VZCZCXYZ0011
PP RUEHWEB

DE RUEHTV #0465/01 0581237
ZNR UUUUU ZZH
P 271237Z FEB 09
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 0688
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 5073
RUEHAS/AMEMBASSY ALGIERS PRIORITY 1671
RUEHAM/AMEMBASSY AMMAN PRIORITY 5563
RUEHAK/AMEMBASSY ANKARA PRIORITY 5882
RUEHLB/AMEMBASSY BEIRUT PRIORITY 5110
RUEHEG/AMEMBASSY CAIRO PRIORITY 3605
RUEHDM/AMEMBASSY DAMASCUS PRIORITY 5914
RUEHLO/AMEMBASSY LONDON PRIORITY 2739
RUEHFR/AMEMBASSY PARIS PRIORITY 0952
RUEHRB/AMEMBASSY RABAT PRIORITY 9661
RUEHRO/AMEMBASSY ROME PRIORITY 7162
RUEHRH/AMEMBASSY RIYADH PRIORITY 2121
RUEHTU/AMEMBASSY TUNIS PRIORITY 6163
RUCNDT/USMISSION USUN NEW YORK PRIORITY 8199
RUEHJI/AMCONSUL JEDDAH PRIORITY 0991
RUEHJM/AMCONSUL JERUSALEM PRIORITY 1507
RHMFISS/CDR USCENTCOM MACDILL AFB FL PRIORITY
RHMFISS/COMSOCEUR VAIHINGEN GE PRIORITY
RHMFIUU/COMSIXTHFLT  PRIORITY

UNCLAS TEL AVIV 000465 
 
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: 
-------------------------------- 
 
Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
HaQaretz and other major media reported that PM-designate Benjamin 
Netanyahu told U.S. special envoy George Mitchell yesterday that a 
Likud-led government will honor "all international commitments" made 
by Israel.  Though Netanyahu did not specify which commitments he 
meant, the principal commitments made by Israeli governments over 
the past few years are those included in the Roadmap peace plan -- 
primarily, limits on settlement construction and the evacuation of 
illegal outposts -- and the Annapolis summit pledge to hold 
final-status talks on establishing a Palestinian state.   However, 
Netanyahu also told Mitchell that a Likud-led government would 
"reassess Israeli foreign policy and proceed with the peace process 
with the Palestinians in its own way."  The Jerusalem Post reported 
that Mitchell steered clear of the settlement issue in talks with PM 
Ehud Olmert and Netanyahu.  Makor Rishon-Hatzofe reported that, 
following the Netanyahu-Mitchell meeting, U.S officials and 
Netanyahu associates agreed that NetanyahuQs Qeconomic peaceQ was a 
basis for discussions. 
 
The media reported that today Netanyahu will meet with Kadima leader 
Tzipi Livni.  HaQaretz reported that, in a last ditch-effort to 
convince her to enter coalition talks with Likud, Netanyahu will 
offer Livni a complete and equal partnership in advancing the peace 
process.  Maariv quoted him as saying that Livni would have more 
influence in his government than in OlmertQs.  But HaQaretz quoted 
sources in the parties as saying that neither side believes that a 
unity government of Likud and Kadima is likely.  Maariv quoted Livni 
as saying privately this week that Netanyahu does not believe in the 
diplomatic process.  Nonetheless, HaQaretz reported that Netanyahu 
wants to show that he tried every option to compromise with Livni 
with generous, unprecedented offers, so that Livni appears at fault 
for any failure to create a unity government.   Makor Rishon-Hatzofe 
quoted Livni associates as saying that there is a chance of Kadima 
joining the coalition. 
 
Yediot reported that Israel has offered to conduct intensive 
negotiations with Hamas in Cairo on Gilad ShalitQs release.  The 
daily reported that Israel is willing to release over 100 
QheavyweightQ Palestinian prisoners.  Yediot cited the belief of a 
senior Egyptian source that Netanyahu will offer less than the 
outgoing government. 
 
Citing the Qrenewed routineQ of Hamas rocket attacks, HaQaretz wrote 
in its lead article: QIf Israel can enshrine Operation Cast Lead in 
a long-term agreement, the war will be remembered as a success.  But 
fears are mounting that the operation's military achievements are 
dissipating.  If so, the operation will go down in history as a 
less-than-successful round in a long war in Gaza.  The IDF left Gaza 
with the feeling that it had proven itself, after its debacle in 
Lebanon in 2006.  But it seems that the bottom line will have to 
wait. 
 
Makor Rishon-Hatzofe reported that Secretary of State Hillary 
Clinton will ask for clarifications about construction in MaQaleh 
Adumim. 
 
The Jerusalem Post reported that senior Palestinian negotiator Saeb 
Erekat told the newspaper yesterday that Netanyahu should worry 
about fulfilling IsraelQs international obligations rather than 
concerning himself with what kind of government the Palestinian 
people choose to form. 
 
The Jerusalem Post cited the dissatisfaction of Israeli officials 
about official JerusalemQs silence regarding petitions abroad 
against Israel for alleged war crimes. 
 
 
Media quoted Yisrael Beiteinu Chairman Avigdor Lieberman as saying 
in an interview with the American magazine The Jewish Week that he 
supports the idea of a QviableQ Palestinian state.  HaQaretz quoted 
Netanyahu associates as saying yesterday that Netanyahu will not 
meet all of Lieberman's conditions for bringing Yisrael Beiteinu 
into a Likud-led government.  "Netanyahu cannot let Lieberman run 
the country," explained one.  "There's a limit.  He can't have the 
Justice Ministry, the Public Security Ministry and on top of that 
the Foreign Ministry or the Finance Ministry." 
 
HaQaretz reported that this week Olmert tried to allay the concerns 
of the American Jewish community regarding Netanyahu.  Olmert told 
Jewish leaders and Jewish Agency bosses that they and Washington had 
no reason to fear Netanyahu.  Olmert was quoted as saying: 
"Netanyahu is an Israeli patriot and not an extreme individual.  He 
knows what is right, and I believe he will promote the peace 
process." 
 
HaQaretz quoted sources in the Israeli defense establishment as 
saying that, during a visit here this week, Gen. John Craddock, 
commander of U.S. European Command (EUCOM), which operates the 
long-range radar in the Negev, discussed solutions for intercepting 
missiles from Gaza with Israeli officials.  Craddock also discussed 
means of intercepting longer-range missiles, especially from Iran. 
During his visit, Craddock met with IDF Chief of Staff Gabi 
Ashkenazi, DM Ehud Barak, Defense Ministry Director-General Pinchas 
Buchris, and GOC Southern Command Yoav Galant. 
 
The Jerusalem Post quoted Jakob Kellenberger, the President of the 
International Committee of the Red Cross, as saying yesterday in 
Geneva that peace is vital to GazaQs reconstruction, that the 
isolation of Gaza must end, and that Shalit should be released. 
 
HaQaretz reported that, despite the state's formal commitment not to 
expand West Bank settlements, the Civil Administration, the 
government agency responsible for nonmilitary matters in the West 
Bank, has been promoting plans over the past two years to construct 
thousands of housing units east of the Green Line -Q at GvaQot, 
located near Alon Shvut in the Gush Etzion settlement bloc; Bat 
Ayin; Rimonim; Einav; MaQaleh Adumim; Kfar Adumim; and Eshkolot. 
The plans have not yet been approved by the government.  Details of 
the plans appear in the minutes of the agency's environmental 
subcommittee, which were obtained by the B'Tselem organization under 
IsraelQs Freedom of Information Act. 
 
Leading media reported that Justice Minister Daniel Friedmann has 
recommended that President Shimon Peres pardon convicted 
disengagement opponents. 
 
All media reported that yesterday Netanyahu met with Histadrut Labor 
Federation Chairman Ofer Eini, Netanyahu is slated to meet next week 
with Shraga Brosh, the President of the Manufacturers Association of 
Israel.  The media reported that Netanyahu is hoping to gain support 
for his plans to rescue IsraelQs economy from financial crisis and 
recession. 
 
The Jerusalem Post reported that growing harassment of Jewish 
students on college campuses across Britain, the U.S., and Canada 
has prompted the Simon Wiesenthal Center to announce plans for an 
international effort to counter the phenomenon. 
 
Last night Channel 2-TV reported that that the European Aviation 
Safety Agency has sent the Israel Civil Aviation Authority (ICAA) a 
warning via e-mail that if its flight safety did not improve, the 
European agency would blacklist IsraelQs three airlines -- El Al, 
Arkia, and Israir.  This would prohibit them from landing at 
European airports, and perhaps even from flying over the continent. 
Flights to the U.S. could also be cut as a result of such a 
decision. The European agency is set to take a decision on the issue 
in a month's time, according to the TV report.  Industry sources 
said the European warning was triggered by the FAAQs downgrading of 
Israel's air-safety system to a third-world "category two" level 
last December.  The FAA cited "severe security shortcomings in the 
ICAA and a range of security defects at Ben Gurion International 
Airport.Q  Aviation experts had warned that the FAA's lowering of 
Israel's security ranking would adversely affect the image of 
Israel-based airlines in the U.S. and Europe, as well as their 
profitability. 
 
HaQaretz quoted Nigel Ashton, a senior lecturer at the London School 
of Economics, who is close to the Hashemite royal family and was 
given rare access to the late Jordanian King Hussein's private 
archives, as saying in his book  "King Hussein: A Political Life" 
(Yale University Press) that In early summer 1995, a few months 
before his assassination, PM Yitzhak Rabin asked King Hussein to 
approach Iraqi leader Saddam Hussein on his behalf and arrange a 
joint visit by Rabin and King Hussein to Baghdad,  Ashton wrote that 
when handed a secret letter by a Jordanian official, "Saddam did not 
rule out direct contacts with Rabin," but was reluctant "to work 
through lower-level intermediaries."  No further moves on the 
Israel-Iraq initiative were recorded before Rabin's murder that 
November. 
 
-------- 
Mideast: 
-------- 
 
Summary: 
-------- 
 
Diplomatic correspondent Ben Caspit wrote in the popular, pluralist 
Maariv: QGiven the fact that [Netanyahu] will apparently only have a 
narrow right-wing government ... and [that] America is alienated, he 
will need a rare combination of miracles, luck, and help from heaven 
to survive. 
 
Editor-in-Chief David Horovitz wrote in the conservative, 
independent Jerusalem Post: QNew prime minister Netanyahu could be 
faced with the acutely unenviable choice of defying America to 
maintain a narrow, pro-settlement coalition, or defying his domestic 
political partners and many of his voters for the sake of an 
international partnership to try to stop Iran. 
 
Diplomatic correspondent Aluf Benn wrote in the independent, 
left-leaning Ha'aretz: QInstead of Secretary of State Hillary 
Clinton coming to discuss the containment of the Iranian threat, her 
first visit to Israel will focus on aid to the Palestinians in Gaza 
and the victims of QOperation Cast Lead.Q  This might be the worst 
damage of all. 
 
Daniel Levy, the lead Israeli drafter of the Geneva Initiative, 
wrote in Ha'aretz: QAgreeing that Israel will define its permanent 
borders with the Palestinians by the end of the new government's 
term of office would meet Tzipi LivniQs] test. 
 
Ariel Cahana editorialized in the nationalist, Orthodox Makor 
Rishon-Hatzofe: QProfessor Shlomo Ben-Ami, a true man of the Left, 
who acted to establish a Palestinian state, now believes that the 
two-state idea is useless. 
 
Diplomatic correspondent Aluf Benn wrote in Ha'aretz: QAn agreement 
that would include only a limited withdrawal, ... in which Israel 
would Qremain on the Golan,Q does not contradict Netanyahu's 
principles. 
 
 
 
Block Quotes: 
------------- 
 
¶I.  "He Needs a Miracle" 
 
Diplomatic correspondent Ben Caspit wrote in the popular, pluralist 
Maariv (2/27): QBenjamin Netanyahu of 2009, who will be 60 in 
October, is more mature, more experienced, and more balanced than 
Bibi of Q96.  On the other hand, it seems that he hasnQt 
internalized the true reasons for his defeat at the time.  Byzantine 
power games ... are being played around him.... Given the fact that 
he will apparently only have a narrow right-wing government, the 
economy is falling apart, the security situation is threatening, 
Europe is hostile, and America is alienated, he will need a rare 
combination of miracles, luck, and help from heaven to survive.  He 
is well aware of his situation.  The question is whether he is doing 
something to change it. 
 
II.  "From the West Bank to Tehran" 
 
Editor-in-Chief David Horovitz wrote in the conservative, 
independent Jerusalem Post (2/27): QAccording to one scenario put to 
me, the Obama administration will be taking a comprehensive approach 
to the Middle East.... It would likely include an Israeli settlement 
freeze.... How that demand would go down with a narrow, right-wing 
coalition -Q the only coalition Netanyahu currently seems capable of 
forming -Q is readily imagined.  But, it was put to me, the 
administrationQs argument to Netanyahu would be that IsraelQs 
principal concern is thwarting Iran; thwarting Iran requires 
regional cooperation.... If such a scenario were indeed to play out, 
new prime minister Netanyahu could be faced with the acutely 
unenviable choice of defying America to maintain a narrow, 
pro-settlement coalition, or defying his domestic political partners 
and many of his voters for the sake of an international partnership 
to try to stop Iran. 
 
III.  "The Operation that Legitimized Hamas" 
 
Diplomatic correspondent Aluf Benn wrote in the independent, 
left-leaning Ha'aretz (2/27): QThe main damage [caused to Israel] by 
the[Gaza] operation was the legitimacy granted to Hamas as ruler of 
the Strip, and the growing encouragement of the Qreconciliation 
talksQ that will return the organization to the Palestinian 
leadership.  Israel wanted to isolate and destroy Hamas Q it is now 
under heavy pressure to open the crossings to Gaza and end the 
siege.  The operation was planned so that it would end during the 
term of friendly President George Bush, a moment before Barack Obama 
entered the White House.  The timing was perfect, the results less 
so.  Israel is starting its dialogue with Obama from a problematic 
position.  Instead of Secretary of State Hillary Clinton coming to 
discuss the containment of the Iranian threat, her first visit to 
Israel will focus on aid to the Palestinians in Gaza and the victims 
of QOperation Cast Lead.Q  This might be the worst damage of all. 
 
IV.  "Livni Needs a Game-Changer" 
 
Daniel Levy, the lead Israeli drafter of the Geneva Initiative, 
wrote in Ha'aretz (2/27): QIf [Tzipi] Livni wants her vision of two 
states to be both credible and meaningful, she needs to come up with 
a game-changer.  Agreeing that Israel will define its permanent 
borders with the Palestinians by the end of the new government's 
term of office would meet that test.  One path to achieving that 
goal could be the traditional one, via negotiations with an 
empowered and domestically legitimized Palestinian leadership, but 
this need not be the only option.  Israel's interlocutor might be 
the United States or the Quartet, either of which could conduct 
back-to-back talks with relevant Palestinian and Arab 
decision-makers.  Alternately, Israel might negotiate indirectly, in 
the context of the Arab peace plan, with Arab states, which would in 
turn consult with the relevant Palestinians, thereby guaranteeing 
the necessary Palestinian buy-in and representation.  Once a border 
is defined, this would of course have to be followed in short order 
by a withdrawal of the Israeli occupation to that line.... At first 
glance, such an agenda would appear to be anathema to Netanyahu.  It 
could, though, be linked to additional innovations, such as the 
establishment of an interim international trusteeship over the 
de-occupied area, thereby allowing him to avoid being directly 
responsible for the establishment of a Palestinian state.  Perhaps 
this is what Netanyahu meant when he suggested to Livni that there 
might be another formula for defining the political approach to the 
Palestinian issue 
 
¶V.  QThe Two-State Idea Is Dead 
 
Ariel Cahan editorialized in the nationalist, Orthodox Makor 
Rishon-Hatzofe (2/27): QThe person who most recenly shattered the 
statue of Qtwo state for two peplesQ was Elliott Abrams, Deputy 
National Security Advisor in the Bush administration, who claims 
that the West Bank and Gaza PalestiniansQ connections with Jordan 
and Egypt ... are preferable to stately Palestinian independence - 
an independence that cannot be implemented anyway because of HamasQs 
takeover in Gaza.... Professor Shlomo Ben-Ami, a true man of the 
Left, who acted to establish a Palestinian state, now believes that 
the two-state idea is useless... The Israeli Right, which brought 
the [upcoming] government to power, must complete its vision with 
diplomatic action. 
 
VI.  "No More King on the Mountain?" 
 
Diplomatic correspondent Aluf Benn wrote in Ha'aretz (2/27): QU.S. 
President Barack Obama wants to create a new order in the Middle 
East, one based on diplomacy and dialogue, not on boycotts and 
bombs.  Israel wants to shatter the threatening Qaxis of evil, 
which is headquartered in Iran and has branches in Syria, Lebanon, 
and Gaza, and is opposed to withdrawal from the territories.  Syria 
wants to improve its relations with the U. S. and strengthen its 
control of Lebanon, without bowing to Israel.  Is there a formula 
that can satisfy Israel, Syria, and Obama's United States?.... 
[Benjamin Netanyahu] sees the indirect negotiations Prime Minister 
Ehud Olmert conducted with the Syrians as having offered concessions 
without recompense, as a useless move that served only to extricate 
Syrian President Bashar Assad from international isolation.  An 
agreement that would include only a limited withdrawal, however, in 
which Israel would Qremain on the Golan,Q does not contradict 
Netanyahu's principles. 
 
CUNNINGHAM