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P 021207Z MAR 09
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UNCLAS TEL AVIV 000483 
 
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: 
------------------------- 
 
The media agreed in their speculation that Secretary of State 
Hillary Clinton will not pressure Israel during her upcoming visit. 
Maariv printed a table of differences between PM-designate Benjamin 
Netanyahu and the U.S. administration regarding Palestinian 
statehood, Fatah-Hamas reconciliation, and the Iranian threat. 
Yesterday HaQaretz quoted the Secretary as saying in an interview on 
Friday with Voice of America that she would emphasize her country's 
commitment to a two-state solution.  HaQaretz reported that in an 
interview in The Washington Post on Saturday, Netanyahu did not 
confirm or deny a belief in the two-state solution. "Substantively, 
there is broad agreement inside Israel and outside that the 
Palestinians should have the ability to govern their lives but not 
to threaten ours," he was quoted as saying. 
 
The Jerusalem Post reported that Netanyahu voiced serious 
reservations during recent meetings with foreign leaders about money 
going into Gaza for reconstruction before the rocket fire on Israel 
has stopped.   After hearing in one meeting that European taxpayers 
were concerned about investing in Gaza only to see further 
destruction at the hands of the IDF, Netanyahu explained that Israel 
tried hard to avoid civilian casualties and targeted only those 
areas used by terrorists. He then reportedly said he was not willing 
to sacrifice Israel's security "for a smile."   Sources close to 
Netanyahu said it would be critical for humanitarian aid to bypass 
Hamas, especially with the Islamist group continuing to fire rockets 
into Israel. 
 
Leading media reported that Labor Party Chairman Ehud Barak has 
called Labor MKs in recent days and told them that the party should 
join a national unity government led by Netanyahu.  Israel Radio 
quoted Barak associates as saying that Barak was still going to go 
into opposition.  The media reported that the two will meet again. 
The media reported that Transportation Minister Shaul Mofaz (Kadima) 
favors a Likud-Kadima coalition. 
HaQaretz and other media reported that the PA will ask for another 
$2.7-2.8 billion from donor nations today: $1.326 billion to 
rehabilitate the Gaza Strip in 2009-2010 and $1.415 billion to 
support the PA's annual budget.  HaQaretz said that the real 
challenge behind "The Palestinian National Early Recovery and 
Reconstruction Plan for Gaza, 2009-2010" is the competition between 
the two rival Palestinian governments, the PA in Ramallah and Hamas 
in Gaza, over who gets the credit for rebuilding Gaza after 
Operation Cast Lead.  Hamas has announced in the media that it has 
already evaluated the damage in the Strip and formulated a recovery 
plan using its own sources of funding. Meanwhile, the PA is 
attempting to implement its own plan through various subcontractor 
and UN agencies since its institutions have not operated in Gaza for 
nearly two years. 
 
All media pointed to a discrepancy between remarks made by two top 
U.S. defense officials on IranQs nuclear capability, which HaQaretz 
said could influence President ObamaQs policy decision.  The media 
quoted Michael Mullen, the Chairman of the Joint Chiefs of Staff, as 
saying on Sunday on CNNQs "State of the Union" program that Iran had 
enough nuclear material to make a bomb.  Conversely, Defense 
Secretary Robert Gates said on NBCQs Meet the PressQ that Tehran was 
not close to building such a weapon.  Yesterday The Jerusalem Post 
quoted DM Barak as saying on Friday that future talks between the 
U.S. and Iran over the latterQs nuclear program should not drag out 
indefinitely. 
 
All media reported that Attorney General Menachem Mazuz told PM Ehud 
Olmert's legal team Sunday that Olmert may be indicted over 
suspicions of receiving illicit funds from New York millionaire 
Morris Talansky. The indictment is pending an additional hearing, 
said Mazuz.  In a letter to Olmert's attorneys, Mazuz stated that he 
believes the PM had methodically abused his public office to acquire 
personal favors from Talansky over a period of time.  Mazuz wrote 
Olmert obtained financial favors in exchange for assisting Talansky 
in his business ventures, while being in a conflict of interests.  A 
similar announcement was given to the lawyers of Shula Zaken, then 
director of Olmert's office.  The actual charges Olmert is faced 
with are fraud and breach of trust.  The prosecution decided not to 
include bribery among the charges, for lack of sufficient evidence. 
A source in the Attorney General's office said that no decision has 
as yet been made whether to prosecute Talansky or Olmert's former 
associate, attorney Uri Messer.  Mazuz is expected to soon reach a 
decision on the investment center affair, and any decision regarding 
Talansky will be announced at the same time.  Media quoted Olmert 
 
associates as saying that a Qmountain had been made out of a 
molehill. 
 
Yesterday Yediot reported that high-ranking officers are expressing 
frustration over the government's behavior since the end of 
Operation Cast Lead.  They claim that the IDF's military 
accomplishments from that time are being eroded because of the 
political echelon's impotence. 
 
Major media reported that over the weekend FM Tzipi Livni praised 
the Obama administration's decision not to participate in a UN 
anti-racism summit known as Durban 2, which it fears will be used as 
a forum to criticize Israel.  HaQaretz and The Jerusalem Post 
reported that yesterday major Jewish American and international 
Jewish groups lauded the United StatesQ decision.  The Conference of 
Presidents of Major American Jewish Organizations and other groups 
also urged the EU to follow the U.S. administrationQs lead. 
 
The media reported that on Saturday ten rockets struck southern 
Israel -- two improved Qassam rockets fell on Ashkelon, one into an 
empty school.  Seven more rockets landed in Israel yesterday. 
HaQaretz reported that yesterday PM Olmert ordered DM Ehud Barak to 
implement a military response to the ongoing rocket fire as soon as 
possible, in accordance with a cabinet decision taken last week. 
"The cabinet decided that if the firing continues from Gaza, it will 
be met with a painful, harsh, strong and uncompromising response 
from the security forces," Olmert was quoted as saying. 
 
HaQaretz quoted Likud sources as saying yesterday that the "narrow 
government" is likely to be even narrower than expected -- a mere 61 
MKs instead of 65.  That is because Netanyahu may opt not to bring 
in National Union, for fear of adverse reactions in both the local 
and international media.  One of National Union's four Knesset 
members, Michael Ben-Ari, used to belong to Meir Kahane's Kach 
movement, which both Israel and the U.S. have labeled a terrorist 
organization.  In contrast, the sources were quoted as saying that 
Netanyahu has no problem making Yisrael Beiteinu chairman Avigdor 
QYvetQ Lieberman foreign minister, even though Lieberman has also 
been branded in the local and international press as a racist. 
"This is both because he [Netanyahu] admires him, and because he 
knows that Yvet can be tamed.  More accurately, Yvet knows how to 
tame himself if necessary," one source was quoted as saying. 
HaQaretz also reported that a narrow Likud-led government is likely 
to include a lot of new faces, but only one woman: former minister 
Limor Livnat. That would contradict Netanyahu's campaign pledge to 
give women "fair representation" in his cabinet. 
 
The Jerusalem Post quoted Israeli defense officials as saying that 
EgyptQs decision to let Hamas No. 2 Moussa Abu Marzouk visit Gaza 
last week was EgyptQs way to express its anger with PM OlmertQs 
rejection last month of CairoQs proposal for a cease-fire with Hamas 
as well as for using other channels to negotiate a deal for Gilad 
ShalitQs release.  Over the weekend some media quoted Palestinian 
sources as saying that Israel had given a secret green light for Abu 
MarzoukQs visit. 
 
The Jerusalem Post and other media reported that the Pentagon 
informed the Defense Ministry that the IDF can no longer use 
American foreign military aid to purchase Qnon-essential items. 
 
Yesterday Maariv and other media cited NetanyahuQs decision to 
appoint Uzi Arad as the director of the National Security Council. 
In the past, Arad made a statement in the media in favor of the 
establishment of a Palestinian state alongside Israel, and he sees 
the demographic threat as an important reason for Israel to leave 
the territories and give control over the Palestinian population to 
the PA.  In 2005, he was invested by the FBI in Washington for his 
connections with Larry Franklin, who was suspected of having leaked 
classified information to Israel when he worked at the Pentagon. 
 
HaQaretz and Yediot reported that 27-year-old Israeli-Arab Ismail 
Saleiman, suspected of being a prospective Hizbullah spy, was 
indicted yesterday on charges of contact with a foreign agent. 
 
HaQaretz reported that the renowned Portuguese author Jose Saramago 
and dozens of leading opinion-shapers were listed as cosignatories 
in an "urgent" petition for removing Hamas and all Palestinian 
"liberation organizations" from the European list of terrorist 
groups.  The petition was circulated as pro-Palestinian activists 
around the world launch the fifth "Israeli Apartheid Week." 
 
-------- 
Mideast: 
-------- 
 
Summary: 
-------- 
 
The Director of the Interdisciplinary Center's Global Research in 
International Affairs Center, columnist Barry Rubin, wrote in the 
conservative, independent Jerusalem Post: QEarly on this 
administration must comprehend that reputations will not be built, 
Nobel Peace Prizes won, or Arab and European cooperation won by 
sacrificing Israel's vital interests.  In exchange, Clinton must see 
that Israel wants to make her look successful and to cooperate on 
reasonable terms. 
 
The Jerusalem Post editorialized: QWe urge the donor nations to look 
clear-headedly at the reality of Gaza, and recognize that the 
prerequisite for sustainable reconstruction is an end to the abuse 
of Gaza as a base for attacking Israel. 
 
Veteran journalist and anchor Dan Margalit wrote in the independent 
Israel Hayom: Q[Tzipi Livni] is demanding that Netanyahu give her 
here and now what she has failed to extract from Abu Mazen in three 
years, and yet she has not despaired of engaging Abu Mazen in 
dialogue, and rightly so. 
 
The independent, left-leaning Ha'aretz editorialized: QThe outgoing 
Prime Minister has not learned a thing.... Now is not the time for 
threats, it's the time for negotiations. 
 
Veteran journalist and anchor Yaron London wrote in the 
mass-circulation, pluralist Yediot Aharonot: QEven if the unforeseen 
happens and the elites on both sides decide to form a joint 
political entity, [Israeli sociologist Tamar] Hermann says, it will 
soon collapse, because both peoples have a tradition of rebelling 
against their leaders. 
 
 
Block Quotes: 
------------- 
 
¶I.  "Helping Hillary while Keeping Israel Safe" 
 
The Director of the Interdisciplinary Center's Global Research in 
International Affairs Center, columnist Barry Rubin, wrote in the 
conservative, independent Jerusalem Post (3/2): QSecretary of State 
Hillary Clinton is arriving in Israel on the first of what will no 
doubt be many visits. Beyond the simple self-interest of making her 
feel appreciated, most Israelis are genuinely glad that she was 
appointed to this job.  The reason why is critical to understanding 
the future of U.S. Middle East policy and U.S.-Israel relations. 
What is most important is that Clinton is regarded as a realist.... 
Moreover, it's not just that she spoke positively about Israel -- a 
senator from New York could do no less -- but that the way she 
explained her positions seemed to indicate she really understood the 
situation.... If [IsraelQs claim of Qnatural growthQ in the 
settlements] were to change, Clinton could claim a victory of 
stopping settlements, usually portrayed by the PA as its main 
grievance, that is, excuse for not doing more itself.  Such a 
concession should not be unthinkable but the question is what would 
Israel get in exchange?  U.S. pressuring the PA to stop officially 
inspired anti-Israel incitement; changing its schools and media to 
advocate a two-state solution; greater U.S. backing for Israel's 
security regarding Gaza?  Asking Israel to do something on the 
settlement issue is all right if -- but only if -- there is more 
real compliance from the Palestinian side.   Finally and importantly 
there is the question of Gaza.... Early on this administration must 
comprehend that reputations will not be built, Nobel Peace Prizes 
won, or Arab and European cooperation won by sacrificing Israel's 
vital interests.  In exchange, Clinton must see that Israel wants to 
make her look successful and to cooperate on reasonable terms.  On 
such a basis of understanding and good will a very successful 
partnership can be built. 
 
II.  "Gaza Preconditions" 
 
The Jerusalem Post editorialized (3/2): QIsrael has an unparalleled 
interest in an economically viable and tranquil Gaza.  It would like 
nothing better than for Gazans to avail themselves of educational 
and economic opportunities.  But these cannot be sustained unless 
Gaza behaves like the donor nations expect their own neighbors to 
behave.  Let those nations seek a non-Hamas-channeled process for 
reconstructing Gaza.  But the transfer of funds must be made 
contingent on a proven commitment to cease rocket attacks: Hamas's 
unequivocal obligation to a genuine cease-fire, demonstrated by 
several months of uninterrupted calm.  Without this, reconstruction 
contributions will wind up not merely being wasted but rather, 
directly or indirectly, boosting Hamas's war-chest.  As long as 
Israelis are fired upon, no Gazan reconstruction can last.  Sooner 
or later Israel will again have to protect its citizens -- as would 
every donor nation were its people similarly threatened.  Ignoring 
that cause and effect is a recipe for the misuse of international 
funds. We urge the donor nations to look clear-headedly at the 
reality of Gaza, and recognize that the prerequisite for sustainable 
reconstruction is an end to the abuse of Gaza as a base for 
attacking Israel. 
 
III.  "Livni's Intransigence" 
 
Veteran journalist and anchor Dan Margalit wrote in the independent 
Israel Hayom (3/1): QIt is inconceivable that Tzipi Livni should 
turn over every stone in her talks with Abu Mazen and Abu Ala, but 
should refuse to form negotiating teams with Benjamin Netanyahu in 
order to examine the possibility of achieving a political formula 
for the next government.... She is demanding that Netanyahu give her 
here and now what she has failed to extract from Abu Mazen in three 
years, and yet she has not despaired of engaging Abu Mazen in 
dialogue, and rightly so.   Livni is worthy of being a senior 
partner in the government. 
Netanyahu understands that. He has offered her up to half the 
kingdom, everything but a rotating premiership. But she is prepared 
to give everything up in exchange for rotation.  That is 
disappointing when we're talking about a public figure who comes 
from [LikudQs founding father] Zeev Jabotinsky's legacy of glory.... 
The paramount responsibility for achieving that objective [national 
unity], which is what a preponderance of Kadima voters want, lies 
with [Shaul] Mofaz.  By means of an open, responsible, patriotic 
debate, it is crucial that he demand another meeting of the Kadima 
faction before it turns its back on what is a patently clear 
national interest.... Netanyahu isn't exempt from having to take 
extraordinary steps either.  If I were in his place, I would walk 
over tomorrow to the Kadima and Labor Party faction rooms in the 
Knesset and engage the faction members in a pointed and 
issue-oriented discussion with those two factions that want to stay 
out of the government during years in which Israel can be certain 
that it will have to cope with an Iranian nuclear threat and an 
economic crisis, while the possibility of reaching an agreement with 
the Palestinians remains dubious. 
 
IV.  "Futile and Absurd Threats" 
 
The independent, left-leaning Ha'aretz editorialized (3/2): QWhile 
the firing of Qassam rockets on communities in the south continues 
as though there had been no war to put an end to it, outgoing Prime 
Minister Ehud Olmert yesterday once again began threatening Hamas, 
as if his threats had any validity.  QIsrael will not continue to 
show restraint at the firing of Qassam rockets,Q Olmert said at the 
beginning of a cabinet session.  QIf the firing continues it will be 
met by a painful response.Q  The outgoing Prime Minister has not 
learned a thing.... Now is not the time for threats, it's the time 
for negotiations; additional attacks will not put an end to the 
firing of Qassam rockets, only a long-term cease-fire agreement will 
do so.  This agreement was already within reach. 
 
¶V.  QA Foregone Failure 
 
Veteran journalist and anchor Yaron London wrote in the 
mass-circulation, pluralist Yediot Aharonot (3/2): QThe vision of 
one state stretching from the Jordan River to the Mediterranean Sea 
is a threat, a hope and a refuge from an intolerable situation.  A 
threat -- in the eyes of the vast majority of both Jews and 
Palestinians who wish for a state of their own.  A hope -- in the 
eyes of a small group of both Israeli and Palestinian radical 
leaders who see it as a strategy for destroying the Jewish state.  A 
refuge -- in the eyes of Israelis who have grown weary from a 
solution that divides the land and yet refuse to accept the 
apartheid regime that we have set up in the territories.  Like the 
sword of Damocles this vision hovers above our politicians, it 
serves them as weapon in their election campaign and causes unrest 
to all prominent Israeli politicians.  Few comprehend its nature and 
importance.... Even if the unforeseen happens and the elites on both 
sides decide to form a joint political entity, [Israeli sociologist 
Tamar] Hermann says, it will soon collapse, because both peoples 
have a tradition of rebelling against their leaders.  On both sides, 
forces will arise that will not accept the defeat of their 
maximalist visions.  What is the conclusion?  Perhaps only a last 
attempt at separation.  If it fails, the disasters that we have 
experienced until today will be like a walk in the park. 
 
CUNNINGHAM