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UNCLAS TEL AVIV 001503 
 
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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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.  Iran 
 
 
¶2.  Mideast 
 
 
¶3.  U.S. Presidential Elections 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media highlighted the renewed questioning by the police of PM 
Ehud Olmert today about the hundreds of thousands of dollars he 
allegedly received over 15 years from Jewish-American millionaire 
Morris Talansky.  Ha'aretz quoted a police source as saying 
yesterday that the allegations are extremely serious and that an 
ordinary citizen would have been arrested by now had such 
accusations been leveled.  Olmert's associates accused the police of 
turning the case into a "personal campaign" against the Prime 
Minister, suggesting that Olmert would not be treated fairly during 
the interview.  Media quoted cabinet ministers from Kadima -- 
including Vice PM Haim Ramon, considered a confidant of Olmert -- as 
saying that the winner of September's party primaries will 
immediately begin putting together a new government.  Olmert had 
hoped to create a situation that would preclude the formation of an 
alternative government as long as he is still prime minister. 
 
The media reported that the prisoner exchange with Hizbullah is set 
to take place Wednesday or Thursday, at the Rosh Hanikra 
Israel-Lebanon border crossing.  Yediot reported that in addition to 
receiving from Hizbullah a report about the fate of MIA Ron Arad, 
Israel will also get letters he wrote. 
 
Ha'aretz cited the belief of senior defense officials that Israel 
should resume diplomatic pressure to halt Syrian weapon transfers to 
Hizbullah.  Leading media quoted Dense Minister Ehud Barak as saying 
that Hizbullah's missiles cover most of Israel. 
 
The Jerusalem Post reported that during his upcoming visit to the 
U.S., Defense Minister Ehud Barak will tell President Bush that time 
is running out on thwarting Iran.  Ha'aretz quoted sources in 
Jerusalem as saying this week that official representatives of an 
Arab country have hinted in meetings with Israeli officials that 
they would not oppose an Israeli military operation against Iran. 
According to the sources, the representatives of the Arab country 
said they are worried by Iran's growing influence in the region, 
primarily among Shi'ite communities in Arab states.  Defense 
Minister Barak hinted yesterday that Israel would be willing to 
attack Iran when he said that "Israel is the strongest country in 
the region and has proved in the past that it is not deterred from 
activity when there is concern that its vital interests could be 
harmed."  Leading media quoted Secretary of State Condoleezza Rice 
as saying that that the U.S. will stand by Israel as it faces the 
Iranian threat. 
 
Major media featured the CAEW spy plane, which could be used in an 
Israeli strike against Iran's nuclear facilities, which became 
operational in February and was put on display yesterday.  The CAEW 
is Israel's most sophisticated airborne early warning and control 
aircraft.  Maariv reported that Russia will sell Syria missiles 
because it has not yet received Israel's agreement to hold a Mideast 
conference in Moscow. 
 
The Jerusalem Post quoted Palestinian PM Salam Fayyad as saying that 
Israel is "humiliating" the Palestinians by raiding Hamas-owned 
businesses. 
 
The Jerusalem Post reported that "U.S. visa officials" drove to the 
Gaza border yesterday to meet with three Fulbright scholars from the 
territory. 
 
Ha'aretz and other media reported that yesterday militants in Gaza 
fired Qassam rockets at the western Negev, hours after IDF troops 
shot to death a Palestinian militant along the Israel-Gaza border. 
Israel Radio reported that an IDF officer was moderately wounded and 
an Israeli civilian was lightly wounded in a shooting incident near 
Qalqilya when a Palestinian terrorist fired upon an Israeli car near 
the village of Der Iskiya.  Makor Rishon-Hatzofe reported that 
current Hamas instructor Fares Al-Hashi was trained in the U.S. by 
the CIA at the time he served in the PA's Force 17. 
 
The Jerusalem Post reported that Israeli Rabbi David Rosen aims to 
improve Muslim-Jewish ties at next week's Saudi-sponsored interfaith 
conference in Madrid. 
 
Yediot presented the results of a Mina Zemach (Dahaf Institute) poll 
conducted among registered Kadima members: 
Q: If the Kadima party primary were held today, for whom would you 
vote? (The number in parenthesis refers to a previous poll on June 
26: 
Ehud Olmert: 18% (22%); Tzipi Livni: 37% (31%); Shaul Mofaz: 22%; 
Avi Dichter: 10%; Meir Sheetrit: 9%. 
Q: If Olmert doesnQt run in the party primary, for whom will you 
vote? 
Tzipi Livni: 41%; Shaul Mofaz: 30%; Avi Dichter: 12%; Meir Sheetrit: 
12% 
Q: If Olmert succeeds in significantly refuting the suspicions 
against him in the Talansky affair, for whom will you vote? 
Ehud Olmert: 30%; Tzipi Livni: 29%; Shaul Mofaz:21%; Avi Dichter: 
8%; Meir Sheetrit: 8% 
Q: Is it right that Olmert run in the party primary? 
Yes: 38%; No: 57% 
Q: Should Olmert resign as prime minister and vacate his position to 
whoever is elected in the party primary? 
Yes: 79%; No: 17% 
 
--------- 
¶1.  Iran: 
--------- 
 
Summary: 
-------- 
 
Senior columnist Nahum Barnea wrote in the mass-circulation, 
pluralist Yediot Aharonot: "It is unlikely that Israel has the 
ability to attack Iran.  It is unlikely that Iran has the ability to 
retaliate." 
 
Block Quotes: 
------------- 
 
"Transition Government" 
 
Senior columnist Nahum Barnea wrote in the mass-circulation, 
pluralist Yediot Aharonot (7/11): "Israel and Iran exchange war 
threats, with a little help from all sorts of American spokespeople. 
 It is unlikely that Israel has the ability to attack Iran.  It is 
unlikely that Iran has the ability to retaliate.  Judging by 
Olmert's, Barak's. and Livni's political conduct, none of them is 
preparing an Israeli military strike on Iran.  After all, the three 
of them know that a military strike would turn the Middle East 
upside down, put off the primary, cancel the prisoner exchange deal, 
and generate a security and economic earthquake.  In that case, 
they're not interested.  In the first Gulf War, Saddam's Scuds hit a 
few places in Israel.  The defense minister at the time, Moshe 
Arens, demanded action.  Arens thought that those who are attacked 
should respond.  He did not ask if the IDF had the actual ability to 
paralyze the sources of fire.  Maybe the time has come for this 
question to be asked in reference to an Israeli strike on Iran." 
 
------------ 
¶2.  Mideast: 
------------ 
 
Summary: 
-------- 
 
The independent, left-leaning Ha'aretz editorialized: "It would be 
appropriate for Olmert to take a long vacation starting now, until a 
decision is made on an indictment." 
 
Block Quotes: 
------------- 
 
"Who Will Run the Country?" 
 
 
The independent, left-leaning Ha'aretz editorialized (9/11): "A line 
can be drawn between Olmert's response to the Winograd Commission 
examining the conduct of the Second Lebanon War and his behavior in 
the criminal cases under investigation.  Both two years ago and now, 
he does not feel he owes the public an explanation.  At the same 
time, he dismisses all criticism as persecution.... The Kadima 
primary will be held in late September.  Whether or not Olmert 
competes, that is too long to wait to replace the prime minister. 
The Labor Party has decided that if a different chairman is not 
elected to lead Kadima in September it will push for a new general 
election.  All of that might be convenient for politicians, but it 
will not satisfy anyone who cares about good government.  It would 
be appropriate for Olmert to take a long vacation starting now, 
until a decision is made on an indictment.  It is logical to assume 
that someone facing criminal charges, who is being questioned and 
cross-examined week after week, who will almost certainly be called 
to a hearing and asked to present a defense, needs a great deal of 
time to attend to these things without being bothered by affairs of 
state." 
 
-------------------------------- 
¶3.  U.S. Presidential Elections: 
 
-------------------------------- 
 
Summary: 
-------- 
 
Columnist Ari Shavit wrote from Aspen, Colorado, in the independent, 
left-leaning Ha'aretz: "The real problem is not Iraq.  The problem 
is [the economic condition] of America." 
 
Block Quotes: 
------------- 
 
"The End of the American Century" 
 
Columnist Ari Shavit wrote from Aspen, Colorado, in the independent, 
left-leaning Ha'aretz (7/11): "The real problem is not Iraq.  The 
problem is America.  The problem is that 80 percent of Americans 
believe that their country is on the wrong track, and 75 percent do 
not believe that the economic situation next summer will be better 
than it is now.... The problem is that the budget deficit is out of 
control, the national debt is irreparable and the dollar is 
worthless.  Something about the way the Americans do things is not 
working.  Something is not as it used to be." 
 
JONES