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UNCLAS TEL AVIV 003257 
 
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 
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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 Jerusalem Post reported that Israel expects the US to formally 
confirm the Annapolis meeting on Friday for the last week of 
November.  Major media suggested that President Bush would host the 
opening evening on November 25, with two or three days of summit 
talks to follow.   The Jerusalem Post quoted a source in the Prime 
Minister's Office as saying that Israel would respond positively to 
the summit invitation, even though negotiations are still continuing 
on a joint statement of principles.  Media reported that these talks 
are making progress and Palestinian negotiators have eased their 
demands that the peace conference lay out a specific timetable for 
statehood.   The Jerusalem Post quoted Miri Eisin, PM Ehud Olmert's 
spokeswoman, as saying, "Annapolis is not about the statement 
itself, and completing the statement is not an imperative for the 
conference."  Ha'aretz reported that on Thursday Israel and the PA 
agreed that any future agreement between them will be conditioned on 
the implementation of the first stage of the road map. 
 
The Jerusalem Post reported that Israel will be represented at 
Annapolis by PM Ehud Olmert, FM Tzipi Livni, and a negotiating team 
made up of officials from the Prime Minister's Office and the 
Foreign and Defense ministries. Palestinian Authority President 
Mahmoud Abbas will head the Palestinian delegation, which will 
include former Palestinian PM Ahmed Qurei (Abu Ala). 
 
Maariv cited the Shin Bet's belief that the Palestinians might 
soften their demands and content themselves with an Israeli 
agreement  to take in 100,000 refugees over the next decade.  Makor 
Rishon-Hatzofe reported that a classified Israeli intelligence 
report claims that Abbas and the PA are unable to implement an 
agreement with Israel, and that there is a total disconnect between 
the Palestinians' leadership and their public. 
 
The Jerusalem Post reported that Strategic Affairs Minister Avigdor 
Lieberman told the newspaper on Thursday that Egyptian and Saudi 
intentions to begin or revive their nuclear programs present an 
"apocalyptic scenario."  Lieberman was also quoted as saying that 
Pakistan was a major threat to Israel due to the political 
instability there and the fact that the country has "missiles, 
nuclear weapons and a proven capability."  Ha'aretz reported that 
during a meeting with PM Olmert on Thursday, Lieberman demanded that 
he submit the outline of the Annapolis declaration to the cabinet 
for approval before leaving for the meeting.  Ha'aretz quoted 
sources close to Lieberman as saying that Olmert promised to hold 
such a cabinet discussion. They added that the PM has thus far 
behaved decently toward Lieberman's party Yisrael Beiteinu and that 
he has kept his promises.  Ha'aretz reported that the Shas party 
"says 'yes' to talks but 'no' to declarations." 
 
Major media reported that on Thursday PM Olmert and Defense Minister 
Ehud Barak held a private meeting to reach an understanding for 
routine meetings between Olmert and senior defense officials. 
 
The Jerusalem Post reported that on Thursday Assistant Secretary of 
State for Near Eastern affairs David Welch told the newspaper that 
the United States' intention is to have a meeting at Annapolis 
devoted to the Palestinian issue."  The newspaper reported that 
Welch ruled out that an "Annapolis II" was planned for Syria.  On 
Sunday IDF Radio quoted  Defense Minister Barak as saying recently 
in a closed forum that Israel should seriously consider opening 
negotiations with Syria. 
 
Ha'aretz and Yediot reported that Israel's Ambassador to the UK, Zvi 
Heifetz, is expected to serve as an informal adviser to Quartet 
envoy Tony Blair after Heifetz's posting ends. Heifetz's stint in 
London is due to end next week. 
 
Yediot reported that  less than 18 months after the Second Lebanon 
War, Hizbullah has the 10th largest stockpile of rockets in the 
world.  Leading media quoted Hizbullah Secretary-General as saying 
that the exercise his organization held this week was a "preparation 
for the next war."  The Jerusalem Post cited Israel's concern that 
European countries might "downsize" from UNIFIL, as the 
international troops are said to be busier protecting themselves 
than tackling Hizbullah. 
 
Israel Radio reported that responding to a petition by the group 
Physicians for Human Rights-Israel (PHR), the High Court of Justice 
asked the state why it will not allow severely ill Palestinians to 
receive medical treatment in Israel.  Justice Salim Joubran rejected 
PHR's request to expedite the case. 
 
 
Israel Radio reported that today women from Jordan and Israel will 
meet along the border between the countries in an event called 
"Women Build a Bridge of Peace"  The radio said that the Israeli 
delegation will comprise Jewish and Arab women, and that the 
delegations will be headed by a Jordanian general and Israeli 
Science, Culture, and Sport Minister Raleb Majadele. 
 
Ha'aretz reported that Spain seeks to improve its ties with Israel 
and end the crisis that has plagued bilateral relations since the 
election of Jose Luis Rodriguez Zapatero in 2004.  Ha'aretz quoted 
Carles Casajuana, foreign and security policy adviser to Zapatero, 
as saying on a visit to Israel that Spain is examining ways to 
contribute to the Annapolis peace effort.  "If Spain is asked to 
contribute troops to the region -- as part of an Israeli-Palestinian 
agreement -- undoubtedly it will respond positively," Casajuana was 
quoted as saying. 
 
Ha'aretz reported that Pensioner Affairs Minister Rafi Eitan is 
seeking to reopen the 1952 reparations agreement between Israel and 
Germany.  He was quoted as saying that Israel sees Germany as 
responsible for the Holocaust survivors. 
 
Ha'aretz quoted Menachem Ben-Sasson, Chairman of the Knesset's 
Constitution, Law and Justice Committee, as sayng that his committee 
will soon begin discussing a shift from straight proportional 
representation to a mixed system in which some Knesset members would 
be elected from districts. 
 
Leading media reported that Accountant-General Yaron Zelekha, the 
whistleblower in the Bank Leumi affair in which PM Ehud Olmert is 
allegedly involved, may soon resign. 
 
Leading media quoted the Chairman of the Knesset's State Control 
Committee, Zevulun Orlev (National Religious Party) as saying on 
Thursday that he intended to ask State Comptroller Micha 
Lindenstrauss to examine the behavior of successive Israeli 
governments in the Pollard affair.  Jonathan Pollard was quoted as 
saying in an interview with Yediot that he believes that senior 
Israeli politicians want him to commit suicide. 
 
Ha'aretz reported that senior Israeli banking officials and analysts 
fear that the worsening of the world credit crunch and the continued 
sub-prime crisis in the US will cost Bank Hapoalim, Israel's largest 
bank, to lose hundreds of millions of shekels.  (Thursday's exchange 
rate for the US dollar was 3.927 shekels.) 
 
Leading media reported that the Tax Authority investigators intend 
to probe Yisrael Beiteinu MK Esterina Tartman over the alleged 
affair involving her partner Uri Shmuel, who is suspected of selling 
fuel originally meant for the PA without reporting to the Tax 
Authority. 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Op-Ed Page Editor Ben-Dror Yemini wrote in the popular, pluralist 
Maariv: "More than a fight over these or other paragraphs, the 
Annapolis conference will be an arena for the fight over Israel's 
legitimacy." 
 
Senior columnist and longtime dove Yoel Marcus wrote in the 
independent, left-leaning Ha'aretz: "No Israeli prime minister has 
ever pretended that he could work out all the snags in our struggle 
with the Palestinians.  For now, there is no one to talk to, and 
nothing to talk about." 
 
 
 
 
 
Block Quotes: 
------------- 
 
¶I.  "The Tip of the Iceberg" 
 
Op-Ed Page Editor Ben-Dror Yemini wrote in the popular, pluralist 
Maariv (11/9): "In the world, there are those who try to continue to 
nurture the enormous campaign of delegitimization [of Israel].   The 
academic boycott in Great Britain is only the tip of the iceberg.... 
In other words, [this is about] the destruction of Israel.... Now we 
have a golden opportunity.  More than a fight over these or other 
paragraphs, the Annapolis conference will be an arena for the fight 
over Israel's legitimacy.  Therefore, Israel must say yes.  Yes to 
ending the occupation.  Yes to a Palestinian state.  Yes to a just 
solution to the refugee problem.  The Palestinians already say no. 
They have already made it clear that they oppose the formula of 'two 
states for two peoples.'  They are willing to have only 'two states' 
-- in other words, one Palestinian state immediately, and another 
one when the right of return is realized.  Not the whole world is 
against us.  Most of the sane world supports a solution of two 
states for two peoples. If and when the Palestinians agree to this, 
it will be necessary to take into account all the correct claims of 
the right wing, which do not belong to it alone: how to prevent 
Iranization and how to prevent rockets being fired at Ben-Gurion 
Airport and [central Israel].  But the Palestinians want to exempt 
us from that discussion." 
 
II.  "A Journey to La-La Land" 
 
Senior columnist and longtime dove Yoel Marcus wrote in the 
independent, left-leaning Ha'aretz (11/9): "With the same haste that 
characterized his decision to embark on the Second Lebanon War, 
Olmert declared at the Saban Forum that he is going to Annapolis 
with no lesser goal than solving all the fundamental historic 
problems of the Israeli-Palestinian conflict -- borders, refugees, 
Jerusalem, the whole kit and caboodle -- maybe even before President 
George W. Bush's term ends at the beginning of 2009.... Defense 
Minister Ehud Barak has rightly warned of the dangers that lie ahead 
in Annapolis and advised Olmert and other top ministers to look 
before they leap.... No Israeli prime minister has ever pretended 
that he could work out all the snags in our struggle with the 
Palestinians.  For now, there is no one to talk to, and nothing to 
talk about.  One after another, their leaders have turned out to be 
bloodthirsty extremists or too weak to reach an agreement, of which 
compromise is a central component.  In the Palestinian camp, there 
is a sense that they have nothing to lose, while Olmert will find 
himself at Annapolis in a situation where he cannot say no to 
Condoleezza Rice, who will be flexing all her muscles to bring home 
at least one achievement, at our expense, before Bush leaves the 
White House.  At most, Palestinian Authority Chairman Mahmoud Abbas 
will quit and Hamas will grab the reins -- a scenario that is not so 
far-fetched even without Annapolis.  President Shimon Peres is on 
the ball when he says that failure is not an alternative, but a 
catastrophe." 
 
--------- 
¶2.  Iran: 
--------- 
 
Summary: 
-------- 
 
Columnist Calev Ben-David wrote on page one of the conservative, 
independent Jerusalem Post: "Calculations involving Iran most 
certainly factor in as Jerusalem shows a willingness to boldly move 
ahead on the West Bank/Palestinian front." 
 
The Jerusalem Post editorialized: "Germany has become a key 
bottleneck in the sanctions campaign." 
 
Editorial staff member Michalis Firillas wrote in the independent, 
left-leaning Ha'aretz: "Iran's nuclear program, and its president's 
vitriol, are certainly cause for concern, but they may have served 
to draw our attention away from a much more immediate danger -- in 
Pakistan." 
 
Block Quotes: 
------------- 
 
 
¶I.  "Heading for Annapolis While Looking toward Tehran" 
 
Columnist Calev Ben-David wrote on page one of the conservative, 
independent Jerusalem Post (11/9): "Resolving the 
Israeli-Palestinian conflict so that Israel can focus on countering 
the growing threat posed by an increasingly powerful Iran has been a 
general strategic principle going all the way back to the Oslo 
Accords.  But never before has it seemed more urgent..... The 
conference is not ... simply a wedding being held on false pretenses 
for other purposes; the Olmert government is sincere about trying to 
move the Israeli-Palestinian peace process forward.  But 
calculations involving Iran most certainly factor in as Jerusalem 
shows a willingness to boldly move ahead on the West 
Bank/Palestinian front -- as it prepares itself for a post-Annapolis 
period that, on the Iranian and Gaza fronts, will certainly be no 
honeymoon." 
 
II.  "The German Bottleneck" 
 
The Jerusalem Post editorialized (11/9): "The sanctions train is not 
moving fast enough to overtake and block Iran's nuclear train.  At 
the same time, despite US President George W. Bush's increasing 
insistence that Iran must be stopped, there are no external signs 
that he is trying, let alone succeeding, to overturn barely 
concealed Pentagon and State Department opposition to such a move. 
This leaves Israel.... Relying on Israel to take military action is 
the worst possible scenario short of allowing the world's foremost 
terrorist regime to go nuclear.... There is no excuse for the 
failure of the sanctions track, regardless of the obstructionism of 
China and Russia.... In this context, Germany has become a key 
bottleneck in the sanctions campaign.  While France and Britain are 
pressing for tighter EU sanctions, Germany is hiding behind the UN, 
where the Chinese and Russian vetoes prevail.... [Chancellor Angela 
Merkel] must now have the courage to say to her public and the more 
than 100 major German companies still trading with Iran: Tighter 
sanctions are the only way to prevent war and the necessity of 
military action." 
 
III.  "A Twin Nuclear Crisis in 2008?" 
 
Editorial staff member Michalis Firillas wrote in the independent, 
left-leaning Ha'aretz (11/9): "Iran's nuclear program, and its 
president's vitriol, are certainly cause for concern, but they may 
have served to draw our attention away from a much more immediate 
danger -- in Pakistan.... If Pakistan is in turmoil, starved for 
funds, with power devolving into the hands of various groups, 
including rogue elements in its powerful Inter-Services Intelligence 
(ISI) with known ties to Islamic extremists, nuclear proliferation 
is likely.  This could come in the form of off-the-shelf weapons 
being sold to countries like Saudi Arabia, forced to turn nuclear by 
an Iranian bomb, or with terrorists interested in acquiring small 
quantities of fissile material for 'dirty bombs,' whose potential 
targets are many.  Indeed, according to the Foreign Policy survey, 
three-quarters of the experts pointed to Pakistan as the country 
'most likely to transfer nuclear technology to terrorists in the 
next three to five years.'  In spite of calls for elections, these 
may prove to be too little too late to stem chaos in Pakistan -- 
which could include the loss of parts of the country to radical 
armed groups.  For Israel and the West, this means preparing to face 
two nuclear crises in 2008." 
 
JONES