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P 251110Z NOV 08
FM AMEMBASSY TEL AVIV
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UNCLAS TEL AVIV 002623 
 
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 
JOINT STAFF WASHDC FOR PA 
CDR USCENTCOM MACDILL AFB FL FOR POLAD/USIA ADVISOR 
COMSOCEUR VAIHINGEN GE FOR PAO/POLAD 
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.  Mideast 
 
¶2.  Iran 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Yediot reported that yesterday in Washington PM Ehud Olmert asked 
the U.S. administration to speed up the diplomatic process with the 
Palestinians.  He was quoted as saying that President-elect Barack 
Obama will not have time for the Middle East.  The Jerusalem Post 
reported that, at a working breakfast with Secretary of State 
Condoleezza Rice and National Security Adviser Stephen Hadley, 
Olmert stressed the importance of shunning Hamas until it meets the 
QuartetQs demand of renouncing violence and recognizing Israel. 
 
HaQaretz quoted DM Ehud Barak as saying yesterday before the Knesset 
plenum that Hizbullah had tripled its rocket strength since the 2006 
war in Lebanon and that it now possesses 42,000 rockets, some of 
which are capable of striking Ashkelon, Yerucham, and Dimona.  Barak 
blasted critics who had called for a massive offensive in Gaza, 
saying that Israel would not become hostage to a lone Qassam rocket. 
 He was quoted as saying: QA Gaza operation will not hasten the 
return of Gilad Shalit. 
 
 
HaQaretz reported that Israel has agreed to release 220 of the 350 
prisoners convicted of serious crimes whose freedom Hamas is 
demanding in exchange for Shalit.  This represents a significant 
moderation of IsraelQs position, as it had previously agreed to 
release only 150 of these prisoners.  Nevertheless, the gap between 
the parties remains wide. 
 
The Jerusalem Post reported that Israel will deploy close to 1,000 
policemen in Bethlehem in the run-up to the Christmas season. 
 
The Jerusalem Post reported that yesterday the state acknowledged 
that residents of the illegal outpost of Migron will be able to stay 
there for years. 
All media reported that Samir Kuntar, the Lebanese terrorist 
released by Israel earlier this year, spoke across the Golan border 
with Syria yesterday and promised that President Bashar Assad would 
Qsoon wave the Syrian flag over the Golan. 
 
Leading media reported that yesterday Tehran claimed to have 
uncovered an Israeli spy ring responsible for collecting information 
about its nuclear facilities. 
 
HaQaretz reported that Shas is launching a campaign to seek 
compensation for Jewish refugees who came to Israel from Arab 
states.  The campaign, part of the ultra-Orthodox party's election 
platform, counters Palestinian demands for the right of return of 
their refugees. 
 
HaQaretz reported that Hamas correspondence intercepted by the PA 
and obtained by the newspaper reveals a deep divide between the 
organization's leadership abroad, its West Bank leadership, and the 
Gaza leadership.  The leadership abroad says it does not want "to 
control Gaza completely while losing the West Bank." 
 
The Jerusalem Post reported that on Sunday the PLOQs Central Council 
declared PA President Mahmoud Abbas Qpresident of the State of the 
Palestine,Q in response to HamasQs opposition to the extension of 
his term in office beyond January 9.  The title had been previously 
held by Yasser Arafat. 
 
Leading media reported that, just two weeks after the establishment 
of the new right wing party, Habayit Hayehudi (the QJewish Home"), a 
crisis is looming over the decision of its public council not to 
hold a primary vote to elect its list of Knesset candidates. 
 
Leading media reported that yesterday Iraqi MP Mithal Al-Alusi won a 
legal fight in order not to be punished for his visits to Israel. 
 
HaQaretz reported that yesterday government agencies released a 
series of downbeat economic statistics showing that the crisis is 
spreading from the financial sector to the rest of the economy.  All 
media reported that yesterday the Bank of Israel cut its discount 
rate by 0.5% to 2.5%. 
 
Maariv cited the results of a poll taken among Israelis on the issue 
of the Golan.  One third of respondents believe that IDF solders 
should refuse orders to evacuate the Golan and 58% are opposed to a 
withdrawal from the area even in exchange for full peace. 
 
Maariv and The Jerusalem Post cited the results of a poll presented 
at the Sderot Society Conference, which show that 72% of Israelis 
believe that the regime in the country is corrupt. 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
The independent, left-leaning Ha'aretz editorialized: QIdeas 
[pertaining to an Arab-Israeli agreement] deserve to receive the 
official stamp of approval of the Obama administration and to be, in 
practice, submitted to the voters in both communities so that those 
who prefer the hard right parties here, and Hamas there, know in 
advance that they are choosing confrontation with Obama's America. 
 
Columnist and former IDF Intelligence chief Shlomo Gazit wrote in 
the popular, pluralist Maariv: QIn our deliberations on the way to 
the polling stations, the peace issue must be a decisive 
consideration in our choice among the candidates.  A clear answer to 
the challenge given by the Arab peace initiative ad is immeasurably 
more important than the list of new stars that will adorn the list 
of Knesset candidates. 
 
Conservative columnist Amos Carmel wrote in the mass-circulation, 
pluralist Yediot Aharonot: QLarge letters at the top of the ad 
[placed in Israeli papers by the PLO] promise us Qdiplomatic and 
normal relationsQ in return for an Qend to the occupation.Q  The 
small print shows that the price is a lot higher.  Not in acceding 
to the fluttering of the dove's wings of peace, but in bringing in a 
Trojan horse. 
 
Block Quotes: 
------------- 
 
¶I.  "ObamaQs Opportunity" 
 
The independent, left-leaning Ha'aretz editorialized (11/25): 
QImmediacy, priority and the personal involvement of the [incoming] 
president are no less important than the components of [his] plan 
[for an Arab-Israeli agreement], one version of which was made 
public last weekend by two old U.S. foreign affairs and security 
hands who are advising Obama, partly behind the scenes -- Brent 
Scowcroft and Zbigniew Brzezinski.  There's nothing wrong with a 
peace based upon ensuring Israel's security within the 1967 borders, 
with agreed-upon changes to the border and exchanges of territory 
that will leave within Israel those settlement blocs whose 
evacuation would be too expensive and too painful; a demilitarized 
Palestinian state whose capital is East Jerusalem; and the 
retraction of the demand for resettlement of the refugees within 
Israel.  It is campaign season in Israel as well as in the 
Palestinian Authority.  These ideas deserve to receive the official 
stamp of approval of the Obama administration and to be, in 
practice, submitted to the voters in both communities so that those 
who prefer the hard right parties here, and Hamas there, know in 
advance that they are choosing confrontation with Obama's America. 
 
II.  So, Yes or No to Peace?" 
 
Columnist and former IDF Intelligence chief Shlomo Gazit wrote in 
the popular, pluralist Maariv (11/25): QA few days ago we could not 
help but see huge ads in all the major newspapers with a full Hebrew 
translation of the Arab peace initiative. The Arab world is also 
aware of the upcoming elections here, and the publication was meant 
to challenge the political establishment in Israel.... The Arab and 
Muslim world, the new administration in Washington and, above all, 
we, the voters in Israel, expect a clear answer from Tzipi Livni, 
from Benjamin Netanyahu, and from Ehud Barak. Don't evade the 
matter.  Give us a clear answer. Is Israel genuinely striving for 
peace with our neighbors?  And if the answer is affirmative -- what 
is their plan?  In our deliberations on the way to the polling 
stations, the peace issue must be a decisive consideration in our 
choice among the candidates.  A clear answer to the challenge given 
by the Arab peace initiative ad is immeasurably more important than 
the list of new stars that will adorn the list of Knesset 
candidates. 
 
III.  "The Trojan Initiative" 
 
Conservative columnist Amos Carmel wrote in the mass-circulation, 
pluralist Yediot Aharonot (11/25): QThe flag-bedecked ads that the 
PLO published last week in the Israeli press provide the reader with 
an important service.... The summarizing announcement of the Beirut 
summit (on March 28, 2002) in which the declaration was written that 
takes up the center of the ... ad, the writers were quick to assign 
Israel with Qfull legal responsibility for the existence of the 
problem of the Palestinian refugeesQ and to stress their Qabsolute 
opposition to all the plans and attempts to settle them outside of 
their homes.Q  What else do we need to understand what is being said 
here?  Large letters at the top of the ad promise us Qdiplomatic and 
normal relationsQ in return for an Qend to the occupation.Q  The 
small print shows that the price is a lot higher.  Not in acceding 
to the fluttering of the dove's wings of peace, but in bringing in a 
Trojan horse.  Indeed, a historic turning point. 
 
--------- 
¶2.  Iran: 
--------- 
 
Summary: 
-------- 
 
The conservative, independent Jerusalem Post editorialized: QThe 
[British] Foreign Secretary's overly nuanced and highly conservative 
message could easily lead the mullahs to conclude that there is no 
credible downside to their building a bomb. 
 
Block Quotes: 
------------- 
 
"MilibandQs QStark ChoiceQ" 
 
The conservative, independent Jerusalem Post editorialized (11/25): 
QBritish Foreign Secretary David Miliband told a think-tank audience 
in Abu Dhabi yesterday that the Qprospect of a nuclear-armed Iran 
poses the most immediate threat to the stabilityQ of the region.... 
Unfortunately, in trying to convince the Arabs to get tougher with 
Iran, Miliband actually gave them every reason not to: QThe pressure 
we are applying to Iran, the sanctions we have supported in both the 
EU and the UN, are not an attempt at regime change,Q he said.  QNor 
are they a precursor to military action.  We are 100% committed to a 
diplomatic resolution of this disputeQ.... The Foreign Secretary's 
overly nuanced and highly conservative message could easily lead the 
mullahs to conclude that there is no credible downside to their 
building a bomb:  Existing sanctions are insufficiently draconian to 
deter; the pace by which they could conceivably be strengthened is 
pathetically out of whack with Iranian nuclear advances; the regime 
is under no threat; and the military option is off the table. 
 
MORENO