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UNCLAS TEL AVIV 002175 
 
STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
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JERUSALEM ALSO ICD 
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PARIS ALSO FOR POL 
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E.O. 12958: N/A 
TAGS: OPRC KMDR IS
 
SUBJECT: ISRAEL MEDIA REACTION 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
¶1.  Mideast 
 
¶2.  Iran 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media quoted Defense Minister Ehud Barak as saying yesterday 
that the Labor Party will make every effort to form a national unity 
government with Kadima leader Tzipi Livn.  Ha'aretz quoted Shas 
sources as saying yesterday that Livni is likely to compromise on 
Shas's demand for an increase in child allowances, thereby enabling 
the ultra-Orthodox party to join her government.  All media reported 
that yesterday Likud Chairman Benjamin Netanyahu rejected Livni's 
call for an emergency unity government, and reiterated his call for 
general elections.  The Jerusalem Post reported that Foreign 
Ministry Director General Aharon Abramovitch is likely to lead 
Livni's inner circle. 
 
Major media explicitly said that Iranian President Mahmoud 
Ahmadinejad's speech before the UN General Assembly yesterday was 
"anti-Semitic."  The media quoted Iranian President Mahmoud 
Ahmadinejad as saying: "A few bullying powers have sought to put 
hurdles in the path of Iran's peaceful development of nuclear 
power."  He was also quoted as saying that Israel was doomed like 
"an airplane that has lost its engine" and reiterated his refusal to 
accept the Holocaust as historical truth, asserting that the 
Palestinians should not be made to "pay for" events that "may have 
occurred during World War II."  The Jerusalem Post quoted President 
Shimon Peres as saying before Ahmadinejad's address that he "calls 
the world to return to the age of darkness, hatred, threats, 
impatience, and arrogance, [and] doesn't respect human life.  He 
thinks he's the supreme judge of the world."  Peres also told 
reporters that Israeli and Palestinian negotiators were unlikely to 
reach a peace deal in 2008.  Peres will address the UN General 
Assembly today. 
 
The media cited the police's belief that the motivation of Qassem 
el-Mughrabi, who plowed his car into a crowd of pedestrians at a 
busy intersection in Jerusalem on Monday night, was nationalistic, 
though they admit that so far, no evidence linking him to any 
terrorist organization has been found.  The media reported that 
Mughrabi's family rejected the terror claim, saying that what 
happened was "just a fatal accident."  Leading media quoted Israeli 
defense officials as saying that vehicle attacks in Jerusalem may be 
impossible to stop.  Leading media quoted PM Ehud Olmert as saying 
that isolating Arab neighborhoods is the only way to prevent attacks 
by Jerusalem Arabs. 
 
Ha'aretz quoted sources close to Transportation Minister Shaul Mofaz 
as saying that he will decide on his political future by October 2. 
Yediot quoted Mofaz supporters as saying that he will join the 
government by that date. 
 
The Jerusalem Post reported that yesterday Livni held talks with 
chief Palestinian negotiator Ahmed Qurei.  Maariv and other media 
reported that yesterday Qurei sent a message to Israel that if the 
peace talks fail, the Palestinians will return to violence. 
 
Israel Radio reported that five Palestinians were killed in the 
explosion of a smuggling tunnel at the Egypt-Gaza border. 
 
Ha'aretz and other media reported that MK Jamal Zahalka (Balad - 
National Democratic Assembly) plans to sail to Gaza today on a trip 
organized by the left-wing Free Gaza group, marking the first 
violation by an Israeli Knesset member of the ban on Israeli travel 
to Gaza.  The Jerusalem Post quoted the organizers of the voyage as 
saying that 1976 Irish Nobel Peace Prize winner Mairead Maguire, who 
has been involved in the protests at Na'alin, and Palestinian 
Legislative Council member Mustafa Barghouti will be among those on 
board.  The Jerusalem Post reported that the GOI is mulling over 
whether to stop the boat.  The Jerusalem Post quoted an EU official 
as saying yesterday that border policemen had fired tear gas 
canisters at him while he was touring the area around Na'alin. 
 
The Jerusalem Post reported that Maj. Gen. (res.) Giora Eiland, 
former head of the National Security Council, warned in a new report 
that the current formulation of the two-state solution is 
untenable. 
 
Ha'aretz quoted former Shas leader Aryeh Deri as saying yesterday 
that if he is legally barred from submitting his candidacy in the 
Jerusalem mayoral race, he will drop out without seeking to overturn 
the ruling. 
The Jerusalem Post reported that PADICO, a leading private 
Palestinian company, is planning to pump hundreds of millions of 
dollars into the West Bank and East Jerusalem. 
 
Ha'aretz reported that few Israeli diplomats are interested in 
representing their country in Cairo. 
 
Leading media reported that Israel was ranked 33rd on a list of 180 
nations in Transparency International's 2008 Corruption Perceptions 
Index, published yesterday.  On the index, the country with the 
highest ranking (lowest number) is considered the least corrupt.  In 
2007, Israel was ranked 30th with a score of 6.1 out of 10, whereas 
in 2006 Israel ranked 34th with a score of 5.9. 
 
Ha'aretz quoted State Comptroller Micha Lindenstrauss as saying that 
the government acted properly when it decided to limit the number of 
Falash Mura (descendants of Ethiopian Jews who converted to 
Christianity) entering Israel, and stop bringing members of the 
community here.  At the same time, Lindenstrauss proposed to the 
government that, for humanitarian reasons, it should examine the 
eligibility for immigration of some 3,200 additional Falash Mura who 
have yet to be scrutinized.  Makor Rishon-Hatzofe reported that 
Lindenstrauss found that the government had made contradictory 
decisions about the Falash Mura. 
 
Ha'aretz reported that last week the dollar weakened by 2.4% against 
the shekel.  The newspaper quoted Israel's economic leaders as 
saying yesterday that Washington's plan for the American financial 
sector has not ended the danger, and that Israelis should think 
carefully before taking any drastic measures. 
 
The media reported that yesterday "Waltz with Basher," an animated 
documentary about the first Lebanon War, won the Ophir Award of the 
Israeli Film Academy -- the highest prize in Israeli cinema.  It 
will represent Israel at the Academy Awards in the best foreign film 
category. 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Security and intelligence affairs commentator Amit Cohen wrote in 
the popular, pluralist Maariv: "The greatest fear in the PA, based 
on years of experience, is that the new [Israeli] government will 
try to start the negotiations all over again." 
 
The independent, left-leaning Ha'aretz editorialized: Even a 
caretaker government is authorized to make practical decisions that 
affect the daily life of civilians in the territories and create an 
atmosphere that will lead to a more positive direction. 
 
Liberal columnist Prof. Aviad Kleinberg wrote in the 
mass-circulation, pluralist Yediot Aharonot: "At the head of Kadima 
and of the Labor Party are two leaders in whom the public has not 
expressed its confidence.  That is not a healthy situation." 
 
Block Quotes: 
------------- 
 
¶I.  "Scared to Lose Their Achievements" 
 
Security and intelligence affairs commentator Amit Cohen wrote in 
the popular, pluralist Maariv (9/24): "The greatest fear in the PA, 
based on years of experience, is that the new [Israeli] government 
will try to start the negotiations all over again.  Added to this 
fear is the belief that the new government will try to veer right, 
to appeal to the Israeli public, at the expense of the peace 
process.  That was the case, say top Palestinians, every time the 
government in Israel changed.  But this time, despite the 
difficulties, despite the disagreements, the Palestinians are not 
willing to give up on the progress that was made and to go back, 
once again, to the starting point.  The fact that Livni was involved 
in the details of the negotiations does not particularly impress the 
Palestinian side.  In contrast perhaps to her image in Israeli 
public opinion, Palestinian politicians who have met with her do not 
consider her a political dove.  More than anything, they note her 
unwillingness to compromise on the issue of refugees.... Palestinian 
officials opted to ignore the fact that Abu Ala [Ahmed Qurei] 
explicitly said: 'Resistance in all its forms is legitimate,' and 
claimed that there were many ways to overcome an impasse.  Abu AlaQs 
remark yesterday is not a dramatic novelty: it also appeared in Abu 
Mazen's platform before elections for the presidency.  The 
Palestinians, officially, have never given up on resistance." 
 
II.  "Shooting from the Hip DoesnQt Help" 
 
The independent, left-leaning Ha'aretz editorialized (9/24): 
"Attacks that are attributed to individuals rather than 
organizations and thus become more difficult to pinpoint in advance, 
are a reminder of the explosive situation in which Jerusalem in 
particular and Israel in general find themselves.... [It is an 
illusion to think that] harsh and immediate punitive measures, 
including the destruction of the terrorists' homes, would ... put an 
end to [attacks].  This is an illusion.... Has razing the homes of 
terrorists' families prevented terror attacks in the past? Has 
collective punishment quelled the outbreak of the Intifada?  Even 
the security services eventually understood that harsh punishments 
are no cure.  At most, they can provide a sense of revenge.  This 
dangerous and fragile situation does not call for shoot-from-the-hip 
statements or a political shrug of the shoulders.  Even a caretaker 
government is authorized to make practical decisions that affect the 
daily life of civilians in the territories and create an atmosphere 
that will lead to a more positive direction.  This way, the 
government can aid the Palestinian security services in their 
ongoing efforts against terrorism and perhaps weaken, if not 
dissolve, the population's support for those lone terrorists ready 
to carry out attacks. 
 
III.  "Let the Nation Decide" 
 
Liberal columnist Prof. Aviad Kleinberg wrote in the 
mass-circulation, pluralist Yediot Aharonot (9/24): "I quite like 
Tzipi Livni. The problem is, I canQt take my eyes off the crowd that 
is with her and the sticks, which outnumber the grapes or carrots 
many times over, in the hands of the friends of Mrs. Clean.  Who 
will really run the country, Tzipi Livni or the farm forum?  Tzipi 
Livni or the coalition parties, which havenQt done much good for 
anyone, but are impressive in their power to do harm?  Even if there 
are good intentions, Livni will find it difficult to govern, partly 
because she has not received  a mandate from the people.  She got 
where she is thanks to an accident....   At the head of Kadima and 
of the Labor Party are two leaders in whom the public has not 
expressed its confidence.  That is not a healthy situation.  The 
political stability in the name of which these leaders are trying to 
put off the election is a dangerous illusion.  Instead of a 
government with the public behind it, we will have a cabal which 
will always have an eye on the upcoming election, trying incessantly 
to get in front of the cameras in order to win an advantage.  It 
would be better to drop this farce and turn to the voter.  The scare 
tactics about another Netanyahu government ('Any stench is better 
than handing over power to Netanyahu') constitute not just 
demonization of the opposition leader.  They show contempt for 
democracy." 
 
--------- 
¶2.  Iran: 
--------- 
 
Summary: 
-------- 
 
Intelligence affairs correspondent Yossi Melman wrote in the 
independent, left-leaning Ha'aretz: "Should Israel accept that its 
era of nuclear monopoly in the Middle East has ended, and assume a 
new role as passive witness to a regional nuclear arms race?" 
 
Block Quotes: 
------------- 
 
"The Era of Sanctions Has Ended" 
 
Intelligence affairs correspondent Yossi Melman wrote in the 
independent, left-leaning Ha'aretz (9/24): "Russia is strengthening 
the Iranian regime and signaling to it that the basic, though 
superficial, international consensus against it has ceased to exist. 
 This new development could not have come at a worse time.  Though 
the former sanctions were weak, their impact has only now begun to 
yield results and raise concern among Tehran's ayatollahs.... 
Because there is great doubt if the new U.S. presidential 
administration, whether Republican or Democrat, will okay a military 
strike against Iran, Israel -- which is itself in a deep political 
crisis -- faces a huge dilemma.  Should it launch a military strike, 
limited as it may be, on Iran's nuclear facilities in order to set 
its nuclear program back a few years and risk Iranian retribution; 
or should Israel accept that its era of nuclear monopoly in the 
Middle East has ended, and assume a new role as passive witness to a 
regional nuclear arms race?" 
 
CUNNINGHAM