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UNCLAS TEL AVIV 000553 
 
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 
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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.  Mideast 
 
¶2.  Formation of NetanyahuQs Government 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
Yesterday the media reported that Yisrael BeiteinuQs Avigdor 
Lieberman is likely to receive all the cabinet portfolios he is 
demanding from PM-designate Benjamin Netanyahu: Foreign Affairs, 
Public Security, Tourism, National Infrastructure, and Justice, 
which is reserved for the incumbent minister, Daniel Friedmann - 
although the latter appointment was uncertain today.  HaQaretz 
reports on disapproving attitudes vis-`-vis Avigdor Lieberman across 
the U.S. Europe, and the Arab world.  The newspaper, which noted 
that the QLieberman question continually arises in State Department 
briefings and other forums,Q said that the most negative opinion 
about him is likely to be expressed in Egypt.  Maariv reported that 
yesterday Lieberman made a partial concession on the issue of civil 
marriages.  Media quoted associates of former FM Silvan Shalom as 
saying that if Shalom is not entrusted with the foreign affairs or 
treasury portfolio, there will be no government. 
 
Maariv reported that former IDF chief-of-staff Moshe YaQalon is 
slated to become defense minister, as PM-designate Benjamin 
Netanyahu received a final negative answer from current DM Ehud 
Barak. 
 
All media reported that Attorney General Menachem Mazuz announced 
yesterday that former Israeli president Moshe Katsav will be charged 
with several serious sexual offenses, including rape.  The decision 
ushers in a new phase of a legal drama that has dragged on for 
almost three years. 
 
The media reported that bereaved families opposed to the release of 
hundreds of terrorists, demonstrated near Gilad ShalitQs familyQs 
protest tent in the vicinity of PM Ehud OlmertQs residence.  Makor 
Rishon-Hatzofe quoted Abu Obeydah, the spokesman of HamasQs military 
wing, as saying yesterday that Qif the Zionist enemy does not pay 
the full price, ShalitQs family will be very familiar with the tent 
they set up in Jerusalem.Q  Yesterday HaQaretz reported that Hamas 
has rejected the new list of Palestinian prisoners that Israel 
relayed, which are meant to be part of swap deal that would gain 
ShalitQs release.  The media quoted PM Olmert as saying on Friday 
that demonstrations in favor of ShalitQs release are not helpful. 
 
Most media highlighted a comment made at the cabinet meeting 
yesterday by Maj. Gen. Amos Yadlin, head of IDF Intelligence that 
Iran has crossed a major technological threshold in its nuclear 
program.  Yadlin noted that, "Iran's ability to reach a military 
nuclear capability is a matter of adjusting its strategy vis-a-vis 
the goal of developing a nuclear bomb."  Yadlin explained that the 
new approach of the Obama administration, which calls for dialogue 
with Iran, is being cautiously received in the Middle East. 
"Moderate Arab states believe that this [the dialogue] will be used 
by Iran and Syria, who will waste time under the guise of talk, 
while continuing their support for terrorism," Yadlin said.  "The 
extremist axis hopes that the U.S. will indeed alter its stance, but 
also suspects that this is only the preamble to creating a more 
effective coalition against them." 
 
Yesterday HaQaretz reported that the U.S. will only recognize a 
future Palestinian unity government if Salem Fayyad is reappointed 
prime minister, according to a message relayed by Secretary of State 
Hillary Clinton to European and Arab leaders at last week's donor 
summit in Sharm el-Sheikh.  The same message was relayed to Hamas by 
the Norwegian government, in response to the organization's demand 
that Fatah replaces Fayyad with an independent candidate. Senior 
Palestinian sources told HaQaretz on Saturday that the sudden 
resignation of Fayyad was a tactical move, designed to pressure 
Hamas into softening its opposition to Fayyad serving as prime 
minister in a unity government.  The sources believe that the 
American threat, which is likely to be backed by the EU and Egypt, 
will lead to Hamas changing its position and Fayyad rescinding his 
resignation.  It is also feasible that the continuation of Fayyad's 
term as Palestinian prime minister will be on the agenda during 
talks between the U.S. and Syria, where the head of Hamas' political 
wing resides. 
 
Yesterday The Jerusalem Post quoted Assistant Secretary of State for 
Near Eastern affairs Jeffrey Feltman, who held talks with Syrian 
officials in Damascus on Saturday, as saying that there was common 
ground between the U.S. and Syria, even as he cautioned that no one 
should expect an immediate breakthrough.  Yesterday HaQaretz 
reported that Secretary of State Hillary Clinton stressed during her 
visit to Ankara that the U.S. would like to see a resumption of the 
talks between Israel and Syria.  However, HaQaretz quoted Netanyahu 
as saying in closed talks that he prefers to give priority to the 
Palestinian track over the Syrian one.  This morning Israel Radio 
quoted Syrian President Bashar Assad as saying that there will not 
be full peace with Israel before the resolution of the 
Israeli-Palestinian conflict. 
 
Yesterday HaQaretz reported that Israel is under increased pressure 
from the U.S. over settlement construction.  Over the past month, 
Israel has reportedly received four official complaints from members 
of the new administration regarding various issues linked to West 
Bank settlements. 
 
HaQaretz reported that, Qin a rare breach of official American 
adherence to Israel's policy of nuclear ambiguity,Q the U.S. 
military is terming Israel "a nuclear power" on a par with Russia, 
China, India, Pakistan and North Korea, all of which have declared 
their nuclear weapon status, and ahead of "nuclear threshold powers" 
Japan, South Korea and Taiwan, and the "emerging" Iran.   The 
reference to Israel as a nuclear power is contained in a document 
published late last year by the U.S. Joint Forces Command (JFCOM), 
which is in charge of preparing American forces for their military 
missions worldwide, including in Iraq and Afghanistan. 
 
All media reported that hundreds of violent anti-Israel protesters 
clashed with police in the Swedish city of Malmo on Saturday, 
outside the near-empty arena in which the Israeli and Swedish Davis 
Cup teams were playing a first-round match.  Protesters pelted 
police with stones, firecrackers and paint bombs. 
 
The media reported that Tel Aviv police have arrested 12 men in 
recent days on suspicion of operating a network that smuggled women 
from Eastern Europe into Israel, and later into Cyprus, while using 
violence and intimidation to force the women to work for escort 
services. 
 
Leading media reported that during yesterdayQs cabinet meeting, PM 
Olmert told DM Barak that he was minimizing the achievements of 
Operation Cast Lead. 
 
The media reported that yesterday Palestinians fired four Qassam 
rockets at southern Israel. 
 
Yesterday HaQaretz and other media reported that on Friday 
Mauritania ordered the closure within 48 hours of the Israeli 
embassy in the capital Nouakchott, more than a month after it 
announced it was severing diplomatic relations with Israel. 
Ambassador Michael Arbel was ordered to leave the country over the 
weekend.  HaQaretz reported that a senior Foreign Ministry source 
confirmed that the embassy was closed and that Arbel had gone on 
vacation, but not that the diplomatic ties between the two countries 
were severed. 
 
Maariv reported that the Jewish Agency and the GOI are counseling 
Diaspora representatives on ways to defend their communities. 
 
The media reported that yesterday Pope Benedict XVI confirmed that 
he would visit Israel from May 11-15, in the first papal visit since 
2000 and the second official visit by a pope to the country.   Media 
quoted President Shimon Peres as saying that the visit will be a 
Qmoving and important event bringing the spirit of peace and hope. 
 
HaQaretz reported that yesterday Alice Walker, the Pulitzer-Prize 
winning American writer, visited Gaza, where she compared the 
Israeli occupation to her youth under racial oppression in the U.S. 
 
Maariv reported that cooperation between officials of the Israel 
Nature & National Parks Protection Authority and Palestinian 
bird-lovers saved a rare eagle in the Hebron Hills. 
 
 
------------ 
¶1.  Mideast: 
------------ 
 
Summary: 
-------- 
 
The independent, left-leaning Ha'aretz editorialized: QIf Israel 
were to announce now that it is joining the donor states in 
encouraging the establishment of a Palestinian unity government, it 
would be an act of political foresight. 
 
Senior op-ed writer Akiva Eldar commented in Ha'aretz: QNetanyahu's 
government will find a loyal partner in the conflict management 
approach: For more than three years ... Hamas has repeatedly 
suggested Israel give up the illusion of resolving the conflict in 
favor of managing it. 
The conservative, independent Jerusalem Post editorialized: QWe are 
concerned by the linkage [Secretary of State Hillary Clinton] made 
between the Roadmap and the operations of Jerusalem's municipal 
administration. 
 
Block Quotes: 
------------- 
 
¶I.  "Window of Opportunity" 
 
The independent, left-leaning Ha'aretz editorialized (3/8): QRapid 
reconciliation is not only in the interest of Fatah and Hamas.  This 
also represents a new opportunity for Israel to void its 2006 
decision to boycott the Hamas government and the previous 
Palestinian unity government.  The violent interfactional 
Palestinian struggle proved to Israel the extent to which domestic 
Palestinian politics can affect Israel's policy and the security of 
its citizens.  A Palestinian unity government does not ensure an 
expedited peace process.... But a Palestinian unity government, even 
one that includes Hamas -- and perhaps precisely because of its 
inclusion -- is likely to be a reasonable partner in managing the 
conflict, particularly in bringing normal life to the residents of 
the territories.  The United States and European countries support 
the establishment of such a government on condition that it 
recognizes Israel.  Egypt and Saudi Arabia view such a step not only 
as a critical means to bring normalcy to Palestine, but also as a 
way to disengage Hamas from Iran.  If Israel were to announce now 
that it is joining the donor states in encouraging the establishment 
of a Palestinian unity government, it would be an act of political 
foresight. 
 
II.  "Bibi Has a Partner" 
 
Senior op-ed writer Akiva Eldar commented in Ha'aretz (3/9): 
QNetanyahu's government will find a loyal partner in the conflict 
management approach: For more than three years, since its victory in 
the Palestinian Legislative Council, Hamas has repeatedly suggested 
Israel give up the illusion of resolving the conflict in favor of 
managing it.  Khaled Mashal, like Netanyahu, rejected Mahmoud 
Abbas's demand to include the principle of two states for two 
peoples in the policy statement of a Palestinian unity government. 
The Hamas ministers will be happy to speak with Netanyahu's 
government about establishing industrial parks on the border areas, 
and they will even be happy to sign a hudna (cease-fire agreement) 
for 10 years or more.  Meanwhile, the demographics will have their 
say.  Moreover, successful management of the conflict is incongruous 
with creating new facts on the ground, which exacerbate the conflict 
and make its resolution difficult. 
 
III.  "Unhelpful Reprimand" 
 
The conservative, independent Jerusalem Post editorialized (3/8): 
QWe are concerned by the linkage [Secretary of State Hillary 
Clinton] made between the Roadmap and the operations of Jerusalem's 
municipal administration.  If Israelis were to follow such a linkage 
to its logical conclusion, then any local authority here could at 
any time be accused of overstepping arbitrary bounds imposed by 
outside powers.  This infringes on Israeli sovereignty at the most 
elementary level.... Not that the circumstances anywhere else can 
compare to those of Emek Hamelech (King's Valley or Silwan).  This 
area, part of a First Temple royal enclave, perhaps King David's 
own, is of matchless historical significance and includes sites holy 
to all three monotheistic religions.... The area is a prime 
archeological site and that the illegal construction, according to 
the Israel Antiquities Authority, has already wrought considerable, 
often irreversible damage to some of the world's most unique 
biblical-era relics.  Paradoxically, Arab illegal construction in 
this particular area is recent and wouldn't have been possible 
without Israeli technological improvements: KingQs Valley was 
regularly flooded each winter, until the municipality devised means 
to drain it some 20 years ago.... Hamas sympathizer Sheikh Raed 
Salah of the Northern Branch Islamic Movement [in Israel] sounded 
the rallying cry and organized protests that culminated in an Arab 
general strike. As expected, this extremist garnered instant support 
abroad. We are, however, perturbed that even the American secretary 
of state has seen fit to amplify Salah's incendiary propaganda. In 
the case of Emek Hamelech, Barkat is right to say that Clinton has 
been misled by Palestinian Arab Qdisinformation. 
 
---------------------------------------- 
¶2.  Formation of NetanyahuQs Government: 
---------------------------------------- 
 
Summary: 
-------- 
 
The independent, left-leaning Ha'aretz editorialized: QIn his 
decisions regarding the composition of his government, Netanyahu is 
placing himself in a confrontational position vis-a-vis the justice 
system. 
 
Senior columnist Nahum Barnea wrote in the mass-circulation, 
pluralist Yediot Aharonot: QIn the present Israeli reality, anyone 
who wants a broad government must necessarily also betray the far 
right.  Anyone afraid to confront the demands of the far right, will 
not be able to form a broad government. 
 
Block Quotes: 
------------- 
 
¶I.  "NetanyahuQs Bankruptcy" 
 
The independent, left-leaning Ha'aretz editorialized (3/8): QThe 
coalition agreement being forged between Likud and Yisrael Beiteinu 
threatens the law-enforcement system and the rule of law in Israel, 
and reflects moral bankruptcy on the part of Prime 
Minister-designate Benjamin Netanyahu.... There is a serious ethical 
problem with the fact that a person suspected of serious offenses, 
like [Avigdor] Lieberman, will appoint the people in charge of the 
law-enforcement system, who hold the key to the promotion of his 
investigators, and -- if an indictment is served against him -- his 
prosecutors and judges, as well. Anyone who leaves [Justice 
Minister Daniel] Friedmann in his post intends to continue the 
campaign of destruction and incitement against the justice system by 
the previous government, and perhaps even to take it further.  This 
is Netanyahu's message in allowing the Justice Minister to remain. 
The prime minister-designate cannot hide behind the claim that he 
only gave in, for lack of choice, to Lieberman's coalition demands. 
In his decisions regarding the composition of his government, 
Netanyahu is placing himself in a confrontational position vis-a-vis 
the justice system, instead of behaving with the proper 
statesmanship and working to strengthen and rehabilitate it after 
the damage caused by Friedmann. 
 
II.  "The Birthright and the Mess of Potage" 
 
Senior columnist Nahum Barnea wrote in the mass-circulation, 
pluralist Yediot Aharonot (3/9): QExperience, says Netanyahu, is 
what differentiates between what I was during my previous term and 
what I am now.  I made mistakes then because I hadn't had any 
experience. Now I'm experienced.  And indeed experience is an 
important asset. The question is, however, what one gains from 
it.... Netanyahu drew two lessons from a traumatic event [the 
October 1998 signing of the Wye Memorandum]: The first, to pursue a 
broad, central government whose stability will not be dependent on 
the wishes of a handful of fringe Knesset members. The second, never 
again to betray the far right.  Netanyahu has not grasped, or has 
not wanted to grasp, that these two lessons are self-contradictory: 
In the present Israeli reality, anyone who wants a broad government 
must necessarily also betray the far right.  Anyone afraid to 
confront the demands of the far right, will not be able to form a 
broad government.... Netanyahu sold his birthright for a mess of 
potage.  The first concession concerned the peace process:  Due to a 
fear of the far right wing within the Likud, he withdrew his 
previous support of a Palestinian state, and by doing so terminated 
all chances of getting Kadima into the government.  The second 
concession was political.... Will the appointment of a politician 
suspected of racism assist Netanyahu's government's chances of 
success?  Very doubtful.... The third concession was financial.... 
In a period of world economic crisis  the last thing the Finance 
Ministry needs to worry about now is funding yeshivas.  Israel is 
heading into very difficult financial times.  With these natural 
partners, and with Netanyahu's fear of turning them down, these 
times will be even more difficult.  The right wing of the Likud is 
not to blame.  Neither are Lieberman or the religious.  The choice 
was that of Netanyahu.  King Saul asked for donkeys and received a 
kingdom.  This is what happens when a prime 
minister with too much experience arrives. 
 
CUNNINGHAM