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UNCLAS TEL AVIV 000095 
 
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: SPECIAL ISRAEL MEDIA REACTION 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
President Bush to Israel, West Bank, January 9-11, 2008 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media covered the second day of President Bush's visit to Israel 
and the PA (not a lead story in Yediot and Maariv).  This morning 
the President visited Yad Vashem.  He will tour two Christian sites 
on the shores of the Lake of Galilee (the Mount of Beatitudes and 
Capharnaum) and then fly to Kuwait. 
 
Ha'aretz bannered President Bush's statement summing up his visit: 
"There should be an end to the occupation that began in 1967," Bush 
said, presenting an outline for solving most of the core issues, 
which would include a compensation mechanism for Palestinian 
refugees, a contiguous Palestinian state, and secure and defensible 
borders for Israel.  Ha'aretz quoted an Israeli official as saying 
on Thursday that Israel sees President Bush's push for reaching a 
peace treaty with the Palestinians within a year as a positive step. 
 "We see the Bush remarks as the basis of moving forward.  We accept 
them.  We see them as consistent with understandings with the 
Americans and as a positive foundation for moving forward," the 
official was quoted as saying, speaking on condition of anonymity. 
Ha'aretz noted that the Israeli response was the first to Bush's 
call for an end to what he said was the 40-year "occupation" of the 
West Bank, and for signing a peace treaty before he leaves office in 
January 2009.  Ha'aretz said that Bush's comments marked a hardening 
of his tone toward Israel and could put Olmert at odds with 
right-wing members of his coalition who oppose sweeping peace 
concessions. 
 
The Jerusalem Post stressed President Bush's wish to see a peace 
treaty signed by the time he leaves office.  The newspaper 
emphasized the President's complaint that a Palestinian state is 
"long overdue."  (Various media raised the option of a "shelf 
state.")  The Jerusalem Post quoted Israeli diplomatic officials as 
saying that certain elements in the statement the President read to 
U.S. reporters in the King David Hotel on Thursday afternoon were 
welcome in Jerusalem, while others were deemed more "problematic." 
Among the welcome elements were what was deemed Bush's clear 
rejection of the Palestinian claim of a "right of return" to Israel, 
by saying that a future Palestinian state would be a homeland for 
the Palestinians, just as Israel is a homeland for the Jews. 
Jerusalem was also pleased that Bush essentially reiterated what was 
written in his 2004 letter to Ariel Sharon -- namely that final 
borders will entail mutually agreed adjustments, language that 
Israel interprets to mean a U.S. recognition that Israel can hold 
onto the large settlement blocs in a future agreement.   Likewise, 
there was satisfaction that Bush said "security is fundamental," and 
that "no agreement and no Palestinian state will be born of terror." 
 Bush also reaffirmed America's steadfast commitment to Israel's 
security.  The most problematic aspect had to deal with some of the 
language, with eyebrows raised that Bush referred to the 
"occupation." 
 
The Jerusalem Post quoted National Security Advisor Stephen Hadley 
as saying that Bush would be returning to the region "at least once 
and maybe more" before the end of his term to push his program 
forward. 
 
The media reported that Bush met with cabinet ministers at a dinner 
in his honor hosted by PM Ehud Olmert at his official residence in 
Jerusalem. One of the President's messages was about domestic 
Israeli politics.  According to Ha'aretz, President Bush implored 
senior cabinet ministers to work to promote the peace process, 
telling them that the current situation cannot continue and efforts 
to achieve a peace treaty must be made. "Take care of Olmert, so he 
will stay in power," media quoted Bush as saying at the dinner. 
"He's a strong leader. Israeli politics is like karate, you never 
know when the next chop will come."  Ha'aretz quoted PM Olmert as 
saying at the dinner that the peace process must go forward. Vice 
Premier Haim Ramon agreed with Bush's statement on the necessity of 
creating a Palestinian state. "Israel's problem is the occupation, 
which jeopardizes [our existence as] a Jewish and democratic state," 
Ramon said. "That's not the Palestinians' problem, that's our 
problem."  Shas chairman Eli Yishai, the Industry, Trade and 
Employment Minister, raised reservations, telling Bush, "I 
appreciate your visit and your concern for Israel but we cannot make 
peace with half of the Palestinian nation, while Abu Mazen 
[Palestinian President Mahmoud Abbas] does not control the Gaza 
Strip."  Yishai recited several psalms emphasizing the importance of 
Jerusalem and said he would not compromise on the unity of the 
capital.  Acting against the wishes of PM Olmert, Yishai gave Bush a 
letter from Shas spiritual leader Rabbi Ovadia Yosef urging the 
release of convicted spy Jonathan Pollard, as well as a letter from 
Pollard's wife, Esther. 
 
Channel 10-TV's regional correspondent noted last night that the 
President's presence and speech in Ramallah were advantageous for 
the PA in the short term, but that they would become detrimental to 
it in the long term. 
 
Secretary of State Condoleezza Rice was quoted as saying in an 
 
SIPDIS 
interview with The Jerusalem Post that QIran is the single greatest 
threat to the kind of Middle East we all want to see."  In response 
to the question, "What is your message to Israel in the event that 
it is now preparing to confront that danger alone," the Secretary 
was quoted as saying: "Israel is an American ally.  The President 
has made clear that we have a stake in Israel's security and 
defense.  This is similar for our Gulf allies with whom we have had 
security relations for decades.  The U.S. takes those obligations 
and responsibilities."  In the interview, the Secretary also 
reiterated the major points of the United States' Mideast policy. 
 
Ha'aretz and Israel Radio reported that following a debate at the 
High Court of Justice on Thursday, Defense Minister Ehud Barak has 
given temporary orders to cancel planned cuts in the supply of 
industrial-use diesel fuel to the Gaza Strip. 
 
Ha'aretz cited newly declassified U.S. documents showing that the 
CIA, backed by bodies including the State Department's Bureau of 
Intelligence and Research, determined in August 1974 that Israel had 
nuclear "weapons in being, a small number" of which it "produced and 
stockpiled." 
 
Leading media reported that President Bush also named Lt. Gen. 
William Fraser to monitor the Israeli-Palestinian road map for 
peace, the White House said Thursday.  Ha'aretz quoted White House 
spokesman Gordon Johndroe as saying that Fraser, who is Assistant to 
the Chairman of the Joint Chiefs of Staff, will "help monitor road 
map commitments.". 
 
Maariv and other media quoted The Washington Post as saying that 
Olmert is Bush's "poodle."  The Jerusalem Post quoted senior Likud 
sources as saying on Thursday that PM Olmert acted like a 
"sycophant" by excessively praising President Bush at their joint 
press conferences, rather than defending Israel's interests.  The 
Jerusalem Post cited the dismay of right-wing movements at the low 
turnout for anti-Bush rallies. 
 
The media reported that on Thursday cabinet ministers tasked with 
laying the groundwork for a prisoner exchange to secure the release 
of kidnapped soldier Gilad Shalit met with PM Olmert and presented 
him with the list of Palestinian prisoners who could be released -- 
signaling that negotiations with Hamas may be close to a deal. 
 
Yediot reported that PM Olmert intends to "honor a promise made to 
President Bush" by removing an unauthorized outpost -- perhaps 
Migron -- before the publication of the final Winograd report on 
January 30. 
 
All media reported that Likud Chairman Binyamin Netanyahu told 
President Bush on Thursday: "We have no partner.  Abu Mazen (Abbas) 
is a virtual partner."  Yediot reported that the President told the 
sons of Ariel Sharon that he longs for the former PM. 
 
Israel Radio reported that the UN Security Council (UNSC) condemned 
this week's Katyusha rocket on the Galilee, saying that it breached 
UNSC Resolution 1701.  The radio said that the Libyan ambassador to 
the United Nations, Giadalla Ettalhi, who is the current President 
of the UNSC, had to read out the Council's statement, despite his 
objection to the decision.  In its lead story, Maariv cited the 
belief of Hizbullah Secretary-General Hassan Nasrallah that Israel 
will soon declare the two IDF soldiers abducted to Lebanon in July 
2006 as fatalities.  The newspaper quoted a senior Israeli defense 
source as saying that Israel does not want to perpetuate their 
status as MIAs. 
 
Maariv reported that on Thursday Transportation Minister Shaul Mofaz 
launched a campaign in Kadima to replace Olmert. 
 
Former U.S. Ambassador to Israel Daniel Kurtzer was quoted as saying 
in an interview with Yediot that the Clinton administration was 
greatly to blame for the failure of the Camp David talks.  Kurtzer 
also criticized later mistakes -- the failure to talk with Iran, 
Hamas, and Syria. 
 
Leading media reported that Bank Hapoalim, Israel's largest bank, 
will need to write off $350 million on its U.S. credit portfolio -- 
on top of a previous $90 million -- following the crisis in the U.S. 
credit markets. 
 
Maariv printed the results of TNS/Teleseker polls that asked who was 
the most worthy and suitable person to replace PM Olmert, were he to 
resign: Binyamin Netanyahu: 40.5%; Tzipi Livni: 21.7%; Ehud Barak: 
16.4%. 
 
------------------------ 
President Bush to Israel, West Bank, January 9-11, 2008: 
 
------------------------ 
 
Summary: 
-------- 
 
The independent, left-leaning Ha'aretz editorialized: "The President 
clearly understands his critical, irreplaceable role in advancing 
the peace process.... [The time remaining to him] must not be viewed 
as time that is lost from the get-go." 
 
Op-Ed Page Editor Ben-Dror Yemini wrote in the popular, pluralist 
Maariv: "Bush entered the White House after the Palestinians 
rejected the Clinton plan.  So what exactly did people expect him to 
offer in order to be more 'balanced'?" 
 
Columnist Calev Ben-David wrote in the conservative, independent 
Jerusalem Post: "During [Bush's] time in the White House, though, he 
has sometimes confused rhetoric with reality, and overestimated the 
power of simply having a vision." 
 
Block Quotes: 
------------- 
 
¶I.  "Not a Lost Year" 
 
The independent, left-leaning Ha'aretz editorialized (1/11): "The 
experience from the last several years teaches that Olmert and Abbas 
need more than goodwill -- they need all the support from the 
President of the U.S. that they can muster in order to make 
progress.  Bush's visit to the region extricated the negotiations 
from the mud in which they sank after Annapolis and pushed the 
parties into starting talks on the core issues.  For these talks to 
move forward and turn into an agreement, they will need careful 
shepherding by the U.S.  It will also be a test for Bush: Will he 
make do with pretty pronouncements about a brighter future or will 
he play a determined, serious role in making it happen?  In 
Wednesday's press conference at the Prime Minister's residence Bush 
spoke, perhaps slightly in jest, about 'nudging them forward.' 
Calling his trip here a 'pretty significant nudge.'  The President 
clearly understands his critical, irreplaceable role in advancing 
the peace process.  The year remaining to him in the White House is 
the right time to realize that responsibility and to rescue the 
two-state solution.  It must not be viewed as time that is lost from 
the get-go." 
 
II.  "The Anti-American Bug" 
 
 
Op-Ed Page Editor Ben-Dror Yemini wrote in the popular, pluralist 
Maariv (1/11): "The Israeli establishment is still pro-American.... 
But parts of the Right and the Left hurl criticism at Bush.... Bush 
entered the White House after the Palestinians rejected the Clinton 
plan.  So what exactly did people expect him to offer in order to be 
more 'balanced'?  West Jerusalem, on top of East Jerusalem?  The 
evacuation of Tel Aviv University to make good on the right of 
return to Sheikh Munis [a destroyed Palestinian village on the 
university's site]?  As is well known, the culture of deceit 
presents a totally different picture.  That culture has taken over a 
significant  part of the Arab media and an important one in the 
Western media." 
 
III.  "Why the Bush Vision of Peace is Still Somewhere over the 
Rainbow" 
 
Columnist Calev Ben-David wrote in the conservative, independent 
Jerusalem Post (1/11): "Bush has talked plenty about 'vision' during 
this visit --- in fact, it's far and away the word he's used the 
most.... Unfortunately, the problem with those Palestinians who 
oppose a two-state solution isn't that they lack a vision for the 
Palestinian state -- it's that they lack a vision for a Jewish state 
existing alongside it.... Bush is to be commended for his sincere 
belief in the power of a vision of peace, and on his dedication this 
week to try to make it happen.  During his time in the White House, 
though, he has sometimes confused rhetoric with reality, and 
overestimated the power of simply having a vision -- such as 
'Bringing democracy to the Middle East' -- with the ability to make 
it actually happen.... It's nice, and right, to dream, especially of 
peace.  But as the U.S. President saw this week in Jerusalem, 
sometimes the skies here are not blue -- and when you're not in 
Kansas anymore, or in the Wonderful Land of Oz, dreams and visions 
shouldn't be confused with reality." 
 
JONES