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

UNCLAS SECTION 01 OF 08 TEL AVIV 000806 
 
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 
 
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SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
Mideast 
 
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Key stories in the media: 
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During the weekend, major media reported that President 
Bush urged the international community on Saturday to 
make clear to Hamas that it must recognize Israel's 
right to exist or else be denied aid.  Maariv (Ben 
Caspit) reported tension between Washington and 
Jerusalem regarding relations with PA Chairman 
[President] Mahmoud Abbas.  The newspaper cited the US 
belief that Abbas should be strengthened and the Hamas 
regime by-passed through Abbas.  Maariv quoted Israeli 
diplomatic sources as saying that the gap between the 
positions of Israel and the US might lead to Israel's 
isolation.  On Sunday, Yediot wrote that Israel would 
warn the US that US money could "drip" to Hamas and 
fund its terrorist activities.  On Sunday, The 
Jerusalem Post reported that on Saturday, PA officials 
expressed deep satisfaction with what they said was a 
decision by the US and EU not to stop financial aid to 
the Palestinians.  Israel Radio reported that on 
Saturday, the Quartet's Mideast envoy James Wolfensohn 
wrote a letter to members of the Quartet, saying that 
the PA is on the verge of economic collapse within two 
weeks, that the international community should send USD 
60 to 80 million in financial aid as soon as next week, 
and that Israel should disburse its debt to the PA. 
Major news web sites also cited Wolfensohn's letter. 
Israel Radio reported that the EU foreign ministers 
have decided to transfer USD 142 million to the 
Palestinians to prevent the collapse of the PA.  All 
media (lead story in Globes) reported that the Israel 
fuel company Dor Alon stopped fuel shipments to the PA. 
However, The Jerusalem Post quoted a senior PA official 
as denying reports in the Hebrew press suggesting that 
a check payable to the company was intentionally 
bounced in retaliation for Israel's decision to stop 
the transfer of tax revenues. 
 
All media quoted FM Tzipi Livni (Kadima) as saying in 
an interview with Israel Radio on Sunday that PA 
Chairman [President] Mahmoud Abbas, who "cannot 
continue to be a fig leaf for a terrorist entity," is 
"irrelevant."  The Jerusalem Post reported that Acting 
PM Ehud Olmert told A/S David Welch that there cannot 
be two Palestinian authorities, a "good one" that is 
represented by Abbas with which the international 
community wants to continue doing business, and a "bad 
one" represented by Hamas.  However, Ha'aretz quoted 
Shimon Peres, who is number two on the party's list 
Knesset slate, as saying Sunday at a function in Miami 
that "Israel must continue to talk with Abu Mazen 
[Abbas]. 
 
On Sunday, leading media quoted Palestinian PM- 
designate Ismail Haniyeh as saying in an interview with 
The Washington Post/Newsweek that Hamas would recognize 
Israel if Israel agreed to "recognize a Palestinian 
state along the 1967 borders, release the prisoners and 
recognize the rights of the refugees to return to 
Israel."   But Haniyeh was quoted as saying at a press 
conference with Palestinian media in Gaza Sunday that 
he never discussed the question of recognizing Israel 
in the interview; saying only that if Israel fulfilled 
those three conditions, Hamas would consent to a long- 
term truce.  Israel Radio quoted Khaled Mashal, the 
head of Hamas's political bureau as saying that he is 
prepared to talk with any international element.  The 
radio said that Mashal's comments rule out Israel.  In 
its lead story, Yediot reported that Iran has been 
briefing Hamas on "how to run a country."  The 
newspaper reported that Iran is telling Hamas to hold 
on for six months until Israel and the West yield. 
Ambassador Henry A. Crumpton, the State Department's 
Coordinator for Counterterrorism, was quoted as saying 
in an interview with The Jerusalem Post that Iran wants 
the same control over Hamas that it has over Hizbullah, 
an organization that is nothing less than a "delivery 
system" for Iranian weapons. 
 
On Sunday, Maariv quoted Defense Minister Shaul Mofaz 
as saying that the murderers of Israeli cabinet 
minister Rehavam Zeevi would not remain free for long. 
Mofaz was responding to a comment by Abbas that he is 
not ruling out releasing them from their Jericho jail. 
The media reported that Israel is applying pressure on 
PA institutions in Jericho.  On Sunday, leading media 
reported that Sami Abdel Akilan, a member of the 
Palestinian national security forces who allegedly 
planned to launch terrorist attacks in the near future, 
was arrested by Israeli security sources on Saturday. 
 
On Sunday, Ha'aretz reported that the Lebanese 
government publicly admitted recently, for the fist 
time, that it had permitted the delivery of a convoy of 
arms from Syria to Hizbullah.  The newspaper wrote that 
the UN responded by issuing a condemnation. 
 
Major media (banners in Ha'aretz and The Jerusalem 
Post) reported that on Sunday, Iran and Russia reached 
an agreement in principle to set up a joint uranium 
enrichment facility on Russian soil, a deal that could 
assuage global concerns that Tehran wants to build 
atomic bombs. 
 
Ha'aretz reported that Israel will institute a number 
of comprehensive changes to its defense export 
arrangements at the insistence of the United States, 
following the crisis over Israel's export of attack 
drones to China.  According to the newspaper, the 
status of several central divisions in the Defense 
Ministry will be changed, including that of the head of 
security and the division for assistance and export. 
Ha'aretz wrote that a new division will be established 
in the Defense Ministry, and Foreign Ministry 
representatives will sit on a supreme advisory council 
for defense exports. The US administration has 
reportedly been informed of the expected changes. 
 
On Sunday, Ha'aretz reported that AIPAC has decided 
that the 4,5000 participants in its annual policy 
conference, which begins next week, will be singing 
both Israel's national anthem "Hatikvah" and "The Star- 
Spangled Banner."  Last year's decision to skip 
"Hatikvah" has been linked to the investigation at the 
time of senior AIPAC officials and a desire to avoid 
any suspicion of dual loyalties. 
 
Major media reported that Brig. Gen. Aviv Kochavi 
decided to refrain from beginning classes at the Royal 
College of Defense Studies in the UK on the advice of 
the Military Advocate General, who expressed concerns 
that Kochavi would be arrested on war crime charges. 
Yediot -- and The Jerusalem Post on Sunday -- reported 
that Israel is trying to have suits against former Shin 
Bet Director Avi Dichter and former IDF Chief of Staff 
Moshe Ya'alon canceled in the US. 
Leading media reported that three weeks ago, an Israeli 
delegation attended a UN Environment Program conference 
in Dubai. 
 
Ha'aretz printed a dispatch by the German press agency 
DPA that the Iranian media reported on Sunday that Iran 
is to hold an anti-Israeli conference in mid-April. 
 
During the weekend, all media reported on Friday's 
attack against the Saudi oil processing facility of 
Abiqaiq -- the most important in the world. 
 
Yediot reported that a group of Sderot residents has 
decided to sue the PA for 50 million shekels (around 
USD 10.6 million) over the firing of rockets at Israel. 
 
The Jerusalem Post reported that Fatah's Al Aqsa 
Martyrs Brigades claimed responsibility for Saturday's 
murder of Kamel al-Izra, an Israeli Arab who lived in 
Yatta near Hebron, who was suspected of collaboration 
with Israel. 
 
On Sunday, Ha'aretz reported that several Jewish- 
American leaders predict the religious right's 
"campaign to baptize America" holds near-apocalyptic 
consequences. 
 
All media front-paged a march of tens of thousands of 
people in Paris on Sunday in memory of Ilan Halimi, who 
was kidnapped, tortured, and killed in an attack that 
authorities say was partly motivated by anti-Semitism. 
 
Yediot reported that the US and Russia might be heading 
for a diplomatic crisis. 
 
-------- 
Mideast: 
-------- 
 
                       Summary: 
                       -------- 
 
Washington correspondent Orly Azolai wrote in mass- 
circulation, pluralist Yediot Aharonot: "The White 
House has been forced to transfer the funds, but will 
call them by a different name: not aid to the 
Palestinian Authority, but aid for humanitarian 
purposes." 
Eytan Haber, veteran op-ed writer and assistant to the 
late prime minister Yitzhak Rabin, commented in the 
lead editorial of mass-circulation, pluralist Yediot 
Aharonot: "[Israel] has paid very heftily for 
declarations by Arab leaders.  It is therefore acting 
only on the ground." 
 
Senior op-ed writer Akiva Eldar commented in left- 
leaning, independent Ha'aretz: "The Olmert government 
will soon have to decide if it prefers Hamas as a 
partner in perpetuating the conflict, or Abu Mazen as 
its final partner for peaceful resolution of it." 
 
Chief Economic Editor Sever Plotker wrote in Yediot 
Aharonot's editorial: "Should Israel search for a 
formula for coexistence ... with Hamas ... or should it 
seek an immediate and crushing military confrontation 
.... ?  [Israel's] large parties have been evading 
giving a direct response to this question." 
 
The conservative, independent Jerusalem Post 
editorialized: "It is the Palestinians, not Israel, who 
are fundamentally opposed to the entire land-for-peace 
premise that underpins the peace process." 
 
Nationalist, Orthodox Hatzofe editorialized: "There was 
no doubt that the US would continue to pour the funds 
as long as Abu Mazen heads the PA." 
 
                     Block Quotes: 
                     ------------- 
 
¶I.  "Bush's Dilemma" 
 
Washington correspondent Orly Azolai wrote in mass- 
circulation, pluralist Yediot Aharonot (February 27): 
"The US administration headed by Bush warned before the 
elections that aid would not be transferred to the PA 
were Hamas to head the government.  This was a 
legitimate threat, as part of an effort to influence 
the outcome of the elections, but after the outcome 
became known this became a trap: if the administration 
halts the aid, it will be a punishment for the entire 
Palestinian people, which is bowed under the weight of 
occupation in any case.  If it transfers the aid, it 
will look like it has gone back on its word.  The 
result is that the White House has been forced to 
transfer the funds, but will call them by a different 
name: not aid to the Palestinian Authority, but aid for 
humanitarian purposes.  The administration transfers 
the funds just as it did in the past, but now it is 
accompanying the transfer with a public call for Hamas 
to change its ways.  In a speech delivered in 
Washington on Friday, President Bush said that the 
world was waiting for Hamas's decision.  He called upon 
the international community to make it clear to Hamas 
that elected leaders cannot put one foot in the 
democratic camp and the other in the terrorist camp. 
But Bush's money is neither a weapon against Hamas nor 
is it a threat or a whip.  Even before Hamas had a 
chance to react to Bush's calls, an administration 
representative already announced that the money would 
continue to flow.  The White House hopes that the 
message will nevertheless filter down to Hamas.  This 
time they have decided to give the carrot and wait with 
the stick." 
 
II.  "'Kalam Fadi' (Empty Words)" 
 
Eytan Haber, veteran op-ed writer and assistant to the 
late prime minister Yitzhak Rabin, commented in the 
lead editorial of mass-circulation, pluralist Yediot 
Aharonot (February 27): "After the Hamas leaders 
recovered from the shock of their victory, they are 
trying to soothe the jumpy world.  Even the most 
extreme leaders of that terrorist organization 
understand that the US and Israel are holding the 
Palestinians in a most sensitive spot.... [Palestinian 
PM-designate] Ismail Haniyeh should learn the first 
lesson in relations with Israel, if he hasn't done so 
already: this state has paid very heftily for 
declarations by Arab leaders.  It is therefore acting 
only on the ground.  All the rest are 'kalam fadi' 
(Arabic: empty words)" 
 
III.  "Choosing Between Abbas and Hamas" 
 
Senior op-ed writer Akiva Eldar commented in left- 
leaning, independent Ha'aretz (February 27): "Judging 
by past results, Abu Mazen has failed to meet 
expectations when it came to imposing his authority on 
the security forces and ensuring proper administration 
of the public services.  But it is hard to say who is 
more to blame for these failures: Abu Mazen, who proved 
unable to fill Arafat's shoes or mend his ways, or 
Ariel Sharon, for his decision to get rid of the PA and 
to resort to unilateral steps.  In any case, the Olmert 
government will soon have to decide if it prefers Hamas 
as a partner in perpetuating the conflict, or Abu Mazen 
as its final partner for peaceful resolution of it." 
 
IV.  "Elections in the Shadow of the Volcano" 
 
Chief Economic Editor Sever Plotker wrote in Yediot 
Aharonot's editorial (February 26): "The Palestinian 
vote connects with chilling phenomena taking place in 
the Arab world, the resonant echoes of which penetrate 
every household in Israel.... It is natural that in the 
face of such deep tremors, the voters are looking for 
statesmen that will be able to lead Israel in the 
coming years, which may prove to be among the most 
fateful we have known.  Complex fundamental questions 
arise, knocking on the doors of our consciousness. 
Here is one main question: Should Israel search for a 
formula for coexistence ('hudna') with Hamas and agree 
to a prolonged truce with it, or should it seek an 
immediate and crushing military confrontation, before 
it succeeds in taking over the Palestinian Authority's 
branches of government?   The large parties have been 
evading giving a direct response to this question and 
its like, and content themselves with a stammered and 
noncommittal response, either in the hawkish direction 
('Netanyahu is strong against Hamas') or in the dovish 
direction ('We will fight terror, we will beat 
poverty').  The propagandists and PR executives are 
still hoping to put the voters to sleep and dull their 
vigilance.  This may not be possible, because this is 
not an awakening from a bad dream but rather awakening 
to a bad reality.... The political map that is 
ultimately drawn after the elections in March 2006 may, 
therefore, be quite different from the map that emerged 
from public opinion polls from January 2006." 
 
¶V.  "Hamas Immoderation" 
 
The conservative, independent Jerusalem Post 
editorialized (February 27): "Everyone knew it was 
coming; Hamas, following its surprise victory, would 
attempt to appear moderate in order to retain the flow 
of Western financial assistance.  If there is a 
surprise now, it is that Hamas's nod toward moderation 
is so imperceptible that it barely qualifies as a 
'charm offensive'.... The harsh truth is that the 
Palestinians have elected leaders who do not believe in 
the two-state solution, except to the degree such a 
'solution' can be used to advance Israel's destruction. 
This not only means that the facade of compliance with 
the Quartet's Roadmap held up by Yasser Arafat and then 
Mahmoud Abbas has been removed, but that it is the 
Palestinians, not Israel, who are fundamentally opposed 
to the entire land-for-peace premise that underpins the 
peace process.... What remains is for the international 
community to finally follow its own declarations and 
hold the Palestinian leadership accountable for its 
actions, denying it funding if it does not comply -- 
rather than searching for or creating another fig leaf 
for Palestinian rejectionism." 
 
VI.  "Abbas Has Taken the US Captive" 
 
Nationalist, Orthodox Hatzofe editorialized (February 
27): "Assistant U.S. Secretary of State David Welch 
promised Abu Mazen and other senior officials in the 
Palestinian Authority that his country would not stop 
the aid to the Palestinians, but only the way it 
transfers the money.  According to Welch, the money 
will be transferred via voluntary bodies.  There was no 
doubt that the US would continue to pour the funds as 
long as Abu Mazen heads the PA.... Egypt and Hamas are 
waiting with a stopwatch until the George Bush era 
passes, to be replaced with an Israel-hating Democrat. 
In any case, a State Department hostile to Israel would 
be reborn.  [In any case], Israel will surrender to 
every US dictate.  This is because utter blindness has 
seized all large [Israeli] parties, which can't see how 
Israel is taking its own life.  Egypt is training on 
the Israeli model during all its serious military 
maneuvers.  The quantity of weapons in its possession 
... is ready for the moment Israel can be caught in its 
weakness.  Abu Mazen is the architect of this plan." 
 
JONES