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UNCLAS TEL AVIV 000935 
 
SIPDIS 
 
STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
NSC FOR NEA STAFF 
 
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HQ USAF FOR XOXX 
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CDR USCENTCOM MACDILL AFB FL FOR POLAD/USIA ADVISOR 
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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: SPECIAL ISRAEL MEDIA REACTION 
 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
Secretary Rice to Israel, West Bank, March 25-27, 2007 
 
SIPDIS 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media -- banner in The Jerusalem Post only -- reported on the 
second day of Secretary of State Condoleezza Rice's visit to Israel 
and the PA.  Rice met PM Ehud Olmert for dinner Monday night for the 
second time in 24 hours, and also met Palestinian Chairman 
[President] Mahmoud Abbas for the second time during a four-hour 
trip she made to Jordan, where she also met with King Abdullah II. 
 
Ha'aretz reported that, echoing the lack of any substantive 
progress, the chief PA negotiator, Saeb Erekat, told the newspaper 
on Monday that there had been positive efforts on the part of the 
US, but that there was no American plan before to resume 
negotiations.  Ha'aretz said that the decision to make a lukewarm 
and substantially softer statement during the Secretary's press 
conference this morning was made following deliberations between her 
and Olmert.  Ha'aretz wrote that it is expected that Rice will 
announce that Olmert and Palestinian President Mahmoud Abbas have 
agreed to meet regularly and discuss "all issues."  The discussions 
between the two leaders will initially revolve around 
confidence-building measures, and will leave an opening for 
discussions on other issues in the future.  For her part, Rice will 
continue her periodic visits to the region, in which she will hold 
parallel talks with Israel and the Palestinians on all issues 
pertaining to the "political horizon."   Ha'aretz reported that Rice 
postponed the press conference, originally planned for last night, 
because of differences of opinion with Olmert over the content of 
her statement.  As a headline in Maariv reads: "Olmert Voided Rice's 
Vision of Content," the newspaper wrote that the differences between 
the two have resulted in a crisis of confidence.  Ha'aretz reported 
that Olmert met with Rice for a second time on Monday and expressed 
his strong opposition to any mention of the "core issues" in the 
final status agreement -- namely Jerusalem, the Palestinian refugees 
and the 1967 lines.  Writing that Rice made it clear she is trying 
to substantiate the concept of a "political horizon," Ha'aretz said 
that it appears that the compromise will be that the issues will be 
mentioned in passing.  According to major media, Olmert also asked 
that any formula for the resumption of negotiations be based on the 
Roadmap and the stages it proposes (combating terrorism, dismantling 
outposts, a Palestinian state along interim borders and a final 
settlement).  Ha'aretz said that Olmert also agreed to begin 
deliberations on less sensitive issues, such as the security 
arrangements of a future Palestinian state, and the conditions for 
implementing the agreement on the basis of the Roadmap.  Olmert also 
opposed the proposal Rice made, that American mediation replace 
direct negotiations between Israel and the Palestinians.  Ha'aretz 
noted that maintaining constant and fluid contact with Olmert is for 
the Palestinians, at this juncture, considered a priority. 
 
The Jerusalem Post quoted senior diplomatic officials saying on 
Monday that it was Jerusalem's objections to US shuttle diplomacy 
between Israel and the Palestinians over final-status issues that 
led to the postponement of the press conference at which Secretary 
Rice was expected to outline her new initiative.  According to the 
officials, Rice was expected to announce that direct talks between 
Israel and the Palestinian Authority would be replaced by parallel 
discussions she would hold with both sides over "political horizon" 
issues dealing with the contours of a future Palestinian state. 
Israel has stated that as a result of the formation of the new PA 
unity government, it would no longer hold "substantive" talks with 
Abbas -- only talks dealing with humanitarian and security issues. 
The Jerusalem Post quoted Israeli officials as saying that Rice had 
postponed the press conference to continue to work on the text of 
her message, and find the "right terminology" to describe the issues 
that the two sides have decided to explore through US mediation. 
The Jerusalem Post quoted one official as saying that Israel was 
opposed to dealing with final-status issues such as refugees and 
borders, something favored by the Palestinians.  "Israel's position 
is not in favor of talking about these issues at this point," the 
source was quoted as saying.  "For instance, we think it is 
inconsistent to talk about refugees, because we think that the right 
of return for refugees undermines the two-state solution." 
Moreover, the official was quoted as saying, "engaging in 
final-status discussions now -- when the time is not right and 
neither side is prepared -- could lead, if the talks falter, to 
another round of violence, as was the case in 2000."  The Jerusalem 
Post noted that Rice seemed to be trying to allay Israeli fears when 
she said after a meeting with Foreign Minister Tzipi Livni: "I do 
not intend by any means to take control of the Israeli-Palestinian 
bilateral dialogue. I think it is very important."  But The 
Jerusalem Post wrote that, in a briefing with the traveling US press 
late Sunday evening, Rice outlined her new approach, saying that 
"given where we are, given all the uncertainties that we' have been 
through, given that there are changed circumstances in the wake of 
the Palestinian unity government, it seemed to me that the best 
geography this time was bilateral and parallel."   In addition to 
this new shuttle diplomacy, The Jerusalem Post quoted sources as 
saying that Rice was trying to harness momentum for the process by 
enlisting greater support from the Arab world, in the belief that 
Arab-Israeli reconciliation could push the Israeli-Palestinian 
agenda forward. 
 
Hatzofe reported on a "harsh disagreement" between Olmert and Rice 
around the Saudi initiative. 
 
Yediot reported that Rice succeeded in "promoting at least one 
thing": an increase in coordination and cooperation between Olmert 
and Livni over the past few days.  The newspaper said that they are 
presented a united line to the Secretary and that they adhere to the 
Roadmap.  In other words, Yediot wrote, Olmert and Livni are angry 
with Abbas and they no longer want to pretend that they are 
interested in reaching an agreement with him. 
 
The Jerusalem Post and Yediot reported that Rice will meet today 
with the families of the three kidnapped soldiers. 
 
The Jerusalem Post reported that US senators are asking that 
Secretary Rice stand firm against the Hamas-led government even 
 
SIPDIS 
though it now includes Fatah members.  The newspaper reported that 
79 US senators have signed a letter to this effect. 
 
Yediot reported that UN Secretary-General Ban Ki-moon will today be 
carrying a message from Olmert to Saudi King Abdullah, in which he 
reportedly say that he will seriously consider a Quartet-sponsored 
summit between Israel, Saudi Arabia, and the moderate Arab states. 
Yediot said that Ban will tell King Abdullah that Olmert believes 
that the Saudi peace initiative is "challenging and good" and that 
it can be the basis for dialogue, excluding some reservations. 
Yediot reported that, at the Arab League's summit meeting in Riyadh, 
the leaders will call for negotiations with Israel.  Yediot said 
that the summit's concluding statement, which the Arab foreign 
ministers drafted on Monday, does not explicitly mention the 
Palestinian refugees' right of return to Israeli territory. 
Ha'aretz reported that sources from the Palestinian delegation to 
the summit told the daily that the Palestinians expect the Arab 
states to call on Israel to accept the Arab Peace Initiative. 
Ha'aretz reported that on Monday chief Palestinian negotiator Saeb 
Erekat described the initiative as "one of the most important to the 
Arab world -- a plan that we, the Arabs, must accept."  Erekat was 
quoted as saying that there is no room to negotiate over the peace 
initiative, which was accepted by the Arab League at the Beirut 
summit in 2002.  "There will be no negotiations with Israel over the 
initiative.  There is also no demand to alter it by any of the 
parties," he added. 
 
Ha'aretz reported that many Israeli officials hold new PA Finance 
Minister Salam Fayyad in high esteem, although Israel will end all 
its contacts with him. 
 
All media reported on Monday's march by right-wing demonstrators to 
the evacuated northern West Bank settlement of Homesh.  Ha'aretz 
cited the IDF as saying that no more than 2,500 persons participated 
in the protest. In another development, Ha'aretz reported that the 
cost of compensation for Gaza evacuees will increase by about half a 
billion shekels, totaling 9.5 billion shekels (approximately USD 2.2 
billion) for 1,800 families. 
 
Israel Radio quoted Palestinian sources as saying that two Al-Aqsa 
Martyrs Brigades militants were killed in a gun battle with IDF 
troops in Nablus.  Ha'aretz reported that on Monday the body of a 
50-year-old Palestinian shepherd was found near the West Bank 
settlement of Itamar.  The possibility that Jewish extremists could 
be involved is investigated. 
 
Ha'aretz and The Jerusalem Post cited a new World Bank study as 
saying that goods from the Gaza Strip should be allowed to move 
through the border with Egypt, in a boos to the economy of the 
impoverished coastal strip. 
 
Maariv and Israel Radio quoted US officials as saying on Monday that 
Kenya has handed over Abdul Malik, an al Qaeda suspect accused in 
two terror attacks in East Africa, to US authorities who have moved 
him into the Guantanamo Bay military prison, officials said on 
Monday.  Pentagon spokesman Bryan Whitman was quoted as saying that 
Abdul Malik admitted involvement in a 2002 attack on a hotel in 
Mombasa, Kenya, which killed more than a dozen people, and an 
attempt to shoot down an Israeli airliner carrying 271 passengers 
near Mombasa. 
 
Leading media reported that on Monday security forces successfully 
tested the Arrow anti-missile defense system.  Ha'aretz quoted 
security sources as saying that the test was not as complex as the 
one carried out a month and a half ago. 
 
Maariv lengthily featured the US nonimmigrant visa application 
process at the US Embassy in Tel Aviv. 
 
----------------------------------- 
Secretary Rice to Israel, West Bank, March 25-27, 2007 
 
SIPDIS 
----------------------------------- 
 
Summary: 
-------- 
 
Washington correspondent Shmuel Rosner wrote in the independent, 
left-leaning Ha'aretz: "Rice's present visit seems like it was taken 
right out of a script from James Baker's tenure as secretary of 
state." 
 
Diplomatic correspondent Herb Keinon wrote on page one of the 
conservative, independent Jerusalem Post: "What type of language on 
the refugee issue would be acceptable?  To find out, the Arab League 
need look no further that the Clinton Parameters that dealt with the 
issue at length." 
 
Eytan Haber, veteran op-ed writer and assistant to the late prime 
minister Yitzhak Rabin, opined in the lead editorial of the 
mass-circulation, pluralist Yediot Aharonot: "As far as Bush is 
concerned, this would apparently be the last battle for his place 
and achievements in history." 
 
Senior columnist and longtime dove Yoel Marcus wrote in Ha'aretz: 
"Forget the convergence plan [Olmert] was so proud of.  Forget peace 
initiatives.  Olmert has failed as a leader.  He has to go." 
 
Block Quotes: 
------------- 
 
¶I.  "Disagreement Is Convenient" 
 
Washington correspondent Shmuel Rosner wrote in the independent, 
left-leaning Ha'aretz (3/27): "US Secretary of State Condoleezza 
Rice has good reason not to fear disputes with Israel's Prime 
Minister: As long as they do not get out of hand, they faithfully 
serve as the goal of her visits to the region.  Rice wants to prove 
to the Arab world that the US is making a concerted effort to deal 
with the Palestinian problem.  What could be more convincing to the 
Arabs that Rice is serious than a public disagreement with Ehud 
Olmert?  Rice's present visit seems like it was taken right out of a 
script from James Baker's tenure as secretary of state.  Rice has 
come to try and push a plan not in keeping with Israel's policies. 
Before she arrived, she did not hesitate to publicly air the 
differences between the two nations, stemming from the American 
intention to maintain contact with the members of the Palestinian 
Authority unity government.  Rice was, therefore, welcomed politely 
but with indirect defiance.... In any case, the disagreement is good 
for all sides.  It is a limited disagreement.  Rice will bring it to 
the table when she talks with the leaders of the Arab and European 
Quartets who want to see a US mediator who does not hesitate to 
pressure Israel.  It will help Olmert stave off a political attack 
from the right and also -- and perhaps more importantly -- serve as 
a show of strength against the Rice-Foreign Minister Tzipi Livni 
duo.... But this is entirely mutual.  The Bush administration is 
also relatively weak.  Senior Israeli officials have been dealing 
with a number of questions recently: To what extent is Bush behind 
Rice's activities?  How much leeway is the US willing to give?  The 
answers can reveal the trend: Bush does support Rice, because he 
sees no disadvantages in the initiative.  If she succeeds, he will 
reap the credit and if, as expected, she fails, he can distance 
himself relatively easily from the fallout.  The American political 
cauldron, already bubbling ahead of the November 8 elections, will 
make it difficult for the administration to face off against 
Israel." 
 
II.  "Seeking the Elusive Refugee Formula" 
 
Diplomatic correspondent Herb Keinon wrote on page one of the 
conservative, independent Jerusalem Post (3/27): "Israel's reaction 
to the Arab Peace Initiative, which, in some form or another, is 
expected to be relaunched this week by the Arab League in Riyadh, 
will be determined by how the Arab leaders choose to finesse the 
refugee issue.... Prime Minister Ehud Olmert and Foreign Minister 
Tzipi Livni have both made clear that acceptance of UN Resolution 
194, and the clause that rejects patriation, cannot be a basis for 
negotiations with Israel.  Then what type of language on the refugee 
issue would be acceptable?  To find out, the Arab League need look 
no further that the Clinton Parameters that dealt with the issue at 
length." 
 
 
III.  "A Last Battle" 
 
Eytan Haber, veteran op-ed writer and assistant to the late prime 
minister Yitzhak Rabin, opined in the lead editorial of the 
mass-circulation, pluralist Yediot Aharonot (3/27): "There may be a 
chance [within the US administration] for the beginning of some 
arrangement.  As far as Bush is concerned, this would apparently be 
the last battle for his place and achievements in history.  For this 
purpose, Secretary of State Condoleezza Rice has been holding to the 
Saudi initiative as to a treasure (some say: as to an empty reed) in 
order to come back home with a victorious smile and tell her 
employer: We have done something.  But let there be no 
misunderstandings.  In its present state, the Saudi initiative is 
dangerous and bad for Israel and it will never be possible to accept 
it in ... all its clauses." 
 
IV.  "He Has to Go" 
 
Senior columnist and longtime dove Yoel Marcus wrote in Ha'aretz 
(3/27): "President Truman had a sign on his desk that said 'The buck 
stops here.'  In our neck of the woods, it doesn't stop there. It's 
passed on, to someone higher up or lower down on the ladder, usually 
by committees of inquiry -- our warped version of Japanese 
hara-kiri.... No matter how Olmert comes out of the probe of the 
Winograd [Commission investigating the Second Lebanon War], he is 
already a lame duck.  He has lost the last vestiges of trust and 
respect that came with being Sharon's successor, and above all, he 
has lost the authority and ability to cope with the complex and 
urgent challenges that lie ahead.  Forget the convergence plan he 
was so proud of.  Forget peace initiatives.  Olmert has failed as a 
leader.  He has to go." 
 
JONES