VZCZCXRO6187
RR RUEHROV
DE RUEHTV #0346 0401156
ZNR UUUUU ZZH
R 091156Z FEB 09
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC 0435
INFO RUEHXK/ARAB ISRAELI COLLECTIVE

UNCLAS TEL AVIV 000346 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PINR KDEM ECON IS
SUBJECT: NETANYAHU'S CAMPAIGN MOVES FROM THE CENTER TO THE RIGHT 
 
¶1.  (SBU) Summary.  Opposition leader Binyamin Netanyahu told a 
standing-room audience at the Institute for Policy and Strategy's 
ninth annual Herzliya Conference that he would pursue solutions to 
three challenges as Prime Minister: Defense, Peace, and the Economy. 
 Netanyahu, appearing confident a Likud victory will enable him to 
become the next Prime Minister, hinted at his plans for forming a 
coalition, singling out Labor's Ehud Barak with praise for his 
handling of Operation Cast Lead, and pledging to invite all Zionist 
parties to join a centrist unity government.  In the wake of final 
polls showing a closer-than-anticipated race between Likud and 
Kadima and a surge for the right-wing Yisrael Beiteinu, Netanyahu 
has focused his final campaign efforts on attracting support from 
the right.  End summary. 
 
¶2.  (U) Netanyahu told attendees of the Herzliya Conference February 
4 that Israel now faces three challenges: Defense, Peace, and the 
Economy.  Netanyahu, saying "I believe I will be" the next PM, had 
strong criticism for Tzipi Livni's Kadima party, saying he had 
warned of the PA's weaknesses in 2006, but Kadima chose a policy 
that led to the six-month calm in Gaza between Hamas and Israel, 
and, in Netanyahu's assessment, gave Hamas time to rearm.  He 
praised the IDF and Ehud Barak by name for their handling of 
Operation Cast Lead, but said it stopped too soon. Israel has no 
choice but to "remove the tumor of Iranian (backed) rule in Gaza," 
Netanyahu said. 
 
¶3.  (U) Turning to the peace process, Netanyahu laid out three 
choices: do more of the same, which he defined as continued 
withdrawals and a return to 1967 borders (which, he said, would 
create "Hamastan B" in the West Bank), do nothing at all, or to 
promote political negotiations the same time as "economic peace". 
In addition to strengthening the PA's economy, he said, progress 
should continue in building the capacity of PA security forces in 
the West Bank. He noted that there was relative calm in the West 
Bank during the IDF operation in Gaza and said there have been 
precedents for his preferred approach in other conflicts, including 
the Balkans and Northern Ireland. 
 
¶4. (U) Netanyahu struck an optimistic tone when he spoke of the 
economy, noting that Israel has fared better than other countries 
and saying that its small size makes it more agile during the 
recovery period.  He laid out a five-point plan for the economy, 
including dealing with the credit crisis, investing in R&D and 
infrastructure, and reforming the education system. He closed by 
saying that he will accomplish all these things in a centrist unity 
government by first approaching traditional partners to form a 
coalition, and then extending an invitation to all Zionist parties 
to join him in "countering the Iranian threat." 
 
¶5.  (U) In the wake of final polls showing a closer-than-anticipated 
race between Likud and Kadima and a surge for Yisrael Beiteinu, 
Netanyahu has focused his final campaign efforts on attracting 
support from the right.  Over the weekend, he visited the Golan 
Heights to plant trees in the company of the right-wing MK Effie 
Eitam.  Netanyahu reportedly vowed February 8 that "the Golan will 
remain ours only if Likud wins.  If Kadima is elected they'll hand 
back the Golan."  Meanwhile, the Likud's campaign advertising has 
dropped the images of its centrist icon, Dan Meridor. 
 
CUNNINGHAM