VZCZCXYZ0000
PP RUEHWEB

DE RUEHTV #0808/01 0740950
ZNR UUUUU ZZH
P 150950Z MAR 07
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 0012
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
RHEHNSC/WHITE HOUSE NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEAHQA/HQ USAF WASHINGTON DC PRIORITY
RUEADWD/DA WASHDC PRIORITY
RUENAAA/CNO WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY
RUEHAD/AMEMBASSY ABU DHABI PRIORITY 1816
RUEHAS/AMEMBASSY ALGIERS PRIORITY 8568
RUEHAM/AMEMBASSY AMMAN PRIORITY 1743
RUEHAK/AMEMBASSY ANKARA PRIORITY 2631
RUEHLB/AMEMBASSY BEIRUT PRIORITY 1806
RUEHEG/AMEMBASSY CAIRO PRIORITY 9606
RUEHDM/AMEMBASSY DAMASCUS PRIORITY 2540
RUEHLO/AMEMBASSY LONDON PRIORITY 9459
RUEHFR/AMEMBASSY PARIS PRIORITY 9934
RUEHRB/AMEMBASSY RABAT PRIORITY 6550
RUEHRO/AMEMBASSY ROME PRIORITY 3946
RUEHRH/AMEMBASSY RIYADH PRIORITY 8825
RUEHTU/AMEMBASSY TUNIS PRIORITY 3042
RUCNDT/USMISSION USUN NEW YORK PRIORITY 4961
RUEHJM/AMCONSUL JERUSALEM PRIORITY 6242
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
RHMFISS/COMSOCEUR VAIHINGEN GE PRIORITY
RHMFIUU/COMSIXTHFLT  PRIORITY

UNCLAS TEL AVIV 000808 
 
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.  PM Olmert's Performance 
 
 
¶2.  Mideast 
 
¶3.  US-Israel Relations 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Israel Radio and the leading Internet news site Ynet quoted US 
Secretary of State Condoleezza Rice as saying Thursday before the 
 
SIPDIS 
AIPAC policy conference in Washington that the Saudi peace 
initiative was not to be taken as is but may be a starting point 
that could lead to a compromise once the Israeli viewpoint was taken 
into account.  In support of FM Tzipi Livni's stance on the matter, 
Rice said that Israel should not respond to the Arab league's offer 
at this point in time, since she said the Israelis had their own 
ideas for achieving peace, which should also be considered.  Rice 
was quoted as saying that the initiative was a very important step 
and showed that it was clear that the Israeli-Arab conflict must 
come to an end. Livni was quoted as saying that she viewed some of 
the plan's clauses very positively, but pointed out that the plan's 
treatment of the Palestinian refugee problem contradicted the 
two-state solution.  Ynet reported that Rice and Livni met at the 
State Department in order to exchange ideas before Secretary Rice's 
upcoming visit to the region for another round of talks next week. 
 
 
Ha'aretz quoted Egyptian FM Ahmed Ali Abu al-Gheit as saying on 
Wednesday that the Saudi peace initiative would not be subject to 
changes before the Riyadh Summit scheduled for the end of March. He 
added that the Egyptians expected Israel to accept the initiative 
and thereby promote the peace process.  Ha'aretz quoted a senior 
Israeli diplomatic source as saying on Wednesday that the Arab 
leaders felt they could not disregard UN Resolution 194, calling for 
the return of all Palestinian refugees to their homes.  Therefore, 
the source estimated the Arab nations would resist making changes 
requested by Israel to the initiative's refugee clause.  The source 
explained that if the Arab nations were to change the initiative, 
they would alienate the Palestinian leadership and serve Iran's 
claims that it better represents the interests of the Palestinians 
than the leaders of the Arab League. Ha'aretz quoted Dr. Mati 
Steinberg, former advisor on Palestinian affairs to the head of the 
Shin Bet, as saying that Israel, which he said erred in rejecting 
the 2003 Saudi peace initiative, should endorse the decisions of the 
Arab League summit at the end of this month. 
 
The Jerusalem Post and Israel Radio quoted a Fatah leader as saying 
that PA Chairman [President] Mahmoud Abbas will set the political 
guidelines of the emerging Palestinian unity government.  The leader 
was quoted as saying: "The President will make it clear that the new 
government must respect all the agreements that were signed with 
Israel and abide by all Arab and international resolutions 
concerning the Palestinian issue."  The Fatah leader pointed out 
that Abbas will not call on the unity government to explicitly 
recognize Israel or renounce terrorism as demanded by the Quartet. 
Israel Radio reported that the new Palestinian government is 
expected to work out a deal with Israel for the release of kidnapped 
IDF Cpl. Gilad Shalit.  Yediot noted that Abbas did not abide by his 
promise to Olmert that Shalit would be freed before the formation of 
a Palestinian unity government.  Yediot quoted Dr. Ahmed Yousef, 
diplomatic advisor to Palestinian PM Ismail Haniyeh, as saying in an 
interview published on Wednesday in the London-based Ash-Sharq 
Al-Awsat that Hamas will soon effect ideological changes and that it 
is willing to institute a 10-year hudna (truce) with Israel.  Yediot 
reported on controversy in Israel around the sincerity of Yousef's 
remarks. 
 
The Jerusalem Post reported that Israeli officials expressed 
disappointment on Wednesday that EU foreign policy chief Javier 
Solana backed a full Israeli withdrawal from the Golan Heights 
following talks in Damascus with Syrian leaders, rather than 
publicly calling Syria to task for supporting terrorism.  Although 
the EU has demonstrated a similar viewpoint for years, The Jerusalem 
Post quoted an Israeli official as saying that "this is not the 
message that Syria needs to hear at this time." 
 
Ha'aretz quoted Israeli government sources as saying that the US 
government failed to give Israel all the drafts of UN Security 
Council Resolution 1701 ending last summer's Lebanon war in real 
time, so Israel had to obtain some of the documents from other 
sources.  However, Ha'aretz's sources were quoted as saying that 
senior GOI officials ultimately did get all the drafts in time, and 
there were no delays or information gaps that impeded 
decision-making during the war.  Ha'aretz reported that on Wednesday 
FM Tzipi Livni and Defense Minister Amir Peretz met in New York with 
UN Secretary-General Ban Ki-moon for talks that focused on the 
ongoing weapons smuggling into southern Lebanon and the fate of the 
two abducted soldiers. 
 
The Jerusalem Post quoted a source close to the Winograd Commission 
probing last summer's war in Lebanon as saying that the final report 
of the Winograd Commission probing last summer's war in Lebanon, 
which is expected in the late summer, will include full "personal 
recommendations" concerning PM Ehud Olmert, Peretz, as well as 
senior ministers and IDF officers on their conduct during the war. 
Like other media, The Jerusalem Post said that the "partial" report 
to be published next month will contain a full judgment on the 
actions of Olmert, Peretz, and former IDF Chief of Staff Dan Halutz 
during the five-day period in July between the capture of two IDF 
reservists and the official decision to launch the campaign against 
Hizbullah.  Maariv reported that five Kadima ministers -- Livni, 
Transportation Minister Shaul Mofaz, Construction and Housing 
Minister Meir Sheetrit, Internal Security Minister Avi Dichter, and 
Vice PM Shimon Peres will decide who will head Kadima should the 
Winograd Commission force Olmert to resign. 
 
The Jerusalem Post cited Peace Now as saying that a military 
database released to the group under court pressure shows that very 
little private land was seized from Palestinians to build Ma'aleh 
Adumim, the largest settlement.  In November, Peace Now had claimed 
that 86 percent of the West Bank town was built on private 
Palestinian land. 
 
Ha'aretz, The Jerusalem Post, and Hatzofe reported that on Wednesday 
Israel, the PA, and Jordan agreed on a plan to build an 
agroindustrial park near Jericho, part of efforts backed by Japan to 
promote economic cooperation and development in the Middle East. 
Japanese FM Taro Aso was quoted as saying at the end of a two-day 
conference in Tokyo attended by senior Israeli, Palestinian and 
Jordanian officials that the parties agreed that Japan will dispatch 
a research team later this month to select possible sites for the 
park. 
 
Maariv reported that Strategic Affairs Minister Avigdor Lieberman as 
saying on Wednesday that the European states are sacrificing Israel 
because of their economic ties with Iran. 
 
Maariv reported that Knesset members will leave for Tunisia today to 
attend a Euro-Mediterranean Parliamentary Assembly meeting, in which 
parliamentarians from the PA, Syria, and Lebanon will also take 
part. 
Ha'aretz reported that on Wednesday the Knesset decided to shelve a 
proposal for a parliamentary discussion of the Armenian genocide, in 
compliance with Olmert's request. 
 
All media reported that a senior officer of Iran's Revolutionary 
Guards disappeared in Iraq a few weeks ago. 
 
The Jerusalem Post reported that the Nefesh B'Nefesh organization, 
whose aim is to facilitate immigration of Jews to Israel, has 
expanded its group flights from the US, Canada, and Britain to 
include 50 to 100 pre-booked seats each months on regular El Al 
flights throughout the year. 
 
Ha'aretz, Yediot, and The Jerusalem Post quoted the Anti-Defamation 
League report released on Wednesday according to which the number of 
anti-Semitic incidents in the US dropped in 2006 for the second year 
in a row.  The Jerusalem Post reported that leaders of Reform 
Judaism from around the world will open a conference in Jerusalem on 
Thursday whose agenda includes a multimillion-dollar (over USD 100 
million) expansion of activities in Israel and a demand that Olmert 
take steps to officially recognize the movement, its conversions, 
and its rabbis. 
 
 
---------------------------- 
¶1.  PM Olmert's Performance: 
---------------------------- 
 
Summary: 
-------- 
 
The independent, left-leaning Ha'aretz editorialized: "The war in 
Lebanon was a failure.... Will that same government now lead the 
country into a major military operation in Gaza, and continue its 
diplomatic passivity and ignorance of the Saudi initiative, the 
Syrian initiative and changes in the Palestinian government?" 
 
Block Quotes: 
------------- 
"It Doesn't Depend on Winograd" 
 
The independent, left-leaning Ha'aretz editorialized (3/15): "The 
Winograd Commission is investigating the failure of the war in 
Lebanon, but its job is not to replace Israel's government.  To 
replace a government, an opposition must coalesce and enough Knesset 
members must want elections. Meanwhile, no one is proposing a new 
agenda, and everyone seems to be comfortable in their padded chairs, 
with the wait for the Commission's recommendations just an excuse to 
do nothing.  This reveals a certain amount of political infantilism. 
 The Commission's investigation of the truth and summary of lessons 
is indeed important, but the public already knows enough to draw 
conclusions about the individuals involved.... The bitter 
disappointment caused by the second Lebanon war should have shaken 
our very foundations, but the storm died down the moment the 
Winograd Commission was established, as if the country had time to 
waste while the Commission debated the lack of talented leaders.  If 
not for public pressure, even Dan Halutz would not have gone home. 
Now, similar pressure should be created to replace the leadership. 
It is impossible to discuss the Iranian threat seriously while 
placing it in the hands of Amir Peretz and Avigdor Lieberman.... If 
the Commission decides not to make recommendations regarding 
individuals, but rather only to draw conclusions, as has been 
intimated, the public will have to do its part.  The war in Lebanon 
was a failure.  The prisoners are still captive.  The home front 
took 200 rockets a day.  Will that same government now lead the 
country into a major military operation in Gaza, and continue its 
diplomatic passivity and ignorance of the Saudi initiative, the 
Syrian initiative and changes in the Palestinian government?" 
 
------------ 
¶2.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Palestinian politics expert Prof. Shaul Mishal wrote in the 
mass-circulation, pluralist Yediot Aharonot: "Today, the 
Palestinians prefer a diplomatic solution that will be achieved in 
the framework of a regional dialogue ... rather than a direct 
Israeli-Palestinian one." 
 
Block Quotes: 
------------- 
"Hamas's Regional Game" 
 
Palestinian politics expert Prof. Shaul Mishal wrote in the 
mass-circulation, pluralist Yediot Aharonot (3/15): "Today, the 
Palestinians prefer a diplomatic solution that will be achieved in 
the framework of a regional dialogue, in which the Arab states and 
Israel will be partners, rather than a direct Israeli-Palestinian 
one.  Palestinian strategy -- support for a regional diplomatic 
arrangement -- stems from the diplomatic and military developments 
that have occurred in the region since the US invasion of Iraq.... 
Most importantly -- the faster the Palestinians embrace the Saudi 
initiative, the more Israel's Syrian window of opportunity will 
close: There is no Israeli government on the horizon that can 
conduct negotiations involving painful withdrawals on two fronts at 
the same time.  Within a short amount of time Israel will stand at a 
historic crossroads.  It won't be able to stand at traffic lights 
without deciding to take the Palestinian or the Syrian course." 
 
------------------------ 
¶3.  US-Israel Relations: 
------------------------ 
 
Summary: 
-------- 
 
The conservative, independent Jerusalem Post editorialized: "Jews 
and evangelicals will never agree on many issues, but the one on 
which they do agree is of overwhelming importance.... The Jewish 
people ... cannot afford, and arguably does not have the right, to 
simply dismiss a significant potential ally." 
 
Block Quotes: 
------------- 
 
"Christians For Israel" 
 
The conservative, independent Jerusalem Post editorialized (3/15): 
"'The sleeping giant of Christian Zionism has awakened.  There are 
50 million Christians standing up and applauding the State of 
Israel.'  So began a speech by Pastor John Hagee, founder of 
Christians United For Israel, before an AIPAC Policy Conference 
plenary earlier this week.  His address may not have received as 
much media attention as those by Richard Cheney, Nancy Pelosi, Ehud 
Olmert and Binyamin Netanyahu.  It should have, however, because it 
could herald a critical new stage in the American-Israeli 
relationship.... Jews and evangelicals will never agree on many 
issues, but the one on which they do agree is of overwhelming 
importance.  It is natural, given history, that Jews are wary even 
of a hand outstretched in friendship, and caution is justified.  The 
Jewish people, however, cannot afford, and arguably does not have 
the right, to simply dismiss a significant potential ally." 
 
JONES