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UNCLAS SECTION 01 OF 08 TEL AVIV 002676 
 
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 
CDR USCENTCOM 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: 
-------------------------------- 
 
Mideast 
 
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Key stories in the media: 
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All media led with the launching of a Qassam rocket 
into Ashkelon last night.  This was the first time the 
city was struck.  The improved, 12-km range rocket hit 
and damaged a high school but caused no casualties. 
Hamas's military wing, the Izz al-Din al-Qassam 
Brigades, claimed responsibility for the attack.  All 
media (banners in Ha'aretz and Yediot) quoted PM Ehud 
Olmert as saying during the US Independence Day Party 
at the residence of US Ambassador to Israel Richard 
Jones: "This attack, this criminal attempt that was 
aimed at harming Israeli civilians living inside 
Israel's borders, will have unparalleled and far- 
reaching consequences.  Olmert added: "And the Hamas 
organization will be the first to feel them."  Israel 
Radio reported that the security cabinet decided this 
morning to take consequential steps against Hamas in 
the Gaza Strip and the West Bank. 
 
Major media reported that Palestinian PM Ismail Haniyeh 
has told the kidnappers of Cpl. Gilad Shalit to keep 
him alive.  Leading media reported that his abductors 
do not intend to kill him. Leading media reported that 
on Tuesday, Hamas and the Egyptian team mediating talks 
regarding Shalit cut off contacts between them.  The 
Jerusalem Post reported that Qatar and Turkey are 
involved in efforts to free Shalit.  Yediot quoted Arab 
sources as saying that seven guards are keeping Shalit 
in a secret underground bunker.  Israel Radio reported 
that civilians who believe that Israel should negotiate 
with Shalit's captors set up a petition on the 
Internet.  The radio later reported that unknown people 
damaged that website.  Israel Radio cited a 
confidential IDF document that the Israeli defense 
 
SIPDIS 
establishment had been aware two months ago of a 
warning of a terror attack to be perpetrated via a 
tunnel in the Sufa-Kerem Shalom area.  On Tuesday, 
major media had reported that the IDF stepped up its 
offensive on Monday against the Hamas infrastructure 
and that it sent ground forces into the northern Gaza 
Strip and troops into Hamas's charity offices in the 
West Bank in moves aimed at escalating the pressure on 
the kidnappers of Cpl. Gilad Shalit. 
Major media reported on events surrounding the 230th US 
Independence Day.  The Jerusalem Post reported that 
Olmert told Ambassador Jones last night: "Jews have the 
longest memories in history.  We never forget those who 
brought evil to our people, but we will never forget 
the friendship, care, and involvement in the life of 
our people by the US, for which we will be forever 
grateful."  The Jerusalem Post reported at last night's 
celebration, Israeli President Moshe Katsav expressed 
the appreciation of the people of Israel to a series of 
presidents of the US for their consistent and 
continuing support of Israel in good times and bad 
during its 58 years of statehood.  On Tuesday, Ha'aretz 
(English Ed.) published a special "USA-Israel Business 
Outlook" supplement. 
 
The Jerusalem Post and other media reported that the 
IDF has raised the level of alert along the northern 
border with Syria out of fear that President Bashar 
Assad would launch a strike against Israel in response 
to a recent IAF buzz of his palace. 
 
All media reported that on Tuesday morning, three 
Palestinian suspects in the murder of the youth Eliyahu 
Asheri surrendered without opposition to IDF forces in 
Ramallah.  Maariv highlighted the fact that the 
suspects were PA policemen.  Israel Radio and other 
electronic media reported that this morning at the 
Barkan industrial zone in the West Bank, IDF forces 
caught a Palestinian with an explosives belt strapped 
around his waist and ready for use, thus apparently 
thwarting a major terrorist attack that was to be 
carried out in central Israel. 
 
Ha'aretz cited the Defense Ministry as saying Tuesday 
for the first time that the GOI maintains a "blacklist" 
of Palestinians who left the territories during the Six- 
Day War, lest they sue for the return of their land. 
The property has been used to establish settlements and 
military bases in the Jordan Valley. 
 
Leading media reported that a new bill that would 
suspend Knesset members who support or identify with 
terror organizations was given a push forward by the 
Knesset's House Committee Tuesday, sparking outrage 
among Arab Knesset members. 
Major media (highlighting in Yediot) reported that on 
Tuesday, North Korea sent a defiant signal to its 
neighbors and the US when it test-fired a volley of 
missiles.  Hatzofe quoted South Korea's incoming 
Ambassador to Israel Shin Kak Soo (phon.) as saying 
that his country is interested in expanding trade ties 
with Israel. 
 
Ha'aretz reported that residents of the Negev city of 
Mitzpe Ramon hope to persuade the GOI to take up a 
private initiative to set up a branch of the Guggenheim 
Museum in their town. 
 
Leading media reported that the CIA has closed the unit 
responsible for hunting down Osama bin Ladin. 
 
Maariv highlighted the fact that on Tuesday, the US 
dollar reached its lowest rate in 14 months -- 4.39 
shekels. 
 
 
 
 
 
 
 
 
 
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Mideast: 
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                       Summary: 
                       -------- 
 
Senior columnist and chief defense commentator Zeev 
Schiff wrote on page one of independent, left-leaning 
Ha'aretz: "The firing of a rocket ... to Ashkelon's 
center on Tuesday constitutes an unequivocal invitation 
by Hamas to war." 
 
Military correspondent Alex Fishman opined on page one 
of mass-circulation, pluralist Yediot Aharonot: "It is 
time to take off the gloves.  It is time to admit that 
Hamas has declared war on us." 
 
Editor-in-Chief Amnon Dankner wrote on page one of 
popular, pluralist Maariv: "After years of unnecessary 
and shameful capitulation by generations of Israeli 
governments to the extortionist demands of those 
holding Israeli hostages, Olmert is sharply turning the 
helm and establishing new rules of the game." 
 
Diplomatic correspondent Ben Caspit wrote on page one 
of Maariv: "One of [Ehud] Olmert's salient 
characteristics is his obduracy. Sometimes this is 
good, but more often it is bad.  This time it is 
excellent." 
 
Conservative, independent Jerusalem Post editorialized: 
"The Palestinian leadership must learn that neither 
guerrilla attacks nor terrorism will achieve anything 
for them.  A Palestinian decision to formally and 
universally end all such attacks, by contrast, should 
and would achieve positive results." 
 
Ha'aretz editorialized: "The Qassam launches' 
infringement on Israeli sovereignty is intolerable, and 
Israel must cause it to end.  But this problem, grave 
as it is, is essentially tactical." 
 
Senior columnist and longtime dove Yoel Marcus wrote in 
Ha'aretz: "Israel's resoluteness was called for, but 
for all that the PA is run by morons and fanatics -- 
the punishment should be meted out carefully.  Sooner 
or later, they will be the neighbors we will have to 
live with." 
 
Meretz-Yahad Party Chairman, Knesset Member Yossi 
Beilin wrote in Ha'aretz: "The worsening violent 
conflict in the Middle East is a blatant reflection of 
the weakness of the American partner." 
 
                     Block Quotes: 
                     ------------- 
 
¶I.  "An Invitation to War" 
 
Senior columnist and chief defense commentator Zeev 
Schiff wrote on page one of independent, left-leaning 
Ha'aretz (7/5): "The firing of a rocket from the Gaza 
Strip to Ashkelon's center on Tuesday constitutes an 
unequivocal invitation by Hamas to war.  The 
Palestinians who launched the rocket apparently are 
members of the Hamas military wing, but it's quite 
possible that either an Iranian or Syrian element 
interested in intensifying the military conflict with 
Israel spurred the move.... The significance of 
Tuesday's rocket attack for Israel is that the current 
round of war -- in which Hamas maintains control of the 
street, especially in the Gaza Strip -- will be a tough 
one, because over time, the Palestinians have armed 
themselves with many weapons and rockets.  Another 
difficulty for Israel is the existence of multiple 
Palestinian groups, including 'pirate' groups that 
aren't always in contact with each other, and the 
existence of competing leaders within Hamas itself." 
 
II.  "Hamas Has Declared War" 
 
Military correspondent Alex Fishman opined on page one 
of mass-circulation, pluralist Yediot Aharonot (7/5): 
"It is time to take off the gloves.  It is time to 
admit that Hamas has declared war on us.  Israel should 
begin to defend itself effectively.... Taking off the 
gloves means making a decision today: To lift the 
restrictions from the targeted killings.... Israel 
currently faces three main security dilemmas in the 
Gaza Strip.  The first -- the issue of the Qassam 
rockets from the northern Gaza Strip.  The second -- 
the issue of the soldier's kidnapping.  The third -- 
the strategic equation, meaning Hamas's desire to 
create a balance of terror against Israel, like in 
Lebanon.  The three dilemmas are intertwined.  The 
military solutions for each of them are different, but 
do not necessarily contradict each other.  Therefore, 
dealing with the Qassam rockets should not interfere 
with the attempts to rescue the kidnapped soldier." 
 
III.  "New Rules of the Game" 
 
Editor-in-Chief Amnon Dankner wrote on page one of 
popular, pluralist Maariv (7/5): "The Prime Minister 
deserves support for the important move that he is now 
leading: After years of unnecessary and shameful 
capitulation by generations of Israeli governments to 
the extortionist demands of those holding Israeli 
hostages, Olmert is sharply turning the helm and 
establishing new rules of the game.  The gist of these 
is that we do not yield to kidnappers and do not 
release large numbers of prisoners in return for 
information about them or for their return.  This is 
certainly how things should be, when Israel has means 
of pressure, threats and violence at its disposal that 
can instill fear in the hearts of the kidnappers and 
their dispatchers.  This determined stance deserves 
support because it shatters an improper approach that 
expressed, more than anything else, the weakness of 
[previous] prime ministers and their inability to hold 
firm to principles, not just for the sake of principle, 
but because this adherence could save much trouble 
later on.... There is no complete confidence that this 
will succeed, but as far as the overall national 
interest is concerned, it is much more effective.  It 
also prevents misunderstandings on the part of the 
Palestinians, who believe that they have identified a 
weakness in the Israeli sensitivity to human life, and 
at times, unfortunately, [identify] a true 
understanding of the real weakness, which is expressed 
in huge deals with a painfully high price that cause 
long-term damage." 
 
IV.  "The Isolation of the Leader" 
 
Diplomatic correspondent Ben Caspit wrote on page one 
of Maariv (7/4): "One of [Ehud] Olmert's salient 
characteristics is his obduracy. Sometimes this is 
good, but more often it is bad.  This time it is 
excellent.  Olmert is fired with a burning conviction 
that the importance of his opposition in principle to 
wholesale release of terrorists in return for the 
kidnapped soldier greatly outweighs the risk which it 
entails.... The paradox is that Olmert, of all people, 
is making a stand on this principle, while the lions of 
defense, such as Sharon and Rabin, usually bent under 
the weight of it.  It is that perverted Israeli logic 
which enables only the right wing to make peace, while 
the left wing just grumbles and writes protest poems. 
According to that principle, Shimon Peres could have 
killed Arafat if he had wanted to, but Ariel Sharon 
could not.  According to that line of thinking, Sharon 
could uproot settlements, but Yossi Beilin could not. 
So it is Ehud Olmert, who was described by American 
journalists as a 'rich, polished lawyer,' who will try 
to rewrite the rules of the game against the murderous 
terrorist organizations with whom he is faced.  For he 
alone is capable of doing so.  But is he?" 
¶V.  "No Vindication for Terror Groups" 
 
Conservative, independent Jerusalem Post editorialized 
(7/5): "Releasing prisoners to Hamas now, after Hamas 
boasted during its election campaign that it would 
succeed in freeing Palestinian terrorists by kidnapping 
Israelis, would vindicate the path of terror and 
violence over negotiations.  Those who believe that 
Fatah should be preferred over Hamas should be the 
first to oppose an Israeli prisoner release that would 
markedly weaken the former and strengthen the latter. 
The Palestinian leadership must learn that neither 
guerrilla attacks nor terrorism will achieve anything 
for them.  A Palestinian decision to formally and 
universally end all such attacks, by contrast, should 
and would achieve positive results." 
 
VI.  "The Only Option" 
 
Ha'aretz editorialized (7/5): "At this time, it must be 
reiterated -- and it would be appropriate for the Prime 
Minister to find the time and the strength of will to 
do so -- that Israel has no option in the long run 
other than withdrawing from the territories and from 
the occupation.  The Qassam launches' infringement on 
Israeli sovereignty is intolerable, and Israel must 
cause it to end.  But this problem, grave as it is, is 
essentially tactical.... Ending the occupation is still 
the goal to which any tactic employed during the 
current crisis must lead.  Instead of the 'blood and 
guts' rhetoric being heard from all the cabinet 
ministers, as well as from the opposition, our 
leadership must send the message that it knows where it 
is going." 
 
VII.  "Beware of the Traps of the Past" 
 
Senior columnist and longtime dove Yoel Marcus wrote in 
Ha'aretz (7/4): "There is no doubt that Hamas is behind 
[IDF Corporal Gilad] Shalit's abduction.... It is 
counting on Israel's lack of fortitude to face 
families, and it believes Israel will cave in to 
wholesale extortion.  This time, however, it found 
Israel not trembling but stubborn, an Israel that 
settles scores and is no hurry to give in.  Hamas erred 
in its calculations.  It outraged the entire world, not 
to mention the destruction the IDF wreaked in 
retaliation.  Who would have believed that PA Chairman 
Mahmoud Abbas himself would say there is no one to talk 
to, in reference to his own government?.... Israel's 
resoluteness was called for, but for all that the PA is 
run by morons and fanatics -- the punishment should be 
meted out carefully.  Sooner or later, they will be the 
neighbors we will have to live with." 
 
VIII.  "America's Weakness" 
 
Meretz-Yahad Party Chairman, Knesset Member Yossi 
Beilin wrote in Ha'aretz (7/5): "The United States is 
cut off from a number of Muslim countries.... When the 
latest crisis broke out, as the firing of Qassam 
rockets increased and the violence intensified, Israel, 
naturally, turned to the same agent that enabled it to 
withdraw from the Gaza Strip -- Egypt.... The US was 
not even mentioned as an option.... The worsening 
violent conflict in the Middle East is a blatant 
reflection of the weakness of the American partner.  At 
the moment of truth, when Israel needs a powerful third 
party capable of moving things in the area, it turns 
out that little beyond the repetitive recitation of 
Bush's vision and of the dust-covered road map can be 
expected, which neither side intends to actually 
implement." 
 
JONES