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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: 
------------------------- 
 
Israel Radio reported that Shimon Peres intends to wrap up his 
consultations today with the 12 political parties that earned seats 
in the incoming Knesset toward the formation of a new government. 
Makor Rishon Hatzofe reported that Kadima hinted to Peres that it 
favors a rotational government and that Likud is wooing the Labor 
Party.  Maariv reported that, were Yisrael Beiteinu Chairman Avigdor 
Lieberman not to recommend anyone for prime minister, Peres might 
convene Tzipi Livni and Benjamin Netanyahu to pressure them to set 
up a national unity government.  However, Israel Radio reported that 
this morning Lieberman recommended Netanyahu as PM.  Yom Leyom, the 
Shas partyQs mouthpiece, expressed its belief that most Knesset 
members favor Netanyahu.  Leading media quoted Livni as saying that 
she will either become prime minister or lead the opposition.  This 
morning electronic media considered NetanyahuQs appointment as a 
done deal 
 
All media reported that yesterday the diplomatic-security cabinet 
put Hamas on notice that the crossings into Gaza will remain closed, 
except for humanitarian needs, until Gilad Shalit is returned, and 
that Israel has no intention of entering a final cease-fire 
agreement.  HaQaretz reported that Israel has prepared a new list of 
Palestinian prisoners it is willing to release in exchange for 
Shalit and that it is ready to relay the list to Hamas as quickly as 
possible in order to further a possible swap arrangement.  Yediot 
reported that Israel proposes that Hamas choose half of the names 
from a list made up by Israel of prisoners with blood on their 
hands.  HaQaretz also reported that yesterday Hamas accused Israel 
of sabotaging the Egyptian-mediated truce by making last-minute 
demands.  Israel Radio reported that Palestinian Representative to 
the UN Riyad Mansour rejected a link between a truce and a deal to 
release Shalit.  The Jerusalem Post reported that a Fatah official 
told the daily yesterday that the PA has warned jailed Fatah 
operative Marwan Barghouti not to criticize President Mahmoud Abbas 
or the veteran leadership of Fatah when he is released from prison. 
 
HaQaretz and other media reported that yesterday police asked 
Attorney General Menachem Mazuz to approve the interrogation of 
Lieberman under caution.  Lieberman is suspected of laundering 
millions of shekels through front companies set up for him by his 
lawyer, Yoav Many.  He is also accused of fraud and breach of 
trust. 
 
HaQaretz reported that despite approval by PM Olmert and DM Ehud 
Barak, Shin Bet is putting off the establishment of an 
Israeli-Palestinian hospital in the northern Israel area of Gilboa. 
Turkey funds the 3.5 billion-shekel (around $845 million) project . 
 
The media reported that the major financial institution Bank Leumi 
lost 700-800 million shekels (around $175-200 million) in the fourth 
quarter of 2008.  However the bank grossed 500 million shekels in 
¶2008. 
 
Makor Rishon-Hatzofe reported that President Obama is acting against 
the QDurban 2Q conference. 
 
Leading media reported that yesterday PM Olmert reprimanded Amos 
Gilad, who heads the Defense Ministry's political-security bureau, 
over comments he made to Maariv regarding the cease-fire in the 
works and Gilad Shalit.  HaQaretz reported that Olmert is 
considering suing Amos Gilad. 
 
HaQaretz quoted Daniel Kurtzer, the former U.S. Ambassador to 
Israel, as saying at Georgetown University yesterday that a 
government led by Benjamin Netanyahu that also included Yisrael 
Beiteinu chairman Avigdor Lieberman would be a "bad combination for 
American interests."  "It would be much more difficult for the right 
wing, even with determined American leadership, to advance the peace 
process.  Not impossible, but very difficult," Kurtzer was quoted as 
saying.  The official U.S. position is that it looks forward to 
"working with any government," but HaQaretz reported that in 
back-channel messages the Obama administration has made it clear it 
would like to see a Likud-Kadima unity government in Jerusalem over 
a narrow right-wing government, which would in all likelihood result 
in a freeze in peace talks with the Palestinians. 
 
Israel Radio quoted Robert Serry, the UNQs special envoy for the 
Middle East peace process, as saying at the UN Security Council that 
violence in the Gaza Strip would erupt again unless there was a 
stable cease-fire.  The Jerusalem Post quoted Serry as saying that 
the crisis in Gaza had Qled to considerably increased tensions 
inside the borders of Lebanon.Q  The Jerusalem Post also reported 
that Serry called on Israel to abide by promises made to the 
Quartet. 
 
The Jerusalem Post reported that Iran plans to hold a conference on 
March 4-5 in support of Gaza and that it has sent out invitations to 
several regional leaders. 
 
Major media quoted President Peres as saying at the Conference of 
Presidents of Major American Jewish Organizations that the way 
Israel conducted disengagement from Gaza was faulty. 
 
HaQaretz quoted Col. Liron Liebman, who heads the military 
prosecution's international law department, as saying yesterday that 
war crimes charges brought abroad against Israeli soldiers and 
officers involved in Operation Cast Lead are nothing but "legal 
terrorism."  Liebman was speaking at the Conference of Presidents of 
Major American Jewish Organizations in Jerusalem about the role of 
the law in fighting terror.  Liebman told HaQaretz that there is 
little chance that war crimes charges abroad will end in conviction, 
or, for that matter, in acquittal, since procedural issues will end 
up derailing the allegations before they reach that stage. But he 
was quoted as saying that this doesn't much matter to those bringing 
the charges.  The Jerusalem Post reported that Jordanian MPs 
indefinitely shelved plans to charge Israelis at the International 
Criminal Court in The Hague.  According to a Jordanian official, the 
delegationQs trip to the Netherlands was suspended at the request of 
the Royal Jordanian Court. 
 
Maariv reported that Russia has proclaimed Hamas leader Khaled 
Mashal persona non grata for official travel because the 
organization refuses to recognize Israel, as demanded by the 
Kremlin. 
 
HaQaretz reported that American and Israeli victims of terrorism 
have filed a precedent-setting suit at WashingtonQs District Court 
against three U.S. oil companies and their directors, charging that 
they had indirectly assisted the funding of terrorist organizations. 
 This is the first time that Israeli victims of terrorism have filed 
a suit of this kind against American firms.  To date, most suits by 
terror victims were filed against Arab or Iranian individuals, 
terrorist groups, Iran, and various Arab states.  The suit argues 
that the companies (NuCoastal Corporation, El Paso Energy 
Corporation, and Bayoil (USA) Inc.) and their directors traded with 
Saddam Hussein's Iraq during the period 2000-2003 under the 
framework of the United Nations' Oil for Food program. 
 
The Jerusalem Post reported that a declaration pledging to challenge 
anti-Semitism was signed on behalf of all participating nations 
yesterday, the last day of the London Conference on Combating 
Anti-Semitism. 
 
Yediot reported that TurkeyQs President and PM have sent an envoy to 
Israel in order to mend relations between the two countries. 
 
HaQaretz cited tough new Interior Ministry regulations that 
thousands of non-Jewish common-law spouses of Israelis will have to 
live three years in Israel before being eligible for temporary 
residency and health and social insurance. 
 
HaQaretz and The Jerusalem Post reported that yesterday U.S. Jewish 
leaders called yesterday for the Women's Tennis Association to 
boycott the Dubai Championships and to cancel the event in 2010 
after Shahar Peer, Israel's top woman player, was barred from 
competing at this year's tournament in the United Arab Emirates. 
Dubai will host the men's tournament next Monday. The political row 
is expected to rumble on, because Israeli doubles specialist Andy 
Ram is also slated to take part.  HaQaretz quoted U.S. 
Representative Anthony Weiner of New York as saying yesterday that 
he had received assurances from Yousef Al Otaiba, the UAE Ambassador 
to Washington, that Ram would be granted a visa, and as a result he 
would not ask the Association of Tennis Professionals (ATP) to 
cancel the event.  HaQaretz quoted WeinerQs spokesman as saying that 
Weiner had scheduled a news conference yesterday to press the ATP to 
withdraw its backing for the tournament. 
 
Yediot reported that the International Monetary Fund is praising the 
Israeli treasury and the Bank of Israel for maintaining financial 
stability. 
 
Yediot reported that the American fashion retail chains Gap and 
Banana Republic will open franchises in Israel. 
 
Yediot wrote that two Israeli capital venture firms have lost money 
to Texan fraudster Robert Stanford. 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
Military correspondent Amos Harel and Palestinian affairs 
correspondent Avi Issacharoff wrote on page one of the independent, 
left-leaning HaQaretz: QSenior sources in the defense establishment 
expressed grave concerns last night that Olmert has backed off from 
his originally declared willingness  to expedite negotiations for a 
deal on Shalit during his tenure. 
 
Settler leader Israel Harel wrote in HaQaretz: QOur consciousness 
has been seared while Hamas' consciousness was not affected by the 
campaign; in fact, it may have grown stronger. 
 
Block Quotes: 
------------- 
 
¶I.  "IDF Fears for Future of Shalit Deal" 
 
Military correspondent Amos Harel and Palestinian affairs 
correspondent Avi Issacharoff wrote on page one of the independent, 
left-leaning HaQaretz (2/19): QYesterday the political-security 
cabinet unanimously approved Prime Minister Ehud Olmert's proposal 
that Israel would be willing to discuss extensively broadening 
activity in the border crossings of the Gaza Strip, Qwhen the 
abducted soldier Gilad Shalit is releasedQ.... Senior sources in the 
defense establishment expressed grave concerns last night that 
Olmert has backed off from his originally declared willingness (as 
late as last week) to expedite negotiations for a deal on Shalit 
during his tenure.  They say that the chances of completing the deal 
in the near future appear to be slim.  The same sources also said 
that there is a chance that the opportunity for a deal will pass and 
Shalit will remain in captivity for years. Is Olmert worried that 
he may be seen as someone who surrendered to Hamas?  Yesterday he 
spoke of the need to Qmaintain dignity,Q and he was referring to 
IsraelQs dignity before Hamas. 
 
II.  "Hamas Seared Our Consciousness" 
 
Settler leader Israel Harel wrote in HaQaretz (2/19): QIf the goals 
[of Operation Cast Lead] were achieved, the Chief of Staff and the 
Defense Minister must explain where Hamas -- which was defeated, 
after all -- draws the strength to dictate that Israel release 
high-profile murderers as well as the duration of the cease-fire. 
If the IDF won, why is the government paying the price of defeat? 
If this is indeed the case, then our consciousness has been seared 
while Hamas' consciousness was not affected by the campaign; in 
fact, it may have grown stronger.... The general mood that caused 
the government to accept the dictates of terror stem from the 
takeover of Israeli values by extreme individualism Q Qthe 
individual (Gilad Shalit) is above any other national interest. 
Checking this trend, which leads to national disintegration, must be 
one of the central goals of a Netanyahu government. 
 
--------- 
¶2.  Iran: 
--------- 
 
Summary: 
-------- 
 
Middle East affairs commentator Dr. Guy Bechor, a lecturer at the 
Interdisciplinary Center, wrote in the mass-circulation, pluralist 
Yediot Aharonot: QWill there be a double miracle of President Obama 
and President Khatami?  If so, this could have great implications 
for the map of threats against Israel. 
 
 
 
 
 
 
 
Block Quotes: 
------------- 
 
"Chance of Change" 
 
Middle East affairs commentator Dr. Guy Bechor, a lecturer at the 
Interdisciplinary Center, wrote in the mass-circulation, pluralist 
Yediot Aharonot (2/19): QIf Khatami becomes president again there 
will be a gradual change in Iran's policy, and [Israel] will be the 
first to feel it.  This will not be the end of the Islamic 
Revolution, but the emphases will soften.  Khatami utterly rejects 
Ahmadinejad's statements against the U.S., Israel, and the Jews.  He 
says that these statements caused serious damage to Iran 
diplomatically and economically.  Khatami's line is that if Israel 
and the Palestinians reach an arrangement, Iran will respect it. 
This is a policy contrary to the current policy, meant to sabotage 
an Israeli-Palestinian agreement.  This line also includes stopping 
provocations of the West, although it does not necessarily mean a 
halt to the nuclear program (this will only be decided by the 
spiritual leader Khamenei).  Iran under Khatami will lower its 
profile of supporting Hizbullah and Hamas.  This support will 
continue, but the sums (which are criticized in Iran which is 
suffering from an economic crisis) will get smaller.  Iran's 
involvement in terror will also undergo revision.  A key factor here 
is Barack Obama, who is expected to wait with his new policy toward 
Iran until the elections there.  If Khatami wins, the two are 
expected to hold an historic meeting.... Will there be a double 
miracle of President Obama and President Khatami?  If so, this could 
have great implications for the map of threats against Israel. 
 
CUNNINGHAM