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DE RUEHTV #2417/01 2210438
ZNR UUUUU ZZH
P 090438Z AUG 07
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 2671
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RUEHAM/AMEMBASSY AMMAN PRIORITY 2629
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RUEHLB/AMEMBASSY BEIRUT PRIORITY 2591
RUEHEG/AMEMBASSY CAIRO PRIORITY 0566
RUEHDM/AMEMBASSY DAMASCUS PRIORITY 3323
RUEHLO/AMEMBASSY LONDON PRIORITY 0196
RUEHFR/AMEMBASSY PARIS PRIORITY 0661
RUEHRB/AMEMBASSY RABAT PRIORITY 7256
RUEHRO/AMEMBASSY ROME PRIORITY 4678
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UNCLAS TEL AVIV 002417 
 
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. US Defense Aid 
 
------------------------- 
Key Stories in the Media: 
------------------------- 
 
The Bush administration will not be able to increase military aid to 
Israel next year by USD 0.5 billion due to expenditures on the war 
in Iraq and Afghanistan. Israel had already prepared its budget plan 
based on the assumption that it would receive the increase and as a 
result there will be a shortfall of USD 600 million. Under Secretary 
of State Nick Burns postponed his visit that was due to begin on 
Wednesday after the Israelis learned he would not agree to the aid 
increase request. [source: Yediot]. 
 
Israeli Ambassador to the US, Salai Meridor, denied Yediot's report 
in an interview with Israel Radio and stressed that the American 
administration had decided to increase defense aid to Israel from 
the 2009 budget. [source: Israel Radio]. 
 
Reportedly Defense Minister Barak believes that prior to agreeing to 
further withdrawals from the West Bank, Israel should speed up  the 
development of hi-tech defenses against rocket fire [source: 
Ha'artez]. 
 
The P.A. has asked Israel to allow in large shipments of weapons, 
ammunition and armored vehicles. Israel has not yet responded as it 
has some reservations. According to P.A. officials they need the 
weapons to protect the Fatah regime in the West Bank [source: 
Ha'aretz]. 
 
LTG Keith Dayton, the American security coordinator in the region, 
is developing a new security plan for the Palestinian security 
forces. Among Dayton's recommendations to Secretary of State Rice, 
is to significantly upgrade the training of Fatah-affiliated forces 
in the West Bank [source: Ha'aretz]. 
 
Israeli President Peres expects the US and Europe to support his 
plan for a permanent agreement with the P.A. which is based on a 
Palestinian State with a territorial area equivalent to 100% the 
 
size of the West Bank [the plan was outlined in Ha'aretz on 
Tuesday].  Knesset Member Ahmed Tibi ruled out the idea of trading 
West Bank settlements for Arab communities within Israel [source: 
Ha'aretz].  President Peres was quoted as denying that he has 
proposed such a plan [source: Israel Radio]. 
 
Hamas and Fatah officials were quoted as saying that they are 
holding secret talks in an attempt to reconcile. According to these 
sources a few Arab countries are involved in the mediation efforts. 
Hamas PM Haniyah was quoted as saying that he is willing to step 
down to pave the way for the resumption of talks between the two 
parties [source: The Jerusalem Post]. 
 
Members of Israel's security cabinet met Wednesday morning in what 
was described as a "very sensitive" meeting to discuss the situation 
on Israel's northern front.   The cabinet has been meeting with 
increasing frequency to oversee the preparation of the home front in 
case of a violent confrontation with Syria [source: Ha'aretz 
website]. 
 
----------- 
¶1. Mideast: 
----------- 
 
Summary: 
-------- 
 
The independent, left-leaning Ha'aretz editorialized: "Without a 
substantive change in the situation in the territories, Hamas' 
takeover of the Gaza Strip is liable to turn out to be the first 
step in a takeover of the entire territories by Islamic fanatics. 
These enemies have created a rare common incentive for Israel, the 
Arab League, and the Quartet -- headed by the United States -- to 
strengthen the circle of Middle East moderates.... If this 
opportunity is missed, it is liable to be one miss too many." 
 
Former top political advisor and head of Prime Minister Sharon's, 
bureau Dov Weissglas, wrote in the mass-circulation, pluralist 
Yediot Aharonot: "Skipping to negotiations on the final status 
arrangement in the current situation means ignoring the conditional 
stages of the road map and giving up Israel's most important 
diplomatic achievement in recent years. The road map constitutes 
recognition by a majority in the international community that Israel 
has a right not to agree to a Palestinian state as long as it does 
not have a guarantee that this state will prevent terrorism" 
Veteran op-ed writer Eytan Haber wrote in the lead editorial in the 
mass-circulation, pluralist Yediot Ahahronot: "That's it. Ten Years 
were wasted.  Pity on all the dead, but that's what happens when one 
chooses George Bush to be president." 
 
Block Quotes: 
------------- 
 
¶I. "Don't Miss the Opportunity" 
 
The independent, left-leaning Ha'aretz editorialized (08/08): 
"Neither Israel nor the Zionist movement has any more important or 
more urgent interest than ending the occupation of the territories. 
There is a stable majority among the public and in the government 
and Knesset that prefers a two-state solution based on the 1967 
borders, along with territorial exchanges.... Moreover, time is not 
on the side of pragmatic forces in the Middle East. Israel's failed 
war in Lebanon, and the failure of American policy in Iraq, have 
raised the status of Shi'ite fanatics like Hassan Nasrallah, who 
receive support from Iran.... Without a substantive change in the 
situation in the territories, Hamas' takeover of the Gaza Strip is 
liable to turn out to be the first step in a takeover of the entire 
territories by Islamic fanatics.   These enemies have created a rare 
common incentive for Israel, the Arab League, and the Quartet -- 
headed by the United States -- to strengthen the circle of Middle 
East moderates.... If this opportunity is missed, it is liable to be 
one miss too many." 
 
II. "Don't Give Up on the Road Map" 
 
Former top political advisor and head of Prime Minister Sharon's, 
bureau Dov Weissglas, wrote in the mass-circulation, pluralist 
Yediot Aharonot (08/08): "Once the Israeli government decided to 
accept the road map (subject to certain reservations), Israel agreed 
to the establishment of a Palestinian state under the conditions of 
the road map.  The dispute does not, therefore, pertain to the 
establishment of the Palestinian state as such, but rather to the 
conditions of its establishment.  In recent weeks, a change has been 
noticed in the Palestinians moving from a regime of gangs to a 
proper administration; but everything that has been does not 
approach the full implementation of the first stage of the road map. 
 Skipping to negotiations on the final status arrangement in the 
current situation means ignoring the conditional stages of the road 
map and giving up Israel's most important diplomatic achievement in 
recent years.  The road map constitutes recognition by a majority in 
the international community that Israel has a right not to agree to 
a Palestinian state as long as it does not have a guarantee that 
this state will prevent terrorism.  This cannot be given up." 
 
III. "Graduation Party" 
 
Veteran op-ed writer Eytan Haber wrote in the lead editorial of the 
mass-circulation, pluralist Yediot Ahahronot (08/08): "In a month or 
two people in Washington and around the world will stop 'counting' 
George Bush as the President of the US.... Towards the end, the 
president is preparing a graduation party.  He will bring -- most 
probably in November -- to Washington leaders from the Middle East 
and try to concoct some sort of an agreement that would present him 
in history as a 'peace advocator.'.... Too late.  This man had nine 
years that were wasted in a series of unsuccessful decisions.... and 
he left behind him disasters, which have no solution in sight and a 
depressed nation.... That's it. Ten Years were wasted.  Pity on all 
the dead, but that's what happens when one chooses George Bush to be 
president." 
 
------------------ 
¶2. US Defense Aid: 
------------------ 
 
Summary: 
-------- 
 
Senior Defense commentator Alex Fishman wrote in mass-circulation, 
pluralist Yediot Ahahronot: "USD 500 million less in the defense 
budget for next year means that half of the army's plans for 
building its might will either be postponed or canceled.  No two 
ways about it." 
 
Block Quotes: 
------------- 
 
"Dramatic Damage to the IDF" 
 
Senior Defense commentator Alex Fishman wrote in mass-circulation, 
pluralist Yediot Ahahronot (08/08): "USD 500 million less in the 
defense budget for next year means that half of the army's plans for 
building its might will either be postponed or canceled.  No two 
ways about it.  From the IDF's standpoint, the US administration's 
decision to spread the grant decided upon by the president, in an 
amount of USD 6 billion, over ten years in unequal portions, 
dramatically damages the IDF's plan for building up its strength.... 
The army had already taken into account the USD 500 million that 
 
were supposed to be channeled into its budget starting from next 
year.... At present, the security establishment is still hoping that 
the decree will be changed in talks that will be held in the coming 
days, that the Americans will change their minds, and it will be 
possible to reach an arrangement with them at least on the size of 
the grant promised for the next two years." 
JONES