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UNCLAS SECTION 01 OF 08 TEL AVIV 006996 
 
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.  Prime Minister Sharon's Health 
 
¶2.  Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media led with the state of PM Sharon's health. 
Israel Radio reported that Sharon was in good condition 
this morning after he was rushed to Jerusalem's 
Hadassah-Ein Karem Hospital last night following an 
apparent minor stroke and a brief loss of 
consciousness.  Leading media reported that world 
leaders, including the U.S. National Security Advisor - 
- on behalf of President Bush -- Secretary of State 
Condoleezza Rice, PA Chairman [President] Mahmoud 
Abbas, and Egyptian President Hosni Mubarak, called the 
hospital.  Maariv reported that Deputy National 
Security Advisor Elliott Abrams called on behalf of the 
President.  The media, which write that Ehud Olmert 
would replace Sharon if necessary, note that the stroke 
raised questions about Sharon's health 100 days ahead 
of the March 28 election. 
 
During the weekend, all media reported on the Likud 
primary, which takes place today, in which Knesset 
Member Binyamin Netanyahu, FM Silvan Shalom, far-right 
activist Moshe Feiglin, and Agriculture Minister 
Yisrael Katz vie for the party's chairmanship.  On 
Sunday, Yediot and Maariv led with the leadership race 
in the Likud.  Maariv quoted Netanyahu associates as 
saying that he would form a right-wing party if he 
loses the Likud party primaries.  Maariv reported that 
Netanyahu told his associates that Shalom would turn 
the Likud into "Kadima 2." 
 
On Sunday, all media reported on, and Ha'aretz and The 
Jerusalem Post led with, the Hamas victory in 
Thursday's Palestinian municipal elections.  On Sunday, 
Ha'aretz quoted Palestinian officials as saying on 
Saturday that Hamas will participate in the Palestinian 
parliamentary elections next month.  This, despite a 
resolution (H.R. 575) passed by the U.S. House of 
Representatives with a large majority on Friday to 
threaten the PA from withholding aid if it includes 
Hamas in the next government.  On Sunday, The Jerusalem 
Post, among other media, reported that the Bush 
administration made clear on Friday that it would not 
get involved in the upcoming Palestinian elections. 
The Jerusalem Post quoted Foreign Ministry Spokesman 
Mark Regev as saying on Saturday: "If Hamas ever 
succeeded in dominating the PA that would be the end of 
the peace process."  The Jerusalem Post quoted Israeli 
sources as saying over the weekend that Hamas's 
participation in the January elections is not a topic 
being discussed between Israel and the U.S.  Today, 
leading media quoted EU foreign policy chief Javier 
Solana as saying on Sunday that that the EU could cut 
off financial aid to the PA if Hamas wins the January 
elections. 
 
On Sunday, all media reported that Yossi Shok, from the 
settlement of Beit Hagai, who was injured in a drive-by 
shooting incident near Hebron, died of his wounds on 
Friday.  All media reported that on Sunday a Qassam 
rocket hit the southern outskirts of Ashkelon for the 
second time in three days.  The media reported that 
during the weekend, the IAF repeatedly struck Gaza 
Strip sites that the army said Palestinians used to 
fire rockets into Israel.  This morning, Israel Radio 
reported that IDF troops captured a would-be suicide 
bomber in Kibbutz Nir-Am, next to the Gaza Strip 
border. 
 
The Jerusalem Post reported that "reflecting Israel's 
quandary regarding Iran," IDF Intelligence chief Maj. 
Gen Aharon Zeevi-Farkash told the cabinet on Sunday 
that while he does not think diplomatic efforts will 
stop Iran from building a nuclear bomb, he believes 
these efforts must continue.  During the weekend, 
leading media quoted President Bush as saying in an 
interview with PBS-TV on Friday that Iranian President 
Mahmoud Ahmadinejad was an "odd guy."  The media said 
that the President was responding to Ahmadinejad's 
comments denying the Holocaust and suggesting that 
Israel be wiped off the map or moved to Europe or 
Alaska.  The media also quoted Secretary of State 
Condoleezza Rice as saying on Friday that Iran has not 
renounced its nuclear program, despite international 
pressure. 
 
On Sunday, Maariv quoted former IDF Chief of Staff 
Moshe Ya'alon as saying in an interview to The New York 
Sun that Saddam Hussein had weapons of mass 
destruction, which have been moved to Syria. 
 
The Jerusalem Post reported that, facing heavy U.S. 
pressure to choose an American system over a "cheaper, 
yet sophisticated," Israeli one, South Korea said over 
the weekend it would delay its decision regarding the 
planned purchase of early warning aircraft until May. 
 
The Jerusalem Post reported that the U.S. Federal 
Reserve has approved Matthew Bronfman's taking control 
of Israel Discount Bank from the GOI almost a year 
after the businessman signed the deal to buy the bank. 
During the weekend, The Jerusalem Post and Ha'aretz 
reported that Discount's New York unit agreed to pay up 
to USD 25 million to end a money-laundering probe 
carried out by the District Attorney of New York 
County. 
 
Leading media reported that the American film director 
Steven Spielberg has hired one of Israel's top public 
relations consultants, Eyal Arad, a Sharon aide, to 
head local publicity for his controversial drama 
Munich.  The film deals with the murder of 11 Israeli 
sportsmen during the 1972 Munich Olympic Games and 
Israel's subsequent revenge campaign.  The Jerusalem 
Post says that in a conversation with the newspaper, 
Arad confirmed that he had been hired by Spielberg, but 
that he declined to comment further. 
 
Yediot reported that the Israeli airline Israir has 
suspended the pilot who almost caused a lethal accident 
at New York's JFK Airport around four months ago. 
 
----------------------------------- 
¶1.  Prime Minister Sharon's Health: 
----------------------------------- 
 
                       Summary: 
                       -------- 
 
Senior columnist Nahum Barnea wrote on page one of mass- 
circulation, pluralist Yediot Aharonot: "The stroke 
that Sharon suffered illustrated to the Israelis how 
much they need him now." 
 
Senior columnist Ben Caspit wrote on page one of 
popular, pluralist Maariv: "Suddenly it turns out that 
it is not entirely certain that Sharon is the next 
prime minister." 
 
                     Block Quotes: 
                     ------------- 
 
¶I.  "The Main Thing Is Health" 
 
Senior columnist Nahum Barnea wrote on page one of mass- 
circulation, pluralist Yediot Aharonot (December 19): 
"The stroke that Sharon suffered illustrated to the 
Israelis how much they need him now.  In the eyes of 
most of them, including many who support rival parties, 
he is the conclusive authority on security matters.  On 
the agenda are existential problems that await his 
attention: the Iranian nuclear issue; the Palestinian 
Authority; Hamas; the Qassam rockets; and alongside 
them the tough social issues.  As always, Israel needs 
a prime minister, and a prime minister who is capable 
of leading.... Moreover, it is election season, and 
Kadima, the ruling party, is not a real party, with 
institutions and orderly electoral processes.  Kadima's 
existence depends on one man: Ariel Sharon.... Sharon 
has many admirers and many adversaries.  If I am not 
mistaken, the overwhelming majority of these was united 
last night in a single hope: Let him continue to be 
healthy." 
 
II.  "In the Armored Car, With an Oxygen Mask" 
 
Senior columnist Ben Caspit wrote on page one of 
popular, pluralist Maariv (December 19): " The election 
campaign in Israel was reborn this morning.  The agenda 
has changed.  The timetable has been recreated.  The 
ultimate nightmare of the Kadima campaign took place 
live in front of all of us.  It could be a passing 
episode; Sharon could come back to us and perform magic 
tricks for three months.  And perhaps not.  The doubt 
will be piercing.  The public will envelope him with 
love.... And what will this do to the Likud primary? 
Good question.  On the one hand, it might help 
Netanyahu.  Suddenly it turns out that it is not 
entirely certain that Sharon is the next prime 
minister.  And Netanyahu has the image of someone 
running for prime minister.  On the other hand, it 
could be that the registered voters will want to punish 
Netanyahu.  And blame him for what happened to Sharon. 
And maybe lower the percentage of voting (which would 
be good for Silvan).  But meantime, with all due 
respect, what difference does it make.  Sharon is in 
the hospital.... A big bang, a little stroke and a lot 
of question marks." 
 
------------ 
¶2.  Mideast: 
------------ 
 
                       Summary: 
                       -------- 
 
Arab affairs commentator Danny Rubinstein wrote in 
independent, left-leaning Ha'aretz: "It appears that 
the government of Israel will have no choice but to 
respect the will of the Palestinian voters." 
 
The conservative, independent Jerusalem Post 
editorialized: "The Palestinians have a basic choice 
before them: continuing the war or building a state. 
Electorally, the war party seems to be winning." 
 
Senior op-ed writer Akiva Eldar commented in Ha'aretz 
(December 18): "The attempt [by the U.S. House of 
Representatives] to interfere with internal Palestinian 
politics is not consistent with the position of the 
U.S. administration." 
 
Nationalist, Orthodox Hatzofe editorialized: "To be 
sure, thanks are due to the U.S. House of 
Representatives, but it appears that the situation will 
remain the same." 
 
                     Block Quotes: 
                     ------------- 
 
¶I.  "The Will of the Palestinian Voter" 
 
Arab affairs commentator Danny Rubinstein wrote in 
independent, left-leaning Ha'aretz (December 19): 
"Despite threats from Israeli spokesmen and U.S. 
warnings, it appears that the government of Israel will 
have no choice but to respect the will of the 
Palestinian voters, who will almost certainly transform 
Hamas into a central body in the new Palestinian 
parliament that will be elected in January.... 
Nonetheless, a major victory for Hamas in the 
parliamentary elections will be a sure source of 
troubles for Abbas and the Israeli government.... 
Recent Hamas statements have been saying that its 
activists have focused on fighting the occupation, and 
in the meantime a terrible deterioration has taken 
place in the territories -- violent gangs, waste, 
exploitation and corruption.... On this backdrop, the 
Israeli government can and must continue negotiations 
with Abbas and his people, while, of course, taking 
into account the internal changes underway in 
Palestinian politics and respecting the will of the 
Palestinian voter -- even though it is not to Israel's 
liking." 
 
II.  "The Palestinians' Choice" 
 
The conservative, independent Jerusalem Post 
editorialized (December 18): "The Palestinians have a 
basic choice before them: continuing the war or 
building a state.  Electorally, the war party seems to 
be winning.... Though the strength of Hamas is often 
attributed to the public's rejection of the corruption 
of Fatah's old guard, at the Hamas victory rally in 
Nablus the crowd was not chanting for clean government 
but "To Jerusalem we march, martyrs by the millions!" 
Meanwhile, the U.S. House of Representatives has 
resoundingly passed a resolution stating that allowing 
Hamas terrorists to participate in the legislative 
elections scheduled next month would "potentially 
undermine the ability of the United States to have a 
constructive relationship with or provide further 
assistance to the Palestinian Authority."  This is a 
welcome statement, but it also should be considered a 
restatement of the obvious.... Indeed, many 
Palestinians seem to believe that, not only do they not 
have to choose between terror and a state, but that 
terrorism remains the best way to obtain their national 
goals.  The fact that such a belief is evidently alive 
and well after all the declarations that terror must 
stop is damning evidence that the international 
community has failed to convince Palestinians that it 
is serious about forcing such a choice.  The 
international community has done the Palestinians no 
favor in this respect.... The more the corrupt PA is 
artificially propped up, the more the people want to 
replace it with Hamas.  The solution, rather than 
continuing to finance the PA at all costs, is to more 
seriously link funding to what the donors have demanded 
for years: ending terror, corruption and incitement and 
introducing the rule of law." 
 
III.  "Congress Keeps One Eye on the Jewish Lobby" 
 
Senior op-ed writer Akiva Eldar commented in Ha'aretz 
(December 18): "The attempt to interfere with internal 
Palestinian politics is not consistent with the 
position of the U.S. administration, which a few weeks 
ago pushed Prime Minister Ariel Sharon into 
backtracking on his threat to disrupt the elections in 
the territories if the PA allowed Hamas to take part. 
The U.S., which has placed democratization of the 
Middle East at the top of its priorities, will find it 
difficult to dictate to the Palestinians not to include 
Hamas in the government if its candidates receive 
widespread voter support and it is willing to lay down 
its arms.  The resolution by the U.S. Congress, which 
is couched in vague terms, is typical of its behavior 
in an election year (elections are in November 2006) in 
which its members need funding and political support 
from the pro-Israel AIPAC." 
 
IV.  "The U.S. House of Representatives Has Resolved -- 
So What?" 
 
Nationalist, Orthodox Hatzofe editorialized (December 
19: "[Israeli] diplomatic correspondents are excited 
over Israel's 'important diplomatic achievement' at the 
U.S. House of Representatives.... For better or for 
worse, that resolution might create considerable 
tension between U.S. Secretary of State Condoleezza 
Rice on one side, and Israel and its lobby in the U.S., 
which did its job in the House.... Indeed, Abu Mazen is 
interested in good relations with the U.S. House of 
Representatives, but he can afford not to take it into 
account... What is clear is that Abu Mazen doesn't 
intend to start a 'civil war' as a result of the 
House's resolution.... To be sure, thanks are due to 
the U.S. House of Representatives, but it appears that 
the situation will remain the same." 
 
CRETZ