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

UNCLAS SECTION 01 OF 09 TEL AVIV 001426 
 
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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Maariv reported that President Bush, Acting PM Ehud 
Olmert, German Chancellor Angela Merkel, and UN 
Secretary-General Kofi Annan will be the guests of 
 
SIPDIS 
honor at the annual convention of the American Jewish 
Committee in Washington on May 4. 
 
Over the weekend, all media continued to report on 
Qassam rocket launchings and IDF responses.  The media 
reported that around 15 Palestinians were killed.  The 
media reported that on Friday, Iyad Abu Alinin, a high- 
ranking official in the Popular Resistance Committees 
who was the target of the operation, was one of those 
killed, along with his 3-year-old son.  Leading media 
reported that the military branch of Islamic Jihad said 
that the movement will not agree to a cease fire, 
contradicting an earlier report circulated Sunday that 
the Islamic Jihad intended to stop Qassam rocket 
attacks on Israel provided that Israel cease its 
attacks on launch sites in Gaza.  Ha'aretz quoted 
Israeli security officials as saying Sunday that Hamas 
is close to a decision on initial steps aimed at 
retraining the terrorist organizations that are 
launching Qassam rockets at Israeli targets.  The 
Jerusalem Post reported that Hamas officials told the 
newspaper that some Fatah-affiliated militias are 
behind the latest wave of rocket attacks, in the hope 
of prompting a massive IDF operation in the Gaza Strip 
that would eventually bring down the new Hamas cabinet. 
Minister-Without-Portfolio Tzachi Hanegbi was quoted as 
saying in an interview with Israel Radio that Israel 
does not plan to engage in a land offensive in the Gaza 
Strip for the time being.  Israel Radio reported that 
UN Secretary-General Kofi Annan intends to convene 
representatives of the Quartet in late April to discuss 
the situation in the Gaza Strip. 
 
The media quoted Olmert as saying Sunday that Israel 
will cut off ties with the PA, view it as a "hostile" 
entity, and will act to prevent Hamas from becoming an 
established government.  The media reported that Olmert 
also decided that Israel will refuse to hold meetings 
with any public figures from abroad who meet with Hamas 
officials.  The move is a renewal of the boycott Israel 
imposed on officials who met with the late Palestinian 
leader Yasser Arafat.  Media quoted Olmert as saying 
that Israel viewed the Palestinians as "one authority, 
and not having two heads," but that Israel would 
refrain from a "personal disqualification" of PA 
Chairman [President] Mahmoud Abbas.  Israel Radio 
reported that the IDF has ordered Palestinian forces to 
leave the District Coordination Office (DCO) near 
Jericho today.  Leading media reported that it was 
decided at Sunday's cabinet meeting that while the 
policy of not transferring USD 50-60 million a month of 
customs and tax revenue collected on behalf of the 
Palestinians to the PA would continue, Israel would 
deduct from this sum money it was owed for electricity, 
water, and medical services provided to the 
Palestinians.  These bills total about USD 30 million a 
month.  On Sunday, Yediot reported that Hamas suspects 
that Fatah people are "concealing" hundreds of millions 
of dollars that Yasser Arafat raised many years ago and 
holds in accounts abroad.  Yediot reported that Israeli 
intelligence officials noted that while the Hamas 
government has not succeeded in holding discussions, 
due to Israeli restrictions, senior Fatah officials, 
who are former ministers, continue to function as 
acting ministers in a shadow government, with the 
purpose of being prepared to recapture control, should 
Hamas fail.  Leading media reported that over the 
weekend, the US and EU terminated their direct aid 
payments to the Palestinians.  On Sunday, Ha'aretz 
quoted a fact sheet distributed by the State 
Department, according to which the cut in US aid will 
amount to some USD 300 million.  On Sunday, Maariv 
reported that the Israeli defense establishment urged 
limited talks with the PA in order to prevent a 
humanitarian disaster in the territories. 
 
Major media quoted Olmert associates as saying during 
coalition talks that the next withdrawal from the West 
Bank is expected to take place in November 2008. 
Yediot and Israel Radio quoted a senior Kadima member 
as saying after the first day of the talks that the 
Labor Party, Shas, and Yisrael Beiteinu are well placed 
to join the coalition.  The media reported that the 
term "convergence" was erased from the government 
guidelines presented by Kadima.  On Sunday, Yisrael 
Beiteinu leader Avigdor Lieberman confirmed during an 
interview to Channel 2-TV that his party would agree to 
sit in a cabinet that would carry out an additional 
unilateral withdrawal.  "We are in favor of creating 
permanent borders for Israel.  If this issue is 
included in the basic peace plan of Olmert, we will 
support it.  If this is to be a withdrawal without any 
purpose or receiving anything in exchange, and without 
improving the security situation, we will not be 
partners," said Lieberman, stressing that his positions 
"are right wing practical, not fanatical."  Over the 
weekend, Lieberman was quoted as saying that he will 
not give up on the Internal Security portfolio.  On 
Sunday, Maariv reported that the two main figures 
representing European foreign policy -- EU FM Benita 
Ferrero-Waldner and Javier Solana -- over the weekend 
criticized Olmert's plan to carry out a unilateral 
withdrawal in the West Bank.  Both senior officials 
spoke before the European Parliament in Strasbourg. 
 
Israel Radio quoted Olmert as saying in an interview 
with TIME Magazine that his withdrawal plan can be 
completed through the trust and understanding he and 
President Bush have for each other.  Olmert was quoted 
as saying in the interview that "Bush will emerge in 
history as the person who had more courage to change 
the Middle East than any person before him."  Israel 
Radio cited Olmert's belief, as sated in the interview 
with TIME Magazine, that Israel should not be at the 
forefront of the struggle against Iran. 
 
Yediot cited a Washington Post story that Israeli 
representatives visited Washington, warning US 
administration representatives that Iran is closing in 
on obtaining nuclear capability, and pressuring the US 
to attack Iran.  The media reported that on Sunday, The 
Washington Post and The New Yorker detailed alleged US 
plans to attack Iran. 
 
Maariv cited the British newspaper The Sunday Times as 
saying that senior members of Israeli intelligence are 
angry at the US administration, saying that it harmed 
Israeli attempts to infiltrate Al Qaida in Iraq.  The 
Sunday Times claimed that last October, President Bush 
and Director of National Intelligence, Ambassador John 
Negroponte exposed the involvement of Israeli 
intelligence in the publication of a letter sent by 
Osama bin Laden's deputy, Ayman Al-Zawahiri.  On 
Sunday, Maariv cited the London-based Al-Hayat that 
Hamas's military wing in Gaza, under the command of 
Mohammed Deif, is holding talks with members of al- 
Qaida in Iraq and Jordan. 
 
Maariv reported that an Israeli delegation led by Labor 
Knesset member-designate Ami Ayalon will soon leave for 
Casablanca for informal talks with senior PLO members 
led by Yasser Abed Rabbo, in an attempt to reach 
understandings in order to resume the Israeli- 
Palestinian dialogue.  Maariv wrote that the talks will 
be held under the auspices of Moroccan King Mohamed VI. 
The Jerusalem Post quoted former FM Shlomo Ben-Ami as 
saying on Sunday in East Jerusalem at a launching of 
his new book, "Scars of War, Wounds of Peace: The 
Israeli-Arab Tragedy," that Israel and the 
international community should hold negotiations with 
Hamas and continue to fund the PA rather than boycott 
it. 
 
Leading media reported that clashes broke out in the 
East Jerusalem neighborhood of A-Tur on Sunday, after 
police evicted an Arab family that had been squatting 
in a newly acquired Jewish home. 
 
Maariv reported that convicted spy Jonathan Pollard 
that the entry into the Knesset of Pensioners Party 
leader Rafi Eitan, who was Pollard's control officer, 
and the talk about the possibility of his being 
appointed minister will be like poking a finger in the 
eyes of the Americans, which will not cost anything, 
but for which Pollard will pay with his life.  Maariv 
cited Eitan's response that he took action for Pollard 
over the years, and that he hopes that it will be 
easier for him to contribute to contribute his part in 
Pollard's release during his ministership.  Maariv also 
reported that Eitan's party does not plan to join the 
parliamentary lobby for the release of Pollard. 
 
Yediot reported that for the first time, starting next 
summer, Israeli students will be able to be employed 
legally in the US, since the State Department has 
decided to integrate Israel into its Work and Travel 
Program.  The newspaper reported that the company A. A. 
America Israel, which has received a license from the 
US Embassy in Israel, has started enrolling Israeli 
students into the program. 
Citing The Jewish Telegraphic Agency (JTA), The 
Jerusalem Post on Sunday featured Jay Zeidman, 22, who 
was named White House liaison for the American Jewish 
community last month. 
 
Maariv reported that PM Sharon will undergo head 
surgery today. 
 
Maariv reported that The Israel Project, a Washington- 
based Israel advocacy group, has recruited Yossi 
Olmert, the Acting PM's brother, as a fellow lecturer. 
Yossi Olmert fled his Israeli creditors a year and a 
half ago, when he was bankrupt. 
 
-------- 
Mideast: 
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                       Summary: 
                       -------- 
 
Liberal op-ed writer Ofer Shelach commented in mass- 
circulation, pluralist Yediot Aharonot: "How can Israel 
really deal with the meaning of Ismail Haniyeh's hints 
and with the effects of coming to power on Hamas, if 
Big Brother is wagging his finger at us from the 
sidelines?" 
 
Chief Economic Editor Sever Plotker wrote in the 
editorial of mass-circulation, pluralist Yediot 
Aharonot: "Preventing the Palestinian Authority from 
undergoing an 'Iranization"' process is not only an 
Israeli interest.... The Hamas revolution will not stop 
at the borders of the Gaza Strip and the West Bank." 
 
The Director of the Interdisciplinary Center's Global 
Research in International Affairs Center, columnist 
Barry Rubin, wrote in the conservative, independent 
Jerusalem Post: "Here's a way to assess the Middle 
East's current state that's a real shocker: compare it 
to the hopeful expectations of 15 years ago." 
 
Senior op-ed writer Akiva Eldar commented in 
independent, left-leaning Ha'aretz: "[The Israeli 
government's] reckless policy of boycotting the PA ... 
upsets the balance of authority in the territories and 
makes the chance for a solution more remote." 
 
Columnist Shlomo Gazit, a former head of IDF 
Intelligence, wrote in popular, pluralist Maariv: "I 
would not be surprised if the new Hamas leadership is 
... waiting for such external intervention in order to 
climb down from its perch." 
 
Arab affairs commentator Danny Rubinstein wrote in 
Ha'aretz: "It is still too early to say whether the 
Hamas government ... is about to fall; but judging by 
its performance so far, it can't be expected to last 
long." 
 
                     Block Quotes: 
                     ------------- 
 
¶I.  "We Shouldn't Dance" 
 
Liberal op-ed writer Ofer Shelach commented in mass- 
circulation, pluralist Yediot Aharonot (April 10): "The 
Americans are apparently a people that insist on taking 
action.  First they went to war in Iraq, the outcome of 
which could be destructive....  And now they are 
legislating bills against the Palestinian Authority, 
which will hasten the day when the territories will 
finally sink into poverty and anarchy.  The 
'Palestinian Anti-Terrorism Act of 2006' is in the eyes 
of its initiators a requisite moral act, and a step 
towards toppling the Hamas government.  For us, it 
could have serious consequences.... How can Israel 
really deal with the meaning of Ismail Haniyeh's hints 
and with the effects of coming to power on Hamas, if 
Big Brother is wagging his finger at us from the 
sidelines?  We should not rejoice at the American anti- 
terrorism act, just as we had no reason to rejoice over 
the war in Iraq.  Reality is much more complex than 
what is seen from Washington, and much more painful in 
places where American actions have consequences on life 
itself.  Even those who dance to the tune of the big 
and powerful brother, and take pride in writing some of 
the sheet music themselves, should not always dance for 
joy." 
 
II.  "Hamas and the World" 
Chief Economic Editor Sever Plotker wrote in the 
editorial of mass-circulation, pluralist Yediot 
Aharonot (April 9): "Under the guise of 'unity,' an 
Iran-like regime is evolving in the Palestinian 
Authority.... The real rulers are the various security 
and terror organizations, which are subordinate to 
secret headquarters.... We ought not to delude 
 
SIPDIS 
ourselves with fantasies: The entrenchment of a Hamas 
government means the gradual implementation of the 
notorious Islamic Charter.  The earlier Israel and the 
international community act, and the more forceful and 
determined that action is ... the better things will be 
for everyone.  Preventing the Palestinian Authority 
from undergoing an 'Iranization' process is not only an 
Israeli interest, but it is an interest shared by the 
entire Middle East and the world; the Hamas revolution 
will not stop at the borders of the Gaza Strip and the 
West Bank." 
 
III.  "What Went Wrong" 
 
The Director of the Interdisciplinary Center's Global 
Research in International Affairs Center, columnist 
Barry Rubin, wrote in the conservative, independent 
Jerusalem Post (April 10): "Here's a way to assess the 
Middle East's current state that's a real shocker: 
compare it to the hopeful expectations of 15 years ago. 
It's remarkable how far things have gone in the 
opposite direction.... What went wrong?  Just about 
everything.  Briefly, the regimes were able to 
rationalize their failures by blaming the West in 
general, the United States in particular, and Israel. 
Posing as defenders of the Arabs and Muslims, using 
their traditional methods, the regimes retained control 
both in Iran and every Arab state without making real 
concessions.  A brief list of bad outcomes includes: 
Saddam's obduracy, failure to solve the Israeli- 
Palestinian conflict, the Iranian government's 
continuing, even deepening, radicalism and drive toward 
nuclear weapons, little progress toward democracy, 
stronger radical Islamist groups, and more terrorism. 
Instead of responding to the situation effectively by 
changes, the main ideas governing the Middle East 
during the previous half-century were reaffirmed.  The 
problems so visible at the start of the 1990s did not 
bring down regimes or force any far-reaching 
restructuring." 
 
IV.  "The Real Insult" 
 
Senior op-ed writer Akiva Eldar commented in 
independent, left-leaning Ha'aretz (April 10): "[The 
Israeli government's] reckless policy of boycotting the 
PA, including the doctors, teachers and clerks on its 
payroll, upsets the balance of authority in the 
territories and makes the chance for a solution more 
remote.  The individual who occupies the office of 
prime minister is responsible for collectively 
punishing the Palestinian population for voting Hamas 
in.  This policy not only goes against the call to 
negotiate a final solution; it is directed toward a 
unilateral return to the Gaza Strip and continuing the 
occupation of the West Bank." 
 
¶V.  "Qassam Illusion" 
 
Columnist Shlomo Gazit, a former head of IDF 
Intelligence, wrote in popular, pluralist Maariv (April 
10): "The military balance of power has not changed. 
It is only a matter of time before Israel unsheathes 
its sword again.  Sooner or later we will witness a 
painful terror attack originating from the Gaza Strip, 
and as happened four years ago after the Passover night 
at the Park Hotel in Netanya, Israel will be required 
to change its military response and restore the balance 
of deterrence.  If and when we do so, this may lead to 
the intervention of Palestinian, Arab, and 
international elements with the aim of proposing a 
solution, which will enable real dialogue, negotiation, 
and perhaps even arrangements that will be acceptable 
to both sides.  I would not be surprised if the new 
Hamas leadership is also waiting for such external 
intervention in order to climb down from its perch. 
Israel's method of handling the Palestinian threat and 
all our responses so far, unfortunately, are no more 
than an illusion." 
 
VI.  "On the Way Down" 
 
Arab affairs commentator Danny Rubinstein wrote in 
Ha'aretz (April 10): "It is still too early to say 
whether the Hamas government ... is about to fall; but 
judging by its performance so far, it can't be expected 
to last long. Powerful forces seek its demise -- Arab 
leaders, including Palestinian Authority Chairman 
Mahmoud Abbas, European countries, the Unites States 
and Israel, of course. It is hard to find someone who 
is in favor of the elected Muslim government, whose 
leaders have made a number of moves to hasten its 
collapse.... In its election campaign, Hamas promised 
to bring an end to the anarchy in the territories, but 
no one can make exact distinctions among the various 
armed gangs, each of which purports to be a patriotic 
militia.  Instead of an end to the anarchy, it has 
intensified in the West Bank and Gaza Strip, sparking 
much anger among the Palestinian population.  In 
addition to the worsening security situation, all 
Palestinian analysts are predicting the imminent 
financial collapse of the PA.... Haniyeh and his 
ministers do not have the time to launch their promised 
reforms; they are too busy putting out fires, arguing 
with Abbas over authority and issuing confused policy 
statements.  If they continue in this vein, they are 
likely to fall quickly." 
 
CRETZ