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SUBJECT: SPECIAL ISRAEL MEDIA REACTION 
 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
Secretary Rice to Israel, West Bank, June 14-16, 2008 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
The media continued to key in on Secretary RiceQs criticism of 
Israel going forward with housing projects in East Jerusalem.  The 
Jerusalem Post reported that her statements met with little panic 
and no formal response, a sign -- one GOI source was quoted as 
saying -- that less than five months to the U.S. elections, "it is 
not important what she says anymore.  "Comments that in the past 
would have set everybody abuzz, are not making many waves today," 
the source was quoted as saying.  He attributed this both to the 
waning days of President Bush's administration, and a growing 
realization that the chances of finalizing any "shelf agreement" 
with the Palestinians by the end of 2008 are slim, largely because 
of the political instability in Israel.  The source was quoted as 
saying that if the government could not make a decision on the 
cease-fire because of political considerations, as Defense Minister 
Ehud Barak has charged, then even less so would it be able to make 
the even more complicated final-status agreement with the 
Palestinians.  The source was quoted as saying that Rice's comments 
about the construction in the settlements and east Jerusalem were an 
indication of frustration that she was facing the prospect of 
leaving office in January without an agreement here.  Several media 
quoted Rice as saying that the blocs of settlements will not be part 
of Israel in the final status. 
 
Ha'aretz and The Jerusalem Pot reported that the proposal by 
Jerusalem Mayor Uri Lupoliansky to construct 40,000 residential 
units in various Jewish neighborhoods of the capital was approved 
yesterday by the District Planning and Building Committee.  The plan 
includes construction in neighborhoods over the Green Line. 
Lupoliansky has said in recent weeks that the plan aimed to deal 
with the serious shortage young couples face in finding affordable 
housing.  For the first time this will include housing for Arabs in 
East Jerusalem, in the northern neighborhoods of A-Tur, Issawiyeh 
and Shuafat.  To date, Arabs in east Jerusalem experienced serious 
housing problems forcing them to resort to building without permits. 
 The new plan is meant to legalize some of that illegal 
construction. 
 
The Jerusalem Post and other media reported that yesterday top 
defense officials and IDF officers slammed a recently-launched U.S. 
initiative, under which Palestinian soldiers have deployed in Nablus 
and Jenin.  According to the officials, terrorist activity has 
increased since some 600 Palestinian soldiers were allowed to deploy 
in the West Bank city last month.  Yesterday morning, a 20-kilogram 
explosive device detonated next to an Israeli military force 
operating in the city without causing any casualties.  Sources in 
the IDF Central Command were quoted as saying that the large bomb 
was set off by an advanced detonation system.  "The PA forces in the 
city are not combating the terrorists," one source was quoted as 
saying. "They are taking action to enforce law and order but they 
are doing nothing about terror which has grown in the past month 
since they deployed in Jenin." 
 
Ha'aretz reported that Israel is awaiting Egypt's answer to the 
remaining questions regarding the temporary cease-fire, the tahdiya, 
between Israel and Palestinian factions in Gaza Strip.  The Egyptian 
reply is expected later this week.  Israel and Egypt have yet to 
finalize two issues: Defining the connection between the tahdiya and 
a deal for the release of Gilad Shalit, and determining the degree 
of Egypt's commitment to countering arms smuggling from Sinai into 
Gaza.  Ha'aretz quoted defense sources in Israel as saying last 
night that "it is important to understand that the meaning of the 
agreement with the Egyptians is that within several days after the 
cease-fire goes into effect, intensive negotiations will begin over 
Gilad Shalit's release.  This will be a tough deal to complete -- 
therefore the government will be called upon to make tough decisions 
to bring Gilad home."  The sources hinted at the heavy price Hamas 
will demand: releasing hundreds of Palestinians held in Israeli 
prisons, many of whom were convicted of murder for their involvement 
in major terror attacks. 
 
Makor Rishon-Hatzofe reported that the Palestinians have demanded 
the establishment of an army as part of the final-status agreement, 
while Israel wants the Palestinian state to be demilitarized. 
 
The media reported that the negotiations between Israel and Syria 
through Turkish mediation resumed yesterday in Ankara.  Israel is 
represented in the talks by senior advisers to PM Ehud Olmert, Yoram 
Turbowicz and Shalom Turgeman.  Ha'aretz reported that the current 
round of talks is expected to last until this evening.  The two 
senior Olmert aides will deliver a message to the Syrians that 
Israel is interested in continuing the talks notwithstanding the 
complex domestic political situation at home.  The media reported 
that the indirect talks may give way to direct ones next month. 
Maariv reported that a possible meeting between Olmert and Syrian 
President Bashar Assad would take place four days before Morris 
Talansky's cross-examination, in which case the Labor Party would 
find it hard to support the dissolution of the Knesset, and early 
elections might be ruled out.  Ha'aretz reported that during a 
meeting yesterday with of New Mexico Governor Bill Richardson, 
Olmert said that "furthering talks with Syria is the right thing to 
do, but it does not mean that Israel has relinquished anything.  The 
way ahead is still long."  Yesterday on Channel 2-TV, Vice PM Haim 
Ramon expressed his opposition to the way talks with Syria are being 
conducted, arguing "this is a strategic mistake and a prize for 
extremist Islam."  The Jerusalem Post quoted diplomatic officials as 
saying yesterday that the indirect negotiations are making it harder 
for Israel to argue against high-level European contacts with 
Damascus. 
 
The Jerusalem Post reported that talks being held in Europe by Ofer 
Dekel, PM Olmert's point man on the prisoner issue, could mean that 
a prisoner swap with Hizbullah is closer. 
 
Israel Radio quoted senior Lebanese officials as saying that the 
U.S. has changed its mind regarding the Sheba Farms, which it now 
reportedly says belong to Lebanon. 
 
Maariv reported that most candidates for Kadima leadership prefer 
September 3 as the date for holding the party primaries, but that 
Olmert refuses to discuss the issue before Talansky's 
cross-examination. 
 
All media reported that the 12 suspects in the death of Eden 
Natan-Zada will be charged, but none for murder, according to a 
decision by the Haifa District Prosecutor's Office.  Natan-Zada, 19, 
a Jewish extremist who was AWOL from the Israel Defense Forces, 
opened fire on Israeli Arabs in a bus in the Galilee town of Shfaram 
in August 2005, killing four.  He was subsequently lynched by an 
Arab Israeli mob. 
 
----------------------------------- 
Secretary Rice to Israel, West Bank, June 14-16, 2008: 
----------------------------------- 
 
Summary: 
-------- 
 
Columnist Calev Ben-David wrote in the conservative, independent 
Jerusalem Post: "Whatever the legacy of the policies she promoted 
elsewhere, it is likely too late for Rice to reserve the 
consequences of those policies she promoted in this corner of the 
world." 
 
Senior op-ed writer Akiva Eldar commented in the independent, 
left-leaning Ha'aretz: "The American public and its leaders are not 
safely nestled in Israel's pocket.  As the Iranian threat becomes 
more concrete, Israel will need more of their understanding and 
support." 
 
Military correspondent Amos Harel wrote on page one of Ha'aretz: 
"Barring any major last-minute change, a cease-fire will go into 
effect in the near future, but the Shalit situation will remain 
unresolved." 
 
Dov Weisglass, who was former prime minister Ariel Sharon's top 
diplomatic advisor, wrote in the mass-circulation, pluralist Yediot 
Aharonot: " The army must continue to act against Hamas in its own 
way, but more forcefully" 
 
Former editor-in-chief Moshe Ishon wrote in the editorial of the 
nationalist, Orthodox Makor Rishon-Hatzofe: "To move the talks 
forward, Israel needs a government that enjoys the support of the 
majority of the people." 
 
 
 
 
 
 
Block Quotes: 
------------- 
 
¶I.  "Bitter Complaints from a Virtual Dead Duck" 
 
Columnist Calev Ben-David wrote in the conservative, independent 
Jerusalem Post (6/16): "[Condoleezza Rice] is not the first 
secretary of state, even one from a U.S. administration in its final 
year in power, that suddenly turned tough on Israel in regard to 
settlement plans or other matters.  But Henry Kissinger and James 
Baker, to name two, had the advantage of neither the Israelis, nor 
themselves, knowing at the time that they were, in fact, lame ducks. 
 It also helped that they had the full backing and interest of their 
bosses when they tried to lay down the law on Jerusalem.  But George 
¶W. Bush has never strongly echoed Rice's rhetoric on the settlement 
 
 
construction, especially as regards Jerusalem.... [But] whatever the 
legacy of the policies she promoted elsewhere, it is likely too late 
for Rice to reserve the consequences of those policies she promoted 
in this corner of the world.  Nor, in pursuit of that aim, to 
prevent Israel from pursuing the same construction policy in 
Jerusalem that has guided all its governments, including this one, 
since 1967." 
 
II.  "Getting Fed Up" 
 
Senior op-ed writer Akiva Eldar commented in the independent, 
left-leaning Ha'aretz (6/16): "On the day after the election, 
whether Obama is able to bring the Democrats back to power, or 
whether John McCain is successful in retaining the White House in 
the hands of the Republicans, the president-elect will be wearing a 
suit of stars and stripes.  The American public and its leaders are 
not safely nestled in Israel's pocket.  As the Iranian threat 
becomes more concrete, Israel will need more of their understanding 
and support.  The Iranian nuclear program is too substantial a 
threat for it to serve as a tool in the hands of cynical Israeli 
politicians whose tongues wag too freely." 
 
III.  "Hizbullah First" 
 
Military correspondent Amos Harel wrote on page one of Ha'aretz 
(6/16): "Compared to Goldwasser-Regev [the Hizbullah abductees], the 
situation with regard to a possible release of Gilad Shalit is 
extremely complicated.  The price is known: 450 Palestinian 
prisoners.  But Hamas insists on including in its wish list many 
murderers, including those who were involved in large suicide 
bombings beginning in the mid-1990s.  Their release will stir 
significant public debate, political confrontations and protests 
that will include bereaved parents and those who were wounded in 
these attacks.  Olmert seems to have been capable of undertaking 
such steps as recently as two to three months ago.  Now, with the 
story of the cash envelopes dogging him, it will be much more 
difficult.... It is the same political paralysis that is to a large 
extent dictating Israel's slow roll toward a tahdiya, a cease-fire 
with Hamas.  Defense Minister Ehud Barak no longer hides his 
opposition to a large-scale military operation in the Gaza Strip. 
There is no longer effective coordination between him and Olmert (it 
ended in late May, the minute Barak called on the PM to step 
down).... Throwing the issue of Shalit into the melee is more 
figurative than practical, and in any case, it's clear that the 
Egyptian promise to push an exchange through, as the tahdiya goes in 
effect, was highly conditional.  Barring any major last-minute 
 
change, a cease-fire will go into effect in the near future, but the 
Shalit situation will remain unresolved.  It may be that the tahdiya 
is already here: The past two days along the border with the Strip 
have been the calmest in a long while." 
 
IV.  "A Better Alternative" 
 
Dov Weisglass, who was former prime minister Ariel Sharon's top 
diplomatic advisor, wrote in the mass-circulation, pluralist Yediot 
Aharonot (6/16): "The army must continue to act against Hamas in its 
own way, but more forcefully ... and tighten the blockade but more 
seriously than today.... Continuous, severe military activity, 
combined with a diplomatic and economic siege, will lead Gaza 
residents to the inevitable conclusion that they made an awful 
mistake when they elected a gang of terrorists as their government. 
Thus, the Gaza problem may be solved in a real and durable 
fashion." 
 
¶V.  "A Government without a Mandate" 
 
Former editor-in-chief Moshe Ishon wrote in the editorial of the 
nationalist, Orthodox Makor Rishon-Hatzofe (6/16): " Secretary of 
State Condoleezza Rice, who has arrived in Israel, is trying to 
promote the talks between Israel and the Palestinians, while efforts 
are being made to advance Israeli-Syrian negotiations.  All this is 
being done without taking into account the status of the Israeli 
government.... To move the talks forward, Israel needs a government 
that enjoys the support of the majority of the people.  As long as 
the government is busy with primaries, not only does it not enjoy 
the support of a majority, but it is also incapable of making 
decisions that will express the will of the people." 
 
JONES