VZCZCXRO6512
PP RUEHROV
DE RUEHJM #1476/01 2211233
ZNY CCCCC ZZH
P 081233Z AUG 08
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC PRIORITY 2472
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/WHITE HOUSE NSC PRIORITY

"C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 001476 
 
SIPDIS 
 
NEA FOR FRONT OFFICE. NSC FOR ABRAMS/SINGH/PASCUAL 
 
E.O. 12958: DECL: 08/06/2018 
TAGS: KWBG PBTS PREL PHUM IS
SUBJECT: YESHA COUNCIL LEADER DAYAN:  ""TWO STATE SOLUTION 
IS DEAD"" 
 
REF: A. JERUSALEM 1343 
     ¶B. JERUSALEM 1260 
     ¶C. TEL AVIV 220 
 
Classified By: Consul General Jake Walles, per reasons 1.4 (b) and (d) 
 
¶1. (C)  SUMMARY:   Yesha Council Chairman Dani Dayan 
confirmed recent settlement approvals by Israeli MOD Barak 
and showed Poloff areas under construction on July 24. 
Dayan, who is secular but leads an exceedingly religious 
constituency, addressed the challenges he sees for the 
settlement movement and evolutions in Yesha's leadership 
structure.  He recognized the problem of settler violence, 
but said he ""cannot control them (the extremists).""  Dayan 
urged the U.S. to admit the ""the two state solution is dead"" 
and said ""the status quo should be the goal for now."" END 
SUMMARY. 
 
New Construction at Maale Shomron; Praise for 
Recent MOD Hebron and Maskiyyot Approvals 
--------------------------------------------- 
 
¶2. (C) Poloff met July 24 with Yesha Council Chairman Dani 
Dayan in the northern West Bank settlement of Maale Shomron. 
He observed ten houses under construction at the settlement 
and one caravan under construction in the neighboring outpost 
of Elmatan (pre-March 2001).  Poloff also observed a new road 
connecting Maale Shomron to the Neve Aliza section of the 
neighboring Karnei Shomron settlement, which is exclusively 
inhabited by AmCits and where 15 luxury homes are being 
constructed.  ""We're able to build here and there,"" Dayan 
said. 
 
¶3.  (C) Dayan welcomed the recent MOD approvals of twenty 
permanent houses at the northern Jordan Valley settlement of 
Maskiyyot and of a new building for Hebron's Beit Romano 
yeshiva (REFS A-B).  ""Within a few weeks,"" he said, there 
will be ""a discussion"" with the MOD on Migron outpost, the 
largest of the post-March 2001 outposts (REF C). 
 
Changes in Yesha Council 
------------------------ 
 
¶4.  (C)  Dayan said the quality of the mid-level leadership 
of the settler movement has declined, referring to the four 
regional council chairmen from Hebron Area, Gush Etzion, 
Binyamin, and Samaria that report directly to him in the 
Yesha power structure.  (Note: Dayan became the Chairman of 
the Yesha Council in 2005 after the Gaza evacuation.  End 
Note.)  ""Avi Roeh is no Pinchas Wallerstein"", he said, 
referring to the changing of the guard in Binyamin (Ramallah 
area); Gershon Mesika, the newly elected Samaria (northern 
West Bank) chairman, is a ""simple man with no leadership 
skills."" 
 
¶5.  (C)  Dayan acknowledged the recent increase in violence 
against Palestinian by extremist settlers, but said, ""I can't 
control them (extremists).""  He said he has discussed the 
issue with the INP, but that ""there are provocations"" by 
Palestinians. 
 
""Two State Solution is Dead"" 
---------------------------- 
 
¶6.  (C)  Dayan said ""the Gaza experience killed the two-state 
solution...It's a shame they've taken the land and used it as 
a launching pad against Israel rather than building a state."" 
 He added, ""Syria, Egypt, and Jordan can all accommodate a 
Palestinian state on this land but the Palestinians 
cannot...They'll continue to advocate for all of this land."" 
Dayan said he believes the goal for now is ""the status quo,"" 
rather than a negotiated solution. ""The creation of a 
Palestinian state now will mean the end of Israel,"" he said. 
Dayan said he wants improved human rights and economic 
conditions for Palestinians, ""including what you (the U.S.) 
advocate on roadblocks and checkpoints.""  About a potential 
settler compensation bill in the Knesset, Dayan said, ""I'm an 
economist, and I know that some people will take it if the 
price is right"" 
 
Bio Note 
-------- 
 
¶7.  (C)  Dayan and his wife moved from Tel Aviv to a West 
Bank caravan in 1988. Dayan is not religious, drives on the 
Sabbath, and does not keep kosher.  He is motivated by 
ideology.  Dayan had a successful career in 
telecommunications before assuming his Yesha leadership role 
in 2005.  He has a teenage daughter, and his wife is the 
 
JERUSALEM 00001476  002 OF 002 
 
 
marketing director for Ariel settlement's ""University Center."" 
WALLES 
"