VZCZCXYZ0000
PP RUEHWEB

DE RUEHTV #0424/01 0511256
ZNR UUUUU ZZH
P 201256Z FEB 09
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 0580
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
RHEHNSC/WHITE HOUSE NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEAHQA/HQ USAF WASHINGTON DC PRIORITY
RUEADWD/DA WASHDC PRIORITY
RHMFIUU/CNO WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY
RUEHAD/AMEMBASSY ABU DHABI PRIORITY 5037
RUEHAS/AMEMBASSY ALGIERS PRIORITY 1635
RUEHAM/AMEMBASSY AMMAN PRIORITY 5513
RUEHAK/AMEMBASSY ANKARA PRIORITY 5843
RUEHLB/AMEMBASSY BEIRUT PRIORITY 5071
RUEHEG/AMEMBASSY CAIRO PRIORITY 3559
RUEHDM/AMEMBASSY DAMASCUS PRIORITY 5875
RUEHLO/AMEMBASSY LONDON PRIORITY 2700
RUEHFR/AMEMBASSY PARIS PRIORITY 0913
RUEHRB/AMEMBASSY RABAT PRIORITY 9625
RUEHRO/AMEMBASSY ROME PRIORITY 7126
RUEHRH/AMEMBASSY RIYADH PRIORITY 2082
RUEHTU/AMEMBASSY TUNIS PRIORITY 6127
RUCNDT/USMISSION USUN NEW YORK PRIORITY 8163
RUEHJI/AMCONSUL JEDDAH PRIORITY 0955
RUEHJM/AMCONSUL JERUSALEM PRIORITY 1447
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
RHMFISS/COMSOCEUR VAIHINGEN GE PRIORITY
RHMFIUU/COMSIXTHFLT  PRIORITY

UNCLAS TEL AVIV 000424 
 
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.  Aftermath of Israeli Elections 
 
¶2.  Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media reported that this morning, after 65 Knesset members 
recommended yesterday that Benjamin Netanyahu create the governing 
coalition, President Shimon Peres will try to convince Kadima and 
Likud to agree to form a national unity government before he 
entrusts Likud with the establishment of a narrow-based coalition 
the most likely scenario.  Kadima chief and FM Tzipi Livni was 
quoted as saying in an interview with HaQaretz that a right-wing 
Netanyahu government will harm Israel, but that she would be willing 
to consider a Likud-Kadima-Yisrael Beiteinu coalition. 
 
Israel Radio reported that this morning Sen. John Kerry will meet 
with President Peres.  HaQaretz and other media reported that 
yesterday Kerry and Congressmen Keith Ellison and Brian Baird became 
the first senior American officials to visit Gaza in over five 
years.  Kerry met with UN officials and discussed rebuilding Gaza. 
Israel Radio reported that Kerry received a letter from Hamas for 
President Obama, which was conveyed by UNRWA Commissioner-General 
Karen AbuZayd.  Kerry was keen to emphasize that the visit did not 
signal any change in WashingtonQs position on Hamas.  Kerry is due 
to leave today for Damascus to meet with Syrian President Bashar 
Assad. 
 
Israel Radio reported that yesterday U.S. special envoy George 
Mitchell told Jewish-American leaders that, contrary to recent 
reports Q as exemplified by a headline in todayQs Jerusalem Post -- 
the U.S. administration is not pushing for the formation of a 
national unity government in Israel.  However, he was quoted as 
saying that it impossible to develop economic peace without 
diplomatic negotiations.  The Jerusalem Post quoted Mitchell as 
saying that the fact that the U.S. would support a Palestinian 
structure aimed at incorporating and potentially co-opting Hamas 
rater than working to exclude it suggested the contours of a fresh 
approach by the Obama administration.  The Jerusalem Post said that 
it is unclear whether the Congressional delegationsQ trips to the 
region signal a changed American approach.  Major media quoted 
Mitchell as saying that while the issue of settlements comes up in 
every conversation with Arab leaders, Qit is not the only issue. 
Mitchell said that he had re-read his 2001 report and that he had 
been struck by how much had changed since then, giving the example 
of Iran. 
 
HaQaretz quoted a foreign source as saying that Qatari PM Hamad bin 
Jassim bin Jabir al-Thani told French President Nicolas Sarkozy when 
the two leaders met in Paris two weeks ago that he would engage 
Hamas intensively to help release kidnapped soldier Gilad Shalit. 
Israel Radio reported that Israeli defense official Amos Gilad 
canceled negotiations with Egypt scheduled for today. 
 
Maariv and Israel Radio reported that yesterday the Foreign Ministry 
expressed its regret that Egypt recalled a trade delegation from 
Israel because of the latterQs linkage of Gilad ShalitQs release 
with a truce with Hamas.  The media cited EgyptQs claim that the 
temporary recall of the mission is purely technical. 
 
HaQaretz reported that a company established by Avigdor Lieberman 
did business to the tune of over 1 million shekels (around $250,000) 
with officials in the Palestinian Authority, apparently selling wood 
in 2000 and 2001 when Lieberman was a Knesset member.  During those 
years the company's stock was held by a trustee, but Lieberman 
remained an owner. 
 
Media reported that yesterday three rockets struck southern Israel, 
hours after IAF jets bombed six smuggling tunnels in Gaza in 
retaliation for rocket and mortar attacks earlier in the day. 
 
The media reported that ten Jewish immigrants arrived from Yemen 
yesterday in a secret Jewish Agency operation. 
 
Leading media reported that yesterday the IAEA expressed doubts over 
Syrian claims that uranium found near the site that Israel bombed in 
2007 was dropped by the Israeli warplanes. 
 
HaQaretz quoted Gen. (res.) Eyal Ben Reuven, who commanded the 
military group that acted in Gaza during Operation Cast Lead, as 
saying that the cabinet never set goals for the end of the 
operation.  The daily quoted Gazan witnesses as saying that the IDF 
used them as human shields.  On the other hand, Maariv quoted 
10-year-old Gazan children as saying that during the operation Hamas 
activists forced them to carry rockets in carts. 
 
In an interview with Yediot, Aliza Olmert, the PMQs wife, expressed 
her bitterness over police interrogations of her husband and her 
political altercations with former friends who had betrayed the 
couple.  She also talked about her QsecretQ plan to release Gilad 
Shalit. 
 
HaQaretz quoted East Jerusalem residents as saying that the 
Jerusalem Municipality may offer to voluntarily relocate some 1,500 
Palestinian residents of the city's Silwan neighborhood currently 
living on top of an archaeological site to alternative lots in East 
Jerusalem. 
 
Leading media reported that this week, in an effort to prevent a 
deterioration in military relations with Turkey, IDF Chief of Staff 
Lt. Gen. Gabi Ashkenazi apologized to his Turkish counterparts over 
critical remarks made last week by OC Ground Forces Command Maj. 
Gen. Avi Mizrahi.  In a lecture at the National Defense College, 
Mizrahi said that Turkish PM Recep Tayyip Erdogan, who has been 
severely critical of Israel since Operation Cast Lead, should first 
look in the mirror.  Mizrahi mentioned the massacre of the 
Armenians, the suppression of the Kurds, and the Turkish occupation 
of northern Cyprus. 
 
Morton A. Klein, President of the conservative Zionist Organization 
of America, was quoted as saying this week in an interview with 
HaQaretz (English Ed.) that potential diplomatic discord between an 
Israeli government led by Benjamin Netanyahu and President Obama 
would be bound to lead to an increase in anti-Semitic activities in 
the U.S.  Morton was also quoted as saying that for the last decade 
and a half he has had little confidence in Israel's decisions and 
that Obama's recent appointments and statements were also a reason 
for concern. 
 
HaQaretz cited the research division of the Bank of Israel as saying 
yesterday that IsraelQs combined economic performance index dropped 
1.2% in January, its sixth straight decline  Q indicating that the 
economy is sliding into a recession.  The newspaper reported that 
yesterday Bank of Israel Governor Stanley Fischer expressed his 
belief that that Israel is weathering the economic crisis better 
than many of its larger counterparts.  HaQaretz reported that the 
Swiss banking giant UBS predicts that the controlling shareholders 
of IsraelQs banks will have to inject up to 22.5 billion shekels 
(around $4.46 billion) by the end of 2010 to prevent a crisis of 
confidence.  The daily also reported that elements of the IDB 
(Israel Discount Bank) group are writing down the value of their 
investments in Las Vegas. 
 
Israel Radio reported that Jewish U.S. engineer David Tenenbaum is 
suing the U.S. Justice Department after being accused of spying for 
Israel. 
 
HaQaretz cited a survey published yesterday by the Jerusalem 
Institute for Israel Studies and the Jerusalem Center for 
Jewish-Christian Relations reporting that the vast majority of 
Israeli Jews do not have negative feelings toward Christians living 
in Israel, but nearly the same proportion believe the state should 
not allow land to be used for constructing new churches in 
Jerusalem.  According to the study, 74 percent of respondents do not 
see Christians as "missionaries," and 76 percent are not bothered by 
encountering a Christian wearing a cross.  Furthermore, 41 percent 
believe Christianity is the closest religion to Judaism, with Islam 
coming in second at 32 percent.  However, the study suggested that 
most Israeli Jews are considerably less tolerant when Jerusalem is 
concerned.  Only 50 percent of the sample agreed that Jerusalem was 
central to the Christian faith, and 75 percent believe the state 
should not allow Christian organizations to purchase land to 
construct new churches in the city.  The survey noted sharp 
divisions between secular and religious Jews, with secular Jews much 
more tolerant of a Christian presence. 
 
 
 
 
 
----------------------------------- 
¶1.  Aftermath of Israeli Elections: 
----------------------------------- 
 
Summary: 
-------- 
 
Political parties correspondent Yossi Verter wrote in the 
independent, left-leaning Ha'aretz: QIn the weeks to come, 
Netanyahu's choices will go from bad to worse.  As time passes since 
the general elections, his victory is turning sour. 
 
HaQaretz editorialized: QThis is the chance for Israel's elder 
statesman and Nobel Peace Prize winner [President Shimon Peres] to 
show political courage by conditioning the formation of the next 
government on preserving Israel's image as a democracy. 
 
Columnist Haggai Segal wrote on page one of the nationalist, 
Orthodox Makor Rishon-Hatzofe: Q[Kadima] has no way, no ideology, no 
Sharon, not even an Olmert.... [LivniQs] partyQs hedonist branch 
will seep back into the coalition -Q with or without her. 
 
Block Quotes: 
------------- 
 
¶I.  "BibiQs Victory Turning Sour" 
 
Political parties correspondent Yossi Verter wrote in the 
independent, left-leaning Ha'aretz (2/20): QSoon, Netanyahu's door 
will be bowing under the weight of nearly all the incumbent Likud 
Knesset members.... More than a decade ago, Netanyahu was badly 
scorched by the QBar-On HebronQ affair and its allegations of bad 
appointments, and nearly lost the premiership.  On Thursday, he must 
have experienced a flashback -- the bitter division among the 
people, the hatred of the elites, and his relentless pursuit by the 
media.  This is not how he planned to begin his second term.  In the 
weeks to come, Netanyahu's choices will go from bad to worse.  As 
time passes since the general elections, his victory is turning 
sour.  Tzipi Livni will not join a government resting on a narrow 
65-person majority, composed of the right and the ultra-Orthodox. 
She might consider joining a government with Likud, Yisrael 
Beiteinu, and United Torah Judaism, but nothing more than that.  But 
Netanyahu can not give up Shas and Habayit Hayehudi [the Jewish 
Home]; they are his safety net.  In some scenarios, this net may 
well turn out to be a noose.  Livni will let him wriggle and contort 
with his Qnatural allies.Q  Even Netanyahu's famous personal charm, 
which he no doubt will have a chance to use, is unlikely to persuade 
Livni to climb on board so long as that means standing next to Shas, 
National Union, and Habayit Hayehudi. 
 
II.  "Keep Lieberman out of the Government" 
 
HaQaretz editorialized (2/20): QIsraelis still don't know who won 
last week's elections, or who will put together the next government. 
 The only clear result is that Avigdor Lieberman is trying to 
dictate the nature and composition of the new coalition.  This is 
evident from the conditions he demanded of Likud and Kadima for 
Yisrael Beiteinu's joining the government and from his appearance 
yesterday at the President's Residence, where he stipulated that he 
wanted a broad coalition headed by Benjamin Netanyahu.  Israel's 
democracy is breaking daily records of degradation.... In exchange 
for Lieberman's political support, Benjamin Netanyahu and Tzipi 
Livni are competing with each other to legitimize Yisrael Beiteinu 
and its hate campaign.... Kadima made do with demanding Qmilitary, 
national, or civic serviceQ from every youngster and did not suggest 
changing the citizenship law.  But Livni boasted of her close ties 
with Lieberman and their long acquaintanceship, presenting him as a 
legitimate politician and desirable partner in a future coalition 
led by her.  The attitudes of Livni and Netanyahu cannot simply be 
dismissed as acceptable political cynicism.  It is futile for them 
to argue that because Lieberman sat as a minister in the governments 
of Ariel Sharon and Ehud Olmert he is a legitimate partner now.... 
This is the chance for Israel's elder statesman and Nobel Peace 
Prize winner [President Shimon Peres] to show political courage by 
conditioning the formation of the next government on preserving 
Israel's image as a democracy. 
 
III.  "TheyQll Come on All Four" 
 
Columnist Haggai Segal wrote on page one of the nationalist, 
Orthodox Makor Rishon-Hatzofe (2/20): QYesterday the Kadima choir 
sang its loyalty to the opposition.... [But] its true manifesto only 
includes chairs and power.  It has no way, no ideology, no Sharon, 
not even an Olmert.... TheyQll be back in the spring [lyrics of an 
Israeli folk song] or in the fall at the latest.  Tzipi Livni wonQt 
serve for long as chair of the opposition.... Some day she will find 
out that she is almost alone.  Her partyQs hedonist branch will seep 
back into the coalition -Q with or without her.  This will be called 
the small bang. 
 
------------ 
¶2.  Mideast: 
------------ 
 
Summary: 
-------- 
 
The conservative, independent Jerusalem Post editorialized: QHow has 
Qatar, which promotes the Muslim Brotherhood and bankrolls the 
poisonous Al-Jazeera station, succeeded in maintaining its image as 
a friend of the West?  And how is Dubai, with its on-off boycott of 
Israel, able to sustain its own moderate image?  The answer is 
money. 
Deputy Managing Editor and right-wing columnist Caroline B. Glick 
wrote in the conservative, independent Jerusalem Post: QThe open 
hostility toward Israel expressed by the Obama administration's 
decision to participate in the Durban process should be a red flag 
for both the Israeli government and for Israel's supporters in the 
U.S. 
 
Block Quotes: 
------------- 
 
¶I.  "Foul Play in the Gulf" 
 
The conservative, independent Jerusalem Post editorialized (2/20): 
QAfter intense pressure from the Association of Tennis 
Professionals, Dubai has reluctantly granted an entry visa to Andy 
Ram to play in next week's Barclays Dubai Tennis Championships -- 
after barring Shahar Peer from playing in the Women's Tennis 
Association tournament, affecting her earnings, if not her 
ranking.... The Emirates, where fewer than 20 percent of the 4.4 
million residents are citizens, likes to be perceived as a tolerant, 
pro-Western oasis.  And, to be fair, the Saudi-controlled, 
Dubai-based satellite news channel Al-Arabiya makes a stab at 
modifying Al-Jazeera's radicalism.  Still, public antagonism toward 
Israel and Western values is getting ever harder to cloak.   Qatar 
plays an even more duplicitous game, presenting itself as 
cosmopolitan while shilling for the Islamists.... How has Qatar, 
which promotes the Muslim Brotherhood and bankrolls the poisonous 
Al-Jazeera station, succeeded in maintaining its image as a friend 
of the West?  And how is Dubai, with its on-off boycott of Israel, 
able to sustain its own moderate image?  The answer is money.  Lots 
of it.  To win friends, influence people, and manipulate 
perceptions. 
 
II.  "ObamaQs Durban Gambit" 
 
Deputy Managing Editor and right-wing columnist Caroline B. Glick 
wrote in the conservative, independent Jerusalem Post (2/20): QBy 
embracing the Durban campaign now, it is possible that the Obama 
administration will water down some of the most noxious language in 
the conference's draft declaration.  But this doesn't balance out 
the harm U.S. participation will cause to Israel, or to the Jewish 
people.  By participating in the conference, the U.S. today is 
effectively giving American support to the war against the Jewish 
state.  The open hostility toward Israel expressed by the Obama 
administration's decision to participate in the Durban process 
should be a red flag for both the Israeli government and for 
Israel's supporters in the U.S.  Both Israel and its Jewish and 
non-Jewish supporters must openly condemn the administration's move 
and demand that it reverse its decision immediately. 
 
CUNNINGHAM