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P 291102Z JAN 07
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UNCLAS TEL AVIV 000309 
 
SIPDIS 
 
STATE FOR NEA, NEA/IPA, QA/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 ICD 
LONDON ALSO FOR HKANONA AND POL 
PARIS ALSO FOR POL 
ROME FOR MFO 
 
SIPDIS 
E.O. 12958: N/A 
TAGS: OPRC KMDR IS
 
SUBJECT: ISRAEL MEDIA REACTION 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Leading electronic media reported that three people were killed in a 
suicide bombing in a commercial center in an outlying neighborhood 
of Eilat.  Fatah, Islamic Jihad, and a third, unknown, organization 
claimed responsibility for the attack, which was condemned by PA 
Chairman [President] Mahmoud Abbas's bureau. 
 
Ha'aretz cited Peace Now as saying on Sunday that settlers have 
recently begun some additional construction at four out of six 
outposts that have received demarcation orders and whose evacuation 
orders has been delayed by the state. 
 
All media reported that at least 26 Palestinians were killed and 
dozens were wounded in fierce fighting between Fatah and Hamas 
gunmen in the Gaza Strip over the weekend.  On Sunday Yediot 
reported that four roadside bombs were placed on the route of 
Abbas's convoy in Gaza last week, and that the PA's Preventative 
Security defused them.  On Sunday Yediot quoted Abbas as saying in 
Davos, Switzerland, in an interview with the newspaper: "I won't 
wait forever; rather, I will examine within two-three weeks what the 
internal situation is in the Palestinian Authority and whether there 
is a chance of forming a government that will lift the international 
boycott.  If not, I will announce early elections."  Abbas was also 
quoted as saying in the interview: "The solution to the refugee 
issue needs to be fair and agreed to by both parties."  Yediot 
reported that senior Fatah member Muhammad Dahlan is building a 
12,000-strong force with European and US funding.  The Jerusalem 
Post reported that the PA has blamed Iran and Syria for promoting 
Palestinian civil war.  Media reported that on Sunday Hamas and 
Fatah announced that they were accepting Saudi King Abdullah's offer 
to host a special summit in Mecca in order to quell the latest round 
of violence between the two sides. 
 
Over the weekend major media reported that the UN General Assembly 
adopted a resolution on Friday condemning the denial of the 
Holocaust, and that Iran rejected it as an attempt by the US and 
Israel to exploit the atrocity for their political interests.  ThQ 
resolution, co-sponsored by 103 countries, was approved by consensus 
without a vote.  Yediot quoted PM Ehud Olmert as saying on Sunday at 
the weekly cabinet meeting, which also marked International 
Holocaust Day, that Israel will never let the world sink into apathy 
over the Iranian threat to eliminate Israel.  On Sunday Ha'aretz 
reported that Olmert will appoint a special coordinator responsible 
for monitoring the flow of funds from Iran to elements hostile to 
Israel.  The coordinator will assist the US in its efforts to 
boycott Iranian banking operations.  Ha'aretz reported that an 
Israeli delegation headed by Transportation Minister Shaul Mofaz and 
participating in the strategic dialogue forum with the US, informed 
US officials of the decision at a meeting in Tel Aviv.  Ha'aretz 
reported that during the meeting, the US delegation presented its 
plan to isolate Iranian funds.  The US plan is headed by Under 
Secretary of Commerce Stuart Levey.  On Sunday Ha'aretz reported 
 
SIPDIS 
that former Iranian president Mohammad Khatami told the newspaper in 
Davos on Saturday that there was no chance for talks between Iran 
and Israel.  He was quoted as saying that a solution for the 
Arab-Israeli conflict must be found that would allow the Palestinian 
refugees to return to their homes and establish a Palestinian state. 
 
 
On Sunday Yediot reported that, for the first time since the Islamic 
revolution in Iran, a film has been requested for the Tehran film 
festival that was directed by an Israeli and which deals with the 
Israeli reality. The festival is scheduled to begin this Thursday 
and is to last ten days.  The film, "More than 1,000 Words," which 
was directed by Solo Avital and is about the photojournalist Ziv 
Koren, evokes the Israeli-Palestinian conflict and all of its 
complexities. 
 
On Sunday, The Jerusalem Post reported that US administration 
officials told the newspaper this weekend that a preliminary State 
Department report has found that Israel violated US-Israel arms 
agreements governing the use of cluster bombs during the war in 
Lebanon.  Congress is expected to be briefed on the conclusions of 
the report in the coming week.  Ha'aretz also wrote on the matter 
today.  Today The Jerusalem Post quoted Foreign Ministry spokesman 
Mark Regev as saying on Sunday that Israel's use of the bombs was in 
self-defense.  The Jerusalem Post reported that, in one of the 
largest weapons deals since the war in Lebanon, the Israel Air Force 
intends to purchase thousands of Joint Direct Attack Munition (JDAM) 
missiles from the US for an estimated USD 100 million.  The Boeing 
Co.-produced JDAM is a low-cost guidance kit that converts free-fall 
bombs into guided "smart" weapons. 
Ha'aretz cited the non-profit organization as saying in a recent 
report that Israel has neglected Arab neighborhoods that are within 
Jerusalem's municipal boundaries but outside the West Bank 
separation fence. 
 
Israel Radio cited the Egyptian daily Al-Ahram as saying that Israel 
has acceded to Egypt's request that it release 26 Egyptian citizens 
it is detaining. 
 
On Sunday Yediot cited the belief of Israeli experts that Hizbullah 
is likely to receive from Iran a new and advanced model of the 
Zelzal rocket, which has a range of up to 400 kilometers.  This 
would allow Hizbullah to attack targets anywhere in Israel. 
 
Sunday's testimony of outgoing IDF Chief of Staff Lt. Dan Halutz 
before the Winograd Committee probing last summer's war in Lebanon: 
Maariv and Yediot reported that Halutz admitted hat he erred when he 
did not call up reserve forces earlier.  Yediot quoted Halutz 
associates as saying that Halutz told the committee that the GOI 
decided to go to war without knowing what it was deciding.  Israel 
Radio reported that the IDF Spokeswoman's office denied the story. 
Ha'aretz reported that on Sunday the High Court of Justice hinted 
that it may rule that the panel's hearings should be made public -- 
except in cases where there is danger to national security. 
 
Leading media reported on, and Ha'aretz led with, an annual report 
issued by the Global Forum against Anti-Semitism -- a joint effort 
of the Jewish Agency, the Foreign Ministry, and the Prime Minister's 
Office -- according to which last year saw a substantial rise in the 
number of anti-Semitic incidents in Germany, Austria and 
Scandinavia.  Israel Radio reported that the International 
Association of Jewish Lawyers and Jurists has complained to Egyptian 
President Hosni Mubarak about anti-Semitism in his country. 
 
Prof. Bernard Lewis, a world-renowned Middle Eastern and Islamic 
scholar, was quoted as saying in an interview with The Jerusalem 
Post that Islam could soon be the dominant force in a Europe which, 
in the name of political correctness, has abdicated the battle for 
cultural and religious control.  Lewis war quoted as saying that the 
Muslins "seem to be about to take over Europe."  Asked what this 
meant for the continent's Jews, Lewis reportedly responded: "The 
outlook for the Jewish communities of Europe is dim." 
 
Israel Radio reported that this morning the Knesset's House 
Committee started procedures to impeach Israel's President Moshe 
Katsav.  Ninety Knesset votes are required to complete the move. 
 
Ha'aretz reported that Katsav's hearing is expected to take place 
within two months, sooner than was previously thought.  Leading 
media reported that on Sunday the cabinet's legislative committee 
approved the so-called "Peres law" that will allow Vice PM Shimon 
Peres to be elected president of the state in an open Knesset vote, 
as opposed to the current secret vote procedure.  The Knesset will 
have to pass the draft bill, which the media said would be a 
difficult move. 
 
All media reported that, for the first time in Israeli history, the 
cabinet will include a Muslim Arab, following the near-unanimous 
approval on Sunday by the current ministers to welcome Labor MK 
Raleb Majadele into their ranks.  Strategic Affairs Minister Avigdor 
Lieberman (Yisrael Beiteinu) was the only dissenting vote.  The 
appointment will be put to a Knesset vote today.  The three Arab 
parties represented in the Knesset will vote against the appointment 
on the grounds that it is designed to serve partisan interests and 
that it will not contribute to their struggle for equality. 
 
Yediot quoted Israeli defense sources as saying that Defense 
Minister Amir Peretz has not allowed senior intelligence officials 
to meet with Strategic Affairs Minister Avigdor Lieberman. 
 
Leading media reported that since Sunday US and Iraqi forces have 
killed some 300 gunmen from an apocalyptic Muslim cult -- the 
self-proclaimed "Soldiers of Heaven" -- near the Shi'ite holy city 
of Najaf. 
 
Major media reported that today Finance Minister Abraham Hirchson 
will present four comprehensive reforms in the coming years: 
pensions for all workers, increased taxes on the use of company 
cars, negative income tax, and reducing the middle class tax 
burden. 
 
Yediot quoted Palestinian FM Mahmoud Zahar as saying a few days ago 
in an interview with the Canadian daily Globe and Mail that Israel 
should "move to Canada." 
 
Yediot reported that a few days ago Swiss President and FM Micheline 
Calmy-Rey told the parents of abducted IDF soldier Ehud Goldwasser 
that Switzerland has contacts with Syria, the Palestinians, and 
Lebanon in an attempt to release the three kidnapped IDF soldiers. 
 
On Sunday Ha'aretz and The Jerusalem Post reported that a new forum 
-- The National Movement for Peace with Syria -- calling for peace 
talks with Syria would meet last night in Tel Aviv.  Forum 
participants will include former chief of staff Amnon Lipkin Shahak, 
former Shin Bet chief Ya'akov Perry, former directors general of the 
Foreign Ministry David Kimche and Alon Liel, as well as authors, 
academics, and intellectuals. 
 
Yediot cited fears in Israel that Palestinians may sue Defense 
Minister Peretz in Belgium for war crimes.  Peretz is due to visit 
that country next week, during his first trip abroad since he has 
been in office. 
 
Leading media reported that, in Park City, Utah, on Sunday, the 
Israeli movies "Sweet Mud" and "Hot House," the latter a 
documentary, won grand jury prizes at the Sundance Film Festival. 
 
Maariv reported that, as Passover approaches, economy airfares to 
New York are estimated to reach USD 1,000-1,200 during that period 
-- up from USD 750 in February. 
 
 
 
 
 
 
 
-------- 
Mideast: 
-------- 
 
Summary: 
-------- 
 
The independent, left-leaning Ha'aretz editorialized: "As such, as 
the sovereign in the territories, and irrespective of who is to 
blame for the diplomatic impasse, Israel is obliged to distinguish 
between the civilian population and the political process." 
 
Palestinian affairs correspondent Danny Rubinstein wrote in 
Ha'aretz: "What is happening in Gaza ... endangers not only the 
inhabitants of the Strip, but all of us, Israelis and Palestinians, 
who are sliding down the slippery slope of a cultural and religious 
battle." 
 
Regional correspondent Ronni Shaked wrote in the mass-circulation, 
pluralist Yediot Aharonot: "The fate of the Palestinian government 
has not been sealed in Gaza and Ramallah but, rather, in Tehran and 
Washington." 
 
Conservative columnist Prof. Efraim Inbar, Director of the 
Begin-Sadat Strategic Center at Bar-Ilan University, wrote in the 
conservative, independent Jerusalem Post: "Jerusalem should 
encourage greater involvement by Egypt and Jordan in Palestinian 
affairs." 
 
Senior columnist Haggai Huberman wrote in an editorial on page one 
of the nationalist, Orthodox Hatzofe: "Once upon a time we used to 
believe that the world was silent only when Arabs kill Jews. 
Apparently, however, the world's view is that when Arabs kill Arabs, 
that is okay." 
 
Block Quotes: 
------------- 
 
¶I.  "Separating Talks From the People" 
 
The independent, left-leaning Ha'aretz editorialized (1/28): "Given 
the Quartet meeting's expected failure, and marking a year of 
Israeli -- and international -- sanctions against the democratically 
elected Palestinian government, there is no choice but to reevaluate 
this policy.  Because, even those who adopt the principle that no 
diplomatic talks can take place with those who do not recognize the 
State of Israel cannot accept that millions of humans under Israeli 
occupation can remain hostages to the lack of a diplomatic process. 
No less troubling is the view that the worsening of Palestinians' 
living conditions will result in the sort of political change that 
Israel would like to see.  As such, as the sovereign in the 
territories, and irrespective of who is to blame for the diplomatic 
impasse, Israel is obliged to distinguish between the civilian 
population and the political process.... The eternal question of 
'what will bolster or weaken Mahmoud Abbas?' is also no policy. 
Israel must propose a plan that allows for normal Palestinian life, 
employment, civil services and infrastructures, as is required from 
an occupier.... This is not merely a legal obligation, but a 
humanitarian necessity.  Furthermore, it would be a worthwhile 
political investment.  An improved economic situation in the 
territories may also ensure the desired political choice." 
 
II.  "The Key Lies in Gaza" 
 
Palestinian affairs correspondent Danny Rubinstein wrote in Ha'aretz 
(1/29): "The bloody battles between the factions in Gaza are 
affecting the entire region.  From a fight for political power they 
have turned into struggles of an ethical, ideological nature.  Hamas 
is identified with the steadfast front in the Arab world, which is 
very popular in the Arab street.... On the other hand, Abu Mazen, is 
representative in Gaza Muhammad Dahlan, and their friends are 
identified in Gaza with rotten and corrupt regimes that serve 
American interests.  What is happening in Gaza therefore endangers 
not only the inhabitants of the Strip, but all of us, Israelis and 
Palestinians, who are sliding down the slippery slope of a cultural 
and religious battle." 
 
III.  "A War of Identity: Between Secularism and Fundamentalism" 
 
Regional correspondent Ronni Shaked wrote in the mass-circulation, 
pluralist Yediot Aharonot (1/28): "This is not a political clash 
between Hamas and Fatah over the reins of power.  It is a war over 
the Palestinian identity -- between Fatah, which wants a national 
and secular identity, and Hamas, which wants to establish a 
fundamentalist Palestinian Islamic identity.  It is a war between 
the values of the West and Islam.  That is why the fate of the 
Palestinian government has not been sealed in Gaza and Ramallah but, 
rather, in Tehran and Washington.... Who has won more points?  At 
this stage Fatah is in better shape.  Most of the dead and injured 
over the weekend were Hamas men.  But that was just a single battle 
in a war.... Gaza is burning, but Abu Mazen is touring the world. 
He was in Davos, he was in Spain.  This week he will be visiting 
Morocco, will take part in a conference in Addis Ababa and return to 
Ramallah only towards the end of February.  He would like to return 
to Gaza after Hamas has been defeated in battle, but Hamas has not 
shown any signs of breaking yet.  The Gazans have overcome the 
blight of poverty and unemployment by means of the new jobs and 
livelihoods: the armed militias.  There's money there and the 
salaries are paid." 
 
IV.  "End the Delusion" 
 
Conservative columnist Prof. Efraim Inbar, Director of the 
Begin-Sadat Strategic Center at Bar-Ilan University, wrote in the 
conservative, independent Jerusalem Post (1/28): "With PA fortunes 
at a low point, Israel should use its diplomatic resources to 
further weaken and delegitimize the hostile entity, rather then 
paying lip service to the two-state paradigm -- a losing 
proposition.  Jerusalem should encourage greater involvement by 
Egypt and Jordan in Palestinian affairs.  These states have signed 
peace treaties with Jerusalem and behave more responsibly than the 
PA leadership.  If they refuse, the prevailing chaos will inflict 
pain primarily on the Palestinians.  Under the current circumstances 
such a consequence may be useful in influencing the Palestinian 
learning curve.  Alas, there are people who learn only the hard 
way." 
 
¶V.  "Universal Hypocrisy" 
 
Senior columnist Haggai Huberman wrote in an editorial on page one 
of the nationalist, Orthodox Hatzofe (1/28): "Twenty-one 
Palestinians were killed this weekend in the Gaza Strip and no words 
of outrage were voiced in any capital of the enlightened world.... 
It is not difficult to imagine what the headlines around the world, 
and in Israel too, would have been had Yihya Abu Bakra, the 
two-year-old child, had been killed by a stray Israeli bullet rather 
than a Palestinian bullet.  The telephones in Jerusalem would not 
have stopped ringing: warnings from Condoleezza, threats from Putin, 
and the word 'massacre,' which certainly would have been used at the 
top of every BBC news broadcast.... Once upon a time we used to 
believe that the world was silent only when Arabs kill Jews. 
Apparently, however, the world's view is that when Arabs kill Arabs, 
that is okay.  The enlightened Western world never suffered from a 
lack of hypocrisy.  On Saturday we were shown a little bit more." 
 
JONES