud has 44 seats; NRP: 5; National Union: 6; 
Yisrael Beiteinu: 7. 
 
------------ 
¶1.  Mideast: 
------------ 
 
                       Summary: 
                       -------- 
 
Veteran columnist Yaron London wrote in the lead 
editorial of mass-circulation, pluralist Yediot 
Aharonot: "We are very strong, and the miniscule 
Palestinian state, even should it be governed by Hamas, 
will be able to do us no more harm than the armed gangs 
of embittered souls." 
 
Independent, left-leaning Ha'aretz editorialized: 
"Israel and the United States cannot remain observers 
in view of these internal struggles." 
 
Regional correspondent Ronnie Shaked wrote in Yediot 
Aharonot: "The Sharon-Abu Mazen meeting is geared 
solely to pleasing U.S. President Bush and Jordan's 
King Abdullah." 
 
 
 
                     Block Quotes: 
                     ------------- 
 
¶I.  "Their Fate, Our Fear" 
 
Veteran columnist Yaron London wrote in the lead 
editorial of mass-circulation, pluralist Yediot 
Aharonot (October 10): "Are we impeding the 
Palestinians from standing on their own two feet? 
Reason and justice behoove us to allow them to prove 
that they can convalesce from their internal crumbling 
if they are left alone, untroubled.  We have refused to 
do so, and are prepared to release our grip on their 
throats only if the armed organizations are disarmed. 
We can only gaze on in astonishment: the Americans are 
lobbying Abu Mazen to delay the Palestinian 
parliamentary elections, whereas he wants to keep his 
word and to hold them on their scheduled date.  The 
bearers of the cross of democracy are afraid of the 
Palestinian voter's verdict, whereas the Palestinian 
leader is prepared to take the chance of his government 
being weakened as a result of Hamas gaining strength. 
His argument is as follows: if the organizations are 
integrated into the political establishment they will 
behave like legitimate players.  He may be right and he 
may be wrong, but we would be best served by accepting 
his assumption.  We are very strong, and the miniscule 
Palestinian state, even should it be governed by Hamas, 
will be able to do us no more harm than the armed gangs 
of embittered souls." 
 
II.  "Unarmed Politics" 
 
Independent, left-leaning Ha'aretz editorialized 
(October 9): "The radical group [Hamas] wants to 
maintain its private armed wing while it takes part in 
local politics.  This puts it on an inevitable triple 
collision course -- with the Palestinian Authority, 
with Israel and with the United States. The Hamas stand 
is especially threatening to Chairman Mahmoud Abbas, 
who is due to meet Prime Minister Ariel Sharon this 
week and the American president later.  Both will be 
keen to ascertain how capable of navigating the 
political course Abbas is.  Even more than Hamas's 
radical positions, the violent developments are raising 
profound concern.... Postponing the elections, whether 
by Abbas' initiative or due to Egypt's lobbying, cannot 
replace resolved action to disarm the illegal 
weapons.... Israel and the United States cannot remain 
observers in view of these internal struggles. 
Releasing Palestinian prisoners, opening sea- and 
airports, transferring considerable funds to the 
Palestinian Authority and equipping it with effective 
military tools to strengthen it are necessary to 
bolster the Palestinian partner.  Without these steps, 
Israel too will not be able to persuade the world that 
its intentions are sincere." 
 
III.  "There Is With Whom to Talk, But Nothing to Talk 
About" 
 
Regional correspondent Ronnie Shaked wrote in Yediot 
Aharonot (October 9): "The Sharon-Abu Mazen meeting is 
geared solely to pleasing U.S. President Bush and 
Jordan's King Abdullah.  While there currently is a 
Palestinian leader with whom Israel can talk, Israel 
has nothing to talk with him about.  That is why 
neither side has great expectations from the summit 
meeting and that is why the preparations for that 
meeting have been low profile and without enthusiasm. 
The political process is in a deep coma and it is going 
to take something far more momentous than a meeting 
between Abu Mazen and Sharon to wake it up.  The issues 
on the agenda -- the border crossings, removing a few 
roadblocks, opening up some roads to Palestinian 
traffic or a few hundred permits for Palestinians to 
work in Israel -- could easily be resolved in a lower- 
level meeting.... Moreover, the security establishment 
is not even contemplating either easing any 
restrictions or making any other gestures due to 
concern that terrorism might rise in the West Bank.  On 
the contrary, the discussion will revolve around ways 
of improving security.  So, then, why now?  Why in 
Jerusalem?  Both sides have an interest in coming to 
the meeting, but there is no mutual interest for 
holding it.  Abu Mazen doesn't want to embarrass King 
Abdullah, who pressed for the meeting to be held. 
Sharon too respects King Abdullah's involvement, but 
more than that he wants to please President Bush, who 
urged King Abdullah to pressure the parties." 
 
 
 
 
-------------------------------------------- 
¶2.  Nobel Peace Prize to ElBaradei and IAEA: 
-------------------------------------------- 
 
                       Summary: 
                       -------- 
 
Conservative, independent Jerusalem Post editorialized: 
"At the end of the day it is not the IAEA or the UN or 
any organization that matter, but the governments in 
the U.S., UK, France, and Germany." 
 
                     Block Quotes: 
                     ------------- 
 
"Premature Nobel Prize" 
Conservative, independent Jerusalem Post editorialized 
(October 10): "That the U.S. and UK, we hope with the 
support of France and Germany, will now press harder 
for effective sanctions against Iran should go without 
saying.  It is in the hands of these nations, and the 
IAEA itself, whether this Nobel prize will in afew 
years seem to have been either prescient or a cruel 
joke.  After all, it is reality that counts.  If Iran 
succeeds in developing nuclear weapons, it will be a 
tremendous and probably fatal failure for the IAEA as 
an organization.  Even more importantly, of course, it 
will be a failure of the international system and of 
the West to defend itself against a threat to the 
security and independence of all free nations.  A 
nuclear Iran, besides being a direct threat to Israel 
and other countries, would become the linchpin of the 
global terror network.  The famous 'nuclear umbrella' 
that was spread over Europe during the Cold War would 
suddenly protect the terrorists themselves and the 
dictators who sponsor them.  Since the IAEA is an 
international organization that has long resisted 
distinguishing between democracies and dictatorships, 
and still has to pretend it does not, it is not 
surprising that it failed to stop Saddam Hussein from 
coming so close to building a bomb before the first 
Gulf War, and has so far allowed Iran to buy more time 
for its program.   But at the end of the day it is not 
the IAEA or the UN or any organization that matter, but 
the governments in the U.S., UK, France, and Germany. 
If these four nations are determined to raise the price 
Iran must pay for its program to unacceptable levels, 
they have the collective diplomatic and economic, not 
to mention military, power to do so.   If they do not, 
a misdirected peace prize will be the least of the 
world's problems." 
 
JONES