VZCZCXYZ0011
PP RUEHWEB

DE RUEHTV #2504/01 2290941
ZNR UUUUU ZZH
P 170941Z AUG 07
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 2819
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 2603
RUEHAS/AMEMBASSY ALGIERS PRIORITY 9314
RUEHAM/AMEMBASSY AMMAN PRIORITY 2681
RUEHAK/AMEMBASSY ANKARA PRIORITY 3406
RUEHLB/AMEMBASSY BEIRUT PRIORITY 2638
RUEHEG/AMEMBASSY CAIRO PRIORITY 0619
RUEHDM/AMEMBASSY DAMASCUS PRIORITY 3370
RUEHLO/AMEMBASSY LONDON PRIORITY 0240
RUEHFR/AMEMBASSY PARIS PRIORITY 0705
RUEHRB/AMEMBASSY RABAT PRIORITY 7297
RUEHRO/AMEMBASSY ROME PRIORITY 4726
RUEHRH/AMEMBASSY RIYADH PRIORITY 9632
RUEHTU/AMEMBASSY TUNIS PRIORITY 3796
RUCNDT/USMISSION USUN NEW YORK PRIORITY 5740
RUEHJM/AMCONSUL JERUSALEM PRIORITY 7685
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
RHMFISS/COMSOCEUR VAIHINGEN GE PRIORITY
RHMFIUU/COMSIXTHFLT  PRIORITY

UNCLAS TEL AVIV 002504 
 
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.  US Aid to Israel 
 
¶2.  Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Ha'aretz quoted Under Secretary of State for Political Affairs 
Nicholas Burns as saying on Thursday that the new USD 30-billion 
defense package for Israel is not conditioned on diplomatic progress 
or concessions to the Palestinians. 
 
The Jerusalem Post reported that Israeli and US officials are 
discussing what military equipment Israel can buy and Saudi Arabia 
cannot, in order for Israel to retain its qualitative military edge. 
 The newspaper reported that U/S Burns discussed details of the 
issue with Defense Minister Ehud Barak and other senior Israeli 
officials. 
 
Ha'aretz quoted Israeli defense industry officials as saying on 
Thursday that the lack of consistent funding may leave the home 
front open to rocket and missile threats from neighboring countries. 
 In particular, the officials were quoted as saying that they were 
concerned about the absence of regular government funding for the 
Iron Dome missile interception project. 
 
Ha'aretz reported that GOI sources in Jerusalem told the newspaper 
this week that talks between PM Ehud Olmert and PA Chairman 
[President] Mahmoud Abbas are stuck on the issue of the Palestinian 
refugee problem.  The sources were quoted as saying that Abbas is 
refusing to make significant concessions. 
 
Ha'aretz quoted Syrian cabinet minister Buthaynah Shaaban as saying 
in an interview with the Arabic-language BBC that Syria does not 
want war.  Ha'aretz reported that Arab sources in Israel told the 
newspaper on Thursday that family members in Syria say that the 
street is preparing for war, and that rumors of war are flying. 
Ha'aretz quoted Hassan Fadlallah, a representative of Hizbullah in 
the Lebanese parliament, as saying in Thursday that his organization 
"is not looking for war and does not want war."  However, Lebanese 
residents told Ha'aretz that there was concern there about a 
regional war.  Maariv cited the London-based Al-Quds Al-Arabi as 
saying that Hizbullah owns weapons of mass destruction.  In an 
interview with Yediot, Strategic Affairs Minister Avigdor Lieberman 
advocated the destruction of Syria's infrastructure and the 
elimination of its will to fight "as the US did to Germany." 
 
Makor Rishon-Hatzofe reported that Jibril Rajoub, Special Adviser to 
Abbas on internal Palestinian affairs, will negotiate with Hamas. 
The Jerusalem Post reported that on Thursday members of Hamas's 
Executive Force detained PA Attorney General Ahmed al-Mughni on 
suspicion of conspiring to smuggle files of Palestinians involved in 
financial corruption and murder. 
 
Makor Rishon-Hatzofe reported that Hamas will receive royalties from 
the purchase by Israel of natural gas from the British company BG. 
 
The Jerusalem Post reported that American Jewish organizations are 
worried that changes to a special visa program for religious workers 
could prevent hundreds of Israelis from coming to the US and leave 
vital religious jobs unfilled. 
 
All media reported on the influence of the recent financial meltdown 
in world financial markets on Israel.  The media cited the 
prediction of experts that shares on the Tel Aviv Stock Exchange 
will rise again in the shorter or the longer term. 
 
The Jerusalem Post quoted senior leaders of several US Jewish groups 
as saying on Thursday that the Sudanese refugees seeking asylum in 
Israel are creating a rift between Diaspora organizations and the 
GOI. 
 
CNN chief international correspondent Christiane Amanpour, who is 
preparing a series on religious extremists -- "God's Warriors" --, 
was quoted as saying in an interview with Yediot that the wild 
fringes have become the world's political center.  She was also 
quoted as saying that the Jewish faith has kindled the Muslim 
world. 
 
Leading media reported that on Thursday the Task Force on Human 
Trafficking held a protest in front of Ha'aretz offices, claiming 
that the newspaper was continuing to publish advertisements 
encouraging human trafficking. 
 
Israel Plans New Financial Incentives to Lure Back Citizens Living 
Abroad.  Yediot reported that the state plans to grant significant 
financial advantages to returning Israelis. 
 
The Jerusalem Post quoted the World Jewish Congress as saying on 
Thursday that the organization has approved Michael Schneider as its 
next secretary general.  He will replace Stephen E. Herbits on 
September 10. 
 
The Jerusalem Post quoted officials as saying on Thursday that an 
American evangelist and his wife -- Ron and Carol Cantrell -- who 
have been living in Israel for nearly two decades have been ordered 
to leave the country within two weeks, after their request for 
permanent residency was turned down. 
 
Ha'aretz reported that its panel of experts examining the upcoming 
US presidential elections in light of US-Israel relations considers 
former New York Mayor Rudolph Giuliani the candidate most supportive 
of Israel.  The panel also rates Sen. Hillary Rodham Clinton and 
current New York Mayor Michael Bloomberg as good for Israel. 
 
 
 
 
 
 
--------------------- 
¶1.  US Aid to Israel: 
--------------------- 
 
Summary: 
-------- 
 
Diplomatic correspondent Herb Keinon wrote in the conservative, 
independent Jerusalem Post: "Beyond the state-of-the-art weaponry 
that Israel will be able to buy with USD 30 billion, the package 
sends a message to both Israel and its enemies that on this matter, 
the US very much means what it says." 
 
Block Quotes: 
------------- 
 
"A USD 30-Billion Signal of Unshakable Support" 
 
Diplomatic correspondent Herb Keinon wrote in the conservative, 
independent Jerusalem Post (8/17): "Even with the Saudi deal ... the 
US security commitment to Israel that the deal demonstrates is 
unmistakable and is based on two premises that have been mainstays 
in Washington since the Reagan Administration.  The first premise is 
 
that Israel will only make moves for peace -- take risks for peace 
-- if it feels that its security is ensured.  And the other premise 
is that the Arab world will only come around to recognizing Israel 
as a given in the region if it realizes that the US will never 
abandon it.... Beyond the state-of-the-art weaponry that Israel will 
be able to buy with USD 30 billion, the package sends a message to 
both Israel and its enemies that on this matter, the US very much 
means what it says." 
 
------------ 
¶2.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Diplomatic correspondent Ben Caspit wrote in the popular, pluralist 
Maariv: "Core issues are not a final-status agreement -- far from 
it." 
 
The conservative, independent Jerusalem Post editorialized: "A peace 
process that is treated as an end in itself, rather than as a part 
of a comprehensive strategy to defeat the sources of Islamic 
radicalism in the region, could actually serve Iranian ends." 
 
Block Quotes: 
------------- 
 
¶I.  "Hot Air" 
 
Diplomatic correspondent Ben Caspit wrote in the popular, pluralist 
Maariv (8/17): "[Because of the soon to be released conclusions of 
the Winograd Commission], it is certain that 2008 will be an 
election year.  This is precisely why, more than at any time in the 
past, Ehud Olmert needs an agenda, a plan, something that will bring 
hope -- allowing him to stay in power after the Jewish holidays 
[September-October].  This situation is fueling the engine of 
peace.... [Olmert's] ambition is to reach an agreement on core 
issues with Abu Mazen around the expected November meeting.  He has 
been speaking with Abbas about core issues for a long time.  The 
problem is that core issues are not a final-status agreement -- far 
from it.  They are a linguistic trick that will allow each side to 
understand what it wants and continue.  In fact this is a lot of hot 
air blown by two leaders who wish to be lifted up." 
 
II.  "Don't Forget the Core Problem" 
 
The conservative, independent Jerusalem Post editorialized (8/17): 
"Prime Minister Ehud Olmert reportedly told a visiting US 
Congressional delegation this week that he has been discussing the 
broad parameters of 'core issues' with Palestinian Authority 
Chairman Mahmoud Abbas.  Presumably, the two leaders are trying to 
agree on a set of principles for a permanent peace accord that would 
be endorsed by the regional conference in the US in November called 
by President George W. Bush.  There is a strong whiff of unreality 
to all this.  Olmert has the sword of Winograd hanging over him.... 
Abbas is widely considered ineffectual even in the West Bank and is 
now, despite being ignominiously ousted by Hamas in Gaza, talking of 
a 'return to national unity' with those openly sworn to Israel's 
destruction.... A peace process that is treated as an end in itself, 
rather than as a part of a comprehensive strategy to defeat the 
sources of Islamic radicalism in the region, could actually serve 
Iranian ends by distracting the West and giving the mullahs more 
time to advance their nuclear programs.  The same goes for arms 
transfers to American quasi-allies in the Gulf.  Such measures dance 
around the periphery of the problem, and will not of themselves be 
sufficient to address its core.  By some combination of economic, 
diplomatic, military, and internal pressures, Iran must be forced to 
back down.  Olmert may be discussing 'core issues' in the 
Palestinian context, but without serious pursuit of this core 
agenda, no initialed principles will have a chance of becoming 
reality." 
 
JONES