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P 281115Z MAY 08
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UNCLAS TEL AVIV 001123 
 
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: 
-------------------------------- 
 
Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media led with Morris Talansky's deposition before the Jerusalem 
District Court yesterday.  Yediot bannered: "The ATM's Revenge." 
Talansky said that over a 14 year period he gave then industry, 
trade, and labor minister Ehud Olmert $150,000 in cash, including 
$68,000 to help him in the 2002 Likud primary campaign. Talansky 
detailed how Olmert asked for all payments to be made in cash and 
how he would regularly carry small sums -- between three and eight 
thousand dollars -- to Israel to avoid customs declarations. 
Besides providing campaign funding, Talansky covered various luxury 
items for Olmert including first class airline tickets, nights in 
five star hotels, cigars, watches and even advanced him $25,000 for 
a family trip to Italy (reportedly this was never repaid). The media 
cited the belief of Olmert and his attorneys that Talansky's 
cross-examination in July will cancel out his "multi-holed" 
deposition. 
 
Last night Israel TV, echoed by most media, reported that Labor 
leader Ehud Barak was considering calling on the PM to suspend 
himself from office or resign.  This morning Israel Radio reported 
that last night Barak met with his associate and experienced 
advertiser Reuven Adler to discuss the possible formation of a 
Likud-Labor national emergency government without Kadima.  Maariv 
wrote that a Barak-Livni- Dichter post-Olmert alliance is shaping up 
behind the scenes. 
 
The Jerusalem Post quoted defense officials as saying yesterday that 
a prisoner exchange between Israel and Hizbullah is still far from 
being settled.  However, a Lebanese parliamentarian told the 
newspaper that the new political and regional climate makes the time 
ripe for a prisoner exchange.  Major media reported that Israel will 
release convicted Hizbullah spy Nasim Nisr from administrative 
detention and return him to Lebanon on Sunday, as an unofficial 
first step in a prisoner swap.   Israel has not formally said that 
Nasser's release is part of the deal. Nisr, a Lebanese citizen 
reportedly born to a Shi'ite Muslim father and Jewish mother, was 
sentenced in 2002 to six years in prison for spying for Hizbullah. 
He finished serving his sentence early this year, but he was 
subsequently held in administrative detention, apparently so that he 
could be used as a bargaining chip in a deal for the release of 
abducted IDF soldiers Eldad Regev and Ehud Goldwasser.  Ha'aretz 
quoted Lebanese and Arab media as saying that Hizbullah may present 
a document detailing its unsuccessful efforts to locate Israeli MIA 
Ron Arad.  Ha'aretz quoted the Lebanese media as saying that Israel 
has given up its demand to receive information regarding Arad's 
fate. 
 
Ha'aretz reported that the Palestinians are proposing that a 
multinational force under U.S. command be deployed in the future 
Palestinian state, to monitor the implementation of any peace 
agreement reached with Israel.   Meanwhile, the diplomatic-security 
cabinet is slated to meet this morning to discuss which Israeli 
security interests must be guaranteed in the framework of a 
final-status agreement with the PA.  The meeting will be the first 
of its kind since the Annapolis conference. 
 
Ha'aretz reported that Hamas is preparing a revised list of 
prisoners that it wants Israel to release, in a bid to reach a deal 
on freeing Gilad Shalit, as well as an agreement on a cease-fire and 
the reopening of the Rafah crossing between Egypt and Gaza.  The 
list of prisoners will be sent to Israel for review via Egyptian 
mediators. Ha'aretz quoted Israeli officials as saying that the new 
list has yet to reach Israel.  The Jerusalem Post quoted a senior 
Hamas official in Gaza as saying yesterday that Hamas is demanding 
the release of 1,000 Palestinian prisoners in exchange for Shalit. 
Ha'aretz quoted Egyptian officials as saying that Hamas insists on a 
fundamental separation between the Shalit deal and the cease-fire, 
but that it realizes that Shalit must be released if Israel is to 
agree to a truce or the reopening of the crossing.  For this reason, 
Hamas is expected to accede to Egyptian pressure and agree to a 
package deal, in which the agreements on Shalit's release and the 
truce would be concluded simultaneously, but neither one would be 
conditioned on the other. 
 
Major media reported that yesterday Syria and Iran signed a military 
MoU.  Ha'aretz reported that Israeli sources told the newspaper this 
week that Iran may try to go forward with plans to attack Israeli 
targets abroad, in a bid to thwart Israeli-Syrian negotiations.  The 
newspaper quoted the sources as saying that according to the Iranian 
logic, such an assault might change Israel's position, stop the 
contacts, and even start a regional conflict.  However, the sources 
were quoted as saying that other Iranian interests preclude such 
attacks.  Ha'aretz described the White House's involvement in the 
"black channel" between Israel and Syria.  The newspaper quoted 
incoming CENTCOM commander Gen. David Petraeus as saying at a 
Congressional hearing last week that Syrian-Israeli peace can be 
encouraged by defeating the Syrian-backed extremist groups and by 
stopping the anti-American propaganda spread in the region by the 
Syrian regime. 
 
The Jerusalem Post quoted diplomatic officials as saying that in 
recent days, a number of meetings have been held in the Foreign 
Ministry with the aim of developing a strategy to prevent meetings 
between European and Hizbullah ministers.  The newspaper quoted an 
Israeli official as saying as saying that Israel's concern was the 
legitimization of Hizbullah through high-profile political 
meetings. 
 
The Jerusalem Post reported that a group of bipartisan U.S. 
Congressmen is urging reform in UNRWA, the UN body that deals 
exclusively with Palestinian refugees and their descendants, and 
calling for alternative solutions to the containment of refugees in 
squalid camps. 
 
The electronic media reported that an IDF soldier was lightly 
wounded this morning in an operation in the southern Gaza Strip, 
west of the Sufa crossing.  IDF troops have been operating in that 
area since last night.  The IAF attacked a Palestinian mortar crew 
that fired shells from the southern Gaza Strip into Israel.  Pilots 
reported that the mortar crew was hit.  The mortar shells exploded 
in open ground in the western Negev. No one was hurt and there was 
no damage. 
 
Leading media reported that dozens of Jewish teenagers assaulted two 
Arab teens near a mall in Jerusalem's Pisgat Ze'ev neighborhood in 
an unprovoked attack on the eve of Holocaust Memorial Day -- April 
¶30.  Footage of the attack from the mall's security cameras was 
broadcast on all TV stations yesterday.  An indictment was filed two 
weeks ago against 11 teenage suspects, eight of them minors.  The 
boys allegedly responded to an ICQ message calling on those with 
"Jewish blood" to "put an end to all the Arabs hanging around" 
Pisgat Ze'ev.  Commentators noted that only religious Jewish youth 
took part in the "lynching" or "pogrom." 
 
Yediot reported that the Jewish Agency's South African branch has 
published maps of Israel without the Golan and on which the West 
Bank is marked as "Palestine."  Faced with anger from the Right, the 
Jewish Agency characterized the incident as human error. 
Yediot printed a shortlist of candidates for ambassador to the UN 
for FM Tzipi Livni's review: Dalia Rabin (the late PM Yitzhak 
Rabin's daughter), former IDF spokesman Nahman Shai, former 
consul-general in New York Alon Pinkas, former Shin Bet head Yaacov 
Perry, and Yossi Gal, Deputy Director General of the Foreign 
Ministry.  Pinkas is preferred by Olmert, President Shimon Peres, 
Knesset Speaker Dalia Itzik, and opposition figures. 
 
Ha'aretz and The Jerusalem Post reported that the Civil 
Administration's appeals committee upheld eviction orders yesterday 
against two stores in Hebron occupied by Jewish settlers two years 
ago.  In the interim, the settlers and Yosef Ezra -- heir to the 
original pre-1948 owners -- will have an opportunity to apply to the 
state for rights to the property. 
 
Makor Rishon-Hatzofe reported on record Q1 sales by Israel Aerospace 
Industries (IAI) -- over 1 billion dollars. 
 
Ha'aretz quoted cabinet ministers as saying that the looming water 
crisis endangers the local food supply.  Other media addressed 
different aspects of the crisis. 
 
All media reported that the U.S. dollar tumbled against the shekel 
yesterday, after the Bank of Israel lowered Israeli interest rates 
by a quarter-percent to 3.5% the night before.  The dollar weakened 
by 1.44% to 3.285 shekels in the immediate aftermath of the rate 
cut. 
 
The Jerusalem Post cited the results of a Keevon Research, Strategy 
& Communications poll held May 13-15 among Israelis: 
 
Fifty-seven percent prefer Sen. Hillary Clinton over Sen. John 
McCain in November if Clinton ends up as the Democratic nominee. 
Only 18% preferred McCain in that race.  Twenty-five percent were 
undecided.  If Sen. Barack Obama gets he Democratic nod, then 
Israelis prefer McCain by a wide margin, with 43% saying they would 
prefer McCain in that race, 20% supporting Obama, and fully 37% 
undecided. 
 
-------- 
Mideast: 
-------- 
 
Summary: 
-------- 
The independent, left-leaning Ha'aretz editorialized: "If Olmert 
insists on continuing to retain his position at the government's 
helm, he is obliged to appear before the public, without delay, and 
present his version of the facts." 
 
Liberal columnist and anchor Ofer Shelach wrote in the popular, 
pluralist Maariv: "Morris Talansky, a Diaspora Jew who merely wanted 
to bask a little in the warmth of his state across the sea, revealed 
our nakedness yesterday -- and that is much more important than the 
futureless political life of Ehud Olmert." 
 
Columnist and former IDF Intelligence chief Shlomo Gazit wrote in 
the popular, pluralist Maariv: "There is of course justification for 
the argument that in a military confrontation with Syria, there is a 
significant advantage to having the IDF deployed on the Golan.... 
[But] the continued presence in the Golan ensures with certainty a 
military confrontation in the foreseeable future." 
 
Senior military affairs analyst Reuven Pedatzur wrote in Ha'aretz: 
"What is truly important is the fact that a former U.S. president 
has exposed Israel as a nuclear power.... However, the more 
important ramification of Carter's statement is the reinforcement of 
Israel's deterrent image." 
 
 
 
 
 
 
Block Quotes: 
------------- 
 
¶I.  "Explain or Resign" 
 
The independent, left-leaning Ha'aretz editorialized (5/28): "The 
behavior attributed to Olmert by Talansky is intolerable, and cannot 
represent the Israeli public, which is frequently called upon by its 
leaders to make economic and social sacrifices.  Talansky's 
testimony reveals systematic and prolonged defilement and 
corruption.  If his allegations do not prove false, then Olmert 
demanded favors -- a night in a luxury hotel, or a flight -- whose 
price is enough to support an Israeli family for an entire month. 
This was all done in a manner that was not only ostentatious, but 
also that of a beggar, seeking dollar after dollar from American 
Jews who responded to him and were impressed by his high status.  In 
2000, Ezer Weizman was forced to retire from the presidency because 
Elyakim Rubinstein, then the attorney general, stated that taking 
money from ... friends ... constituted a substantial ethical 
violation.  And the Olmert case is more serious than the Weizman 
case.  It is inconceivable that Olmert should continue to enjoy the 
best of both worlds while the police investigation and the 
prosecution's preparations for a decision on the case enter a second 
or third month.  If Olmert insists on continuing to retain his 
position at the government's helm, he is obliged to appear before 
the public, without delay, and present his version of the facts." 
 
II.  "Our Leader" 
 
Liberal columnist and anchor Ofer Shelach wrote in the popular, 
pluralist Maariv (5/28): "There is not a single citizen whose ears 
did not turn red after hearing Talansky's testimony.  More than 
exposing the nakedness of one Ehud Olmert, who by a historical 
accident became prime minister of Israel, Talansky testified about 
us: The leaders we choose, the fact that we pay only lip service to 
the war on corruption, even about the way we perceive our lives 
here.... Only in a place where there is nothing that is unthinkable, 
where the public does not punish for unthinkable acts, can a 
minister and mayor dare ask -- demand -- that his bills be paid, his 
airline class be upgraded, and he and his wife travel to Italy at 
the expense of a stranger and in cash.  And don't pin this on Olmert 
alone.  If he goes, who will stand before us with clean hands? 
Benjamin Netanyahu, who holds the laundry bills from [London's] 
Connaught Hotel?  Ehud Barak?  Shimon Peres?.... We humiliated the 
morally upright Amram Mitzna in favor of Ariel Sharon, compared to 
whom Olmert is only a child in corruption.... Until the day we elect 
a morally upright person, until the day we choose a worthy person 
and shunt aside the ranks of the past and the intimidation of the 
present, that is what we will get.  Morris Talansky, a Diaspora Jew 
who merely wanted to bask a little in the warmth of his state across 
the sea, revealed our nakedness yesterday -- and that is much more 
important than the futureless political life of Ehud Olmert." 
 
III.  "Suddenly It's Not Legal" 
 
Columnist and former IDF Intelligence chief Shlomo Gazit wrote in 
the popular, pluralist Maariv (5/28): "We will not enter into the 
question of the media spin that either was or wasnQt carried out by 
the Prime Minister.  But the arguments against the agreement should 
be examined.  We will start with the argument of the unlawfulness 
and immorality of an evacuation: Such a decision would only be made 
after the people have spoken their piece.  However, we should recall 
how the reality on the Golan was created.  Contrary to the cabinet 
 
resolution of June 1967, creeping settlement activity began shortly 
afterwards on the Golan.  At the time, no one brought before the 
people the decision on the initiative, which was aimed at creating a 
new reality.  No one argued that this was an illegal step with 
far-reaching political consequences.  No one argued that we were 
toying with the fate of innocent people, who were called upon to 
settle in the Golan and placed their future in jeopardy.  In 1981, 
Menachem Begin submitted a draft resolution for applying Israeli 
sovereignty to the Golan, which was passed without being brought 
before the people for approval.  From here we move on to the second 
argument, the security danger inherent in the withdrawal.  There is 
of course justification for the argument that in a military 
confrontation with Syria, there is a significant advantage to having 
the IDF deployed on the Golan.  This argument, however, disregards a 
few important facts: The continued presence in the Golan ensures 
with certainty a military confrontation in the foreseeable future. 
We know that Syria is preparing for this option by means of a 
missile array that covers all of Israel's territory.  The secret 
installation that was bombed in September was apparently intended 
for this purpose.  Damascus is also conducting a policy of shedding 
Israeli blood by proxy -- Hizbullah in Lebanon and the Palestinian 
terror organizations.  The war two years ago would not have been 
possible had there been peace with Syria.  And finally, Israel's 
goal is not a tahdiya [truce], but a strategic peace with 
Damascus." 
 
IV.  "Chill Wind from Damascus" 
 
Columnist Calev Ben-David wrote in the conservative, independent 
Jerusalem Post (5/28): "There is understandable general skepticism 
that the gaps between Israel and Syria, and the respective political 
strengths of their two leaders, made this round of talks a 
non-starter from the get-go.  Even if true, these discussions could 
at least help lay a new foundation for future negotiations when 
circumstances are more in favor of Jerusalem making a deal.  There's 
no way, though, the two sides will start talking turkey, if the 
chill wind from Syria doesn't ease off, and the tone of the upcoming 
discussions in Turkey are not at lease a few degrees warmer than 
they were at Madrid or Shepherdstown." 
 
¶V.  "Nuclear Exposure on the Welsh River of Wye" 
 
Senior military affairs analyst Reuven Pedatzur wrote in Ha'aretz 
(5/28): "One cannot exaggerate the importance of former American 
president [Jimmy Carter]'s statement that Israel has 150 nuclear 
bombs.  More than all the estimates and leaks about the Israeli 
nuclear program over the past five decades, Carter's comments on 
Sunday give official cachet to Israel's status as a nuclear 
power.... Every American president since [1969], and every senior 
administration official who knew the details of the Israeli nuclear 
program, kept silent and effectively adopted Israel's official 
policy: that it would not be the first to introduce nuclear weapons 
into the Middle East.  Now Carter comes along and changes the rules 
of the game.  After all, he doesn't need to rely on foreign sources 
or unproven conjecture.  When he served as president, he knew 
exactly what Israel had in its storehouses.  Jimmy Carter is not 
guessing or estimating.  He knows.... [It can be reckoned that] 
Israel has built an estimated 150 more bombs since 1981, putting the 
size of Israel's nuclear arsenal at some 300 bombs. But this is 
merely an intellectual exercise.  What is truly important is the 
fact that a former U.S. president has exposed Israel as a nuclear 
power.  One can assume that Iran will now be able to make use of 
Carter's comments in order to point to the double standard of the 
Western world, which is prepared to accept a nuclear Israel but 
makes a great effort to prevent Iran from going nuclear.  However, 
the more important ramification of Carter's statement is the 
reinforcement of Israel's deterrent image.  In the future, if Iran 
does acquire nuclear weapons, this image will be of critical 
importance in the process of developing mutual deterrence." 
 
JONES