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UNCLAS TEL AVIV 000999 
 
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 PM Ehud Olmert, at a press conference on 
Sunday evening in Jerusalem with German Chancellor Angela Merkel, 
proposed a "meeting of all the heads of the Arab states, including 
-- obviously -- the Saudi King, whom I see as a very important 
leader, to have discussions with us."  On Sunday Ha'aretz quoted 
Olmert as saying in an interview with TIME Magazine: "I can tell you 
that if I had had an opportunity to meet with King Abdullah of the 
Saudis -- which I have not -- he would be very surprised to hear 
what I have to say. I look very favorably at the active role Saudis 
are now playing in the Middle East for many years."  Olmert called 
the Saudi peace initiative "a very interesting approach."  When 
pressed by interviewer Joe Klein to elaborate on what would surprise 
Abdullah, Olmert responded coyly, "If he reads about it in TIME, he 
wouldn't be surprised."  Today The Jerusalem Post reported that 
Israel was unfazed by some of the immediate negative Arab responses 
to Olmert's call for a regional summit, with senior diplomatic 
officials saying Tuesday night that efforts to push for such a 
conference would continue. 
 
On Monday Ha'aretz reported that, on her penultimate visit to 
Jerusalem six weeks ago, Secretary of State Condoleezza Rice 
discovered upon her arrival that Olmert had informed the media about 
his telephone conversation with Bush the previous day. "The Prime 
Minister and President see eye-to-eye," said a high ranking 
political official in Jerusalem.  Ha'aretz said that the message was 
unmistakable: What Rice had to say barely mattered.  Olmert had it 
all worked out with the President. Rice did not like it, but 
proceeded according to plan in convening the triple summit in 
Jerusalem with Olmert and Abbas. The summit came and went with no 
real effect.  Ha'aretz said that Olmert behaved similarly during the 
Secretary's subsequent visits. 
 
SIPDIS 
 
Ha'aretz and other media reported that on Tuesday Arab League 
Secretary-General Amr Moussa announced that the foreign ministers of 
 
SIPDIS 
10 Arab states will meet in Cairo in two weeks to call on Israel to 
accept the peace initiative approved at the Arab League summit in 
Riyadh last week.  Moussa was quoted as saying that the foreign 
ministers "will call on the government of Israel and on all Israelis 
to accept the Arab peace initiative and use the existing opportunity 
to renew the direct negotiations."  The 10 countries that will be 
represented are members of the Committee for Furthering the Arab 
Peace Initiative.  Moussa heads the committee, which includes Saudi 
Arabia, Egypt, Jordan, Morocco, Syria, Lebanon, Qatar, Tunisia, 
Bahrain and the PLO.   Yediot reported that Olmert's conciliatory 
remarks in Passover interviews he granted Israeli dailies were not 
received well among the Saudi leadership.  Yediot quoted a senior 
Saudi official as saying on Tuesday: "Olmert's remarks are an 
attempt to modify the Arab peace initiative.  Olmert is talking 
about a public meeting that does not offer anything, just a 
'willingness to listen' on his part.  The Arab peace plan clearly 
talks about an equation: Israeli assent to a full withdrawal for the 
occupied territories in exchange for full peace."  The official was 
quoted as saying that Olmert seeks normalization without committing 
himself to concessions.  Yediot quoted other Saudi official as 
saying that Olmert's declaration that peace could be reached in five 
years means that "Israel is postponing the talks by a few years and 
refuses to adopt the Arab plan." 
 
Yediot quoted State Department Sean McCormack as saying on Monday: 
"We believe that it could be positive to have an interaction between 
the Israelis as well as potential Arab partners because ultimately 
if you're going to bring peace to the region you need to have that 
reconciliation between Arab states and Israel.... How exactly they 
use this potential opening is going to be up to them. We encourage 
them to explore the possibilities."  Yediot quoted McCormack as 
saying that he expects that Rice will be going back out to the 
Middle East probably some time in May but hat "we don't have a date 
set yet." 
 
On Sunday The Jerusalem Post reported that the Prime Minister's 
Office expressed its displeasure on Saturday over an EU decision to 
meet with a number of moderate non-Hamas ministers in the PA's new 
unity government.  Today Israel Radio reported that Norway has 
requested that the EU recognize the new Palestinian government. 
 
On Monday Ha'aretz and Yediot led with reports that Israel has 
delivered a calming message to Syria and that it has no plans to 
attack its northern neighbor.  According to information Israel 
received, the Syrians are concerned that the US will carry out an 
attack against Iran's nuclear installations in the summer, and in 
parallel Israel would strike Syria and Lebanon.  On Monday The 
Jerusalem Post reported that IDF Intelligence head Maj. Gen. Amos 
Yadlin told the cabinet on Sunday that Iran, Syria, and Hizbullah 
are preparing their defense for a war in the summer and that they 
are more worried by an attack by the US that from Israel. 
 
Ha'aretz reported that Palestinian sources told the newspaper on 
Tuesday that Egypt is considering intensifying its cooperation with 
Israel in countering the smuggling of arms from Sinai to the Gaza 
Strip. The Egyptians will also cooperate on intelligence in tracking 
down Palestinian fugitives who reach the Sinai side of the Rafah 
crossing.  During the weekend, senior delegations from Israel, 
Egypt, the US, and the PA met in Cairo.  The meeting was chaired by 
US Lt. Gen. Keith Dayton, the security coordinator between Israel 
and the Palestinians.  Representing Israel at the meeting was Amos 
Gilad, the head of the political-defense department at the Ministry 
of Defense.  The Palestinians were represented by the head of 
Internal Security, Rashid Abu Shbach. Egypt's chief of intelligence, 
Omar Suleiman, did not attend, but his aides were present.  Ha'aretz 
quoted the sources as saying that the meeting was positive, but that 
criticism was directed at the level of Egyptian involvement to date. 
 Special focus was given to Egypt's unsatisfactory activities in 
countering the smuggling of arms to the Gaza Strip through tunnels 
running under the border area with Sinai.  The Egyptians were also 
asked to broaden their efforts in countering cells of extremist 
Islamic groups that have set up bases there.  Ha'aretz also reported 
that four months ago Jordan transferred to the Palestinian security 
forces -- units answerable to Palestinian Authority President 
Mahmoud Abbas -- a total of 3,000 M-16 rifles.  At the same time, 
Egypt delivered 2,500 AK-47 rifles to Abbas loyalists through the 
Rafah crossing. In total, Egypt and Jordan also delivered more than 
3 million bullets for the rifles.   Ha'aretz wrote that Abbas 
recently asked the Israelis and Americans to agree to the transfer 
of more weapons from Arab countries to his forces, both in the Gaza 
Strip and the West Bank.  However, Israel and the US rejected the 
request. 
 
Israel Radio reported that US House Speaker Nancy Pelosi is meeting 
this morning with Syria's President Bashar Assad in Damascus.  Major 
media quoted Pelosi as saying that it was "an excellent idea" to 
lead a Congressional delegation for talks with the Syrian 
leadership.  She was responding to President Bush's criticism of her 
visit to Syria.  Pelosi was also quoted as saying that she will 
discuss the US-Syrian relationship, Damascus' support to 
rejectionist Palestinian groups, and the situation in Iraq with 
Assad.  Leading media reported that, during her visit to Israel 
earlier this week, she promised to raise the issue of the kidnapped 
IDF soldiers with Assad. 
 
The Jerusalem Post reported that PA officials have accused German 
Chancellor Angela Merkel of "offending the Palestinians' feelings" 
during her visit earlier this week to Ramallah, where she met with 
Abbas.  The accusations, the first of their kind against a European 
leader, were made by top PA officials only hours after Merkel and 
her entourage left Ramallah on Monday.   "She did everything to 
provoke the Palestinians during her visit," one official was quoted 
as saying.  "She showed no understanding for the plight of our 
people.  On the other hand, she appeared to be very biased toward 
Israel."  The official claimed that while Merkel refused to meet 
with families of Palestinian prisoners held in Israel, she focused 
during her talks with Abbas on the need to release kidnapped IDF 
Cpl. Gilad Shalit, who has been held in the Gaza Strip since last 
June.  In addition, he noted, Merkel met with the families of 
missing IDF soldiers during her visit to Jerusalem. 
 
Israel Radio reported that an IDF soldier was moderately wounded in 
Jenin.  Ha'aretz and the radio reported that on Tuesday a Fatah 
militant was seriously injured by IDF troops in Nablus. 
 
Ha'aretz reported that the defense establishment is currently 
considering to abandon the plan to include bulges in the separation 
fence, aimed at keeping major settlements blocks such as Ariel, 
Immanuel, and Kedumim within the Israeli side of the divide. 
Officials are considering an alternative plan, which proposes to 
seal the fence near the settlements of Elkana and Beit Aryeh. The 
proposal includes the construction of a new parameter fence around 
the settlements, which would be left on the Palestinian side of the 
fence. 
 
Yediot and Israel Radio reported that the operational fitness of 20 
percent of the IDF's reserve troops is low. 
 
All media (banner in Maariv) reported that on Tuesday British PM 
Tony Blair warned that Britain will take a tougher stance vis-a-vis 
Iran if there is no progress in the efforts to release the abducted 
British sailors and navy personnel. 
 
Hatzofe reported that Fatah is reorganizing its armed branches into 
one body -- Al-Asifa (The Storm).  Hatzofe also quoted Said Siam, 
former PA interior minister (Hamas) Siad Siam as saying in Algeria 
that Hamas will not dismantle its "operational force." 
 
Leading media reported that on Monday the High Court of Justice 
released a conditional order to the Winograd Commission probing the 
Second Lebanon War, requiring the committee to explain within eight 
days why it will not publish the testimonies of Olmert, Defense 
Minister Amir Peretz and former IDF chief of staff Dan Halutz before 
the release of its interim report.  In addition, the court ordered 
the commission to explain why it will not publish a predetermined 
schedule for the release of the minutes of all the discussions and 
testimonies it heard.  The court order was issued following a 
petition by Meretz MK Zahava Gal-On, filed after the committee 
informed the High Court of Justice on Sunday that it will not 
release any more transcripts of witness testimonies on the Second 
Lebanon War and said it will resume deliberations on the matter only 
after issuing its interim report, due later this month.  This was in 
violation of the committee's agreement with the High Court, 
requiring it to publish the testimonies before the Passover 
holiday. 
 
Maariv reported that the state prosecutor's office is considering 
indicting senior officials at the Dimona nuclear reactor for 
receiving millions of shekels in bribes from suppliers. 
 
Ha'aretz and Yediot reported that American billionaire Sheldon 
Adelson donated USD 25 million to Taglit - birthright israel, a 
program that offers young Jews aged 18-26 an opportunity to Israel 
for free.  The Jerusalem Post reported that the Friends of the 
Israel Defense Forces raised a record USD 18 million at its annual 
gala dinner held last week in New York City.  Transportation 
Minister Shaul Mofaz, who heads the strategic dialogue with the US, 
addressed more than 1,300 attendees and remarked on the key security 
challenges facing Israel.  Mofaz warned that Iran intended to carry 
out its threats to destroy Israel. 
 
The Jerusalem Post cited a new book by historian and biographer of 
President Kennedy Robert Dallek -- "Nixon and Kissinger: Partners in 
Power" -- that reveals that former US Secretary of State Henry 
Kissinger initially kept the outbreak of the Yom Kippur War a secret 
from then-President Richard Nixon. 
 
On Sunday The Jerusalem Post reported: "Intel's Israelis Work to 
Rescue Company From Profit Plunge." 
 
Ha'aretz presented the results of The Aviv University's Peace Index 
poll conducted among Israelis on March 26-27: About half the Jewish 
Israeli public had thought that the Arab peace initiative could at 
least serve as a basis for negotiations on a regional peace 
agreement.  The other half thought the proposal should be rejected 
out of hand.  Among those who had heard of the proposal -- nearly 
two-thirds of the public -- there is a clear majority of supporters 
for responding to the Arab initiative, while among those who had not 
heard of it, a majority opposes responding.  At the same time, an 
overwhelming majority, cutting across the political camps, says that 
in light of the current unstable status of the Olmert government, it 
cannot enter negotiations on a comprehensive peace settlement.  In 
the Israeli Arab public, fewer had heard of the Arab peace proposal 
(56 percent vs. 44 percent who had not heard of it).  However, after 
the main points of the plan were presented to them, there was 
near-unanimity -- 92 percent -- that this proposal offers a basis 
for negotiations on a comprehensive peace agreement. 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
The conservative, independent Jerusalem Post editorialized: "It can 
... be surmised that the Saudis are, at best, unsure about whether 
the regional winds are blowing in favor of Iran or the US, and are, 
as usual, hedging their bets." 
 
Contributor Zeev Tzahor wrote in the mass-circulation, pluralist 
Yediot Aharonot: "The Saudi initiative now offers the Middle East a 
new, rare opportunity, and the Israeli leadership is once again 
facing an historic test." 
 
Prof. Uzi Arad, the Director of the Institute for Policy and 
Strategy at the Interdisciplinary Center, who was a senior advisor 
to former prime minister Binyamin Netanyahu, wrote in Yediot 
Aharonot: "A different Israeli approach was required from the very 
beginning -- one that ... includes no short-lived appeasement and 
focuses on Israel's interests, not on sacrificing them.". 
 
Senior columnist Haggai Huberman wrote in the nationalist, Orthodox 
Hatzofe: "Decisions made last Saturday by the foreign ministers of 
the European Union have again exposed Israel's isolation vis-a-vis 
the Hamas government." 
 
Senior military correspondent Alex Fishman wrote in 
mass-circulation, pluralist Yediot Aharonot: "Putin's Russia is 
returning to playing its dirty game in the Middle East." 
 
Block Quotes: 
------------- 
 
¶I.  "Olmert's Serious Proposal" 
 
The conservative, independent Jerusalem Post editorialized (4/4): 
"The real impediment to [holding meetings between Prime Minister 
Olmert and Arab leaders] is an evident Saudi decision not to go 
beyond the absolute minimum gesture toward peace with Israel.  The 
Saudis could have attempted to reissue their original plan, before 
negative elements were introduced by Syria at the 2002 Beirut 
summit.  They could have endorsed a 4-plus-4-plus-2 meeting.  They 
could have taken some baby steps toward normalization with Israel. 
They did none of these things.  From this we may conclude that the 
Saudis are not seriously interested in achieving peace, as opposed 
to looking like they want peace.  It can also be surmised that the 
Saudis are, at best, unsure about whether the regional winds are 
blowing in favor of Iran or the US, and are, as usual, hedging their 
bets.  The upshot is that so long as it is unclear whether the US 
will beat a hasty retreat from Iraq or whether Iran will succeed in 
its race to nuclearize, the Arab states will not materially soften 
their stance toward Israel.  This should be kept in mind by those 
who think these three arenas can be separated, or see the pursuit of 
Arab-Israeli peace as the primary means of isolating Iran." 
 
II.  "Between Golda and Olmert" 
 
Contributor Zeev Tzahor wrote in the mass-circulation, pluralist 
Yediot Aharonot (4/1): "The validity of historical comparisons is 
limited, but there is nevertheless a fascinating degree of 
similarity between the Egyptian initiative a generation ago and the 
Saudi initiative at present.  Like then, the top tiers of our 
leadership are comprised of people with scant political vision, the 
government is dependent on parties with narrow interests, there is a 
significant disparity between the bragging done by the army's 
commanders and the IDF's real readiness for war.  Today too the 
ethos of controlling the occupied territories is stronger than the 
bill of human rights.... When put to the test of leadership, Golda 
Meir and Moshe DayanQs staunch opposition resulted in the failure of 
the Egyptian initiative. From there it was a short distance to the 
Yom Kippur War.  [Then Secretary of State William] Rogers and 
[former Israeli prime minister David] Ben-Gurion [who favored talks 
with Egypt] were not alone in their generation.  A glance at the 
newspapers from those days shows that many Israelis understood that 
the Egyptian initiative provided an opportunity to establish peace 
between Israel and Egypt, and that rejecting it would lead to war. 
But a study of history will teach you that the blindness of the 
leader who heads the march of folly to war is a far more common 
spectacle than the appearance of a sober captain who is capable of 
identifying political options and of leading to a breakthrough that 
results in peace.  Golda and Dayan were among the blind, and even 
the great Ben-Gurion failed to open their eyes.  The Saudi 
initiative now offers the Middle East a new, rare opportunity, and 
the Israeli leadership is once again facing an historic test." 
 
III.  "The March of Folly Concessions" 
 
Prof. Uzi Arad, the Director of the Institute for Policy and 
Strategy at the Interdisciplinary Center, who was a senior advisor 
to former prime minister Binyamin Netanyahu, wrote in Yediot 
Aharonot (4/4): "When you hear the Prime Minister optimistically 
predict a peace agreement in a short amount of time, be aware that 
further diplomatic yielding is near at hand.... How can it be that, 
while the Arabs and Palestinians adhere to their stances and even up 
the ante, Israel leaps from initiative to initiative -- defining 
yesterday's as essential?.... With its positions, the current 
Palestinian government takes us back to the pre-Oslo days.  The 
meaning of Palestinian-Israeli demands, which join up with external 
ones, is not the end of the conflict but the end of the Jewish 
state.  This is not how peace is built.  A different Israeli 
approach was required from the very beginning -- one that ... 
includes no short-lived appeasement and focuses on Israel's 
interests, not on sacrificing them.". 
 
IV.  "Israel's Isolation" 
 
Senior columnist Haggai Huberman wrote in the nationalist, Orthodox 
Hatzofe (4/4): "Decisions made last Saturday by the foreign 
ministers of the European Union have again exposed Israel's 
isolation vis-a-vis the Hamas government.  The decisions were based 
on four principles, two of which are uncomfortable for Israel.  The 
main decision concerns holding contacts with ministers who do not 
belong to Hamas -- something that Israel rejects entirely.... 
Another EU decision is uneasy for Israel -- the recognition of the 
Arab initiative.  Olmert is prepared to discuss the Saudi 
initiative. Europe accepts the Arab initiative, which is the Saudi 
initiative plus the right of return [for Palestinian refugees]. 
Only on one point is there identity between the Israeli position and 
those of Europe and the United States: The direct connection will be 
with Abu Mazen, not with the Hamas government." 
¶V.  "Russia is Warmongering Again" 
 
Senior military correspondent Alex Fishman wrote in 
mass-circulation, pluralist Yediot Aharonot (4/2): "Putin's Russia 
is returning to playing its dirty game in the Middle East.  As 
always, the Russians have no problem heating up sectors and setting 
fires just in order to screw over the Americans and gain a foothold 
in the region once again.  The Syrian delegations that have recently 
been making frequent trips to Moscow do not go there just for 
acquisitions.  They undergo brainwashing there.  The Russians are 
persuading the Syrians that the US will attack Iran in the summer, 
whereas a second front will be opened against Syria at the same 
time: An American-Israeli [front].... The Russian hypothesis about 
an American-Israeli war on two fronts falls on willing Syrian 
ears... The situation is highly volatile.  It would be enough for 
somebody to misunderstand the intentions of his rival for fighting 
to flare up on Israel's northern border.  It is true that war will 
not serve the interests of any of the parties, but with such a 
quantity of fuel in the air, and pyromaniacs from Moscow playing 
with matches, things could get out of control." 
 
------------------------ 
¶2.  Iran-Britain Crisis: 
------------------------ 
 
Summary: 
-------- 
 
The Director of the Interdisciplinary Center's Global Research in 
International Affairs Center, columnist Barry Rubin, wrote in the 
conservative, independent Jerusalem Post: "From the Iranian side, of 
course, humiliation of the West is precisely the goal." 
 
Intelligence affairs correspondent Yossi Melman wrote in the 
independent, left-leaning Ha'aretz: "Whoever wishes to force Iran to 
back away from its nuclear program should further tighten the 
economic blockade on it." 
 
Block Quotes: 
------------- 
 
¶I.  "Once Britain Ruled the Waves.  Now Iran Does" 
 
The Director of the Interdisciplinary Center's Global Research in 
International Affairs Center, columnist Barry Rubin, wrote in the 
conservative, independent Jerusalem Post (4/4): "If in, say 1807 or 
1907, an Iranian ruler had dared trample unbidden on the decks of 
one of his or her majesty's ships -- he would have been made to feel 
very sorry about it.... This era is long gone, and to a large extent 
that is a good thing.  But perhaps the pendulum has swung too far 
into a failure to appreciate that power and force are often 
required, especially against 'haughty tyrants,' an apt description 
of Iran's rulers.... What is this latest incident in retaliation 
for?  The mutilation of a sea captain, or murder of a merchant on 
his way to appreciate the beauties of a Japanese temple?  No, the 
British navy personnel were taken hostage in retaliation for the 
arrest of Iranian government-sponsored terrorists caught in the act 
in Iraq.  From the Iranian side, of course, humiliation of the West 
is precisely the goal.  Iran is not, moreover, striving for 
equality, but superiority for its own side.... In contrast, the West 
seeks to prove that it is nice.  It seeks to apologize, to make 
reparations, to act as the weaker party.  But, you see, the West is 
running the equivalent of a school for Middle Eastern politicians, 
intellectuals and revolutionaries.  And the lesson it is teaching 
them is: You are strong and we are weak; you have ideas to believe 
in, we merely seek maximum comfort and expediency; if you hit us we 
will yield or look the other way; we are ready to confess our 
wrongdoing, you only speak of your being absolutely in the right. 
Like good students, they follow what they are being taught." 
 
II.  "The Hidden Soldiers" 
 
Intelligence affairs correspondent Yossi Melman wrote in the 
independent, left-leaning Ha'aretz (4/4): "Western logic is not 
necessarily Iranian logic.  In capturing the British soldiers, in 
refusing to release them and in deciding to bring them to trial, 
Iran is seeking to signal to the world that it is determined to 
continue to advance its nuclear program, and not give in to 
international pressures, and to act resolutely against anyone who 
tries to harm it.   Nonetheless, it is also possible the case of the 
British soldiers reflects the power struggles that have been waging 
for many months in the top echelon of the Iranian government.... In 
its refusal to accede to the UN Security Council's demand to suspend 
its uranium enrichment activity, Iran is ostensibly trying to show 
the world that the sanctions imposed on it are not weakening its 
hand.  But Iran's moves attest to panic and weakness more than 
strength.... These sanctions are mainly driven by secret activity by 
the US Department of Treasury, designed to pressure companies in the 
US, Europe, and Asia to refrain from commercial ties with Iran, or 
at least to reduce them.... The Bush administration is keeping 
pressure on the world's governments to cut back their commercial 
relations with Iran.... The boycott -- both the overt one and mainly 
 
the hidden one -- is intended to strike at the 'soft underbelly' of 
Iran's economy: the oil and gas industries, which provide 80 percent 
of the state's revenues.... When the supreme leader realizes that 
Ahmadinejad's policy threatens the regime's survival, he will have 
to exercise his influence and authority, even at the price of 
painful concessions.  The continued existence of Iran as an Islamic 
republic is the highest imperative guiding Khamenei.  Whoever wishes 
to force Iran to back away from its nuclear program should further 
tighten the economic blockade on it." 
 
JONES