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STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
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E.O. 12958: N/A 
TAGS: OPRC KMDR IS
 
SUBJECT: ISRAEL MEDIA REACTION 
 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
Mideast 
 
------------------------- 
Key Stories in the Media: 
------------------------- 
 
Treasury Under Secretary Stuart Levey arrived in Israel on Thursday 
to discuss  terrorist financing and Iran.  Levey met with Foreign 
Minister Tzipi Livni and senior officials in the defense 
establishment and intelligence services. [source: Ha'aretz]  The 
Jerusalem Post added that the US and Israel agree that China is the 
most reluctant member on the U.N. Security Council to impose 
sanctions on Iran. 
 
The Americans are close to approving defense aid to Israel of USD 3 
billion annually for ten years. A high-ranking Foreign Ministry 
official was quoted as saying that talks between Israel and the US 
are at a very advanced stage and that all the issues have been 
principally agreed upon.[source: Israel Radio] 
 
Minister of Defense Barak was quoted as saying in private 
conversations that there is no chance of reaching an agreement with 
the Palestinians and that he does not have faith in the current 
Palestinian leadership. Barak admitted that he has no intention of 
removing road blocks as it is his responsibility to protect Israeli 
citizens. [source: senior diplomatic correspondent Shimon Shiffer, 
Yediot] 
 
A shooting incident occurred in the Christian Quarter of the Old 
City of Jerusalem on Friday.  A Palestinian grabbed an Israeli 
security guard's gun, shot and wounded him. Another guard gave 
chase, shooting and eventually killing him. Ten bystanders were 
wounded by bullet fragments: seven lightly and three moderately 
[source: Israel Radio]. 
 
Israeli mercenaries are operating alongside American and British 
forces in Columbia to combat drug barons and guerilla organizations. 
 The Israelis are ex IDF officers. [source: Yediot] 
 
Yemen President Ali Abdallah Sale has offered to mediate between 
Hamas and Fatah.  While Hamas officials have welcomed the 
initiative,  close associates of PA Chairman Abbas say that he is 
not interested.  This offer comes as some Arab states, including 
Egypt, are pressuring Abbas to resume talks with Hamas. [source: The 
Jerusalem Post] 
 
In a meeting with a US Republican Congressional delegation, Israeli 
President Peres said that Israel must increase trust with Syria. 
[source: leading media] 
 
Palestinian Minister for Prisoner Affairs, Ashraf al-Ajarmi, was 
quoted as saying that if Israel reaches a formal peace agreement 
with the Palestinians, then Hamas will have no choice but to accept 
it. [source: The Jerusalem Post] 
 
Foreign Minister Livni gave a tour of Sderot on Thursday to US Rep. 
Tom Lantos and Oracle CEO Larry Ellison.  After Ellison heard that 
it would cost half a million dollars to protect the local auditorium 
he told Livni that she would get the money the next day. [source: 
The Jerusalem Post] 
 
-------- 
Mideast: 
-------- 
 
Summary: 
-------- 
 
Senior, veteran columnist Yoel Marcus wrote in the independent, 
left-leaning Ha'aretz: "The November summit proposed by President 
Bush in consultation with the Quartet will give him one last chance 
to knock out the nerve centers of fundamentalist Islamic terror 
threatening the free world -- and wallop the axis of evil with a 
series of accords." 
 
Diplomatic correspondent Herb Keinon wrote in the conservative, 
independent Jerusalem Post: "And for those wondering why President 
George W. Bush seems hell-bent on a regional meeting in the fall to 
deal with the Palestinian-Israeli issue, it is to bring all the US 
friends together under one happy roof -- to cement a new alliance of 
US regional buddies." 
 
The conservative, independent Jerusalem Post editorialized: "Today's 
threats demand that Americans, and the West generally, present a 
united front.  Rather than exaggerating foreign policy differences, 
we hope that Democrats and Republicans can agree that both force and 
diplomacy have roles in confronting the greatest threat to global 
freedom since the rise of fascism in the 1930s and the Cold War." 
 
Block Quotes: 
------------- 
 
¶I. "Open Minds" 
 
Senior, veteran columnist Yoel Marcus wrote in the independent, 
left-leaning Ha'aretz (08/10): "The November summit proposed by 
President Bush in consultation with the Quartet will give him one 
last chance to knock out the nerve centers of fundamentalist Islamic 
terror threatening the free world -- and wallop the axis of evil 
with a series of accords.  The leaders of the region will have to 
show up with ideas and a very open mind.  We will need to know in 
whose name Mahmoud Abbas is speaking, and how he expects to regain 
control over Gaza and pry it from the grip of Hamas.  We will need 
to know how far Olmert is willing and able to go in terms of 
concessions based on the '67 borders.  We will need to know whether 
Syria is capable of being a negotiating partner, and if Saudi Arabia 
is willing to dip its dainty foot into the pool as the patron of a 
comprehensive agreement, while the eyes of the fruitcake from Iran 
are fixed upon it.   This is Bush's last chance to open a window 
through which we might just see a sail of peace glinting on the 
horizon." 
 
II. "Happy Roof" 
 
Diplomatic correspondent Herb Keinon wrote in the conservative, 
independent Jerusalem Post (08/10): "For those looking for an 
explanation as to why the US is pushing so hard to support 
Palestinian Authority Prime Minister Salaam Fayad, it is because 
Washington views him as a genuine friend.   For those wondering why 
the US is pushing forward with a massive arms deal with Saudi 
Arabia, even though the Saudis aren't exactly doing the US's bidding 
in Iraq, it is because the US needs friends.  And for those 
wondering why President George W. Bush seems hell-bent on a regional 
meeting in the fall to deal with the Palestinian-Israeli issue, it 
is to bring all the US friends together under one happy roof -- to 
cement a new alliance of US regional buddies." 
 
III. ""Force and Diplomacy 
 
The conservative, independent Jerusalem Post editorialized (08/10): 
"Today's threats demand that Americans, and the West generally, 
present a united front.  Rather than exaggerating foreign policy 
differences, we hope that Democrats and Republicans can agree that 
both force and diplomacy have roles in confronting the greatest 
threat to global freedom since the rise of fascism in the 1930s and 
the Cold War." 
JONES