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P 100941Z MAY 07
FM AMEMBASSY TEL AVIV
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RUEHEG/AMEMBASSY CAIRO PRIORITY 0009
RUEHDM/AMEMBASSY DAMASCUS PRIORITY 2883
RUEHLO/AMEMBASSY LONDON PRIORITY 9777
RUEHFR/AMEMBASSY PARIS PRIORITY 0253
RUEHRB/AMEMBASSY RABAT PRIORITY 6858
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RHMFISS/COMSOCEUR VAIHINGEN GE PRIORITY
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UNCLAS TEL AVIV 001365 
 
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: 
-------------------------------- 
 
Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Leading electronic media reported that at 9 A.M. today (Israel Time) 
the Winograd Commission probing the Second Lebanon War started 
disclosing the testimonies of 24 people it questioned, including PM 
Ehud Olmert, Defense Minister Amir Peretz, and former IDF chief of 
staff Dan Halutz.  As reported in various media, Olmert was quoted 
as saying in his testimony that he knew all the time that Israel 
would be attacked from the North and that he had warned the army 
about it.  Olmert was quoted as saying that the IDF's command was 
faulty.  Olmert reportedly also told the Commission that Peretz is 
not responsible for the failure of the war.  Halutz was quoted as 
telling the Commission that the IDF had been ready to act.  Peretz 
was quoted as saying that his contribution to the war was important 
and decisive. 
 
Israel Radio reported that this morning three Qassam rockets were 
fired at Israel.  Leading media repotted that an IDF soldier was 
lightly wounded in Nablus. 
 
Yediot reported that starting today Jordanian King Abdullah II will 
sponsor "marathon talks" to advance the Saudi peace plan and promote 
the resumption of Israeli-Palestinian talks.  The media reported 
that today the Jordanian and Egyptian foreign ministers will meet 
with FM Tzipi Livni in Cairo and that the King will host a group of 
Israeli public figures in an effort to tell them that "there is 
nothing to fear from the Arab peace plan."  In four days Abdullah 
will host Noel Prize laureates in Petra, including Shimon Peres. 
Yediot wrote that two days later, in Aqaba, the King will take part 
in a meeting of 200 Israeli and Palestinian figures to discuss ways 
to implement cooperation between the two peoples and what should be 
one so that Israel adopts the Arab initiative. 
 
Makor Rishon-Hatzofe quoted associates of former PM and leading 
premiership contender Ehud Barak as saying in an interview with the 
newspaper that Barak will launch a plan to separate Israel from the 
Palestinians. 
Major media (lead stories in Maariv and The Jerusalem Post) reported 
that on Wednesday Vice PM Shimon Peres told Olmert that he would 
seek the state's presidency, and not cooperate with Knesset members 
seeking to topple Olmert and have Peres replace him.  (Makor 
Rishon-Hatzofe dubbed Peres the "perennial candidate.")  All media 
reported that Likud MK Reuven Rivlin, a former Knesset speaker, met 
leader of the Shas party,  including the party's mentor, Rabbi 
Ovadia Yosef, in a bid for the ultra-Orthodox party's support in his 
race for president.  However, the media quoted Shas Chairman, MK Eli 
Yishai, as saying after the meeting that Shas's inclination is to 
vote for Peres.  Yediot cited June 13 as a likely date for holding 
the presidential elections. 
 
Ha'aretz cited the belief of Palestinian and Israeli security 
sources that there are approximately 15 active tunnels in Rafah in 
 
the southern Gaza Strip, between the PA and Egypt. The sources were 
quoted as saying that tunnels are being used by smugglers to move 
arms, drugs and people,  The same sources were quoted as saying that 
there are at least 10 other tunnels in the area that are not in use 
due to various technical reasons. According to Ha'aretz, he Rafah 
tunnels are being controlled by the most powerful clans in the area, 
who consider them a very lucrative source of income.  Ha'aretz noted 
that the US is demanding in its "benchmarks plan" to Israel and the 
Palestinians that the latter work to counter the tunnel phenomenon. 
 
Deputy Defense Minister Ephraim Sneh was quoted as saying on 
Wednesday, in an interview with Ha'aretz, that the World Bank report 
on restrictions imposed by Israel on the freedom of movement of 
Palestinians is full of errors and imbalanced. 
 
Maariv reported that, in a makeover, most bodies of the Israeli 
intelligence community favor negotiations with Syrian President 
Bashar Assad.  The newspaper wrote that the Foreign Ministry has 
joined claims by Israel's National Security Council and IDF 
Intelligence that Syria's signals should be seriously scrutinize. 
According to Maariv, only the Mossad keeps insisting that Assad does 
not want peace. 
 
British Ambassador to Israel Tom Phillips was quoted as saying in an 
interview with The Jerusalem Post that Israel will continue to come 
under blistering criticism in Britain, some of it "totally 
unjustified," as long as "Israel is regarded as an occupying 
power." 
 
US Representative Gary Ackerman (D-NY), Chairman of the House 
Foreign Affairs Middle East and South Asia Subcommittee, was quoted 
as saying on Tuesday, in an interview with The Jerusalem Post, that 
Israel's handling of last summer's controversial conflict in Lebanon 
should serve as a model for the US and its own war in Iraq. 
Ackerman was quoted as saying that, while Israel is thoroughly 
reviewing its military, "we have an administration that is still in 
denial." 
 
Leading media reported that Hamas's TV channel is using a lookalike 
Mickey Mouse character to instill hate for Israel and the US in the 
Palestinian children.  The Jerusalem Post reported that Hamas pulled 
the figure following protests. 
 
Yediot cited the US-based Spanish-language network Telemundo-TV as 
saying that Hizbullah has set up an organizational infrastructure 
and a training base in Ciudad del Este, Paraguay.  Yediot cited the 
United States' concern that Hizbullah militants might infiltrate the 
porous Mexican border to carry out attacks in the States. 
 
All major media reported that on Wednesday IDF reservists were 
videotaped hitting and punching Israeli protesters in the southern 
Hebron Hills. 
 
Ha'aretz reported that earlier this week the GOI declared illegal 
the annex of Hamas in Israel -- the Reform and Change party. 
 
Ha'aretz quoted National Infrastructure Minister Binyamin 
Ben-Eliezer as saying on Wednesday that an Israel TV-produced 
documentary that claimed that soldiers from the Shaked Battalion 
unarmed Egyptian prisoners at the end of the Six-Day War harmed 
Israel's relations with Egypt.  Ha'aretz quoted Ran Edelist, the 
film's producer, as saying on Wednesday that Egyptian and Israeli 
media had culled inaccurate quotes from the movie.  Edelist 
clarified that his film does not claim that that the IDF had killed 
POWs.  Maariv reported that Egyptian FM Ahmed Ali Abu al-Gheit 
confirmed this in a television interview. 
 
Leading media cited a report on the functioning of the government 
and other publicly funded institutions, which State Comptroller 
Micha Lindenstrauss presented on Wednesday.  The Jerusalem Post said 
that the many irregularities found by the Comptroller are topped by 
the army's alleged failure to properly handle the threat of Qassam 
rockets from and weapons smuggling into the Gaza Strip.  Ha'aretz 
said that the state comptroller's reports on the Second Lebanon War 
are not due for a few more months but that it is already clear from 
the research done on the disengagement from the Gaza Strip that the 
problems in the army and the defense establishment began long before 
 
July 12, 2006, the day when Hizbullah abducted two IDF soldiers. 
 
The Israeli human-rights organization B'Tselem inserted a paid 
supplement in today's Ha'aretz.  The publication states: "Israel 
undoubtedly has the obligation to act in order to protect its 
citizens' lives.  But along with the power comes responsibility." 
 
Ha'aretz, The Jerusalem Post, and other media reported that on 
Wednesday the opposition submitted a proposal to hold early 
elections for the prime minister's seat, without dispersing the 
Knesset or altering the election system.  The bill, which was 
designed to replace PM Olmert and would mandate elections within 60 
days, is not expected to pass. 
 
Yediot reported that on Sunday the cabinet will approve a 
650-million shekel (around USD 163.5 million) investment in the city 
of Jerusalem.  The plan includes the transfer of government branches 
to the city, tax breaks, and a 200-million shekel (around USD 50.3 
million) grant to the city. 
 
The Jerusalem Post, Ha'aretz, and Makor Rishon-Hatzofe reported that 
on Wednesday 37 African refugees -- 24 of them fleeing the Darfur 
region of Sudan -- were tossed back and forth from the police to the 
IDF.  The media reported that the Beersheva Municipality eventually 
opened the city's doors to the refugees. 
 
The Jerusalem Post ran a feature about Yehuda Wedesheim, an IDF 
soldier who grew up in Milwaukee and won a medal for his 
single-handed heroism in the Second Lebanon War. 
 
Yediot reported that Haim Yavin, the "mythological" Israel TV 
newscast anchorman, is retiring.  He will be hosting a talk show on 
the same channel. 
 
All media reported that on Wednesday the US dollar reached its 
lowest rate in eight-and-a-half years on Tel Aviv's financial market 
-- 3.974 shekels.  Major media reported quoted Bank of Israel 
Governor Stanley Fischer as saying on Wednesday that a recession in 
the long term is likely in Israel, and that external financing 
sources would be the key to pulling out of it. 
 
Ha'aretz reported that a study conducted by Swiss research institute 
IMD in cooperation with the Federation of Israeli Chambers of 
Commerce has ranked Israel as first among the 55 most developed 
countries in the world when it comes to public and private spending 
on research and development compared to GDP.  The study also found 
 
Israel has the most skilled engineers in the work force, ranked 
second in raising capital for business development, and second in 
information technology.  In contrast, Israel placed 52nd with regard 
to participation of men and women in the work force, and 42nd in its 
ability to maintain stable labor relations.  The study also reviewed 
countries' performance according to four indices: economic 
efficiency, government efficiency, business efficiency and 
infrastructure.  Israel ranks 33rd, 25th, 16th and 14th in each 
respectively. In real GDP growth Israel ranks 26th.  GDP per capita 
in dollar terms ranks Israel in 33rd place, while in terms of direct 
investment by foreign residents it ranks fairly high, in 6th place. 
 
Yediot quoted the Chief Rabbi of Rome, Riccardo Shmuel di Segni, as 
saying on Wednesday that the anticipated beatification of the late 
Pope Pius XII harms Jewish-Christian relations. 
 
The Jerusalem Post reported that this week a group of US airport 
authority heads got an inside look at the running of the Israeli 
airport system in the hope of learning new ways to improve the 
overall security and efficiency of US airports. 
 
Yediot reported that an Israeli study published in the scientific 
journal Geophysical Research proved the validity of the "butterfly 
effect" theory that thunderstorms in Africa cause tropical storms 
and hurricanes in the Atlantic Ocean that affect the US. 
 
-------- 
Mideast: 
-------- 
 
Summary: 
-------- 
 
The independent, left-leaning Ha'aretz editorialized: "The gradual 
improvement [of conditions in the Palestinian territories], 
monitored by the Americans, would be an attempt to prevent an 
outbreak of violence in the region.... There is no choice but to 
agree, regretfully, with the findings of the World Bank report that 
Israel is preventing the rehabilitation of the West Bank economy." 
 
Veteran columnist Evelyn Gordon wrote in the conservative, 
independent Jerusalem Post: "For Rice, desperate to buy Arab and 
European support on Iraq with 'progress' on the Israeli-Palestinian 
front, higher Israeli casualties may well be a price worth paying. 
But no responsible Israeli government could concur." 
Military correspondent Amir Rappaport wrote in the popular, 
pluralist Maariv: "If ... the considerations are so clear, and show 
that we should hold negotiations with Syria, why aren't talks being 
held?  The answer is simple: because the Americans have still not 
decided whether they permit us to talk to our neighbors." 
 
The Jerusalem Post editorialized: "Israel desperately needs a 
full-time government now in order to begin a process of national 
recovery.... For now, Kadima and Labor are standing 
shoulder-to-shoulder to block such an eventuality." 
 
Shlomo Avineri, Hebrew University Professor of Political Science and 
former director-general of the Foreign Ministry, wrote in Ha'aretz: 
"There will be no true compromise between Israel and the 
Palestinians without a readiness on their part ... to admit that 
they, too, are partly responsible for what happened to them in 
1948." 
 
 
 
 
Block Quotes: 
------------- 
 
¶I.  "No Life on the Other Side" 
 
The independent, left-leaning Ha'aretz editorialized (5/10): "It is 
difficult for Israelis who move freely throughout their country to 
understand Palestinian life in the West Bank, which becomes more 
difficult from year to year, from one agreement to the next. After 
it was decided to remove West Bank roadblocks to allow for movement 
that does not endanger Israeli security, it turned out that 
additional surprise roadblocks had been established.... Even a 
government that, due to its weakness, is not currently capable of 
working to resolve the conflict with the Palestinians cannot free 
itself of its obligation to manage the occupied territories in a way 
that enables people to live there.... The Ehud Olmert government and 
the Hamas government refuse to implement the steps the United States 
has suggested to both sides, despite Palestinian Authority Chairman 
Mahmoud Abbas's position on the matter.  This refusal involves 
neither intelligence nor purpose, just an ongoing and frustrating 
failure.  The gradual improvement, monitored by the Americans, would 
be an attempt to prevent an outbreak of violence in the region.  The 
proposal was viewed by the Israeli government as a command, rather 
than as the act of a helpful friend.  Therefore, there is no choice 
but to agree, regretfully, with the findings of the World Bank 
report that Israel is preventing the rehabilitation of the West Bank 
economy." 
 
II.  "Benchmarks For a Bloodbath" 
 
Veteran columnist Evelyn Gordon wrote in the conservative, 
independent Jerusalem Post (5/10): "US Secretary of State 
Condoleezza Rice is not purposely trying to destroy all of Israel's 
hard-won security gains of the last five years. But if she were, she 
could hardly have improved on her new benchmark proposal.... Thus 
six months before PA forces are even in position to combat Gazan 
terror, Israel would be required to facilitate the export of this 
terror to the West Bank.   And sometimes there is no parallel demand 
of the PA at all.... Indeed, Hamas publicly rejected the benchmark 
proposal last week precisely because the organization is 'preparing 
for battle,' to quote one of its leaders, Khaled Mashal.  Why should 
Israel facilitate this effort?  For Rice, desperate to buy Arab and 
European support on Iraq with 'progress' on the Israeli-Palestinian 
front, higher Israeli casualties may well be a price worth paying. 
But no responsible Israeli government could concur." 
 
III.  "It's Up to the Americans" 
 
Military correspondent Amir Rappaport wrote in the popular, 
pluralist Maariv (5/10): "It is not gratifying to admit, but more 
than the [new, positive] position of the Israeli Foreign Ministry 
over the question of whether to hold negotiations with Syria -- it 
is the American position that matters.... Despite the fear of 
holding futile talks, there is still a chance that the Syrians are 
sincere in the intention to reach a peace agreement.  But should 
Israel hand over all of the Golan Heights in exchange for a peace 
agreement with Syria?  That is already a political issue, but it is 
easy to guess what Ehud Barak would decide if he could turn back the 
wheel to March 2000, when he was prime minister.  The former Syrian 
president, Hafez Assad, then met with US President Bill Clinton and 
the last opportunity, to this day, was created to close a deal with 
the Syrians and to detach it from its alliance with Iran and 
Hizbullah.  Israel did not agree to Assad's threshold conditions, 
and the opportunity was lost.  If, more than seven years later, the 
considerations are so clear, and show that we should hold 
negotiations with Syria, why aren't talks being held?  The answer is 
simple: because the Americans have still not decided whether they 
permit us to talk to our neighbors." 
 
IV.  "Blocking Tactics" 
The Jerusalem Post editorialized (5/10): "Though [former prime 
minister Ehud] Barak claims that the Olmert government can survive 
without Labor, it seems that most Labor leaders and members do not 
share this view.  Moreover, Barak's actions indicate the opposite, 
namely thinks that the only way to avoid elections is for Labor to 
cling to the government.  That said, it could well be that Labor's 
preference is for Kadima to oust Olmert so that Labor could have its 
cake and eat it too: no elections and no Olmert.  There are, 
however, a few problems with this implicit Labor plan.  The first is 
that Kadima is showing no signs that it will replace Olmert.... 
Second, the Labor Party, which presumably would like to present 
itself as representing change, renewal, and clean government, is in 
the meantime looking like Olmert's security blanket.  Third, there 
is the biggest problem of all: that the world will not stop and wait 
for Winograd's next pronouncement and for the government to fall.... 
Israel desperately needs a full-time government now in order to 
begin a process of national recovery, to be ready for any 
eventuality, and to pursue a strategy that will not just be 
reactive, but will actively advance our national interests.  For 
now, Kadima and Labor are standing shoulder-to-shoulder to block 
such an eventuality." 
 
¶V.  "Until They Accept Responsibility" 
 
Shlomo Avineri, Hebrew University Professor of Political Science and 
former director-general of the Foreign Ministry, wrote in Ha'aretz 
(5/10): "We can understand -- without justifying it -- the 
Palestinians' rejection of the [1947] partition plan, just as we can 
understand -- without justifying it -- the Revisionist [right-wing] 
Zionist position negating the partition.  But most of the Jewish 
community accepted the idea.  And if most of the Palestinians had 
accepted it, then an independent Palestinian state would have risen 
on part of Mandatory Palestine in 1948, without war and without 
refugees.  The Palestinians are not prepared to deal with this 
complex reality.... Far be it from me to maintain that in 1948 the 
Jews were 'right' and the Arabs were 'wrong.'  What troubles me and 
other Zionist Israelis wishing to be attentive to the Palestinians' 
pain and willing to help rectify injustices and accept a historic 
compromise, is the Palestinians' complete unwillingness to 
acknowledge that in 1948 they and their leaders made a terrible 
historic mistake -- of both political and moral proportions -- by 
rejecting the international compromise they were offered.  It is for 
this reason that the Palestinians' customary comparison between the 
Nakba [catastrophe] and the Holocaust is so outrageous.  Did the 
Jews of Germany and Europe declare war on Germany?  Were the world's 
Jews offered a compromise that they rejected?  Europe's Jews were 
murdered by the Nazis because they were Jews.  What does that have 
to do with the Palestinians' decision to refuse the UN's compromise 
proposal and go to war?  It would not be exaggerated to say that 
there will be no true compromise between Israel and the Palestinians 
without a readiness on their part -- however minute and partial, for 
the 'truth' is always complex -- to admit that they, too, are partly 
responsible for what happened to them in 1948." 
 
CRETZ