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UNCLAS TEL AVIV 001957 
 
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 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media reported that in a conciliatory address to the summit in 
Sharm el-Sheikh PM Ehud Olmert declared in a surprise gesture that 
he intends to ask the cabinet to approve the release of 250 
prisoners from Fatah.  Olmert said that he understands the 
importance of the prisoner issue to the other side. 
 
All media cited an audio recording apparently released by Izz ad-Din 
al-Qassam, the military branch of Hamas, in which abducted IDF Cpl. 
Gilad Shalit asks the government to free Palestinian prisoners. 
Shalit said that his health is deteriorating.  Media quoted Israeli 
defense sources as saying that the identity of the group holding 
Shalit is uncertain.  Israel Radio quoted a senior Israeli defense 
source as saying that the Popular Resistance Committees, which 
splintered from Hamas, is the group detaining Shalit, and that Hamas 
leaders Khaled Mashal and Ismail Haniyeh are unaware of Shalit's 
whereabouts or of how he can be freed.  Commentators and defense 
sources say that Hamas is showing its weakness.  The media reported 
that Israeli politicians were divided along Left/Right lines 
regarding the way Israel should respond to Hamas.  Media quoted Shas 
Chairman and Industry Minister Eli Yishai as saying that the 
government should consider direct talks with Hamas over Shalit. 
Maariv noted that Hamas demands the release of 1,400 prisoners in 
exchange for Shalit.  The Jerusalem Post reported that a senior 
Egyptian government official told the newspaper in Sharm el-Sheikh 
on Monday -- before the publication of the audio recording -- that 
Egypt has decided to resume its efforts to release kidnapped IDF 
Cpl. Gilad Shalit. 
 
Israel Radio quoted a senior GOI source as saying that Israel should 
put an end to its efforts to arrest Fatah militants -- especially 
Al-Aqsa Martyrs Brigades members -- in the West Bank if they stop 
receiving funds from Iran and cease their actions against Israel. 
The source was quoted as saying that hey have turned into the 
essential force against Hamas. 
 
Leading media quoted sources close to the Quartet as saying that 
outgoing British PM Tony Blair could be named to a top post in 
Middle East peacemaking as early as today.  The Jerusalem Post wrote 
that diplomats of the Quartet will meet at the US Consulate-General 
in Jerusalem today, with Assistant Secretary of Sate for Near 
Eastern Affairs David Welch representing the US.  The Jerusalem Post 
reported that Russian FM Sergey Lavrov -- whose comments regarding 
developments in Gaza have caused some irritation in Jerusalem -- 
will arrive in Jerusalem on Wednesday to assert Russian involvement 
in the quickly moving diplomatic developments on the ground. 
 
Ha'aretz and The Jerusalem Post printed an AP wire report that 
Al-Qaida number two Ayman al-Zawahiri voiced his support for Hamas 
after its fighters seized control of the Gaza Strip, according to a 
recording posted on the Internet on Monday.  Al-Zawahiri urged 
Muslims around the world to back Hamas with weapons, money, and 
attacks on the US and Israel.  AP said that Hamas appeared 
uncomfortable with Al-Zawahiri's approach 
 
The Jerusalem Post quoted Israeli defense officials as saying that 
recent events in southern Lebanon -- Sunday's attack and last week's 
Katyusha rocket fire -- proved the UNIFIL needed a stronger mandate 
and one that would enable it to better counter the growing threats 
it faced. 
 
The Jerusalem Post and Israel Radio reported that Iran has invited 
an International Atomic Agency team to Tehran to work on a plan for 
clearing up suspicion about its nuclear program. 
 
Yediot reported that PM Olmert will not name Likud Chairman Binyamin 
Netanyahu finance minister.  The two men met on Monday.  Leading 
media reported that Labor MK Ami Ayalon told Labor Party Chairman 
and Defense Minister Ehud Barak that he is giving up the education 
portfolio. 
 
All media reported on the wave of lethal violence in Iraq on 
Monday. 
 
Major media reported that on Monday Egypt's State Security Court 
sentenced an Egyptian nuclear scientist to life imprisonment with 
hard labor for spying for Israel.  Mohammed Sayyed Saber, 35, was 
convicted of passing nuclear secrets to the Mossad in exchange for 
USD 17,000.  Two foreign nationals, an Irishman and a Japanese man, 
were convicted in absentia and also sentenced to life imprisonment 
for their part in the affair.  Saber pleaded not guilty.  He 
admitted turning over documents, but said they were outdated and 
that he advised the Egyptian authorities of what he was doing. 
 
Ha'aretz reported that Israel is considering sending African 
refugees to Kenya.  The newspaper also reported that Israel has 
resumed jailing Sudanese refugees who slip into the country along 
the Egyptian border.  The Jerusalem Post reported that on Monday 
Interior Minster Roni Bar-On met with PM Olmert to present his 
policy recommendations on the growing number of refugees entering 
Israel from Africa.  That policy will remain secret until an 
interministerial meeting on Thursday. 
 
Yediot reported that Larissa Trimbovler, the wife of Yigal Amir, 
Yitzhak Rabin's assassin, is expecting a son. 
 
Yediot reported that the National Bank of Egypt is suing Israel for 
its historical shares in Jerusalem's King David Hotel -- USD 78 
million. 
 
Yediot presented the results of a Mina Zemach (Dahaf Institute) 
poll: 
-"Do you support the release of hundreds of prisoners -- including 
murderers -- in exchange for Gilad Shalit's freedom?"  Yes: 61 
percent; no: 35 percent; 4 percent were undecided. 
-"Do you believe that the GOI is doing enough to return Gilad home?" 
 No: 78 percent; yes: 18 percent; 4 percent were undecided. 
 
 
 
 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Palestinian affairs correspondent Avi Issacharoff wrote on page one 
of the independent, left-leaning Ha'aretz: "Shalit's recording 
serves as a clear message from Hamas to Jerusalem:  Israel's real 
partner for security issues is not Palestinian Authority Chairman 
Mahmoud Abbas: It is Hamas." 
 
Senior columnist Nahum Barnea wrote in the popular, pluralist Yediot 
Aharonot: "The time has come for direct negotiations, with all the 
discomfort that goes with so doing.  The government needs to aspire 
to secure Gilad Shalit's release at the lowest level of damage 
possible.  All the rest, the formalities, the principles, the 
political reservations pale against that." 
 
Arab affairs correspondent Jacky Hoogie wrote in the popular, 
pluralist Maariv: "Last week there were declarations about a window 
of opportunity in the air.  To the same degree, this summit could 
also be the last nail in the coffin of the 'rais' from Ramallah." 
 
The Director of the Interdisciplinary Center's Global Research in 
International Affairs Center, columnist Barry Rubin, wrote in the 
conservative, independent Jerusalem Post: "Even if you want to 
believe that Mahmoud Abbas is some peace-loving good guy, he is 
weak, incompetent, has no following, and no intention of really 
confronting the culture of terrorism and extremism his own group 
created and maintains." 
 
Block Quotes: 
------------- 
 
¶I.  "Why Now?" 
 
Palestinian affairs correspondent Avi Issacharoff wrote on page one 
of the independent, left-leaning Ha'aretz (6/26): "Hamas is hoping 
that the cassette [containing a voice message from abducted IDF 
soldier Gilad Shalit] could help pressure Israel into renewing 
negotiations by imploring Egypt to resume its role as mediator, or 
to find other third parties.  Hamas is seeking to undermine Israel's 
resistance to releasing the 450 prisoners whom Hamas is demanding in 
exchange for Shalit, by using Shalit's voice to stir up public 
opinion.  In addition, Hamas is attempting to thwart a possible 
release of Fatah militants jailed in Israel, hoping that no Israeli 
official will dare release prisoners who aren't part of a deal for 
Shalit's release.  It is also trying to steal the show and make the 
Sharm el-Sheikh summit irrelevant.  Finally, Shalit's recording 
serves as a clear message from Hamas to Jerusalem:  Israel's real 
partner for security issues is not Palestinian Authority Chairman 
Mahmoud Abbas: It is Hamas." 
 
II.  "Not at Every Price" 
 
Senior columnist Nahum Barnea wrote in the popular, pluralist Yediot 
Aharonot (6/26): "Israel could have closed a deal a number of weeks 
ago that would have brought Gilad Shalit back home.  The price was 
to release Hamas's entire military structure in the West Bank, a 
structure that the IDF and GSS successfully crumbled and sent to 
prison.  That is a high price, perhaps unbearably high.  It could 
bring the situation in the West Bank closer to the situation in 
Gaza.  Gilad Shalit's captivity is an affair that is going to have 
to end in a deal.  The right approach is to say yes to a high price, 
but not to every price.  And to do so knowing that it will damage 
security and elicit a sense of national humiliation, but not to say 
yes to every damage.  The timing of the deal and the final cost will 
ultimately be determined by the Prime Minister's gut feeling: the 
responsibility is his, and his alone.... Olmert went to Sharm 
el-Sheikh with the hope that the rift between Fatah and Hamas might 
receive the Arab world's blessing. He was in for a disappointment. 
Instead of praising Abu Mazen for having parted ways with Hamas, 
Mubarak called on him in his public speech to reunify the 
Palestinian people.  Unification means reverting the situation to 
its previous state, to a government that is shared by Hamas and 
Fatah.  From Israel's perspective that would be catastrophic.  Abu 
Mazen is one thing and releasing Gilad Shalit is something entirely 
different.  The time has come for direct negotiations, with all the 
discomfort that goes with so doing.  The government needs to aspire 
to secure Gilad Shalit's release at the lowest level of damage 
possible.  All the rest, the formalities, the principles, the 
political reservations pale against that." 
 
III.  "Public Relations Show" 
 
Arab affairs correspondent Jacky Hoogie wrote in the popular, 
pluralist Maariv (6/26): "Olmert eased many restrictions for the 
Palestinians, but Abu Mazen needs much more than that.  He needs an 
Israeli display of courage.  His hands are tied and his popularity 
is at a nadir.  Only artificial resuscitation will save him.  Abu 
Mazen needs an expansive Israeli move, which would include providing 
arms to stamp out Hamas, a prisoner release and giving thousands of 
workers the possibility of coming to Israel.  Only if he is 
strengthened, will he be able to battle Hamas.  If he is weakened, 
he will get the kiss of death.  Last week there were declarations 
about a window of opportunity in the air.  To the same degree, this 
summit could also be the last nail in the coffin of the 'rais' from 
Ramallah." 
 
IV.  "The Fall of the House of Yasser" 
 
The Director of the Interdisciplinary Center's Global Research in 
International Affairs Center, columnist Barry Rubin, wrote in the 
conservative, independent Jerusalem Post (6/26): "Ask yourselves one 
simple question: Do you really believe that the Hamas coup is going 
to scare Fatah straight?  Are these leaders and ideologues really 
going to learn their lesson?  Well, this seems to be the main 
assumption of political leaders and the media in democratic 
countries.  After all, to paraphrase Samuel Johnson, facing the 
hangman greatly concentrates the mind.  But wait a minute!  The PLO, 
Fatah, and their hierarchies have made a whole career about facing 
the hangman and tweaking his nose while giggling madly.  If they had 
learned from, say, September 1970 in Jordan or other disasters it 
would have been sufficient for them to get on the right path..... 
Don't get me wrong.  I do believe Fatah is preferable to Hamas -- 
though the gap is far narrower than all too many people seem to 
think.  But even if you want to believe that Mahmoud Abbas is some 
peace-loving good guy, he is weak, incompetent, has no following, 
and no intention of really confronting the culture of terrorism and 
extremism his own group created and maintains.  He will also never 
give up the demand that all Palestinians should be able to live in 
pre-1967 Israel which is a deeply personal belief of his." 
 
--------- 
¶2.  Iran: 
--------- 
 
Summary: 
-------- 
 
Senior columnist and longtime dove Yoel Marcus wrote in the 
independent, left-leaning Ha'aretz: "We do not need to give the 
United States any ideas, or prod it into action.  European countries 
and the Gulf states are also targets, and they are the ones who have 
the power to cripple Iran with their economic sanctions and 
boycotts." 
 
Block Quotes: 
------------- 
 
"There are Other Ways to Subdue Iran" 
 
Senior columnist and longtime dove Yoel Marcus wrote in the 
independent, left-leaning Ha'aretz (6/26): "Every time President 
Bush hints that he still supports a military operation against Iran, 
I break out in hives.  No matter what we wish for in our hearts, a 
US attack on Iran is not in Israel's interest.  Number one, the 
American military is klutzy. Number two, Iran will take its fury out 
on us by sending a barrage of Shihab missiles our way.  Over the 
past 50 years, the Americans have lost every war they started: the 
Bay of Pigs invasion in Cuba, the Korean War, the Vietnam War, the 
war on Bin Ladin and Al-Qaida, and last of all, the Iraq War, where 
the bloodletting goes on, and no end is in sight.  We do not need to 
give the United States any ideas, or prod it into action.  European 
countries and the Gulf states are also targets, and they are the 
ones who have the power to cripple Iran with their economic 
sanctions and boycotts." 
 
JONES