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UNCLAS SECTION 01 OF 11 TEL AVIV 006778 
 
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JERUSALEM ALSO FOR ICD 
LONDON ALSO FOR HKANONA AND POL 
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ROME FOR MFO 
 
E.O. 12958: N/A 
TAGS: IS KMDR MEDIA REACTION REPORT
SUBJECT: ISRAEL MEDIA REACTION 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
¶1.  Israeli Elections 
¶2.  Iranian Nuclear Race 
¶3.  The Syrian Threat 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Ha'aretz online and Israel Radio reported that a blast 
occurred at around 11:30 am Monday at the entrance to 
the Hasharon shopping mall in Netanya.  Rescue 
personnel said at least four people were killed in the 
explosion and  more than 30 people were wounded. 
According to media reports, police believe the blast 
was caused by a suicide bomber.  According to a 
Palestinian radio station in Gaza, the Fatah-linked Al- 
Aqsa Martyrs Brigades claimed responsibility for the 
attack.  Abu Qusai, an Al-Aqsa field commander in the 
Gaza Strip, said the name of the bomber would be 
released shortly.  Senior Palestinian Authority 
official Saeb Erekat condemned the attack, saying it 
was detrimental to the Palestinian cause. 
 
The Jerusalem Post reported Sunday that Israel and the 
US are at odds over the future of Syria in a post- 
Bashar Assad era.  In a strategic dialogue held last 
week in Washington between the two countries, Israeli 
representatives warned that a future regime in Syria, 
should Assad lose power, might be just as problematic 
as the old one.  The Israelis projected three possible 
scenarios if the current regime does fall - all of them 
dangerous for the stability of the region.  The first 
was the possibility that Syria would deteriorate into 
total chaos and plunge into some sort of civil war; the 
second was that Assad would be succeeded by another 
member of the ruling Alawite sect who would be a 
hardliner like Assad; or, third, that an extreme 
Islamic regime would take over the country.  Sources 
briefed on the content of the talks said these Israeli 
warnings stood in stark contrast to the American view 
as it was presented in the dialogue.  The two sides 
also discussed the wider issue of democratization in 
the Arab world and, here too, the Israelis said they 
were not as optimistic as the Americans regarding the 
prospects of promoting democratic reforms in the 
region.  The Israeli delegation was headed by Minister 
Tzahi Hanegbi and the US group was led by 
Undersecretary of State for Political Affairs Nicholas 
Burns. 
 
Various sources reported on violent activity in Gaza 
over the weekend.  Israel Radio reported that an IDF 
helicopter fired a missile into the offices of a 
Palestinian terror organization in Gaza City overnight. 
The Post reported that earlier, IAF jets struck at 
Kassam launch sites in three separate bombardments 
Saturday night.  The Israeli attack came in retaliation 
for Kassam rocket attacks, four total, over the 
weekend, which targeted the western Negev.  Two 
Palestinians were killed by the IDF in separate 
incidents, including one off the Gaza coast. 
 
On Monday, the Post reported that Defense Minister 
Mofaz instructed the army to "intensify its response" 
to the Kassam rocket attacks and resume the targeted 
killings of terrorists in the Gaza Strip. 
 
Israel Radio reports Sunday cited an Iranian news 
agency that announced that Iran would begin 
construction on two nuclear reactors beginning in 
March.  The report added that an Iranian 
parliamentarian confirmed that one of the reactors 
would be funded by Russia, at a cost of $1 billion. 
Israeli officials strongly condemned the reported sale 
of Russian weapons to Iran, calling it a "very 
dangerous move." 
 
On Monday, the Post carried an "exclusive" report 
saying that the US is exploring the possibility of 
enlisting allies in imposing trade sanctions on Iran if 
Washington has to deal with Teheran's nuclear program 
without the assistance of the UN Security Council. 
Referring to this issue, the Post cited Likud's 
Netanyahu as saying he "would take the steps necessary 
to prevent a nuclear Iran" if elected prime minister. 
 
A related report in Ha'aretz Monday cites Chief of 
Staff Dan Halutz as saying that Iran is determined to 
attain nuclear capability, "which for Israel is 
intolerable, and Israel must prepare for the worst." 
Speaking to foreign reporters Sunday, Halutz added 
that, believing diplomatic efforts to thwart the 
Iranian program will fail, "the alternative is physical 
pressure," but he would not elaborate.  Halutz said it 
will take 3 to 6 years before Iran attains nuclear 
power, unless it obtains a warhead first. 
 
The lead Ma'ariv headline on Monday says the Iranian 
nuclear issue features first in the 2006 elections 
campaign.  Labor's Peretz associates claimed this is an 
attempt to divert the elections agenda from the social 
to the security issue.  The report cites Defense 
Minister Mofaz's associates as saying he was upset by 
Netanyahu's remarks in which he demonstrated 
"irresponsibility."  The report adds that Meretz-Yahad 
Chairman Yossi Beilin warned that the Sharon-Netanyahu 
verbal exchanges might lead to supporting a military 
operation against Iran, saying that Israel must promote 
the political option. 
 
On Sunday, the Post and other media reported that the 
IAF held the 14th test of the Israeli-designed Arrow 2 
anti-ballistic missile on Friday, successfully 
intercepting an incoming rocket at a higher altitude 
than ever before.  A day after Prime Minister Ariel 
Sharon declared that Israel would not tolerate Iranian 
efforts to get nuclear arms, "the test demonstrated 
Israel's robust interception capability against 
incoming missiles that may be armed with nuclear or 
chemical warheads" the Post said. 
 
In a related report, Yedi'ot Aharonot reported Sunday 
that Israeli experts who have been monitoring military 
developments in Israel and Iran said we are witnessing 
an "unprecedented defensive arms race." 
 
Ha'aretz added Sunday that Israeli defense 
establishment experts were surprised to realize that 
Syria has introduced significant changes in the 
advanced model of the Scud D missile that give it 
greater guidance capability and accuracy, according to 
Western missile experts.  The evaluations were based on 
an examination of pieces of a Scud D missile that went 
off course after a test launch and landed in southern 
Turkey.  The launch took place a few months ago, but it 
took some time until all the pieces were analyzed. 
 
On December 4, the Jerusalem Post reported that a 
decision was made Sunday to take further steps in the 
ongoing policy to ease restrictions on Palestinians not 
involved in terror activity.  Israel has permitted 4000 
Palestinian neighbors from the West Bank to enter 
Israel for work, bringing the total number of those 
given entry to 16,000.  In addition, 500 West Bank 
merchants were granted access to Israel, bringing the 
total number of merchants to 12,500.  For the upcoming 
Christmas celebrations, 500 worshippers from the Gaza 
Strip will be permitted to enter Jerusalem today and on 
December 8.  Some 2000 Palestinian workers from Gaza 
are permitted to enter Israel.  Israel also granted 
permits to 1000 merchants, bringing the total number of 
merchants permitted to enter Israel from Gaza to 2000. 
 
The Post reported on Sunday that Palestinian Authority 
Finance Minister Salam Fayyad is planning to form a new 
party that will run in next January's parliamentary 
elections, sources in Ramallah said on Saturday. 
Fayyad, who recently announced his intention to resign, 
apparently in protest against the way PA chairman 
Mahmud Abbas was handling the PA finances, will head 
the new party, which will be independent and serve as 
an alternative for those who don't want to vote for the 
ruling Fatah party or Hamas.  The sources said 
legislator Hanan Ashrawi and former Information 
Minister Yasser Abed Rabbo, one of the heads of the 
Geneva Initiative group, are expected to join Fayyad's 
party.  Other Palestinians whose names have been 
mentioned in connection with the new party are Dr. Iyad 
Sarraj and Khaled Abdel Shafi of the Gaza Strip and 
Abdel Kader Husseini of Jerusalem. 
 
Yedi'ot Aharonot reported Sunday that there is tension 
between Israel and Turkey in the wake of the paper's 
expos on Israelis training Kurds in northern Iraq. 
Aware of this, the Israeli Foreign Ministry sent 
calming messages to Turkey, stating that the parties 
involved were private companies.  The ministry also 
lashed at the Israeli companies, saying what they did 
was "outrageous and irresponsible." 
 
Ha'aretz reported Monday that Israel is trying to 
prevent the development of a diplomatic crisis with 
Ethiopia after eight of its military men who were in 
Israel for training sought refuge with the ambassador 
of Eritrea, who later flew them to his country.  Israel 
claims the Ethiopians defected on their own accord and 
that no official Israeli body was involved. 
Yediot also reported Monday that Indonesian foreign 
minister said over the weekend that his government 
supports initiating "non-diplomatic" contacts with 
Israel, focusing on economic ties.  The report adds 
that the two countries have been in secret contacts for 
the past several months in which Foreign Minister 
Shalom and his ministry's director general were 
involved. 
 
Yediot Ahronot reported Monday that due to an American 
demand, Israel had to cancel a security deal for 
maintenance of the Venezuela Air Force's F-16's. 
Israel was later "surprised" to realize that several 
American companies submitted bids on the same tender, 
with the US Administration's approval.  Political 
sources are cited as saying that "in the worst case, 
the Americans played a trick on Israel to help their 
own security industries."  The affair caused great 
embarrassment in the Israeli political and security 
establishment, which "made efforts to conceal the 
report so as not to reveal more alleged tensions 
between Israel and the US." 
 
The Post reported Monday that after the Supreme Court 
rejected the appeal of suspected drug dealer Ze'ev 
Rosenstein's extradition to the United States, Justice 
Minister Tzipi Livni said she is willing to sign the 
extradition order against Rosenstein, unless his 
lawyers present her with convincing arguments against 
doing so. 
 
All the media reported Monday on the joint news 
conference in which Prime Minister Ari'el Sharon and 
Shimon Peres outlined their Kadima partnership. 
Ha'aretz reported that Sharon said he will let Peres 
choose any position he wants, where he will be "a full 
and central partner to the political process."  Peres 
said he joined Sharon because he saw the great 
opportunity created after the Gaza withdrawal, and 
would not say whether he quit Labor because he lost to 
Peretz. 
 
The Post, citing AP, reported on Sunday that the UN 
approved six resolutions criticizing Israeli policies. 
"Israel's UN Ambassador Dan Gillerman said that the 
resolutions were not only `absolutely useless' but 
`very worrisome' because they signified Palestinian 
concern only with the past, not with finding 
constructive ways to improve the lives of both 
Palestinians and Israelis." 
 
¶1.  Israeli Elections 
                        Summary 
                     ------------- 
 
Media and politics Professor Yoram Peri writes in 
pluralist, mass-circulation Yediot Aharonot:  "That 
Sharon is leading in the polls way ahead of Labor and 
the Likud." is due to "his understanding of the deep 
change of the Israeli political map, where a new 
consensus was created over the past three years..  It 
is important to realize that this consensus is broadly 
supported by the Israeli public opinion and thus, he 
who represents it will score the most votes in the 
March 2006 elections." 
 
Independent, left-leaning Ha'aretz editorialized: 
"Peretz tends to play solo, as he was used to in the 
Histadrut, but he must lose that habit..  He must 
realize that even those who will be convinced by his 
social and economic arguments will rightfully demand 
that he prove himself worthy of being a prime 
minister." 
 
Veteran columnist Akiva Eldar writes in independent, 
left-leaning Ha'aretz:  "Why does a party named Kadima 
[Forward] need a serial loser?  .  Peres is the prime 
minister's most important acquisition..  The Nobel 
laureate will travel the world's capitals and show that 
his boss is a man of peace.  There was a time that 
Peres preached for a new Middle East, when he told 
people like Sharon that making the peace process 
conditional on ending terror is a gift for the 
terrorists.  Now he will tell the world that 
eliminating the infrastructure of terror is what is 
needed to promote the infrastructure of peace." 
 
                      Bloc quotes 
                    -------------- 
 
¶I.  "What Sharon Realized" 
 
Media and politics Professor Yoram Peri writes in 
pluralist, mass-circulation Yediot Aharonot:  "The fact 
that Sharon is leading in the polls way ahead of Labor 
and the Likud follows from his appeal as a leader, but 
not less from his understanding of the deep change of 
the Israeli political map, where a new consensus was 
created over the past three years..  The consensus is 
based on three principles:  First, the belief that we 
have no Palestinian partner for negotiations at this 
time and that the Palestinian society is not ripe to 
make peace, which is why the violent conflict will 
continue for many years to come, even if the flames are 
lower.  Second, Oslo's failure must make Israel throw 
the left-wing belief that peace can be attained in 
exchange for territories into the dustbin of history; 
at the same time, the right-wing view that peace can be 
attained while keeping the territories is now extinct. 
The new consensus is that the territories are a burden 
and we must rid ourselves of most of them, even if this 
does not bring peace any closer.  Third, because there 
will be no partner in this generation, and since we 
must get used to living with ongoing terror, it is time 
for us to take our future into our hands and determine 
our fate unilaterally.  Each of these three principles 
can naturally be refuted, but this is not the issue. 
It is important to realize that this consensus is 
broadly supported by the Israeli public opinion and 
thus, he who represents it will score the most votes in 
the March 2006 elections." 
 
II.  "Peretz' First Test" 
 
Independent, left-leaning Ha'aretz editorialized: 
"Criticism of the way Amir Peretz conducts the Labor 
Party affairs and his relations with the people around 
him came too soon.  When he was elected party chairman, 
there was hope that his drive would help change the 
political system, but some of the moves he made already 
threaten to kill that hope..  Peretz tends to play 
solo, as he was used to in the Histadrut, but he must 
lose that habit..  It seems, however, that Peretz' 
greatest mistake was his appreciation of the nature of 
the campaign for Israel's leadership.  The political 
views he presented after his victory. were flexible 
enough for Labor to present the voters with realistic 
and practical suggestions for bilateral negotiations 
with the Palestinians, a unilateral move in the West 
Bank, and taking an active and effective part in 
Sharon's coalition.  But ever since he made his initial 
declarations, he was not heard on the political 
conflict, as if he has captivated himself in his social 
agenda campaign, believing it will win him the 
election.  He must realize that even those who will be 
convinced by his social and economic arguments will 
rightfully demand that he prove himself worthy of being 
a prime minister." 
 
III.  "What Does He Need Him For?" 
 
Veteran columnist Akiva Eldar writes in independent, 
left-leaning Ha'aretz:  "Why does a party named Kadima 
[Forward] need a serial loser?  Did Sharon's strategic 
advisers not warn him that Netanyahu would tag him 
'Shimon (Oslo) Peres'?.  It is hard to believe that 
Sharon did not consider this when he chose to adopt the 
political orphan.  Nevertheless, Peres is the prime 
minister's most important acquisition..  The Nobel 
laureate will travel the world's capitals and show that 
his boss is a man of peace. and who will then doubt 
Sharon's commitment to peace?  Even if the outposts are 
flourishing and the peace process is withering, have no 
fear: when Shimon is in the kitchen, rest assured -- 
something is cooking with Abu-Ala.  Even if defense 
minister Avi Dichter should spoil the soup with a bunch 
of pinpointed assassinations, worry not, for Peres will 
take "the peace team" to Europe and show the world that 
everything is fine..  No one knows better than Peres 
that a peace arrangement with the Palestinians, even an 
interim one, can only be attained by way of 
negotiations with a Palestinian partner; but Sharon has 
already announced that the terms of joining his 
partners' club remain: eliminating the infrastructure 
of terror..  The prime minister maintains that HAMAS 
should not only be disarmed, but also outlawed and its 
offices closed.  First the Israeli Government proved to 
the Palestinians that only HAMAS can drive the Israelis 
out and next, when HAMAS is at the peak of its 
popularity, Israel wants the Palestinians to turn their 
backs on it.  According to security officials, 
including those Peres sometimes listens to, this means 
one thing - a [Palestinian] civil war..  There was a 
time that Peres preached for a new Middle East, when he 
told people like Sharon that making the peace process 
conditional on ending terror is a gift for the 
terrorists.  Now he will tell the world that 
eliminating the infrastructure of terror is what is 
needed to promote the infrastructure of peace." 
 
 
¶2. Iranian Nuclear Race 
 
                        Summary 
                      ----------- 
 
Military correspondent Alex Fishman writes in mass- 
circulation, pluralist Yediot Ahronot:  "Though no one 
will declare this openly, we have entered the court of 
the balance of terror and have already spent a long 
time in the opening chapter of this malignant disease. 
The Iranians do not yet have nuclear weapons, but we 
are already in the foreplay stage -- conducting a 
defensive arms race against them, trying to understand 
where they are headed and to be there a few steps ahead 
of them..  This will go on and on unless some kind of 
political miracle should happen to stop this madness, 
that sucks billions of dollars from both sides." 
 
                      Bloc quotes 
                    -------------- 
 
"It Costs Billions" 
 
Military correspondent Alex Fishman writes in mass- 
circulation, pluralist Yediot Ahronot:  "Though no one 
will declare this openly, we have entered the court of 
the balance of terror and have already spent a long 
time in the opening chapter of this malignant disease. 
The Iranians do not yet have nuclear weapons, but we 
are already in the foreplay stage -- conducting a 
defensive arms race against them, trying to understand 
where they are headed and to be there a few steps ahead 
of them.  Israel views the Iranian nuclear threat as a 
given fact.  Diplomatic efforts to thwart it have so 
far failed.  In view of this, all the remarks about 
introducing a new national, social order of priorities 
are merely election talk.  Once Iran obtains nuclear 
weapons, the huge sums and resources that Israel has 
been investing in developing an appropriate response 
will be doubled and tripled, and it already costs us 
billions..  We will have to get used to this:  The 
Iranians make a move; we find an answer that is 
supposed to anticipate their future technology; they 
learn the Israeli response and with time develop a 
counter technology.  This will go on and on unless some 
kind of political miracle should happen to stop this 
madness, that sucks billions of dollars from both 
sides." 
 
¶3.  The Syrian Threat 
 
                        Summary 
                      ----------- 
 
Liberal commentator Ofer Shelah writes in pluralist, 
mass-circulation Yediot Aharonot:  "Reports said that 
Syria improved the guidance and maneuverability of its 
Scud D missiles..  It is the old Israeli complex in 
which we are dealing in detail, with an almost 
masochistic pleasure, with the enemy's capabilities, 
ignoring their meanings or the chances they would ever 
materialize.." 
 
                      Bloc quotes 
                    -------------- 
 
"The Accountants of Fear" 
 
Liberal commentator Ofer Shelah writes in pluralist, 
mass-circulation Yediot Aharonot:  "Cynics tend to 
attribute reports of the kind that leaked to the media 
from the defense establishment to the high budget 
season.  The reports said that Syria improved the 
guidance and maneuverability of its Scud D missiles.. 
Only this time, even if there is smoke and fire, 
there's nothing to burn because the limping Sharon 
cabinet is holding no budgetary debates at all..  It 
thus seems that this affair is older than any 
conspiracy.  It is the old Israeli complex in which we 
are dealing in detail, with an almost masochistic 
pleasure, with the enemy's capabilities, ignoring their 
meanings or the chances they would ever materialize.. 
In this respect, the precision of the missiles, that 
were not meant to pinpoint targets, is meaningless, 
just as the number of rockets in the hands of Hizballah 
is insignificant, though precisely counted (and 
published) by the intelligence, acting zealotry as 
accountants of fear..  The way we see things, our enemy 
has no interests, intentions, or pressure levers; it 
only wants to destroy us and has no rationale of its 
own." 
Jones