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UNCLAS TEL AVIV 000221 
 
STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
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E.O. 12958: N/A 
TAGS: OPRC KMDR IS
 
SUBJECT: ISRAEL MEDIA REACTION 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
The media reported that Hamas is prepared to reach a one-year (or 
18-month) cease-fire with Israel if the border crossings into Gaza 
are opened.  Israel Radio cited IsraelQs denial of such an offer. 
The media reported that Hamas refuses to link the release of Gilad 
Shalit to this issue, saying that its price is known.  Israel Radio 
quoted the international newspaper Ash-Sharq Al-Awsat as saying, 
citing Israeli sources, that Israel has raised the number of 
Palestinian prisoners it is prepared to release in exchange for 
Shalit to 1,300. 
 
Yesterday The Jerusalem Post reported that, in a call to Saudi King 
Abdullah on Friday, President Obama asked Saudi Arabia for help to 
stop weapons smuggling into Gaza and that he emphasized his 
appreciation for the Arab peace initiative. 
 
Yesterday The Jerusalem Post reported that an American expert on 
Iran told the newspaper on Saturday that the interception of an 
Iranian arms ship by the U.S. Navy in the Red Sea last week likely 
was conducted as a covert operation and that it is being played down 
by the U.S. military due to the lack of a clear legal framework for 
such operations.  The media quoted the British daily The Times as 
saying yesterday that an American naval task force has been ordered 
to locate and intercept Iranian ships carrying weapons to Hamas in 
Gaza.  Israel Radio said that the blocking of an Iranian ship by 
Egypt in the Gulf of Suez proved that Egypt was serious about 
preventing weapons smuggling.  Makor Rishon-Hatzofe quoted DM Ehud 
Barak as saying that Egypt has started to foil arms smuggling. 
 
Leading media reported that yesterday President Shimon Peres 
welcomed the mission of U.S. envoy George Mitchell.  QPressure" was 
the salient word in the front-page headlines on yesterdayQs Yediot 
and Maariv.  Media reported that DM Ehud Barak will be leaving this 
week for a short visit to the U.S., where he will meet with Defense 
Secretary Robert Gates and possibly with President Obama.  The 
Jerusalem Post reported that Barak delayed his departure to meet 
with U.S. envoy George Mitchell later this week. 
 
Over the weekend the media quoted FM and Kadima chairwoman Tzipi 
Livni as saying that Likud Chairman Benjamin Netanyahu will cause a 
rift with the U.S.; Likud responded by saying that Kadima is 
desperate.  HaQaretz reported that yesterday Netanyahu told Quartet 
envoy Tony Blair that a Likud-led government would not build new 
settlements in the West Bank but would allow for natural growth. 
HaQaretz said that this was an apparent attempt to calm the 
international community before this week's arrival of George 
Mitchell, the newly appointed U.S. envoy to the Middle East.  The 
newspaper said that the two discussed the renewed American interest 
in the Middle East and MitchellQs visit to the region, as well as 
the 2001 Mitchell Report.  The report led to the Roadmap and called 
for a freeze in settlement construction.  Netanyahu was also quoted 
as saying that he plans to work to advance negotiations with the 
Palestinians quickly and to focus on economic development. 
Yesterday Maariv reported that Netanyahu recently told foreign 
diplomats: QIf I win the elections, I won't form an extreme right 
wing government." 
 
Israel Radio reported that Louis Michel, European Commissioner for 
Development and Humanitarian Aid, currently visiting Gaza, blamed 
Hamas for the destruction there. 
 
Leading media quoted a Golani Brigade officer as saying during 
Operation Cast Lead that a solider who is abducted should explode a 
hand-grenade on himself and the abductors.  The IDFQs order was to 
prevent the abduction of an IDF soldier at any cost. 
 
 
The media reported that yesterday the cabinet announced that Israel 
will provide legal aid to IDF officers and soldiers who took part in 
Operation Cast Lead in Gaza if they are accused of war crimes. 
HaQaretz noted that the decision conforms to one passed in 2005, 
when the cabinet said Israel would help to pay the legal expenses of 
officers indicted abroad. 
 
Yesterday The Jerusalem Post quoted Palestinians in Gaza as saying 
over the weekend that Haidar Ghanem, a Palestinian human rights 
activist and journalist who used to work for the Israeli human 
rights organization BQTselem has been executed by Hamas on charges 
of QcollaborationQ with Israel. 
 
HaQaretz quoted the chief IDF Rabbi, Brig. Gen. Avichai Rontzki, as 
saying in army publications: Q[There is] a biblical ban on 
surrendering a millimeter of it [the Land of Israel] to gentiles. 
Rontzki denied that the Palestinians have any political rights. 
 
Major media quoted the Jewish Agency as saying yesterday that a 
total of 250 anti-Semitic acts around the world were recorded in 
January.  This marks a dramatic leap from the 80 cases recorded 
during the same period last year.  According to the Jewish Agency, 
the Gaza operation probably increased animosity toward Jews. 
 
All media reported on a renewed police probe of Yisrael Beiteinu 
leader, MK Avigdor Lieberman, his daughter, and associates. 
HaQaretz reported that Lieberman earned more than 2.5 million 
shekels (around $630,000) as a salaried employee of his daughter's 
company from 2004-2006.  During that time, he was neither a Knesset 
member nor a minister.  Police suspect Lieberman of money 
laundering, fraud and breach of trust.  HaQaretz reported that 11 
million shekels (around $2.77 million) flowed into companies owned 
by LiebermanQs daughter.  HaQaretz quoted sources in the national 
fraud squad as saying yesterday that the evidence gathered against 
Lieberman in recent months was far more serious and substantial than 
anything that has been previously published. 
 
All media quoted the Bank of Israel as saying yesterday that Israel 
will go into recession in 2009.  A negative growth rate of -0.2 
percent is expected according to the BankQs new assessment.  The 
previous forecast predicted a growth of 1.5%.  The bank foresees a 
slight recession in the first half of 2009, followed by stability 
and a return to growth in the second half of the year and a return 
to the country's potential growth rate only by mid-2010.  The bank 
said the forecast was adjusted in light of negative developments in 
the world economy as well as the Israeli market. 
 
Electronic media reported that United Torah Judaism MK Avraham 
Ravitz passed away last night aged 75.  He had been a 
parliamentarian for over 20 years and served as chairman of the 
KnessetQs Finance Committee during part of his tenure. 
 
Leading media quoted U.S. authorities as saying yesterday that they 
were prepared to offer partial immunity to American businessman 
Morris Talansky, the key witness in a corruption probe currently 
underway against PM Ehud Olmert.  According to the offer, any 
prospective testimony given by Talansky in an Israeli courtroom will 
not be used as direct evidence against him in the U.S.  HaQaretz 
reported that the testimony may be used in other instances, for 
example, as a lead to assist the Department of Justice in its 
investigation, to cross-examine Talansky should he be brought before 
an American court and as rebuttal to any assertions made by Talansky 
or his attorneys.  HaQaretz reported that Talansky does not intend 
return to Israel to testify here, but Yediot cited the belief of the 
state prosecution that he will. 
 
Saying that the rate of voter turnout has dropped in recent years, 
Yediot reported that judging by a new Dahaf poll, it is not likely 
to surge back.  The survey found that only 65% of registered voters 
are certain that they are going to cast a ballot in the upcoming 
elections.  The poll found that only 17% of respondents said they 
"think they will go to vote."  Past experience shows that only 
people who say they are certain to vote actually go out and vote. 
 
-------- 
Mideast: 
-------- 
 
Summary: 
-------- 
 
Senior columnist Nahum Barnea wrote on page one of the 
mass-circulation, pluralist Yediot Aharonot: QWould the Obama 
administration be happy to help Livni and Barak against Netanyahu 
and Lieberman?  Almost certainly -- provided elections were 
scheduled to be held a year from now.  But the proximity of the 
elections makes such intervention impossible, and anyone who fears 
for Israel's independence and democracy should only be grateful that 
that is the case. 
 
The conservative, independent Jerusalem Post editorialized: QAnyone 
who calls themselves Qpro-Israel,Q while demanding a withdrawal to 
the perilous 1949 Armistice Lines in an environment where that would 
represent national suicide, needs to do some serious soul-searching. 
 
 
Defense commentator Amir Oren wrote in the independent, left-leaning 
Ha'aretz: Q[President Obama] can be the one to establish a new world 
order.  The responsibility for providing him with the right partner, 
who will insist on Israel's security while also being flexible in 
order to achieve peace, lies with the Israeli voters, who will cast 
their ballot two and a half weeks from now. 
 
Senior op-ed writer Akiva Eldar commented in Ha'aretz: QWhat do the 
candidates [for prime minister?] prefer -- forming a united front 
with 22 Arab states against Iran and its agents, or forming a united 
front with the settlers against the entire world? 
 
Eytan Bentsur, former Director-General of the Foreign Ministry, 
wrote in HaQaretz: QA Madrid process, led by the Americans, could 
lead to an alliance among the moderate countries fighting Islamic 
fundamentalism. 
 
The nationalist, Orthodox Makor Rishon-Hatzofe editorialized: 
QMitchell is not friendly toward Israel.  Nevertheless, President 
Obama's statement last Thursday lays a positive basis for 
coordinating policy with the United States.  Obama and Clinton 
rejected bringing Hamas into the peace process. 
 
Block Quotes: 
------------- 
 
¶I.  "Foreplay" 
 
Senior columnist Nahum Barnea wrote on page one of the 
mass-circulation, pluralist Yediot Aharonot (1/25): QThe messages 
that have been received from the new administration are conflicting: 
public statements that attest to an almost frantic sense of urgency 
regarding the Israeli-Arab conflict, and understanding that is 
conveyed in private conversations that nothing is going to move here 
until a new government is formed in Israel (the only arena in which 
there is any concern about something happening is with respect to 
Hizbullah, as the anniversary of the Mughniyah assassination draws 
near).  A day before Mitchell's arrival, Ehud Barak will be leaving 
for Washington, at the invitation of the old-new Secretary of 
Defense Robert Gates. Tzipi Livni would have been pleased to receive 
a similar invitation from Hillary Clinton.  Barak and Gates have a 
lot to talk about, as do Livni and Clinton, of course, but only a 
fool would believe that those trips have no bearing on the upcoming 
elections.  Both of them would like to have their picture taken with 
Obama and, if that should be impossible, then at least with one of 
his senior ministers.  American administrations haven't always 
hesitated before intervening in Israeli election campaigns.... Would 
the Obama administration be happy to help Livni and Barak against 
Netanyahu and Lieberman?  Almost certainly -- provided elections 
were scheduled to be held a year from now.  But the proximity of the 
elections makes such intervention impossible, and anyone who fears 
for Israel's independence and democracy should only be grateful that 
that is the case. 
 
II.  "Why Israelis Worry" 
 
The conservative, independent Jerusalem Post editorialized (1/26): 
Q[U.S. envoy George] Mitchell is coming to Qpressure Israel,Q the 
Hebrew tabloids have chorused.  One reason for this anxiety is that 
those gloating over Mitchell's appointment -- the Israel Policy 
Forum, Americans for Peace Now, J Street, Prof. Stephen (QThe Israel 
LobbyQ) Walt, the Council on American-Islamic Relations, and Ahmed 
Qurei (Abu Ala) -- either don't seem to QgetQ what this conflict is 
all about; or are outright champions of the Arab cause.... There 
would be virtually no support among Israelis for concessions to a 
Palestinian unity government in which an unreformed Hamas plays any 
role.  Conversely, if the Obama administration could devise a 
strategy of sidelining the radicals and defanging their chief backer 
and the most destabilizing force in the region -- Iran, the 
prospects for a sustainable peace would improve dramatically.   What 
about the illegal settlement QoutpostsQ Israel committed to 
dismantling?  They should have been taken down as part of Israel's 
road map commitments.  But eight years of unremitting enemy violence 
--Intifada, Qassams, Gilad Shalit's post-disengagement kidnapping -- 
robbed our politicians of the domestic support for such a move.  It 
is legitimate for friends of Israel to differ over West Bank 
settlements.  But anyone who calls themselves Qpro-Israel,Q while 
demanding a withdrawal to the perilous 1949 Armistice Lines in an 
environment where that would represent national suicide, needs to do 
some serious soul-searching. 
 
III.  "Counting out his Revolutions Judiciously" 
 
Defense commentator Amir Oren wrote in the independent, left-leaning 
Ha'aretz (1/25): QMore than anything, Mitchell's appointment 
reflects the direction and pace Obama has chosen for the region: 
Intensive American mediation, without which the parties will not 
reach a compromise; the presence of a large, strong and 
inter-departmental American delegation on site; shoring up support 
for his policy both within the administration and in Congress; 
imposing a firm timetable upon the parties (to freeze all settlement 
construction, to fight terror); intensive personal involvement on 
the part of the President, who will use his prestige to bolster his 
envoy, intervene at decisive moments in the bargaining and knock 
heads together when necessary.  Obama may well want to mediate 
between Israel and the Palestinians on the one hand, and between 
Israel and Syria on the other, because doing so affords him the 
opportunity to offer a new kind of statesmanship: He can be the one 
to establish a new world order.  The responsibility for providing 
him with the right partner, who will insist on Israel's security 
while also being flexible in order to achieve peace, lies with the 
Israeli voters, who will cast their ballot two and a half weeks from 
now. 
 
IV.  "Arab Initiative, Israeli Choice" 
 
Senior op-ed writer Akiva Eldar commented in Ha'aretz (1/26): QIn a 
normal country, the various parties' positions on this important 
initiative [the Arab peace initiative] would be on full display.  In 
 
Israel, for the third time, the Saudi initiative is being pushed to 
the margins.  It is far easier to sell fear of the Iranians to the 
voters and to promise a Qstrong Israel.Q  What does a peace plan 
made in Saudi Arabia have in common with an Iranian-produced bomb? 
Plenty, it would appear.... Saudi Arabia is also pressing U.S. 
President Barack Obama to adopt the initiative, rendering the plan a 
litmus test for the Arab world's relations with the new 
administration.... You may support the initiative and you are 
allowed to oppose it.  Yet the Zionist parties who seek the trust of 
the voters cannot evade the most positive diplomatic outline ever 
offered to Israel by the Arabs.  Each of the candidates must clearly 
state whether the government will accept or reject the initiative. 
In other words, what do the candidates prefer -- forming a united 
front with 22 Arab states against Iran and its agents, or forming a 
united front with the settlers against the entire world? 
 
¶V.  QBack to Madrid 
 
Eytan Bentsur, former Director-General of the Foreign Ministry, 
wrote in HaQaretz (1/26): QThe Obama administration will be asked to 
formulate a diplomatic process that expands the common denominator 
of all participants to include everyone who supports peace, focusing 
on the moderate bloc's advantages.  Time will also be important: The 
faster the process crystallizes, the greater the chance to move it 
ahead.... A Madrid process, led by the Americans, could lead to an 
alliance among the moderate countries fighting Islamic 
fundamentalism.  The process will provide the necessary empowerment 
to overcome fundamentalist terror, hostility and a loss of hope. 
The new Israeli government can be crucial in moving the process 
ahead.  It is important that its leaders wean themselves off the 
afflictions of their predecessors, who lost costly diplomatic 
assets. The Obama administration can herald a renewal of the peace 
process, advancing on a proven, paved road: normalization throughout 
the region in a multilateral track amid bilateral progress toward 
 
solutions on territory and refugees.  The blending of a Madrid-type 
process with the Arab initiative can spur a comprehensive peace 
agreement.  Only such a framework will ensure pan-Arab pressure that 
could give rise to a Palestinian partner not guided by Hamas's 
doctrine. 
 
VI.  QSubstantive Visit 
 
The nationalist, Orthodox Makor Rishon-Hatzofe editorialized (1/25): 
QWe ... already know in advance the political challenges that await 
the next prime minister.  We should hope that when the outgoing 
prime minister, Olmert, meets with the administration's envoy, he 
will make it clear to him that he had better not establish facts 
just yet, or put a negotiating outline based on Annapolis on the 
table.  This is in order to prevent a crisis immediately upon the 
formation of a new government in Israel.  Mitchell is not friendly 
toward Israel.  Nevertheless, President Obama's statement last 
Thursday lays a positive basis for coordinating policy with the 
United States.  Obama and Clinton rejected bringing Hamas into the 
peace process, and Obama spoke about how humanitarian aid to Gaza 
needs to be carried out in partnership with the PA and Israel.  The 
rejection of Hamas is the basis from which the next government will 
be able to coordinate its positions with the U.S.  If Israel softens 
on this subject, it will erode the legitimacy of its very existence. 
 Since the next government will evidently be a right-wing one, its 
upper echelon will have to start being creative so that it can move 
substantially forward with the Obama administration without getting 
into immediate conflict with it. 
 
CUNNINGHAM