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P 310955Z JUL 08
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UNCLAS TEL AVIV 001646 
 
STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
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PARIS ALSO FOR POL 
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SIPDIS 
E.O. 12958: N/A 
TAGS: OPRC KMDR IS
 
SUBJECT: ISRAEL MEDIA REACTION 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
PM Olmert's Resignation Announcement 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media led with PM Ehud Olmert's public announcement last night 
that he has decided not to contend in the Kadima primary election 
and would resign as soon as the new party leader was chosen, due to 
the criminal investigations in which he has been embroiled in recent 
months.  Banners in Ha'aretz: "Olmert: I have Decided to Step Down"; 
Yediot: "The Right Step"; Maariv and the ultra-Orthodox Hamahane 
Haharedi: End of the Olmert Age;" The Jerusalem Post: "Olmert, 
Bitter but Dignified, Says He'll Quit"; Israel Hayom: "Olmert Leaves 
the Stage"; and Makor Rishon-Hatzofe: "Olmert: "I'll Quit my Post"; 
and the Shas mouthpiece Yom Leyom: "Olmert Broken."   "I have 
decided I won't run in the Kadima movement primaries, nor do I 
intend to intervene in the elections," Olmert was quoted as saying. 
"When a new [Kadima party] chairman is chosen, I will resign as 
prime minister to permit them to put together a new government 
swiftly and effectively," he added.  However, Ha'aretz reported that 
senior Kadima officials predicted that in reality, Olmert is likely 
to continue as PM for up to six more months since neither of the two 
leading contenders to succeed him -- FM Tzipi Livni and 
Transportation Minister Shaul Mofaz -- has much of a chance of 
setting up a new coalition to replace the one Olmert now heads.  In 
that case, new Knesset elections would have to be called, probably 
in late February or early March, which in turn would mean that 
Olmert would remain head of a transition government until a new 
government is formed after those elections.  Ha'aretz reported that 
senior members of Kadima's main coalition partner, the Labor Party, 
echoed this assessment, even though they noted that their party 
chairman, Defense Minister Ehud Barak, has an interest in postponing 
elections, as he is not currently doing well in the polls. 
 
Israel Radio quoted Livni as saying that Olmert had made a personal 
decision that was not easy and that his decision was the right one. 
Minister Livni said in Washington that Kadima must behave in the 
coming elections in a way that will maintain its unity and ability 
to lead Israel.  The radio quoted Mofaz as saying that if elected 
Kadima chairman he will strive to organize as broad as possible a 
coalition. 
 
Leading media reported that Olmert called President Bush just before 
his announcement.  Israel Radio quoted Deputy White House Press 
Secretary Gordon Johndroe as saying that Bush intends to work 
closely with Olmert until that time, and that he wishes him well. 
Johndroe was quoted as saying that Bush has appreciated Olmert's 
friendship, leadership and work for peace.  The radio quoted State 
Department Spokesman Sean McCormack as saying that the U.S. is 
"going to continue working on the basis on which we've worked." 
 
Israel Radio quoted a Hamas spokesman as saying that Olmert's step 
is a harsh blow to those who have chosen to negotiate peace with 
Israel.  The radio quoted PA President Mahmoud Abbas as saying that 
he will work with any Israeli PM.  Israel Radio quoted an announcer 
on Hizbullah's Al Manar-TV as saying that the top of the pyramid 
that led the Second Lebanon War has fallen. 
 
Israel Radio reported that Olmert's police interrogation tomorrow 
will focus on his dealings with the Rishon Tours travel agency, 
 
Ha'aretz and The Jerusalem Post reported that yesterday an 
18-year-old Palestinian was critically wounded by a rubber bullet 
shot by Israeli forces in the West Bank village of Na'alin.  Yediot 
reported that the IDF's Judge Advocate General is likely to indict 
the officer and the soldier who were involved inthe shooting a 
Palestinian youth with a rubber bllet at short range three weeks 
ago. 
 
Media reorted that yesterday the Knesset's State Control Cmmittee 
voted to establish a state commission of nquiry into the 
government's handling of the resttlement of settlers evacuated from 
Gaza and thenorthern West Bank in the disengagement of 2005. 
The Jerusalem Post reported that the World Bank tam managing the 
feasibility studies of the Red Sea-Dead Sea canal organized a public 
meeting on Wenesday to hear the Israeli public's views on the 
controversial project. 
 
-------- 
Mideast: 
-------- 
 
Summary: 
-------- 
 
Diplomatic correspondent Aluf Benn wrote on page one of the 
independent, left-leaning Ha'aretz: "The disappointment of the 
public as a result of the [Second Lebanon] War only became deeper as 
the corruption cases turned into an avalanche." 
 
Veteran journalist and anchor Dan Margalit wrote on page one of the 
independent Israel Hayom: "What Olmert promises in Israel's name 
from now on through his departure is negligible and practically 
inexistent." 
 
Diplomatic correspondent Maya Bengal wrote in the popular, pluralist 
Maariv: "[Olmert] will make a massive effort to attain a significant 
diplomatic achievement, which will help somewhat to soften the image 
that has been created in connection with him." 
 
The conservative, independent Jerusalem Post editorialized: "Olmert, 
in departure, has mercifully spared Israel the shameful potential 
ignominy of having a prime minister indicted while in office." 
 
Block Quotes: 
------------- 
 
¶I.  "Failing Grades" 
 
Diplomatic correspondent Aluf Benn wrote on page one of the 
independent, left-leaning Ha'aretz (7/31): "The abductions [of IDF 
soldiers by Hamas and Hizbullah] transformed [Olmert] from being 
Sharon's successor, who intended to continue the process of 
disengagement, into the leader of a nation at war.  Olmert failed 
this test three times: in the appointment of Amir Peretz as defense 
minister, in his rushed decision to embark on the Second Lebanon 
War, and in his decision to continue the war that had lost its point 
after the first strike of fire.  The helplessness of the government 
during the war and the serious shortcomings in the conduct of the 
army, wore down the meager popularity of Olmert.  The public was 
tired of him, and did not want his leadership, even when he tried to 
lead the country in a different direction.  The irony is that Tzipi 
Livni and Shaul Mofaz, who are contending to be his successors, 
offered him ways out during the war.  Livni suggested avoiding an 
escalation and bringing the offensive to an end a few days after it 
had started; Mofaz suggested an operation that may have saved Israel 
the frontal assault and spared the many casualties in the final week 
of the war.  The disappointment of the public as a result of the war 
only became deeper as the corruption cases turned into an 
avalanche." 
 
II.  "Olmert's Trick Prevented His Disgrace " 
 
Veteran journalist and anchor Dan Margalit wrote on page one of the 
independent Israel Hayom (7/31): "[Olmert] had two achievements that 
he can chalk up to his name.... He was fully responsible for the 
attack of the nuclear installation in Syria and for an absolute 
success: the parade of world leaders who arrived in Israel for its 
60th anniversary celebrations.  This was his diplomatic achievement 
in an era when efforts were made to isolate Israel.  What other 
achievements was he talking about?  The total failure of the Second 
Lebanon War, starting from its very first day, in which he 
demonstrated neither resolve nor perseverance, until the 
unsuccessful prisoner swap with Hizbullah?  His declaration about 
the uprooting of Hamas until the foot-dragging and the humiliating 
conditions that are accompanying [the process of] Gilad Shalit's 
release?  Just yesterday [Olmert] woke up to an amazing headline: 
his partner Abu Mazen threatens to dismantle the Palestinian 
Authority if Olmert releases Hamas's Parliament members.... 
[Olmert's] announcement [on Wednesday] makes clear to the world that 
he no lnger is the address for agreements -- neither in te 
Israeli-Palestinian arena, not in negotiationswith Syria.  While 
Damascus is waiting for the swearing-in of a new American president 
on January 0, 23009, it will also have to wait for Kadima's 
September 17, 2008 primaries.  What Olmert promises in Israel's name 
from now on through his departure is negligible and practically 
inexistent." 
 
III.  "Goal: To Leave the Stage with a Diplomatic Achievement" 
 
Diplomatic correspondent Maya Bengal wrote in the popular, pluralist 
Maariv (7/31): "Those who know Ehud Olmert know that he does not 
plan to leave his bureau in Jerusalem as a failed prime minister.... 
In other words, Olmert plans to leave behind a legacy.  In the 
window of opportunity that is left to him Q at least a month, half a 
year at the most -- he will make a massive effort to attain a 
significant diplomatic achievement, which will help somewhat to 
soften the image that has been created in connection with him. 
Waiting on Olmert's desk are four burning diplomatic issues: the 
release of kidnapped soldier Gilad Shalit from Hamas, a peace 
agreement with the Palestinians, moving the negotiations with Syria 
from an indirect to a direct track with American involvement, and 
the thwarting of IranQs nuclear program.... It should be noted that 
from the legal perspective, he retains all the authority of a prime 
minister, even after his resignation in September.  If there is a 
breakthrough on one of these issues, Olmert will be able to depart 
from his position as prime minister, at least in his opinion, with a 
proud demeanor.  However, Olmert faces a difficult problem, should 
he actually try to implement far reaching diplomatic moves: chances 
are that he will be accorded neither public nor political legitimacy 
to do so.  But Olmert will at least be able to advance diplomatic 
issues, even if they are not brought for a decision by the cabinet 
or the Knesset, which will remain to be dealt with by the person who 
takes his place." 
 
IV.  "Olmert, a Dignified End" 
 
The conservative, independent Jerusalem Post editorialized (7/31): 
"In the end, it was a dignified acknowledgement of an untenable 
reality.... Olmert, in departure, has mercifully spared Israel the 
shameful potential ignominy of having a prime minister indicted 
while in office.  And while this newspaper has argued that he should 
have stepped down after the failures of the Second Lebanon War, and 
that he was further compromised by the demands on his attention 
necessitated to fight for his good name, it has also been our 
consistent contention that there should be no rush to judgment as 
regards the corruption allegations.  His announced intention to step 
down, therefore, serves to underline how high are the stakes when a 
serving prime minister is investigated for alleged criminal 
offenses." 
 
MORENO