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UNCLAS TEL AVIV 000751 
 
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 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: 
-------------------------------- 
 
¶1.  Mideast 
 
¶2.  Upcoming Baghdad Conference 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Israel Radio reported that PM Ehud Olmert and FM Tzipi Livni agreed 
before Livni's departure for Canada and the US on Saturday that 
Israel will not renounce the principles set by the Quartet that 
Israel's position is valid regarding any Palestinian government. 
Neither will Israel sit with Hamas representatives, even if they are 
part of a Palestinian national unity government.  Israel Radio 
reported that Olmert and Livni agreed that, following the discovery 
that money released by Israel did not reach its intended 
destinations, the Palestinians will not at this time receive tax 
monies owed by Israel.  The radio reported that, during her trip, 
Livni will meet with Secretary of State Condoleezza Rice and UN 
Secretary-General Ban Ki-moon, and address AIPAC. 
 
SIPDIS 
 
Defense Minister Amir Peretz was quoted as saying in an interview 
with Ha'aretz, ahead of his first trip to the US, that this is the 
critical year to stop Iran with diplomacy, and that the US can play 
a key role in escalating financial pressure.  Peretz will leave for 
New York on Saturday night and meet with UN Secretary-General Ban 
Ki-moon.  He will than head to Washington for a function with 
Congress and a meeting with Defense Secretary Robert Gates.  Peretz 
will also address the AIPAC Policy Conference. 
 
Ha'aretz reported that Hamas and Fatah both support PA Chairman 
[President] Mahmoud Abbas's bid to extend the cease-fire with Israel 
from Gaza to the West Bank, but that Islamic Jihad does not. 
Ha'aretz said that Abbas nevertheless plans to propose an expanded 
cease-fire to Olmert at their meeting on Sunday, in exchange for 
Israeli noninterference with the Palestinian unity government that 
is due to be formed next week -- including not urging Western 
countries to boycott it.  Ha'aretz reported that Abbas and 
Palestinian PM Ismail Haniyeh met on Tuesday with representatives of 
various Palestinian factions and presented the idea to them, and on 
Wednesday, Abbas's chief negotiator, Saeb Erekat, met with 
representatives of the five largest factions in Gaza.  But while 
Hamas and Fatah both accepted the idea, Islamic Jihad rejected it. 
Ha'aretz quoted Palestinian sources as saying that Islamic Jihad did 
not completely rule out the idea, but a Jihad representative told 
Reuters that the organization cannot consider it while "Zionist 
aggression" against the Palestinians, and particularly Jihad 
operatives, continues in the West Bank.  Yediot quoted Abbas's 
bureau as saying that the Palestinians will meet with Olmert only to 
satisfy the Americans. 
 
Last night Channel 2-TV said that the Winograd Committee's interim 
report on last summer's war in Lebanon will be published on March 
27, but will not be accompanied by any warning letters and will not 
include any findings related to specific individuals.  Leading media 
reported that the committee has decided not to send letters warning 
specific individuals that they might be harmed by its findings. 
However, Channel 2-TV said that the final report, slated for release 
in late July, will include harsh findings against Olmert, Defense 
Minister Amir Peretz, former IDF Chief of Staff Dan Halutz and 
former OC Northern Command Udi Adam.  Ha'aretz led with criticism 
voiced on Thursday by senior officers in the IDF's General Staff 
about Olmert's claims before the Winograd Committee regarding his 
plans for last year's war in Lebanon.  The daily quoted the officers 
as asking: "If war was planned, why was the IDF left unprepared?" 
Ha'aretz also reported that Labor Party ministers lashed out at 
Olmert's testimony before the committee, as reported in Ha'aretz on 
Thursday.  Labor's criticism reportedly revolves around the 
appointment process of Peretz and other ministers.  Deputy IDF Chief 
of Staff Moshe Kaplinsky admitted in an interview with Maariv: "We 
made mistakes." 
 
Hatzofe quoted IDF OC Southern Command Yoav Gallant as saying during 
a meeting with foreign correspondents that the IDF is bracing for a 
military operation in the Gaza Strip. 
 
The Jerusalem Post reported that UNIFIL would like a more aggressive 
mandate for its forces to engage Hizbullah on their own. 
 
Yediot bannered a remark allegedly made by a senior US 
administration official that the Mossad had arranged the defection 
of Iranian general Ali Reza Askari (phon.).  Yediot said that the 
operation was an intelligence coup for Israel and the US. 
 
Ha'aretz, Yediot, and The Jerusalem Post reported that Dr. Ibrahim 
Suleiman, the man who represented Syria during the secret, 
unofficial discussions held under the auspices of the Swiss 
government, has agreed to appear before the Knesset's Foreign 
 
Affairs and Defense Committee.  Suleiman, an American of Syrian 
descent, informed his Israeli counterpart in the talks in 
Switzerland, Dr. Alon Liel, of his decision to appear before to the 
Knesset committee. Liel, in turn, informed the Meretz faction 
chairperson, MK Zahava Gal-On, who had initiated the invitation. 
Both the committee's Chairman, MK Tzachi Hanegbi, and Knesset 
Speaker Dalia Itzik agreed to the unusual decision of officially 
inviting a foreign national who has represented the positions of an 
Arab country that is still in a state of war with Israel.  In a 
telephone conversation with Ha'aretz from his home near Washington 
DC, Suleiman said he will use his visit to Israel to hold a dialogue 
with the public to clarify that Syria is committed to peace, which 
it considers to be the key to regional stability, security, and 
prosperity.  He added that he is "completely convinced that 
President Bashar Assad means every word when he calls on Olmert to 
begin peace talks without preconditions." Suleiman was quoted as 
saying that it is possible that before his arrival in Israel he will 
carry out a short visit to Damascus to meet with the leadership 
there. 
 
The Jerusalem Post reported that a UNESCO team will present its 
report on the Old City dig in the next few days.  Arabic-language 
Kull Al-Arab reported that during a recent visit of Raed Salah, the 
leader of the northern branch of Israel's Islamic Movement, to 
Cairo, Arab League Secretary-General Amr Moussa promised Salah to 
bring up the issue of stopping the (Israeli) "attacks" against the 
Al-Aqsa Mosque at the upcoming meeting of Arab FMs in Saudi Arabia. 
 
Opposition leader MK Binyamin Netanyahu was quoted as saying in an 
interview with Ha'aretz: "I see a unique opportunity to advance the 
peace process with moderate Arab partners, for a simple reason: 
There is an identification of a common threat."   Yediot reported 
that Republican presidential candidate Rudy Giuliani told Netanyahu 
during a meeting in the US that the US must determine for a fact 
that in no way will Iran acquire nuclear weapons. 
 
The Jerusalem Post reported that Ran Edelist, the director of the 
documentary film about the Shaked Reconnaissance Unit that has 
provoked a diplomatic uproar between Israel and Egypt, admitted to 
the newspaper on Thursday that he had erroneously described 250 
Palestinian fedayeen killed by the unit at the end of the Six-Day 
War as Egyptians.  That error, it appears, is at the root of a wave 
of Egyptian allegations that Israelis killed Egyptian POWs in this 
and other wars. 
 
Yediot and The Jerusalem Post reported that on Thursday the IAEA 
decided to cut in half its technological assistance to Iran, after 
the latter refused to cease uranium enrichment. 
 
Yediot wrote that on Saturday Iranian, Syrian, and US 
representatives will meet at the opening of the Baghdad Conference. 
 
Yediot reported that IAF commander Eliezer Shkedy, who investigated 
an Apache helicopter accident during the second Lebanon War, found 
that the Boeing Co. was at fault. 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Senior columnist and longtime dove Yoel Marcus wrote in the 
independent, left-leaning Ha'aretz: "After the Winograd report is 
released, it is doubtful Olmert will be able to continue being Prime 
Minister." 
 
The conservative, independent Jerusalem Post editorialized: "It is 
very disturbing that our government is reportedly poised to 
capitulate to blackmail from the terrorist regime that is most 
directly attacking us, that led by Hamas." 
 
Former US Ambassador to Israel Daniel C. Kurtzer wrote in The 
Jerusalem Post: "There is a choice for the US administration, even 
in the final two years of George W. Bush's presidency." 
 
Block Quotes: 
------------- 
 
¶I.  "Cry, the Beleaguered Country" 
 
Senior columnist and longtime dove Yoel Marcus wrote in the 
independent, left-leaning Ha'aretz (3/9): "Emotionally, [Prime 
Minister Ehud] Olmert and [Defense Minister Amir] Peretz are both 
strained to their limits.  Their political future hangs by a thread. 
Even worse, they are sitting on the razor's edge, to use the title 
of a novel by Somerset Maugham.... In practice, they are both 
waiting, not very happily, for the Winograd report [probing the 
latest Lebanon war].  The fact that Peretz was only defense minister 
for nine months before the war broke out will not necessarily save 
him from ministerial responsibility.  As Prime Minister, Olmert is 
in a worse position.  First, because he made Peretz defense minister 
instead of finance minister; and second, because he approved a war 
that violated the two ironclad principles championed by David 
Ben-Gurion that have been the guiding light for the Israel Defense 
Forces all these years: 1) Wars should be fought on enemy territory; 
and 2) Wars should be ended as quickly as possible.  What happened, 
with regard to both these rules, was just the opposite: Hizbullah 
moved the war to our territory by firing hundreds of rockets at 
civilian centers in Israel for 33 straight days.  And instead of 
limiting itself to a forceful but compact reprisal operation, the 
IDF prolonged the fighting.  Not to mention the embarrassing fact 
that our kidnapped soldiers have yet to be returned home.  After the 
Winograd report is released, it is doubtful Olmert will be able to 
continue being Prime Minister; especially if the State Comptroller 
adds to the picture all the assorted suspicions against the Prime 
Minister in a variety of scandals.  Both Olmert and Peretz are 
sweeping the floor with their poll rankings; and that's before the 
investigating committee and comptroller have finished their work. 
The Winograd Committee could trigger the sort of upheaval in which 
anything is possible.  Kadima could fizzle out, sending Labor Party 
members back to Labor and Likudniks back to Likud, and that could 
end up bringing Benjamin Netanyahu back to power." 
 
 
 
II.  "A Bad Bargain" 
 
The conservative, independent Jerusalem Post editorialized (3/9): 
"The job of the West, more than five years after 9/11, is to work 
steadily toward a world in which there are no regimes that openly or 
covertly support terrorism.  In this context, it is very disturbing 
that our government is reportedly poised to capitulate to blackmail 
from the terrorist regime that is most directly attacking us, that 
led by Hamas.... In the coming days, Israel ... will ... release 
hundreds of prisoners to both Abbas and Hamas, who presumably are to 
be joined in a unity government -- in exchange for our soldier, whom 
we and the international community had demanded should be 
unconditionally released.... It seems that every time our government 
releases hundreds of prisoners for one or two of our own, the 
decision enjoys immediate sympathy.  But in retrospect the same 
decision is regarded with deep regret and a consensus that it should 
never be repeated.   This would seem to be even more the case when 
the prisoner release will be entirely credited to Hamas, whose 
leader, Mashal, just said in Teheran that Palestinians should start 
preparing for Israel to 'disappear' from the world, and which our 
security establishment says is busy preparing to fight the next 
war." 
 
III.  "Roll Up Your Sleeves, Mr. President" 
 
Former US Ambassador to Israel Daniel C. Kurtzer wrote in The 
Jerusalem Post (3/9): "I fear the United States has lost its will 
and determination to engage in the nitty-gritty work of brokering 
Middle East peace..... There is a choice for the US administration, 
even in the final two years of George W. Bush's presidency.  Bush 
can continue his hands-off approach to Arab-Israeli issues and 
confine himself to lofty policy statements about the desirability of 
a two-state solution.  Or, he can invest presidential determination 
and time to jump-start negotiations; lay out US thinking on final 
status issues in a manner designed to provide the parties with an 
agenda for negotiations; keep the parties focused on negotiating in 
good faith and implementing what they have agreed." 
 
 
 
 
 
 
 
 
-------------------------------- 
¶2.  Upcoming Baghdad Conference: 
-------------------------------- 
 
Summary: 
-------- 
 
Senior Middle East affairs analyst Zvi Bar'el wrote in the 
independent, left-leaning Ha'aretz: "The Baghdad conference is 
liable to offer the real prize to Iran: legitimate admission into 
the political space of Iraq." 
 
Block Quotes: 
------------- 
 
"Will They Shake Hands?" 
 
Senior Middle East affairs analyst Zvi Bar'el wrote in the 
independent, left-leaning Ha'aretz (3/9): "James Baker and Lee 
Hamilton can finally permit themselves to enjoy a small smile of 
satisfaction.  Three months after President George W. Bush sourly 
praised the report they wrote, but rejected their recommendation to 
have Iran and Syria participate in the diplomatic process in Iraq, 
he has been forced to swallow some of this bitter medicine.  This is 
also a big day for Colin Powell, Bush's former Secretary of State, 
who pushed for a direct dialogue with Iran, but was rejected by the 
White House conservatives.  Today, when all the rivals meet in 
Baghdad, the cameras will probably not focus on Iraqi Prime Minister 
Nuri al-Maliki, but on US Secretary of State Condoleezza Rice and 
Manouchehr Mottaki, the Iranian Foreign Minister.  Although the 
purpose of this conference is to deal with Iraq, the interesting and 
perhaps more important part will concern the relations between Iran 
and the United States.... Even when it comes to Iranian involvement 
in Iraq, the US is dancing a cautious minuet.  On the one hand it is 
accusing Iran of involvement in terror in Iraq; on the other hand 
American spokespersons, including Secretary of Defense Robert Gates, 
are defining as 'vague' or 'doubtful' the information regarding 
sophisticated Iranian weapons that are serving the terrorists in 
Iraq.  Under ordinary circumstances, these American nuances would be 
insufficient, particularly when at the same time the administration 
continues, meanwhile without success, to push for a second 
resolution regarding sanctions against Iran.  But the Baghdad 
conference is liable to offer the real prize to Iran: legitimate 
admission into the political space of Iraq." 
 
JONES