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

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 002618 
 
SIPDIS 
 
STATE FOR NEA, NEA/IPA 
DOJ FOR DAAG BRUCE SWARTZ 
NSC FOR LOGERFO 
 
E.O. 12958: DECL: 06/28/2016 
TAGS: PREL PTER KPAL IS ISRAEL RELATIONS ISRAELI PALESTINIAN AFFAIRS COUNTERTERRORISM
SUBJECT: ATTORNEY GENERAL GONZALES' JUNE 28 MEETING WITH 
ISRAELI FM LIVNI 
 
 
Classified By: Ambassador Richard H. Jones.  Reasons:  1.4 (b, d). 
 
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SUMMARY 
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¶1. (C) Israeli Foreign Minister Tzipi Livni told Attorney 
General Alberto Gonzales June 28 that Israel is grateful for 
U.S. support during the crisis in the Gaza Strip that began 
on Sunday with the attack on Kerem Shalom and the kidnapping 
of IDF soldier Gilad Shalit.  She said that there is not much 
more that the U.S. and other countries could do to resolve 
the crisis, short of applying more pressure on Syria, from 
where she claimed Hamas leaders are running Hamas operations 
in Gaza.  Livni said the GOI had decided, before sending the 
IDF back into the Gaza Strip, that all diplomatic 
opportunities had been exhausted, and that Palestinian 
Authority (PA) Chairman Mahmud Abbas had proven that he could 
not deliver a peaceful resolution to the crisis.  She added 
that, based on past experience, Israel could not afford to 
allow a hostage crisis to linger.  Asked about the future, 
Livni suggested, in Israel's analysis, the crisis 
demonstrates that PM Olmert's unilateral realignment plan is 
probably the only possibility for resolving the 
Israeli-Palestinian conflict.  Addressing other issues that 
the Attorney General raised, Livni said that Israel fully 
understands the importance the USG places on trafficking in 
persons (TIP), labor trafficking and intellectual property 
rights (IPR), and expressed her hope that the Olmert 
government would make progress on those issues.  She said 
that the Attorney General can count on her support for having 
Shin Bet and other GOI officials provide additional testimony 
in two ongoing criminal trials in Dallas and Chicago.  She 
requested the Attorney General's assistance in dealing with 
the phenomenon of NGOs filing lawsuits against Israeli 
officials abroad.  END SUMMARY. 
 
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MORE PRESSURE ON SYRIA WOULD BE HELPFUL 
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¶2. (C) Responding to the Attorney General's offer of USG 
assistance in resolving the crisis in the Gaza Strip, FM 
Livni expressed appreciation for USG support, but suggested 
that there is not much more that the USG could do except put 
more financial pressure on Hamas, and apply "sharp, pointed 
pressure of a short duration" on Syria -- and President Assad 
in particular -- to make it clear that (a) he must bring 
Palestinian rejectionists under control, and (b) kidnapping 
will not be tolerated.  Livni claimed that the GOI gave 
Palestinian Authority Chairman Mahmud Abbas a chance to act 
in order to secure the release of IDF hostage Gilad Shalit, 
but concluded that he "cannot deliver."  She expressed 
appreciation for U.S., French and Egyptian diplomatic efforts 
to resolve the crisis, but noted her conclusion that all 
diplomatic efforts had been exhausted.  Asked how she sees 
the crisis resolving itself, she admitted that she did not 
know, but expressed hope that the increased pressure on the 
PA will either lead to Shalit's release by his captors, or 
force an internal confrontation among the Palestinians that 
would lead to an end of the crisis.  She allowed that the 
Israeli military -- now operating in Gaza -- might locate 
Shalit and extract him.  Visibly tired and dismayed, FM Livni 
said that in the Middle East the only choices are always 
between "bad options," and that all anyone can do at this 
point is to take action and maintain hope.  She said that 
prolongation of the hostage situation is unacceptable, and 
recalled the example of Ron Arad -- the Israeli navigator 
captured in 1986.  Livni said that Israel tries to see the 
world through the terrorists' eyes, and believes that they 
view Israel as either strong or weak.  She added, "It may be 
that by showing restraint in the face of all the Qassams, 
that they viewed Israel as weak." 
 
¶3. (C) Regarding the larger Israeli-Palestinian conflict, FM 
Livni recounted how Israel had implemented decisions to "open 
a new window for peace" by dismantling settlements and 
withdrawing the IDF from the Gaza Strip, thereby giving the 
Palestinians responsibility for their lives.  Israel hoped 
that the Palestinians would see that "Israel means business" 
and is willing to take difficult steps.  She stressed, "I 
myself voted to take 7,000 Israelis out of their homes in 
Gaza -- some of whom had been born there and lived their 
entire lives there."  Livni told the Attorney General that 
disengagement "tore Israeli society apart," and caused 
Israelis to question their birthright to the land and the 
real meaning of democracy.  She stressed that the GOI took 
the decision, nevertheless, to promote the peace process and 
President Bush's vision.  In return, she said, Israel was 
subjected to terrorist attacks and a constant rain of Qassam 
rockets from the Gaza Strip.  Gaza, she said, "has been 
transformed into a terror nest."  She complained that, as a 
result of democratic elections, Hamas had come to power:  "It 
is too late to discuss this, but democracy led to this." 
 
¶4. (C) Livni said that up until the beginning of the crisis 
on Sunday, the GOI had hoped that the debate over the 
prisoners document might lead to a change on the Palestinian 
side that would make GOI-PA negotiations on the basis of the 
roadmap, "or some other basis," possible.  Livni stressed 
that Israel would never have accepted the prisoners document 
as a basis for negotiations as it did not recognize Quartet 
principles, but characterized it as something that the GOI 
regarded with hope as a means to topple Hamas.  She said that 
Israel would prefer to reach an agreement with the 
Palestinians because doing so would garner international 
support.  Such a possibility now seems very remote, she said, 
and makes PM Olmert's realignment plan look more likely. 
Livni stated more than once that it is clear to the GOI that 
PA Chairman Abbas cannot deliver.  Since the kidnapping 
crisis, she said, it has become clear to Israel that Hamas 
itself is divided, and that Hamas leader Khalid Misha'al is 
"calling the shots" for the Palestinians from Damascus.  She 
described Hamas as a radical, jihadist terrorist organization 
that has one aim -- to build a new caliphate in the region -- 
and which has a charter based on killing Christians and Jews. 
 
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GOI INSTABILITY HAS HAMPERED PROGRESS ON ANTI-TIP EFFORTS 
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¶5. (C) FM Livni did not complain about the latest trafficking 
in persons (TIP) report on Israel, or its listing on the Tier 
Two Watchlist.  Instead, she asked the Attorney General to 
understand that turmoil within the GOI over the last several 
years -- when elections on average took place every two years 
-- made it difficult for the GOI and the Knesset to maintain 
a sustained focus on the labor trafficking issue and 
legislation addressing it.  She stated that Israel recognizes 
that the TIP and labor trafficking issues are of significant 
importance to the USG, and noted that they are also important 
to Israel's society and values. 
 
¶6. (C) Attorney General Gonzales noted that he also had a 
good discussion with Israeli Justice Minister Ramon on the 
importance the USG places on intellectual property rights, 
and that he had secured Ramon's commitment to helping the 
U.S. on both issues. 
 
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GOI WILL COOPERATE IN U.S. INVESTIGATIONS 
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¶7. (C) FM Livni said that she understood that the USG will be 
requesting more testimony from Shin Bet and other GOI 
officials in two ongoing trials taking place in Dallas, 
Texas, and Chicago, Illinois.  She said that the Attorney 
General will be able to count on her support for having the 
requested GOI officials testify. 
 
¶8. (C) FM Livni noted that an NGO has filed a lawsuit against 
former General Security Service Director Avi Dichter, that 
Israeli officials are wary about traveling to Europe because 
of such legal proceedings, and that Israel now faces the same 
situation in the U.S.  The Attorney General said that his 
office would be willing to share its experience and ideas on 
how to deal with such situations involving Europe, and would 
look into the charges filed in the U.S. 
 
¶9. (U) Attorney General Gonzales did not have an opportunity 
to clear this message before departing post. 
 
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