VZCZCXYZ0009
PP RUEHWEB

DE RUEHTV #2173/01 1981019
ZNR UUUUU ZZH
P 171019Z JUL 07
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 2300
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
RHEHNSC/WHITE HOUSE NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEAHQA/HQ USAF WASHINGTON DC PRIORITY
RUEADWD/DA WASHDC PRIORITY
RHMFIUU/CNO WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY
RUEHAD/AMEMBASSY ABU DHABI PRIORITY 2465
RUEHAS/AMEMBASSY ALGIERS PRIORITY 9184
RUEHAM/AMEMBASSY AMMAN PRIORITY 2531
RUEHAK/AMEMBASSY ANKARA PRIORITY 3270
RUEHLB/AMEMBASSY BEIRUT PRIORITY 2502
RUEHEG/AMEMBASSY CAIRO PRIORITY 0459
RUEHDM/AMEMBASSY DAMASCUS PRIORITY 3233
RUEHLO/AMEMBASSY LONDON PRIORITY 0104
RUEHFR/AMEMBASSY PARIS PRIORITY 0572
RUEHRB/AMEMBASSY RABAT PRIORITY 7167
RUEHRO/AMEMBASSY ROME PRIORITY 4580
RUEHRH/AMEMBASSY RIYADH PRIORITY 9502
RUEHTU/AMEMBASSY TUNIS PRIORITY 3666
RUCNDT/USMISSION USUN NEW YORK PRIORITY 5606
RUEHJM/AMCONSUL JERUSALEM PRIORITY 7423
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
RHMFISS/COMSOCEUR VAIHINGEN GE PRIORITY
RHMFIUU/COMSIXTHFLT  PRIORITY

UNCLAS TEL AVIV 002173 
 
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: 
-------------------------------- 
 
President Bush's July 16 Remarks on Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media reported that on Monday President Bush announced the 
convening of an international conference later this year that will 
include Israel, the PA, and some Arab states, to help restart peace 
talks and review progress in building democratic institutions in the 
Arab world.  The President was also quoted as saying that the US 
would provide the new PA emergency government with over USD 190 
million in aid.  Yediot quoted associates of PM Ehud Olmert as 
saying that Olmert had raised the idea of an international 
conference with the President.  Yediot reported that these remarks 
angered US administration officials, who were quoted as saying that 
the meeting is an American idea. 
 
Bush was quoted as saying that Secretary of State Condoleezza Rice 
will lead the summit, which is planned for the fall.  Bush urged 
Israel to remove unauthorized outposts, stop expanding settlements, 
and to "find other practical ways to reduce their footprint without 
reducing their security."  The President said that this was a 
"moment of clarity for all Palestinians.  And now comes a moment of 
choice.  The alternatives before the Palestinian people are stark. 
There is the vision of Hamas, which the world saw in Gaza -- with 
murderers in black masks, summary executions, and men thrown to 
their death from rooftops" which would endlessly perpetuate 
grievance, and another, "hopeful" option.  "It is the vision of 
President Abbas and Prime Minister Fayyad; it's the vision of their 
government; it's the vision of a peaceful state called Palestine as 
a homeland for the Palestinian people," President Bush was quoted as 
saying. 
 
Leading media reported that Israel responded positively to the 
President's address.  The Jerusalem Post quoted PM Olmert's 
spokeswoman, Miri Eisin, as sayng that Israel hoped to see the 
involvement of countries such as Saudi Arabia, Bahrain, and Morocco. 
  But she played down the mandate of such a gathering, saying that 
Bush had not called it an international peace conference, but rather 
a regional "meeting" of participants who support the idea of a 
two-state solution.  While citing the satisfaction of Fatah/PLO 
 
spokesmen over the President's address, the media reported that it 
was a "crusade" against the Palestinian people.  In an interview 
with Israel Radio this morning, Meretz-Yahad leader Dr. Yossi-Beilin 
said that he was "not impressed" by the fact that the summit will 
not be attended by the President of the US. 
 
The media reported that on Monday PM Olmert met with PA Chairman 
[President] Mahmoud Abbas at Olmert's official Jerusalem residence. 
The media said that Olmert warned Abbas against renewing cooperation 
with Hamas.  Ha'aretz quoted a "political source" as saying that 
Abbas vowed not to resume any such cooperation.  Ha'aretz reported 
that during the meeting the Palestinians proposed restarting 
negotiations toward a final agreement, and offered to discuss the 
"core issues" -- Jerusalem, the refugee question and borders. 
Olmert rejected their proposal, saying it is too soon to discuss 
these issues and insisted that there are other important issues that 
must be dealt with first.  However, the Palestinian delegation was 
quoted as saying that it has been decided that from now on Abbas 
would only deal with final status issues and not with routine 
matters, such as the separation fence, fugitives, immunity to 
militants and aid, which will now be handled by PM Salam Fayyad and 
his interior minister.  Ha'aretz noted that in so doing, the PA has 
essentially imposed an agenda for future meetings between Olmert and 
Abbas.  Leading electronic media reported that this morning, in line 
with PM Olmert's promise to Chairman Abbas, an interministerial 
committee headed by Olmert approved the release of 256 Palestinian 
prisoners.  The prisoners, mostly from Fatah along with a few from 
PFLP and DFLP, will be freed on Friday.  Transportation Minister and 
former defense minister Shaul Mofaz opposed their release. 
 
Ha'aretz reported that former British PM Tony Blair, the Quartet's 
envoy to the Middle East peace process, will arrive in Jerusalem on 
Monday to start his mission.  He was quoted as saying that he would 
stay in the region for one week every month. 
 
Israel Radio cited the London-based Al-Hayat as saying that on 
Monday Secretary Rice warned Egyptian intelligence chief Omar 
Suleiman against Egypt showing openness toward Hamas, so that the 
latter does not get strengthened.  US officials reportedly told 
Suleiman that Egypt must increase its policing of the Gaza border to 
prevent arms smuggling and passage of terrorists. 
 
Leading media reported that PM Olmert has decided to appoint Vice 
Premier Haim Ramon as chairman of a committee to implement 
recommendations from the Talia Sasson outposts report.  Yediot 
reported that Ramon is mulling over a plan to withdraw from 60 
percent of the West Bank and evacuate some of the settlements in 
coordination with the Palestinians. 
 
The Jerusalem Post reported that Turkish officials told the 
newspaper this week that Israeli and Palestinian officials have 
asked Ankara to consider involvement in commercial projects in the 
West Bank and along the Gaza border. 
 
Maariv reported that the Israeli defense establishment is 
considering defensive measures against the Iranian nuclear program, 
including an increase in the number of sealed rooms around the 
country and the installation of filters against nuclear radiation. 
 
Yediot and Maariv reported on Monday that Labor Party activist, 
Attorney Yehiel Gutman, whom Defense Minister Ehud Barak appointed 
as his representative in the issue of the abducted IDF soldiers, 
resigned after 12 days in the position.  Yediot reported that Ofer 
Dekel, who represents PM Olmert on this matter, told Barak that he 
would not cooperate with Gutman. 
 
The Jerusalem Post reported that Nepal has agreed to open an embassy 
in Israel 47 years after having established normal diplomatic 
relations with the country.  The newspaper quoted GOI sources as 
saying that the move was meant to protect Nepalese workers from 
trafficking.  Nepal's announcement comes after the GOI's May 1 
statement that it would no longer issue work visas for Nepalese, as 
Nepal did not have an embassy in Israel. 
 
Yediot and Israel Radio cited IDF statistics that one of four young 
Israelis is not drafted in the army.  Another 17.5 percent do not 
complete their military service.  According to Yediot, this means 
that 40 percent of young people do not serve in the army. 
 
Leading media reported that in an effort to stem the "brain drain" 
from Israel, the Shochat commission reviewing the status of higher 
education in Israel proposes to invest millions of shekels to keep 
scientists in the country or lure them back to Israel. 
 
Maariv reported that "in a blow to the interests of the US and 
Russia" and in contradiction of an explicit request by Washington, 
Turkey has signed a natural gas supply agreement with Iran. 
 
-------------------------------------------- 
President Bush's July 16 Remarks on Mideast: 
-------------------------------------------- 
Summary: 
-------- 
 
Diplomatic correspondent Ben Caspit wrote on page one of the 
popular, pluralist Maariv: "To create an opportunity for this chance 
to come to fruition, Bush will have to think outside the box, to 
create something else, something different, not to deliver a 'more 
of the same' speech." 
 
Diplomatic correspondent Aluf Benn wrote on page one of the 
independent, left-leaning Ha'aretz: "Bush has accepted Abbas's 
demand to hold direct talks on the final settlement.... But Prime 
Minister Ehud Olmert ... has nothing to worry about." 
 
Senior columnist Nahum Barnea wrote on page one of the 
mass-circulation, pluralist Yediot Aharonot: "Israel and the 
Palestinians have no one to turn to, and no one to rely on but 
themselves.  Bush will provide no salvation.  The question is do 
they want to; the question is can they." 
 
Washington correspondent Shmuel Rosner wrote on page one of 
Ha'aretz: "What side [will] ... Rice ... come down on?" 
 
Diplomatic correspondent Shimon Shiffer wrote in Yediot Aharonot: 
"The American initiative to move the process forward is meant to 
prevent a situation in which the Europeans and the Arab states try 
to enforce an agreement on the sides by means of their own peace 
conference." 
 
Diplomatic correspondent Herb Keinon wrote on page one of the 
conservative, independent Jerusalem Post: "Monday night's speech 
laid the foundation of an overpass aimed at bridging the current 
difficult reality." 
 
Senior columnist Haggai Huberman wrote in the nationalist, Orthodox 
Makor Rishon-Hatzofe: "When a president who is sympathetic to Israel 
makes such blunt remarks, this means he is publicly adopting 
Palestinian demands." 
 
The ultra-Orthodox Hamodi'a editorialized: "The face and future of 
the Middle East are molded neither by the American will, nor by 
declarations from abroad." 
 
Block Quotes: 
------------- 
¶I.  "Last  Opportunity Speech" 
 
Diplomatic correspondent Ben Caspit wrote on page one of the 
popular, pluralist Maariv (7/17): "This was the last chance speech. 
This is in effect the last chance for Bush to emerge from his two 
disastrous terms with some achievement in his hand.  It is Abu 
Mazen's last chance.  It is also Olmert's last chance.  The problem 
is that to create an opportunity for this chance to come to 
fruition, Bush will have to think outside the box, to create 
something else, something different, not to deliver a 'more of the 
same' speech.... So what now?  Now we will demolish a few illegal 
outposts and deliver more of the funds, and Abu Mazen and Fayyad 
will try to restore some order in their mess, courtesy of the 
bayonets of the IDF, without which Hamas would also be in control of 
the West Bank.  In October we will all go to Washington, and if we 
are lucky representatives of the Gulf States will also attend, and 
perhaps some Saudi Arabian or two, to prove to us once again that 
the Jewish people is alive and our hope is not yet lost, and to give 
George Bush something small, very small, with which to finish his 
term of office, and at long last to go home." 
 
II.  "Bush's Tough Talk on Hamas" 
 
Diplomatic correspondent Aluf Benn wrote on page one of the 
independent, left-leaning Ha'aretz (7/17): "US President George W. 
Bush threw a bone Monday to those how have accused him of ignoring 
the Israeli-Palestinian conflict.  In a long address, which at times 
sounded more like a laundry list of the issues currently up for 
discussion and execution, he promised to intensify the American 
effort to bolster confidence of both sides in the two-state 
solution.  It sounded nice but less exciting than the declaration he 
made at the start of his second term, in which he promised to invest 
American capital in establishing a Palestinian state.   On Monday, 
Bush refrained from promising to set up a Palestinian state.  He 
made do with posing a dilemma before the Palestinians, calling on 
them to choose between the Hamas extremists and the moderates, 
Palestinian President Mahmoud Abbas and Prime Minister Salam 
Fayyad.... Bush has accepted Abbas's demand to hold direct talks on 
the final settlement, and skip over the interim stage of a 
Palestinian state with borders that are not finalized.  But Prime 
Minister Ehud Olmert, who is refusing to discuss the core issues at 
this stage, has nothing to worry about.  He will get his extension, 
until the PA is clean of terrorism and corruption." 
 
III.  "Farewell Speech" 
Senior columnist Nahum Barnea wrote on page one of the 
mass-circulation, pluralist Yediot Aharonot (7/17): "Those who 
watched Bush's speech on Monday saw a president who had shrunk 
amazingly.  Five years and three weeks ago Bush delivered his first 
two-state speech and spoke of a permanent settlement within three 
years.  On Monday evening he reiterated the main points of that 
speech, with one difference: He took care not to specify a 
timetable.  Comparison of the two speeches reveals that peace in the 
Middle East is like the horizon: the nearer you get, the further 
away it is.... The words which five years ago were understood as a 
declaration of power, last night sounded as hollow as a preacherQs 
sermon: full of good intentions, but meaningless.  All that he has 
promised to do is to convene a regional conference headed by 
Condoleezza Rice in the autumn.  These conferences are little more 
than an empty gesture.  At the conclusion of his speech Bush turned 
his back to the camera.... This was a very theatrical and symbolic 
gesture.  It was as if he were saying: I've had enough, I'm going. 
I'm turning my back on the Middle East.  And, indeed, Israel and the 
Palestinians have no one to turn to, and no one to rely on but 
themselves.  Bush will provide no salvation.  The question is do 
they want to; the question is can they." 
 
 
 
IV.  "She, Not He" 
 
Washington correspondent Shmuel Rosner wrote on page one of Ha'aretz 
(7/17): "[Secretary] Rice's imprint could be seen on almost every 
detail of Bush's speech.  If she succeeds, he can take the credit. 
If she fails, he can say that he sent the best person to try.  In 
any case, of the two main elements in his speech, one reflected the 
certainty of action and the other a more hazy hope.... The 
administration can assume it will be able to increase aid [to the 
Palestinians] without encountering legislative obstacles.  The 
second element, the convening of an international summit, was more 
ambiguous.... If Rice manages to drag the Saudis to the conference, 
she can report a breakthrough.  But the Saudis have a tendency 
lately to disappoint the administration.... A regional summit holds 
out hope and risk for Israel.  The hope is that additional members 
will be added to the circle of peace, and Israel will receive 
augmented legitimization.  The risk of is that Israel will find 
itself dealing with a coalition for whom its interests are not 
primary.  The big question is, of course, what side of this 
coalition Rice will come down on?" 
 
¶V. "Conference Made in Israel" 
 
Diplomatic correspondent Shimon Shiffer wrote in Yediot Aharonot 
(7/17): "Olmert believes that in the absence of an authoritative 
Palestinian partner, the only possibility for making progress toward 
an arrangement is with the backing of the countries of the region 
and the international community.  That is the background to Bush's 
call to hold an international conference in the fall under whose 
auspices Israeli and Palestinians will meet with the neighbors in 
the region.  The American initiative to move the process forward is 
meant to prevent a situation in which the Europeans and the Arab 
states try to enforce an agreement on the sides by means of their 
own peace conference.  Bush and Olmert share the assumption that the 
permanent arrangement will be possible after the Palestinians manage 
to establish credible institutions to administer their affairs, but 
it looks as if this is not going to happen during Bush's term -- 
perhaps not even in Olmert's.  OlmertQs impression from his meeting 
with Abu Mazen is that the Palestinians do not really expect Israel 
to withdraw from the West Bank right now.... Abu Mazen, in internal 
talks too, is unwilling to renew a dialogue with Hamas.  The problem 
is that this refusal makes it possible for Hamas to mark Abu Mazen 
as collaborating with the US and with Israel and to prevent, by 
means of terror, the chance of making any progress in the peace 
process.  On Monday Olmert warned Abu Mazen that if he renews his 
ties with Hamas in the future, all agreements between them are 
off." 
 
VI. "Building a Bridge Over Troubled Waters" 
 
Diplomatic correspondent Herb Keinon wrote on page one of the 
conservative, independent Jerusalem Post (7/17): "If [President 
Bush's] speech five years go led to the launching of the Roadmap, 
Monday night's speech laid the foundation of an overpass aimed at 
bridging the current difficult reality.  This reality can be summed 
up as follows: Palestinian Authority Chairman Mahmoud Abbas can make 
al the right declarations, but does not have the ability to assert 
his authority over all the West Bank and Gaza, and Prime Minister 
Ehud Olmert is limited -- because of the bitter Israeli experience 
of the last seven years and his own political weakness -- as to what 
he is now able to offer the Palestinians.  Hence the bridge.  And 
the bridge that bush laid out on Monday night is based on new 
Quartet envoy Tony Blair, and the regional 'meeting' that Bush 
called for in the fall.... Five years after the Bush speech launched 
the Roadmap, Monday night's speech aimed at reconstructing one of 
the elements that the Roadmap was based upon -- responsible, 
accountable Palestinian governing institutions." 
VII. "The Previous Speech Was Much More Positive" 
 
Senior columnist Haggai Huberman wrote in the nationalist, Orthodox 
Makor Rishon-Hatzofe (7/17): "On Monday Bush demanded practical 
measures -- from Israel.... When a president who is sympathetic to 
Israel makes such blunt remarks, this means he is publicly adopting 
Palestinian demands.  Abu Mazen can indeed be happy.  At the same 
time, as far as Israel is concerned, there was nothing new in 
positive sentences.  Opposition to Hamas is anchored in 
Congressional resolutions forbidding any contact with terrorist 
organizations.  The same applies to [Bush's] demand that Abu Mazen 
not establish a national unity government with Hamas.... Bush's 
speech is further evidence of how low Israel's diplomatic status has 
fllen in the past few years, as a result of its own failures -- 
mainly the unilateral pullout from the Gaza Strip." 
 
VIII. "Broad-Based Decision-Making" 
 
The ultra-Orthodox Hamodi'a editorialized (7/17): "There is 
considerable good will in the American viewpoint on international 
realities and on the Middle East in particular.... But the face and 
future of the Middle East will be molded neither by American will, 
nor by declarations from abroad -- even if they have the best 
possible intentions.  The face of the Middle East will be modeled by 
its residents.  Its policy will be adopted by its actual regional 
leaders." 
 
CRETZ