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UNCLAS TEL AVIV 000186 
 
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.  World Financial Crunch 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Ha'aretz reported that according to defense sources,  Israel intends 
to keep the crossings into the Gaza Strip permanently closed and 
will only allow emergency humanitarian relief when it deems it 
necessary.  This new policy will allow the transfer of sufficient 
aid and materials to the Palestinians to prevent a humanitarian 
catastrophe and minimize international criticism, "but so long as 
the rocket attacks continue there will not be a situation in which 
one hundred trucks a day cross into the Strip," a security source 
was quoted as saying.  The Jerusalem Post reported that, following a 
wave of international criticism, Israel allowed 725,000 liters of 
fuel for the Gaza power plant, 250,000 liters for hospital 
generators, 350 tons of cooking gas, and 13 trucks filled with rice, 
milk, wheat, and medical supplies to enter the Strip.   Leading 
media reported that on Tuesday Palestinian organizations fired 17 
Qassam rockets at the Sderot area.  Israel Radio quoted Hamas 
sources as saying that a Hamas activist was killed last night in a 
clash with IDF troops near the Sufa Crossing. 
 
Leading media reported that Israel tried to convince members of the 
UN Security Council to reject a draft statement submitted by Libya, 
chair of the council this month, that calls on Israel to 
"immediately cease all its illegal measures and practices against 
the Palestinian civilian population in the Gaza Strip."  The council 
met in an emergency meeting Tuesday, called for by the Arab states 
amid a growing international outcry at what the European Union 
called the "collective punishment" of Gaza's residents.  The 
Jerusalem Post quoted officials at the Israeli Mission to the UN as 
saying that, the U.S. pledged not to agree to any statement 
concerning the situation in Israel, and that they expected other 
members of the Security Council to also reject the language of the 
statement.  Leading media reported that Foreign Ministry officials 
in Jerusalem clarified that what was at issue was a statement, and 
not a Security Council resolution.     The Jerusalem Post reported 
that U.S. Ambassador to the UN Zalmay Khalilzad told the Security 
 
Council that Hamas "bears responsibility for the current situation." 
 
 
All media reported that on Tuesday Egypt delivered a strong warning 
to Gaza's Hamas government on Tuesday after thousands of 
Palestinians stormed the Egyptian side of the Rafah border crossing. 
 At least 90 Gazans, most of them women, were wounded by Egyptian 
border guards using tear gas, clubs, water cannons and live 
ammunition to disperse the demonstrators, who were protesting 
against the continued closure of the border crossing.  Leading media 
reported that masked Palestinian gunmen detonated explosives early 
on Wednesday next to the border wall separating Gaza and Egypt 
causing several holes in the iron barrier.  Thousands of 
Palestinians on Wednesday morning infiltrated the Sinai after 
crossing the Egypt-Gaza border through holes in the wall created by 
the blast. 
 
In its lead story, Yediot reported that PM Ehud Olmert's associates 
angrily responded to the letter by 50 IDF reservist officers, saying 
that they crossed a red line.  The associates were quoted as saying: 
"If the officers had made as many efforts in Lebanon as in their 
fight against Olmert, our situation in the war may have been 
better."  Yediot and other media reported that bereaved families 
whose sons died in the Second Lebanon War wrote the Winograd 
Commission, demanding that they adopt strong-minded recommendations. 
 Maariv cited the IDF's concern that the Winograd Commission will 
reveal valuable intelligence.  The Jerusalem Post reported that PM 
Olmert received a boost from the far left of the political map on 
Tuesday when former Knesset speaker Avraham Burg, former Meretz 
leader Shulamit Aloni, and Peace Now Director-General said he should 
be allowed to remain in power after the Winograd Report's 
publication. 
 
Ha'aretz and other media reported that on Tuesday the foreign 
ministers of the five permanent members of the UN Security Council 
plus Germany agreed to impose additional sanctions on Iran over its 
nuclear program.  Major media quoted former U.S. Ambassador to the 
UN John Bolton as saying on Tuesday at the Herzliya Conference that 
there is almost no chance that President Bush will approve a 
military strike on Iran before he leaves office.  Leading media 
reported that on Tuesday cabinet minister Shaul Mofaz, who is in 
charge of the strategic dialogue with the U.S., told the conference 
that the chances of an attack against Iran's nuclear installations 
are growing.  Ha'aretz reported that a new round of the bilateral 
strategic dialogue talks will start today. 
The Jerusalem Post reported that on Tuesday PM Ehud Olmert promised 
Shas party Chairman Eli Yishai that he would be updated immediately 
on every concession Israel decides to make in diplomatic 
negotiations with the Palestinians.  Various media reported that 
Yishai told Olmert that should Israeli negotiators express any 
willingness to concede parts of Jerusalem during their talks with 
the Palestinians, Shas would quit the coalition immediately. 
Ha'aretz reported that Yishai warned that his party would also quit 
if Israel adopts a stance in favor of concessions that violate the 
party's "red lines" on other issues, though he declined to publicly 
specify what these red lines were. 
 
In his appearance before the Herzliya Conference and interviews with 
Israel media, senior EU official Franco Frattini and former Italian 
FM empathized with Israel's claims about the Qassam fire from Gaza, 
saying that Europe has ignored Israeli security needs.  In an 
interview with The Jerusalem Post, he was quoted as saying that he 
supports "severe [Security Council] sanctions" if Tehran does not 
halt its uranium enrichment program with a year. 
 
Ha'aretz reported that Israel is planning to boycott a UN Human 
Rights Council meeting in Geneva today that will discuss the 
situation in the Gaza Strip.  In a move expected to increase tension 
between Israel and UN agencies, Jerusalem has urged other countries 
to do the same.  The U.S., for one, will also be boycotting the 
meeting.  The EU attempted to find a compromise.  The proposed 
resolution does not mention the Qassam fire on Sderot that spurred 
the Israeli response, an omission that generated a great deal of 
anger in Israel. 
 
Media quoted PA Chairman [President] Mahmoud Abbas -- who criticized 
Hamas for firing rockets at Negev communities -- and FM Tzipi Livni 
as saying that Israeli-Palestinian talks must go on.  Major media 
reported that at the Herzliya Conference former IDF chief of staff 
Moshe Ya'alon advocated a new diplomatic paradigm for long-term 
crisis management, not peace. 
 
Leading media reported that at the Erez Crossing on Tuesday, Arab 
Knesset members and around 300 protesters demonstrated against 
Israel's blockade of the Gaza Strip and attempted to bring crates of 
food into Gaza.  In a showdown along the Israel-Gaza border, the 
demonstrators faced off against an opposing group of about 50 
people, including National Union-National Religious Party MK Effie 
Eitam. 
 
Yediot reported that in recent days a delegation of senior members 
of U.S. intelligence branches secretly visited Israel as guests of 
IDF Intelligence (MI) to reexamine the National Intelligence 
Assessment (NIE) report.  The newspaper quoted U.S. intelligence 
sources who are involved in the drafting of the NIE as saying that 
if information received from Israel sheds a new light on Iran's 
nuclear program, they will not hesitate to modify the conclusions of 
the NIE. 
 
The Jerusalem Post reported that international agencies asked donor 
countries on Tuesday for $462 million in aid to the Palestinians for 
2008, to counter rising poverty and the closure of Gaza by Israel 
and Egypt. 
 
Yediot and Israel Radio reported that the PA military court in 
Hebron sentenced the two murderers of the Israelis Ahikam Amihai and 
David Rubin to 15 years imprisonment.  The two Israelis were killed 
wile hiking on December 28. 
 
Major media reported that Hizbullah presents pictures of parts of 
remains of Israeli soldiers on one of its web sites.  Media quoted 
official Israeli sources as saying this is a new record in the 
baseness manifested by the organization and its leader. 
 
Major media reported that on Tuesday PM Olmert examined Stunner, the 
missile being developed jointly by the Rafael Advanced Defense 
Systems Ltd. and the U.S. defense contractor Raytheon as a counter 
to medium-range missiles and rockets. Ha'aretz reported that Stunner 
is likely to become operational in four years.  Because of the 
advanced technologies involved, the estimated cost of each 
individual missile is the relatively high sum of several hundred 
thousand dollars.  Ha'aretz quoted an Israeli defense source as 
saying on Tuesday that the missile is meant to serve as the 
interceptor element of a defensive system called Magic Wand.  The 
system is meant to provide a defense against missiles and rockets 
whose range is between 40 and 250 kilometers.  Magic Wand will 
probably be incorporated in the future into a defensive structure 
that Israel is developing to counter rockets and missiles.  The 
first layer of this defensive structure will include Iron Dome, 
which Rafael is developing against Qassam and Katyusha rockets. 
That system's intercepting missile is dubbed Tamir. 
 
Yediot reported that on Tuesday in Paris Defense Minister Ehud Barak 
exchanged a few words with Pakistan's President Pervez Musharraf. 
Leading media reported that Barak is in the French capital for talks 
on the Iranian nuclear threat with President Nicolas Sarkozy and 
Defense Minister Herve Morin.  On Thursday he will travel to Davos 
 
 
for the annual World Economic Forum meet with Jordan's foreign 
minister, Quartet envoy Tony Blair, and PA Prime Minister Salam 
Fayyad. 
 
The Jerusalem Post and other media quoted the Jerusalem Municipality 
as saying on Tuesday that the Municipality is planning 40,000 new 
apartments throughout the city over the next decade, including 
several thousand flats in various Jewish neighborhoods of East 
Jerusalem that have already been approved. 
 
Maariv reported on a High Court of Justice ruling that Israeli-Arab 
citizens and other non-Jews will be able to lease "second hand" 
Jewish National Fund land -- from Jews -- and not just from 
tenders. 
 
The Jerusalem Post reported on friction between hostile Israeli Arab 
groups and the Jews who fund  them.  The newspaper quoted 
philanthropists as saying that that the struggle of Israeli Arabs 
for civic equality is critical to Israel's long-term security and so 
they cannot afford to disengage. 
 
Ha'aretz reported that U.S. citizens seeking an appointment at the 
embassy or consulate are being forced to wait upwards of six months, 
in a system backlog that is raising the ire of American citizens 
across the country, and forcing travel cancellations: Families who 
were planning to visit the U.S. in the coming months say that 
without required documentation, they have no choice but to cancel 
their plans.  Ha'aretz quoted Embassy officials as saying that they 
are processing requests as fast as they can, but that they suspect a 
"baby boom" to explain what they describe as a surge in requests for 
citizenship processing.  Officials also suspect that a "scalping" 
system has emerged. "Certain unscrupulous individuals have gone to 
our Web site appointment system and have snapped up a large number 
of appointments, which they are then turning over for a fee to 
people who need appointments," the U.S. Consul-General in Tel Aviv 
was quoted as saying. 
 
Israel Radio reported that a delegation of 18 Israeli youth will 
leave for Qatar this morning to take part in a simulation organized 
by Model United Nations.  The Israelis were assigned the task of 
"playing the role of Egypt at the UN." 
 
All media reported that on Tuesday the Israeli film "Beaufort" was 
declared one of five finalists for an Academy Award in the best 
foreign-language film category -- the first time in 23 yeas that 
Israel has had a finalist in the competition. 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Prominent liberal author A.B. Yehoshua wrote in the 
mass-circulation, pluralist Yediot Aharonot: "The Prime Minister 
said himself, and rightfully so, that the failure to remove the 
illegal settlement outposts demeans us all, and certainly demeans 
our good friend -- the United States." 
 
The nationalist, Orthodox Makor Rishon-Hatzofe editorialized: "This 
government is simply incapable of standing by its decisions 
following every small trouble." 
 
Conservative contributor Tzipi Hutubli wrote in the popular, 
pluralist Maariv: "What the Left offered [the Palestinians] at 
Geneva does not interest them.... Erekat answered in words.  Hamas 
answers with Qassam rockets." 
 
Block Quotes: 
------------- 
 
¶I.  "Their Honor, Our Honor" 
 
Prominent liberal author A.B. Yehoshua wrote in the 
mass-circulation, pluralist Yediot Aharonot (1/23): "Many Israelis 
consider President Bush's administration to be one of the most 
favorably disposed administrations towards Israel.... For more than 
three years, this administration has been asking Israel to remove 
the illegal settlement outposts (according to Israel's own 
definition), in order to further the peace process ... and enhance 
Palestinian confidence in the United States' brokerage..... During 
the [past] three years, Israel has not carried this out ... and is 
thereby rejecting the request of its good friend.  The Prime 
Minister said himself, and rightfully so, that the failure to remove 
the illegal settlement outposts demeans us all, and certainly 
demeans our good friend -- the United States.  What should be done 
to restore our national honor and the laws that we enact, as well as 
the honor and credibility of the United States?  It appears vital to 
me that out of friendship, the U.S. should help the Israeli 
government in overcoming its fears ... [by] recalling the ambassador 
for consultations, which will stimulate Israeli public opinion to 
 
help its government keep its promise.  If the U.S. is a true friend 
of Israel, it must help it by a symbolic act of protest that will 
express its dissatisfaction.  It will thereby stimulate and 
strengthen Israel, like a loving but firm father, in starting to 
kick the addictive and destructive habit." 
 
II.  "A Shameful Surrender" 
 
The nationalist, Orthodox Makor Rishon-Hatzofe editorialized (1/23): 
"The government decided to impose a blockade on the Gaza Strip until 
the Qassam rocket fire stopped.  For an entire day the siege worked 
and the number of launchings dropped amazingly.  The next day Israel 
started to pay the price that was known in advance: a Palestinian 
propaganda offensive -- with false, staged tears and the well-known, 
loathsome tricks.... But the government of Israel surrendered and 
broke the siege.  Ehud Olmert, who one day earlier had said that 
[the Gazans] 'should walk' and Ehud Barak who had pledged 'to do 
everything,' broke after a day and a half of rather easy pressure 
and ordered to resume the fuel supply.  Responding at once, the 
Hamas people open boasted about their victory and resumed Qassam 
rocket fire.... This government is simply incapable of standing by 
its decisions following every small trouble.  One need not wait one 
more week for [the results of] the Winograd Commission to know that 
the wheel of the state is being steered by unworthy hands." 
 
III.  "Dialogue of the Deaf" 
 
Conservative contributor Tzipi Hutubli wrote in the popular, 
pluralist Maariv (1/23): "[In a program broadcast this week on 
Israel's Channel 2-TV], Palestinian negotiator Saeb] Erekat ignored 
the fact that over the 14 years from Oslo until Annapolis the 
Palestinian Authority neglected to build and rehabilitate itself as 
a healthy society.  Instead, it built a terror-sponsoring society 
and a corrupt regime model, which directs all its capital and its 
vigor to terror.  On Erekat's side there only are an occupier and an 
occupied people; this equation turns all of the occupied side's 
actions into legitimate ones.  What he consistently does is to turn 
a blind eye to one point: his side refused to accept the end of the 
occupation, which was placed on the negotiating table in 2000.... 
What the Left offered [the Palestinians] at Geneva does not interest 
them.... Erekat answered in words.  Hamas answers with Qassam 
rockets." 
 
--------------------------- 
¶2.  World Financial Crunch: 
--------------------------- 
 
Summary: 
-------- 
 
Chief Economic Editor Sever Plotker opined in the mass-circulation, 
pluralist Yediot Aharonot: "The scream that emerged from the depths 
of the stock exchanges was met by a bold rescue operation." 
 
Block Quotes: 
------------- 
 
"The Firemen are on the Way" 
 
Chief Economic Editor Sever Plotker opined in the mass-circulation, 
pluralist Yediot Aharonot (1/23): "Those were 48 hours that the 
global economy leaders will not easily forget.... The scream that 
emerged from the depths of the stock exchanges was met by a bold 
rescue operation.  Had the sickness of the U.S. economy not been 
serious, Fed Chairman Ben Bernanke would not have taken such an 
extreme, dramatic measure -- cutting interest rates.  Lowering the 
interest rate reined in the avalanche on the stock markets, but its 
scope was smaller than forecast.... Does this mean that it will be 
possible to breathe more easily? I don't believe so." 
 
JONES