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UNCLAS TEL AVIV 001019 
 
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.  Iran-Britain Crisis 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media reported that on Wednesday Iranian President Mahmoud 
Ahmadinejad announced that his government would release the 15 
detained British sailors and marines as a gift to the British 
people.  The electronic media reported that this morning the freed 
Britons were on the way to London.  Yediot bannered: "Ahmadinejad's 
Show." 
 
Leading media reported that the Prime Minister's Office has strongly 
denied that Israel relayed a message to Syria, accepting its calls 
to renew peace negotiations.  The bureau responded to questions 
raised on Wednesday by a statement made by US House Speaker Nancy 
Pelosi, following a meeting with Syrian President Bashar Assad. 
Pelosi was quoted as saying hat she had relayed a message from PM 
Ehud Olmert, to the effect that Israel was ready for peace talks 
with Syria.  The Prime Minister's Office was quick to issue a 
denial, stating that "what was discussed with the House Speaker did 
not include any change in Israel's policy, as it has been presented 
to international parties involved in the matter."  In a special 
statement of clarification, the bureau stressed that Olmert had told 
Pelosi that Israel continued to regard Syria as "part of the axis of 
evil and a party encouraging terrorism in the entire Middle East." 
Ha'aretz quoted sources at the Prime Minister's Office as saying 
that "Pelosi took part of the things that were said in the meeting, 
and used what suited her."  The same sources explained that the 
decision to issue a statement of denial stemmed from questions from 
Israeli and foreign press regarding a change in Israel's official 
stance on negotiations with Syria.  The media reported that 
President Bush and Vice President hurled harsh criticism at Pelosi 
over her visit to Syria. 
 
The Jerusalem Post reported that Bahraini FM Sheikh Khalid Bin Ahmed 
al-Khalifa told the Bahrain daily Al-Ayam on Tuesday that the Riyadh 
Arab League summit set up "panels to communicate with all 
influential parties, including Israel, to activate the Arab Peace 
Initiative."   The Jerusalem Post cited the Bahrain News Agency 
quoting Khalifa as saying that the Arab League has formed "working 
teams to communicate with all parties, including Israel, the UN, the 
US, China, and the EU."  He was quoted as saying that the team would 
make contacts with Israel "within a month," and that contacts with 
Israel would be made by countries "that have ties" with it, while 
the other Arab nations would contact the US and the EU member 
states.   The Jerusalem Post reported that a source in the Prime 
Minister's Office denied knowledge of any working groups that would 
be calling Jerusalem.   "We still haven't accepted the full 
initiative," the source, adding that there would be no formal reply 
until after the Prime Minister's Office returned from the weeklong 
Passover holiday.  "But we have never said no to contact." 
 
Israel Radio quoted a senior Israeli defense official as saying that 
Israel respects the cease-fire with the Palestinians, but that it 
will not tolerate attacks against its soldiers.  Leading media 
reported that an Islamic Jihad militant was killed and another was 
wounded during a pursuit along the Gaza Strip border.  Israel Radio 
reported that the defense establishment will maintain its offensive 
initiative. 
 
Israel Radio cited The New York Times quoting senior US officials as 
saying that a major arms-sale package that the Bush administration 
is planning to offer Saudi Arabia and other Persian Gulf allies to 
deter Iran has been delayed because of objections from Israel, which 
says that the advanced weaponry would erode its military advantage 
over its regional rivals.  Israel Radio reported that the Israeli 
Embassy in Washington declined to comment on the report. 
 
Hatzofe reported that PA Transportation Minister Saadi Al-Kunz 
intends to resume the activity of Dahaniyeh Airport in the Gaza 
Strip.  The newspaper quoted an Israeli defense source as saying 
that the Palestinians will not receive a permit to run flights from 
the airport as long as rockets are launched at the Negev. 
 
Ha'aretz reported that Israel and the PA have agreed on opening 
trade passages to the Gaza Strip.  A terminal for imports to Gaza 
will operate via the Kerem Shalom passage.  The Palestinians will be 
able to import and export goods from Egypt and other countries via 
the Rafah passage alone.  The plan, which is supported by the 
international community, is pending the approval of Olmert and 
Defense Minister Amir Peretz. 
 
The Jerusalem Post reported that on Wednesday Ron Nachman, the Mayor 
of the West Bank settlement town of Ariel, denounced as "ridiculous" 
a report that the Defense Ministry was weighing the possibility of 
shortening the route of the security fence in the northern West Bank 
to exclude his city. 
 
Yediot reported that a glass wall will be erected around the Knesset 
building to protect it from gunfire. 
 
Maariv reported that Israel recently embarrassed the President of 
Ukraine, Viktor Yushchenko, by telling him that it refused his 
request to visit Israel on Holocaust Day.  The official reason is 
the crowded calendar of the acting president.  However, Maariv wrote 
that in reality, Israel fears getting into diplomatic trouble that 
could strain its relations with Russia. 
 
Maariv quoted associates of former justice minister Haim Ramon as 
saying that he is seriously considering returning to the government. 
The newspaper said that Ramon is getting closer to the finance 
portfolio. 
 
The Jerusalem Post reported that fewer Israelis and Palestinians 
study each other's language. 
 
Ha'aretz reported that, according to a US Commerce Department 
report, Israel may remain on the list of patent infringing countries 
in 2007 if its pharmaceutical law is not amended.   The daily said 
that, less than one month before publication of the US Priority 
Watch List, the US Commerce Department has publicized its 2007 
report on the limitations of commercial activity in the US and other 
countries.  The conclusion from the chapter on Israel is that if 
Israel fails to amend its legislation on the protection of 
proprietary data in the production of pharmaceuticals, and fails to 
extend the term of validity of patent protection of such 
information, it will again find itself on the Priority Watch List of 
patent-infringing countries. 
 
Ha'aretz and Maariv reported that the annual global quota of H1B 
visas to the US, commonly issued to technology workers sent to work 
there by their employers, was filled in a record single day. 
Applications for the visa could be submitted only on April 2 and 3 
this year.  The next application dates are in April 2008. 
 
Yediot reported that, starting next academic year, the Education 
Ministry will send outstanding managers of schools in the public 
sector to Harvard University for one-year extension studies. 
 
The Jerusalem Post quoted Mormon leaders as saying that they have 
finally found acceptance in Israel. 
 
All media reported that on Wednesday, the US dollar's rate reached a 
six-year low on the Tel Aviv market -- 4.135 shekels. 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Senior op-ed writer Akiva Eldar commented in the independent, 
left-leaning Ha'aretz: "Rather than say 'no' to the Arab proposal, 
Olmert preferred to ignore it and continue to pass on messages to 
the 'moderate Arab states,' which rejected his overtures." 
 
Jonathan S. Tobin, Executive Editor of The Jewish Exponent in 
Philadelphia, wrote in the conservative, independent Jerusalem Post: 
"As long as outsiders encourage the Palestinians in their madness -- 
something the Rice-backed Saudi plan seems to be doing -- a day of 
peace for Israel such as the one the Irish now celebrate, will be 
put off even further." 
 
 
 
 
 
 
Block Quotes: 
------------- 
 
¶I.  "Headlines Instead of Initiatives" 
 
Senior op-ed writer Akiva Eldar commented in the independent, 
left-leaning Ha'aretz (4/5): "When the Prime Minister dropped his 
'bomb' [an offer to meet with all Arab chiefs of state], a concrete 
proposal from the Arab League was ticking right under his feet. In 
the context of an exchange between 'heads of moderate states,' the 
summit suggested that a working delegation, organized by the League, 
meet with a similar Israeli delegation.  The understanding that the 
League would determine the composition of that delegation was a 
given.  Just as Arabs do not determine who is a moderate Jew, Israel 
cannot determine who is a moderate Arab.  Peace talks are not a 
made-to-order program. Anyone who wants his picture taken with the 
Saudi King will have to ensure that the Syrian President fits into 
the frame.  If the League invites Bashar Assad to appoint a 
representative to its team, Israel cannot bring a note from Uncle 
Sam saying that he does not permit us to play with 'rough 
characters.'  Rather than say 'no' to the Arab proposal, Olmert 
preferred to ignore it and continue to pass on messages to the 
'moderate Arab states,' which rejected his overtures." 
 
II.  "The Misleading Analogy" 
 
Jonathan S. Tobin, Executive Editor of The Jewish Exponent in 
Philadelphia, wrote in the conservative, independent Jerusalem Post 
(4/5): "Last week's dramatic meeting between two Irish leaders was 
the sort of thing no one imagined possible....  Since so many are 
fixated on the Irish breakthrough and its relevance to the Middle 
East, it's worth taking the time to analyze that situation and to 
see just how misleading this analogy can be.  Unlike the 
Israeli-Arab stand-off, where one side (the Palestinians) still 
refuses to accept the legitimacy of their opponents' existence as a 
separate state, the historic acceptance of a two-state solution in 
Ireland happened 85 years ago, not last week.... Unlike the Irish, 
who agreed to a historic partition for peace, the Palestinians have 
yet to meaningfully do so, despite the plethora of peace deals that 
Israeli leaders have signed with them in the last 14 years.... Hamas 
is based in an extremist faith, not a belief in secular 
self-determination like Irish republicanism.  Their oft-stated goal 
is simply the destruction of the State of Israel.  Were they, or 
their more secular rivals in Fatah, merely interested in Palestinian 
statehood, they could have achieved that a long time ago.... As long 
as outsiders encourage the Palestinians in their madness -- 
something the Rice-backed Saudi plan seems to be doing -- a day of 
peace for Israel such as the one the Irish now celebrate, will be 
put off even further." 
 
------------------------ 
¶2.  Iran-Britain Crisis: 
------------------------ 
 
Summary: 
-------- 
 
Senior Middle East affairs analyst Zvi Bar'el wrote on page one of 
the independent, left-leaning Ha'aretz: "[The diplomatic solution] 
will now be used by Iran as proof that even powers such as the US 
and Britain are limited in their ability to use force when it comes 
to a minor border incident." 
 
Defense and foreign affairs columnist Amir Oren wrote in Ha'aretz: 
"The ambush of the British sailors was an Iranian challenge, not the 
last one, to the US and its allies.  Bush is opposed in principle to 
deals involving prisoner exchanges for hostages." 
 
Deputy Managing Editor Anshel Pfeffer wrote on page one of the 
conservative, independent Jerusalem Post: "Both US President George 
¶W. Bush and British Prime Minister Tony Blair are aware of the acute 
danger Iran poses to world peace and Middle East stability, but 
neither has the credibility or public backing to launch another 
military campaign." 
 
Block Quotes: 
------------- 
 
¶I.  "A Gift to Britain Is Iran's Gain" 
 
Senior Middle East affairs analyst Zvi Bar'el wrote on page one of 
the independent, left-leaning Ha'aretz (4/5): "Iran understood the 
advantages of a diplomatic solution.  If the arrest [of the British 
sailors and marines] itself, which was carried out on the eve of a 
United Nations decision on sanctions, was meant to deliver the 
message that Iran is not afraid of sanctions and that it 
distinguishes between the nuclear issue with matters pertaining to 
its territorial sovereignty, the diplomatic solution is no less 
important.  It will now be used by Iran as proof that even powers 
such as the US and Britain are limited in their ability to use force 
when it comes to a minor border incident -- and that the threat Iran 
poses is precisely in initiating local incidents that are not 
sufficiently important to lead to war.  In addition to this gain, 
Iran can also offer Syria its own gains, at a time when its Foreign 
Minister, Walid Mualem, is rushing to announce the role Damascus 
played in the British sailors' release.  It is doubtful whether 
Syria influences Iran on regional issues, but when the US House 
speaker is in Syria, delivering messages of peace between Israel and 
Syria, Tehran can give Damascus a bonus.  It is doubtful whether 
this incident would impact Iran's determination to develop nuclear 
capabilities, a project considered an inalienable part of national 
strategy and pride." 
 
II.  "Iran Challenges Bush" 
 
Defense and foreign affairs columnist Amir Oren wrote in Ha'aretz 
(4/5): "The ambush of the British sailors was an Iranian challenge, 
not the last one, to the US and its allies.  Bush is opposed in 
principle to deals involving prisoner exchanges for hostages.  He 
 
did not publicly voice his opposition to the release of Palestinian 
prisoners in exchange for Gilad Shalit.  Nonetheless, a day before 
the British sailors were imprisoned, Secretary of State Condoleezza 
Rice criticized her Italian counterpart, Massimo D'Alema, for 
releasing five Taliban captives for an Italian journalist abducted 
in Afghanistan.  The London-Tehran deal sheds a strange light on 
Bush's declared principle.  But had former US President Jimmy Carter 
not failed in his efforts to release the hostages from the US 
Embassy in Tehran in 1980, Reagan, who is admired by Bush, would not 
have become president, been commemorated with an aircraft carrier, 
and have authorized an arms deal in exchange for the hostages in 
Iran." 
 
III.  "Iran Shows Up Britain's Weakness" 
 
Deputy Managing Editor Anshel Pfeffer wrote on page one of the 
conservative, independent Jerusalem Post (4/5): "It would seem that 
the British policy of increasing diplomatic pressure through the 
United Nations and the European Union and not offering the Iranians 
anything for the captives' release worked.  On the other hand, the 
mullahs have gotten away with piracy on the high seas, thumbing 
their nose at the United States' closest ally.  Iranian President 
Mahmoud Ahmadinejad seemed almost magnanimous when he announced his 
country's Easter 'gift' to Britain, and then receiving (on camera) 
protestations of gratitude.  But Ahmadinejad also succeeded at a 
more fundamental level. The British and American response to the 
sailors' abduction proved how difficult it is for Western powers to 
face the threat his regime poses to the free world.... Both US 
President George W. Bush and British Prime Minister Tony Blair are 
aware of the acute danger Iran poses to world peace and Middle East 
stability, but neither has the credibility or public backing to 
launch another military campaign." 
 
JONES