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UNCLAS TEL AVIV 001223 
 
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 
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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 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Ha'aretz reported that, in a high-level defense consultation on 
Wednesday, PM Ehud Olmert decided that Israel will avoid a broad 
military response to the Hamas rocket barrage on Tuesday, 
Independence Day.  The scope of offensive action could expand but no 
broad ground offensive into Gaza territory was approved.  The 
consultation focused on developing policy and not on developing a 
target list.  Major media quoted sources in Jerusalem as saying that 
if Hamas activity against Israel escalates, broader military action 
in the Gaza Strip will be reconsidered.  This morning Israel Radio 
cited Al Arabiya-TV as saying that the Egyptian delegation in Gaza 
informed senior Israeli officials that on Wednesday most Palestinian 
factions pledged to resume the truce with Israel if the latter 
desists from activity against the Palestinians.  The Jerusalem Post 
quoted PA officials as saying on Wednesday that Egypt has threatened 
to cut off its relations with Hamas unless the movement halts its 
rocket attacks on Israel.  Media cited threats by Palestinian 
factions of a strong response to a possible large-scale IDF 
operation in the Gaza Strip.  The media reported that Israel lodged 
a complaint with the UN about the rocket launchings.  Israel's 
Permanent Representative to the UN Dan Gillerman was quoted as 
saying in an interview with Israel Radio that Israel's restraint 
should not be construed as its acceptance of rocket firing from the 
Gaza Strip.  Gillerman was further quoted as saying that Israel will 
continue its contacts with PA Chairman [President] Mahmoud Abbas but 
that it will fight Hamas as if there were no Abbas.  This morning 
Israel Radio reported that a Qassam rocket was launched at Israel 
and cited the Popular Resistance Committees as saying that it shot 
two rockets into Israel. 
 
Ha'aretz printed an AP wire report quoted Olmert as saying on 
Wednesday that he hopes that the threat of the Iranian nuclear 
program can be resolved without military involvement.  Speaking in 
Jerusalem to Jewish activists in New York, he said the threat of 
Iran's President to destroy Israel is not something that can be 
tolerated.  Olmert praised President Bush for his efforts to prevent 
Iran from acquiring nuclear weapons. 
 
The Jerusalem Post cited the Prime Minister's Office as saying that 
on Wednesday PM Olmert told a visiting delegation of AIPAC donors 
that Israel does not interfere in the internal US debate over the US 
involvement in Iraq.  The Jerusalem Post quoted Olmert as saying 
that a strong America is a guarantee against the Iranian threat.  He 
thanked the delegation, which also held a separate meeting on 
Wednesday with FM Tzipi Livni, for AIPAC's efforts on behalf of 
Israel across the US political spectrum. 
 
Yediot quoted Under Secretary of State for Political Affairs 
Nicholas Burns as saying during a private event at Harvard 
University that Iran is helping the US.  Burns explained that 
Iranian President Mahmoud Ahmadinejad's behavior has even moved 
Russia to the side of the Western powers.   The Jerusalem Post 
quoted Democratic presidential candidate and New York Senator 
Hillary Clinton as saying on Tuesday in a speech to the National 
Jewish Democratic Council that it might be necessary for America to 
confront Iran militarily, addressing that possibility more directly 
than any of the other presidential candidates who spoke this week to 
the council.  Israel Radio reported that today the official Iranian 
news agency IRNA quoted Mohammad Baqer Zolghadr, Iran's Deputy 
Interior Minister in Security Affairs., as saying that Iran will 
strike US interests around the world and Israel if attacked over its 
disputed nuclear program.  "Nowhere would be safe for America with 
(Iran's) long-range missiles ... we can fire tens of thousands of 
missiles every day," Zolghadr was quoted as saying.  "With 
long-range missiles Iran can also threaten Israel as America's 
ally," he added. 
 
Leading media reported that the Winograd Commission is set to submit 
its interim findings on the Second Lebanon War to the PM and the 
Defense Minister on Monday.  The Jerusalem Post said that an 
English-language version will also be made available.  Leading media 
quoted OC Northern Command, Maj. Gen. Gadi Eizenkot, as saying on 
Wednesday that the IDF embarked on the war even though it was 
apparent that the conflict would not return the two IDF soldiers 
whose kidnapping by Hizbullah sparked the hostilities. 
 
All media led with developments in the so-called "Silicate affair." 
The media reported that on Wednesday State Comptroller Micha 
Lindenstrauss informed Attorney-General Menachem Mazuz that Olmert 
may have been guilty of criminal behavior by taking an active part 
in a decision by the Trade Industry's Investment Center to provide a 
USD 10-million grant to a company represented by his close friend, 
former partner and personal lawyer, Uriel Messer.   The letter to 
Mazuz came in the wake of a 30-page report released on the same day 
entitled "Conflict of Interests on the Part of the Minister of 
Commerce and Industry."  The decision to provide the grant to the 
company represented by Messer was made under the previous 
government, when Olmert served as minister of trade and industry. 
Ha'aretz quoted senior officials at the Justice Ministry as saying 
privately in recent weeks that it seems that a criminal 
investigation against Olmert in the case is inevitable.  Ha'aretz 
reported that Mazuz is soon likely to order a criminal investigation 
against Olmert over suspicions of fraud and breach of trust.  In 
response to the State Comptroller's report, Olmert said, "he acted 
in accordance with his public responsibilities and prevented a great 
injustice which could have been caused to an entrepreneur whose only 
request was to build a factory in Dimona.  Former Supreme Court 
President Meir Shamgar ruled in favor of the entrepreneur and the 
feet-dragging of the Investment Center led to a situation in which 
the entrepreneur's application was not handled."  Olmert was further 
quoted as saying he had "no doubt that this 'affair,' like all the 
others under investigation by the comptroller will end in nothing 
and evaporate like foam on water." 
 
All media reported that the GOI suspects former Balad MK Azmi 
Bishara of providing assistance to an enemy in time of war, passing 
on information to the enemy, contact with a foreign agent, 
money-laundering violations and other crimes, according to a 
decision handed down Wednesday by the Petah Tikva Magistrate's 
Court.  According to the court's decision, Bishara is suspected of 
carrying out some of the alleged crimes during the Second Lebanon 
War. The court ruled that investigators have collected evidence that 
"confirms the prima facie suspicions that he committed the crimes 
mentioned above, including receiving substantial sums of money from 
abroad that were handed over in person to Bishara while he was a 
Knesset member."  The Jerusalem Post quoted police as saying they 
had evidence upon which to base their claims, including proof that 
Bishara received "significant amounts of money originating 
overseas."  The media reported that Bishara accused Israel of trying 
to frame him.   Israel Radio quoted police as saying that Bishara 
will be arrested upon returning to Israel, and that Bishara's 
supporters will come around when they hear evidence that his conduct 
was motivated by greed rather than ideology. 
 
Ha'aretz reported that the Foreign Ministry is currently considering 
increasing Israel's humanitarian assistance to refugees fro the 
Darfur region of Sudan. 
 
The Jerusalem Post reported that today Aavaz.org, a global civic 
advocacy group, will place in Jerusalem mock billboards advertising 
travel to Saudi Arabia  as part of "Real Peace Talks Now," a 
campaign to get Israeli, Palestinian, and international leaders to 
start full negotiations before June 5, which marks the 40th 
anniversary of the 1967 Six Day War. 
 
Ha'aretz and Israel Radio reported that Defense Minister Amir 
Peretz's bureau has informed the Association for Civil Rights in 
Israel that restrictions blocking Palestinians from entering the 
Jordan Valley will be lifted in May. 
 
Makor Rishon-Hatzofe quoted EU envoy Louis Michel as saying on 
Wednesday that Israel must take expanded easing measures for the 
Palestinians.  The Jerusalem Post quoted Ben-Gurion University 
economist Prof. Avia Spivak as saying at a conference held earlier 
this month in Jerusalem that Israel's lack of acceptance to the EU 
may be political. 
 
Makor Rishon-Hatzofe cited a claim by Fatah's Al-Aqsa Martyrs 
Brigades that the assassination of physician Dr. David Niv around 
six weeks ago was a mistake, and that the real target was a Knesset 
member. 
 
Maariv reported that the state had promised evacuees from Gush Katif 
(Gaza Strip) land that it did not own. 
 
Maariv reported that the International Christian Embassy, a 
pro-Zionist lobby, is endeavoring to trace one million Jews across 
Russia, whom Jewish Agency representatives will try to convince to 
immigrate to Israel. 
 
The Jerusalem Post cited a statement issued by Olmert's bureau, 
which praised the later Russian president Boris Yeltsin's treatment 
of Jews and his relations with Israel. 
 
Major media reported that in a Namibian court on Wednesday, the 
lawyers of Kobi Alexander, founder of the Israeli hi-tech company 
Comverse, again succeeded in delaying his extradition to the US. 
 
Leading media reported that journalist and novelist Hezi Carmel 
passed away on Sunday at age 71.  Carmel was appointed 
consul-general in Los Angeles in 1970. 
 
---------------------------- 
¶1.  PM Olmert's Performance: 
---------------------------- 
 
Summary: 
-------- 
 
Diplomatic correspondent Aluf Benn wrote on page one of the 
independent, left-leaning Ha'aretz: "On Monday, Prime Minister Ehud 
Olmert will embark on his fight for survival -- a lone gladiator 
against the Winograd Commission." 
 
Block Quotes: 
------------- 
 
"Fight For Survival" 
 
Diplomatic correspondent Aluf Benn wrote on page one of the 
independent, left-leaning Ha'aretz (4/26): "On Monday, Prime 
Minister Ehud Olmert will embark on his fight for survival -- a lone 
gladiator against the Winograd Commission.  The apparent conclusions 
are as follows: Olmert will be severely criticized in the 
committee's interim report on the Second Lebanon War.  There will be 
a detailed analysis of the day on which the decision was made to go 
to war, July 12, and it will focus on the prime minister's 
decision-making.  Defense Minister Amir Peretz is expected to suffer 
fewer blows than Olmert because his impact and involvement in the 
war's conduct was minimal.  Their predecessors in the six years 
since Israel's withdrawal from southern Lebanon will emerge with 
minor damage.  This is good news for Ehud Barak and Shaul Mofaz, 
whose political ambitions are still very much alive.... [Olmert's] 
Independence Day interviews to Army Radio and Israel Radio were 
characterized by avoiding questions and clashing with interviewers. 
His main argument, which he is sure to reiterate after the report is 
issued, is that all the ministers and nearly all the Knesset members 
were enthusiastically behind the war. It is difficult to believe 
that they will all stand by him on Monday." 
 
------------ 
¶2.  Mideast: 
------------ 
 
Summary: 
-------- 
 
The conservative, independent Jerusalem Post editorialized: 
"Egyptian negligence and Syrian malfeasance lead to the same result: 
terrorist groups arming to the hilt in preparation for precipitating 
the next war." 
 
Diplomatic correspondent Aluf Benn wrote in the independent, 
left-leaning Ha'aretz: "The public should not be deceived into 
thinking that there is a way to control the Golan for free." 
 
Block Quotes: 
------------- 
 
¶I.  "Stopping Hamas" 
 
The conservative, independent Jerusalem Post editorialized (4/26): 
"There are four steps that should be taken before launching [a 
large-scale] operation [in the Gaza Strip].  The first step is to 
end the policy of military restraint that has been in place since 
the supposed cease fire began.... There should be no unilateral 
Israeli cease fire.  Second, Israel should consider non-violent 
sanctions against the Palestinian Authority.... Third, the pro forma 
protest that Israel has issued to the UN is not enough.... Fourth, 
Israel must launch a campaign to compel Egypt to carry out its most 
basic responsibility as a sovereign nation that claims to seek 
peace: stopping the flow of weapons across its own border to Hamas. 
The UN has just belatedly voted to investigate Syrian support for 
Hizbullah, which is a violation of Security Council Resolution 1701. 
  Everyone knows that Syria is a rogue regime that supports 
terrorism with impunity against Israel and in Lebanon and Iraq. 
Egypt, by contrast, is supposed to be at peace with Israel and 
aspires to the image of a constructive regional player.  Yet 
Egyptian negligence and Syrian malfeasance lead to the same result: 
terrorist groups arming to the hilt in preparation for precipitating 
the next war.  If there is another war soon, the first question the 
subsequent commission of inquiry will ask is: Why did the government 
not put more pressure on Egypt to prevent Hamas from arming?  It is 
late, but not too late, to ask this question now, and more 
importantly, to answer it with appropriate action." 
 
II.  "Dangerous Delusion on the Golan" 
 
Diplomatic correspondent Aluf Benn wrote in the independent, 
left-leaning Ha'aretz (4/26): "There is a new idea dominating public 
discourse: Israel will recognize Syrian sovereignty over the Golan 
Heights and hold the territory under a long-term lease agreement.... 
Those in the know and who are familiar with the detailed history of 
the negotiations with Syria say Damascus will not agree to such a 
proposal.... In the Golan it is possible to have a 'luxury' 
occupation, without roadblocks and world condemnation, mostly 
because Syria lacks the international supporters that the 
Palestinians have.  It is possible and necessary to debate whether 
the risk is reasonable when compared with the return, but the public 
should not be deceived into thinking that there is a way to control 
the Golan for free -- certainly not when the war drums are sounded 
on both sides of the line on the Golan." 
 
JONES