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P 161122Z AUG 07
FM AMEMBASSY TEL AVIV
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UNCLAS TEL AVIV 002491 
 
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: 
------------------------- 
 
The Israeli electronic media reported that a memorandum of 
understanding was signed this morning in Jerusalem between Israel 
and the US on the new American defense package for Israel.  Under 
Secretary of State for Political Affairs Nicholas Burns and US 
 
SIPDIS 
Ambassador to Israel Richard Jones signed the aid agreement with 
Foreign Ministry Director General Aharon Abramovitch, and met with 
FM Tzipi Livni. Under the new aid agreement, the US will transfer 
USD 30 billion to Israel over 10 years, compared with USD 24 billion 
over the past decade.  Ha'aretz reported that Israel is slated to 
receive the first pay out in October 2008, amounting to USD 2.550 
billion.  That sum will grow each year by USD 150 million, until it 
reaches USD 3.1 billion in 2011.  In addition, the agreement permits 
Israel to convert into shekels 26.3 percent of the aid money, 
thereby enabling it to procure defense equipment from Israeli 
companies.  The rest of the aid must be used to purchase equipment 
from American military industries.  Ha'aretz reported that Israeli 
negotiators tried to step up the percentage of aid that could be 
used for procurement from local companies, without success. 
Ha'aretz reported that on Tuesday PM Ehud Olmert met with Burns, in 
preparation for today's signing.  Ha'aretz wrote that Olmert asked 
Burns to thank. President Bush and Secretary of State Condoleezza 
Rice for their efforts in transforming the understandings with 
Olmert, reached during his last visit to Washington, into a binding 
agreement.  Ha'aretz quoted Olmert as saying: "The aid agreement 
with the US is an important and significant component for Israel, 
and proves once again the depth of the relationship between the two 
countries and the United States' commitment to Israel's security, 
and to preserving its qualitative advantage over other countries in 
the Middle East."  Ha'aretz reported that Burns also met Wednesday 
with Transportation Minister Shaul Mofaz, who oversees the strategic 
dialogue with the US.  Mofaz and Burns agreed to hold a strategic 
dialogue in mid-October on Iran and Lebanon. 
 
Yediot reported that Olmert and PA Chairman (President) Mahmoud 
Abbas are shaping up a final-status agreement and that they plan to 
present a document for approval to the participants of the 
international meeting in November.  Yediot quoted Olmert as saying 
that he strives to reach understandings that will resolve the 
conflict. 
 
Yediot reported that following reports about progress in talks 
between PM Olmert and Chairman Abbas, Saudi King Abdullah has 
decided to resume his participation in the peace efforts, and that 
he is personally involved in the secret preparations ahead of the 
Washington meeting. 
 
Ha'aretz quoted GOI sources in Jerusalem as saying on Wednesday that 
Israel is working to promote an economic plan to complement the 
agreement of principles ahead of the regional conference later this 
year.  Ha'aretz quoted a source as saying that the plan would 
provide an "economic horizon" with a number of future investment 
projects when the Palestinian state is declared.  Ha'aretz quoted a 
senior GOI official as saying that the plan's goal is to "present 
the Palestinians with economic signposts along with the diplomatic 
signposts to show what can be accomplished."  Ha'aretz reported that 
FM Tzipi Livni told foreign ministers and other officials in Europe 
that the plan needed international support. Makor-Rishon-Hatzofe 
quoted Livni as saying that economic projects cannot replace a 
diplomatic process between the sides.  The "strategic" projects 
Israel has suggested so far include infrastructure improvements such 
as electricity and water, city planning in the West Bank and Gaza, 
rehabilitation of sewage systems and the establishment of a "peace 
corridor" in Jericho.  Ha'aretz reported that Livni has presented 
the plan to the Quartet's Middle East envoy, Tony Blair. 
 
The Jerusalem Post reported that following conciliatory signals from 
Abbas to Hamas, PM Olmert's office warned on Wednesday that any 
Fatah-Hamas unification would lead to a breakdown in the diplomatic 
process with the reconstituted PA. 
 
Ha'aretz reported that Turkish officials trying to jump-start peace 
efforts between Syria and Israel told the newspaper that Israel 
should not view Syria as a branch of Iran because Tehran and 
Damascus differ on regional issues. 
 
The Jerusalem Post reported that on Wednesday Israeli officials in 
Washington welcomed reports that the US is set to brand the Iranian 
Revolutionary Guards a terrorist entity, saying that the move could 
help dislocate the "strategic backbone" of the regime in Tehran.  In 
another development, The Jerusalem Post quoted Yayha Rahim Safavi, 
the commander of the Iranian Revolutionary Guard Corps, as saying 
that Iran has developed a missile that can penetrate the armor of an 
Israeli-made tank and a US-made Abrams tank.  Safavi was also quoted 
as saying that Iran has land-to-sea missiles that can hit any ship 
in the Persian Gulf. 
 
Maariv reported that the Winograd Commission is expected to tell the 
High Court of Justice that the public, not the commission, will 
determine the fate of public figures involved in the Second Lebanon 
War. 
 
Major media reported that on Tuesday IDF forces uncovered and 
detonated a tunnel in the northern Gaza Strip, which was dug to 
facilitate a terror attack against Israel. 
 
Ha'aretz reported that the Israeli group Physicians for Human Rights 
has filed a complaint against the IDF's Civil Administration's 
health coordinator, Dalia Basa, accusing her of negligent homicide. 
An 18-year-old Palestinian died at a roadblock after a traffic 
accident.  He was not rushed in time to a Jerusalem hospital. 
 
Ha'aretz reported that on Wednesday Defense Minister Ehud Barak 
warned that to sanction ideologically motivated refusal of orders by 
IDF troops is to jeopardize Israeli democracy. 
 
Ha'aretz found that most West Bank settlements are outside the 
separation fence, but that the majority of the settlers live west of 
it. 
 
Leading media reported that in three weeks Transportation Minister 
Shaul Mofaz will put an end to the guarding of buses because of the 
drop in terrorist attacks. 
 
Ha'aretz and Yediot reported that the Deputy IDF Chief of Staff, 
Maj. Gen. Moshe Kaplinsky, and IDF Chief of Staff Gabi Ashkenazi, 
has decided that Kaplinsky will not be replaced next month as 
scheduled but that he will remain in office for several additional 
weeks.  Ha'aretz noted that the reason for the delay was described 
as "personal," but it may also pertain to the rising tensions 
between Syria and Israel.  Ha'aretz quoted army sources as saying 
that Ashkenazi is seeking to avoid unnecessary changes for the IDF 
at this sensitive point in time.  The newspapers said that 
Kaplinsky's replacement is Maj. Gen. Dan Harel, military attache in 
Washington. 
 
Yediot reported that Likud Chairman Binyamin Netanyahu has received 
2 million shekels (around USD 470,000) in donations to finance his 
competition in the Likud primary.  Yediot quoted his office as 
saying that he only gets monies from US Jews to avoiding conflicting 
interests in Israel.  However, Yediot found that some of the donors 
are linked to business people in Israel. 
 
The Jerusalem Post quoted the American magazine GQ as saying that 
Howard Kohr, the executive director of AIPAC, is Washington's sixth 
most powerful person. 
 
Leading media reported that the data released this month by the 
GOI's Central Bureau of Statistics indicate an inflationary trend, 
as the Consumer Price Index rose by 1.1 percent. 
 
Yediot and Israel Radio reported that as part of the celebrations of 
the 60th anniversary of Israel's independence, Knesset Speaker Dalia 
Itzik plans to reenact the historic UN vote on the partition of 
Palestine, with the participation of 33 ambassadors from the 
countries that voted in favor of the November 29, 1947 resolution. 
The media reported that Itzik invited UN Secretary-General Ban 
Ki-moon to take part in the event. 
 
All media cited a report by a committee investigating aviation 
safety in Israel as saying that the condition of civil aviation is 
critical and that Ben-Gurion Airport is incapacitated. 
 
 
 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Diplomatic correspondent Shimon Shiffer wrote in the 
mass-circulation, pluralist Yediot Aharonot: "If [Prime Minister 
Olmert and Chairman Abbas] succeed in working out an initial 
arrangement for peace between Israel and Palestine, Olmert can 
expect to chalk up a significant achievement in the international 
conference in Washington -- recognition of Israel from such 
countries as Saudi Arabia and the Persian Gulf emirates." 
 
Military correspondent Amos Harel wrote in the independent, 
left-leaning Ha'aretz: "Whether war will break out in the summer or 
in fall is not up to Assad alone.  It also depends on how much 
restraint Israel shows." 
 
Yossi Ben-Aharon, who was director-general of the Prime Minister's 
Office under former prime minister Yitzhak Shamir, argued in the 
popular, pluralist Maariv: "Arab aggression against the Jews, 
including that of Arabs in the Land of Israel, led to mass flight 
and emigration in both directions." 
 
Block Quotes: 
------------- 
 
¶I.  "The Goal: An Agreement by November" 
 
Diplomatic correspondent Shimon Shiffer wrote in the 
mass-circulation, pluralist Yediot Aharonot (8/16): "Ehud Olmert 
wants to go down in history as the prime minister of peace and not 
as the prime minister of war.  His goal is to work out the 
principles of the permanent status arrangement with the Palestinians 
within two-three months.  On the Palestinian side of the table is a 
leader who does not have a lot to lose, after basically losing the 
Gaza Strip -- Abu Mazen.  The two, who have been meeting regularly 
lately under American pressure, decided to use their time together 
to work and dove straight into the deep water -- serious talks on 
the main issues in dispute -- Jerusalem, refugees and permanent 
borders.... Olmert revealed to [a Congressional delegation that 
visited Israel this week] that he and Abu Mazen will make an effort 
to formulate the principles of the permanent status arrangement 
before the international conference.  Olmert explained to his guests 
that very few Israelis believe today that it is possible to reach an 
arrangement with the Palestinians and to implement it on the ground. 
 'Nonetheless,' he added, 'it is worth trying to reach agreements 
with Abu Mazen on the core issues that created the conflict'....  If 
the two leaders succeed in working out an initial arrangement for 
peace between Israel and Palestine, Olmert can expect to chalk up a 
significant achievement in the international conference in 
Washington -- recognition of Israel from such countries as Saudi 
Arabia and the Persian Gulf emirates.  It is important to note that 
even if written understandings are reached, Olmert will be able to 
control the timetable for their implementation, at least until the 
Palestinians prove they are capable of controlling their state." 
 
II.  "Restraint and Strength" 
 
Military correspondent Amos Harel wrote in the independent, 
left-leaning Ha'aretz (8/16): "Whether war will break out in the 
summer or in fall is not up to Assad alone.  It also depends on how 
much restraint Israel shows in the face of attempts to drag it into 
a conflict.  Last year, Olmert failed this test in the North.  This 
time, he has a defense minister and chief of staff who know the 
Syrian arena.  He should not be tempted to prove our superiority 
this time around. Olmert, [Defense Minister Ehud] Barak and [IDF 
Chief of Staff Gabi] Ashkenazi's main challenge is still to prevent 
war, not win it." 
 
III.  "Our Refugees" 
 
Yossi Ben-Aharon, who was director-general of the Prime Minister's 
Office under former prime minister Yitzhak Shamir, argued in the 
popular, pluralist Maariv (8/16): "Prior to the 'peace conference' 
planned for this fall, Arab leaders warn that this time the 
conference must discuss the 'core' issues of the conflict, 
otherwise, they threaten, there is no point in holding it.  These 
subjects refer to borders, Jerusalem and refugees.  UN Resolution 
242, which to this day is used as the basis for negotiations on an 
arrangement, includes a call for a just solution to the refugee 
problem.... Arab aggression against the Jews, including that of 
Arabs in the Land of Israel, led to mass flight and emigration in 
both directions.  Therefore, there are no grounds to the argument 
that the Palestinians have first ownership rights to the Land of 
Israel, nor to the argument that derives from this regarding the 
Palestinian refugees' 'right of return'.... It is time that the 
government of Israel adopted an overall two-pronged approach with 
moral, political and PR validity: 1) The international community 
twice recognized the historical link of the Jewish people to the 
Land of Israel (by the League of Nations and the UN) and its 
political rights as derived from this.  2) Jews from Arab countries 
(who make up about half of the population in Israel) have basic 
rights to self determination, focusing specifically on the Land of 
Israel, as a result of population swaps that the Arabs forced on 
them with their aggression, and this is above and beyond their 
religious and historic link to the Land of Israel.  Adopting this 
line will provide an effective answer to the campaign of 
delegitimization against Israel, and will utterly reject the 
Palestinian refugeesQ demand for the 'right of return.'" 
 
--------- 
¶2.  Iran: 
--------- 
 
Summary: 
-------- 
 
Op-Ed Page Editor Ben-Dror Yemini wrote in the popular, pluralist 
Maariv: "[Mahmoud Ahmadinejad] wants to impose Islam on the world -- 
no less." 
 
Block Quotes: 
------------- 
 
"The Tehran Tyrant" 
 
Op-Ed Page Editor Ben-Dror Yemini wrote in the popular, pluralist 
Maariv (8/16): Quietly, without being seriously discussed in most 
world media, the Iranian President clarified this week that his goal 
is neither Israel nor the elimination of Zionism.  In fact he made 
clear remarks about his immediate, present intentions.  He is going 
for something much bigger.  He wants to impose Islam on the world -- 
no less..... What more should be understood for the West to wake up? 
 Let us leave aside the 'progressive forces' whose strength is great 
in the Western media and academe.  Where are the leaders?  Where are 
the people with a real conscience?  Where are the historians who 
have not yet lost their compass in the face of the terror police of 
the politically correct? Why are they not calling the tyrant by 
name?  The world is silent.  Only a miracle will cause it not to 
pay." 
 
JONES