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P 221017Z MAY 09
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UNCLAS TEL AVIV 001140 
 
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: 
-------------------------------- 
 
Aftermath of Obama-Netanyahu Meeting 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All media (banner in HaQaretz) quoted PM Benjamin Netanyahu as 
saying yesterday at a Jerusalem Day celebration that Jerusalem Qwill 
never be again be partitioned or divided.Q  Netanyahu continued QThe 
new U.S. administration informs us with intolerable ease that we 
will have to give up Jerusalem, with all due respect, the U.S. 
president sees the American interest and does not know that 
Jerusalem is not a territorial issue, but a much deeper one. 
Netanyahu said that he emphasized these points to Obama during their 
meeting earlier this week. 
 
In its lead story, Yediot reported that in internal government 
discussions Netanyahu pledged to Obama not to build new settlements. 
 However, contrary to the position of the U.S. administration, 
construction in existing settlements and settlement blocs in the 
West Bank will continue.  The media reported that immediately 
following yesterdayQs destruction, settlers began rebuilding 
structures in the unauthorized outpost of Maoz Esther.  Media quoted 
Defense Minister Barak as saying that the Qevacuation was not 
related to U.S. pressure.Q  The Jerusalem Post reported that defense 
officials told the daily yesterday that DM Ehud Barak has ordered 
the IDF to complete a contingency plan for the forced evacuation of 
illegal West Bank outposts.  The officials were quoted as saying 
that Barak intends to begin removing the outposts in the coming 
weeks but that he has instructed his settlement adviser Eitan Broshi 
to first try to reach an agreement with the settlers under which 
they will leave of their own accord.  The Jerusalem Post also 
reported that the Civil Administration in the West Bank informed the 
High Court of Justice yesterday that it issued stop-work orders 
against the construction of 11 homes being built in the Neveh Tzuf 
Halamish settlement.  The move follows a petition filed by Peace Now 
earlier this month. 
 
The Jerusalem Post reported that U.S. officials and Middle East 
diplomats are tamping down expectations that President Obama will 
unveil a new Israeli-Palestinian peace plan during his June trip to 
Cairo.  Instead, they are painting the visit as one aimed at 
outreach to the wider Muslim world, with any new Middle East 
initiative coming later in the summer at Obama finishes 
consultations with regional leaders and other key players. 
 
The Jerusalem Post cited assessments received this week in Jerusalem 
that President ObamaQs engagement policy with Iran has led to a Qnew 
spirit in Europe and a growing consensus for stringent sanctions 
against Tehran if ObamaQs policy does not yield results.  The media 
also reported that Adm. Michael Mullen, Chairman of the Joint Chiefs 
of Staff, warned yesterday that it would be QcalamitousQ for Iran to 
attain nuclear weapons, and that world power had to prevent this. 
 
Electronic media reported that IDF troops killed two Palestinian 
terrorists who tried to cross the Gaza-Israel border near the Kerem 
Shalom Crossing. 
 
The Jerusalem Post bannered: QNew York Muslim Terrorists Plotted 
QJihadQ against Jews.Q  Maariv notes that many African-American 
inmates convert to Islam during their detention.  Israel Radio 
reported that Brazilian police thwarted an attempt by two neo-Nazi 
groups to blow up synagogues in the southern city of Porto Alegre. 
 
Major media reported that yesterday the Israel Air Force conducted a 
major drill simulating a war between Israel and Arab states Q- 
perhaps also against Iran -- and terrorist groups. 
 
Citing the AP, The Jerusalem Post reported that Lebanon has 
complained to the UN about alleged spying by Israel.  HaQaretz and 
The Jerusalem Post speculated that recent arrests of Israeli Qspies 
in Lebanon may have exposed Mossad and IDF Intelligence gathering 
methods.  The media generally believe that the assumed affairwill 
aid Hizbullah in the upcoming Lebanese elections. 
 
Leading media reported that, on the anniversary of the unification 
of Jerusalem, Knesset members from five factions representing both 
the coalition and the opposition submitted a bill yesterday that 
would require a supermajority vote in the Knesset -- 80 MKs -- to 
enact any change to JerusalemQs borders.  The Jerusalem Post quoted 
Yakir Segev, the Jerusalem Municipal official put in charge of the 
cityQs Arabs, as saying that treating them fairly will strengthen 
IsraelQs claim to the entire city, and that he is seeking ways to 
legalize thousands of unlicensed Arab homes vulnerable to 
demolition. 
The Jerusalem Post reported that Vice PM Moshe YaQalon will present 
diplomatic proposals at a conference on QAlternatives to the 
Two-State OutlookQ that will take place on Tuesday.  The meeting is 
organized by Likud MK Tzipi Hotovely. 
 
HaQaretz reported that Mossad Director Meir Dagan is displeased with 
the Defense Ministry decision to shut down the unit dealing with 
Iran and headed by Uri Lubrani, a former ambassador to Iran. 
DaganQs anger stems from the decision being made at a time when 
there is growing belief that Iran is moving closer to the 
development of nuclear weapons.  Another aspect irking Dagan is that 
Defense Ministry officials tried to insinuate that the request to 
close down the unit originated with Mossad. 
 
HaQaretz reported that disagreements between DM Barak and IDF Chief 
of Staff Lt. Gen. Gabi Ashkenazi are delaying a decision on senior 
IDF appointments. The two still disagree over which officers will be 
appointed chef of staff and IDF Intelligence head. 
 
Yediot reported that Kadima chairwoman Tzipi Livni recently called 
Kadima Knesset Member Yoel Hasson to inform him of her reservations 
about the possibility that he may be appointed to the PMQs team on 
the Gilad Shalit issue, perhaps to replace Ofer Dekel.  However, she 
clarified to him that she would eventually not oppose his 
nomination.  Hasson is a former deputy Shin Bet head. 
 
HaQaretz reported that yesterday the northern branch of IsraelQs 
Islamic Movement blasted a proposal for the Palestinian Authority to 
relinquish sovereignty over the Temple Mount in exchange for 
international Islamic control of the site.  "The proposal to 
transfer sovereignty to a third state stems from the attempt to 
internationalize the Al Aqsa Mosque, and actually this is a proposal 
whose significance is the continuation of the occupation; therefore, 
such a proposal must be aggressively rejected," the Israeli-Arab 
group said in a statement. 
 
The media reported on the rapid drop of the U.S. dollar against the 
shekel -Q 3.985 shekels to the dollar yesterday. 
 
HaQaretz cited the results of a poll conducted on behalf of the 
Center for Iranian Studies at Tel Aviv University: Some 23 percent 
of Israelis would consider leaving the country if Iran obtains a 
nuclear weapon.  Some 85 percent of respondents said they feared the 
Islamic Republic would obtain an atomic bomb, 57 percent believed 
the new U.S. initiative to engage in dialogue with Tehran would 
fail, and 41 percent believed Israel should strike Iran's nuclear 
installations without waiting to see whether or how the talks 
develop.  HaQaretz quoted Prof. David Menashri, the head of the 
Center, as saying: "The findings are worrying because they reflect 
an exaggerated and unnecessary fear.  Iran's leadership is 
religiously extremist but calculated and it understands that an 
unconventional attack on Israel is an act of madness that will 
destroy Iran.  Sadly, the survey shows the Iranian threat works well 
even without a bomb and thousands of Israelis [already] live in fear 
and contemplate leaving the country." 
 
------------------------------------- 
Aftermath of Obama-Netanyahu Meeting: 
------------------------------------- 
 
Block Quotes: 
------------- 
 
¶I.  "When Obama Says No" 
 
Senior columnist Nahum Barnea and diplomatic correspondent Shimon 
Shiffer wrote in the mass-circulation, pluralist Yediot Aharonot 
(5/22): Q[President] Obama and [Secretary] Clinton have been 
careful, since their term began, to be interviewed on Arab media 
outlets.  Obama promised that he would begin his term by speaking in 
a Muslim capital.  He kept his promise, twice: he spoke in Istanbul 
at the beginning of his term, and on June 4, he will make a very 
important speech in Cairo.  Both times he passed on going to Israel. 
 This does not show hostility toward Israel but rather that the 
White House, at the moment, is taking Israel -- and Jewish voters in 
AmericaQfor granted.... According to the Arab peace plan, which was 
passed by the Arab summit in Beirut in 2003, the Arab world will 
have normalization with Israel after Israel reaches a permanent 
status arrangement with the Palestinians.  Obama is trying to 
persuade the Arab rulers to move this up and to make normalization 
steps in tandem with the negotiations that resume with the 
Palestinians. He believes he can achieve this, both because of his 
persuasion skills and his willingness to enlist in solving the 
conflict, as well as because of the Arab fear of Iran.  King 
Abdullah of Jordan, who was in Washington before Netanyahu, told him 
that it was possible. 
 
II.  "Netanayhu Has a Plan: Foot-Dragging" 
 
Diplomatic correspondent Ben Caspit wrote on page one of the 
 
popular, pluralist Maariv (5/22): QIf Obama demands a Qyes-or-no 
answer [to his plan] -Q like James Baker in his time, who demanded 
that Yitzhak Shamir come to Madrid -Q Benjamin Netanyahu will find 
himself in an impasse.  QYesQ would mean the fall of his government. 
 QNoQ would mean a dramatic change in IsraelQs status in the United 
States.  It would no longer be an only son, not even a favorite 
one. Netanyahu would have to ask himself what is more important to 
IsraelQs security: the settlements or relations with the U.S. 
Netanyahu knows the answer.  The question is whether he has the 
inner power to cope with it. 
 
III.  "Israel Is Yet Another File" 
 
Correspondent Shmuel Rosner wrote in the popular, pluralist Maariv 
(5/22): QIsraelis will attentively listen to [President ObamaQs 
Cairo speech] and carefully pore over its contents, but it is 
already difficult to assume that the speech will please Israeli 
ears, since Israel isnQt its target audience.  Obama is trying to 
make the address an instrument of conciliation with the Arab and 
Muslim world -- a lofty objective to whose achievement Israel is but 
a small obstacle and a hindrance. 
 
IV.  "Curtain Raiser" 
 
Diplomatic correspondent Aluf Benn wrote in the independent, 
left-leaning Ha'aretz (5/22): QThe American summation, as described 
by columnist David Ignatius in The Washington Post, was that Obama 
was Qupping the anteQ on Netanyahu.  The Prime Minister had wanted 
progress with the Palestinians to be conditional on progress with 
Iran; he was forced to accept progress on both tracks and give a 
chance to Obama's planned dialogue with the Iranians.... 
Obama's stance is realistic: He repeated the word QinterestsQ 13 
times.  America's interests, Israel's interests, regional interests, 
even Iran's.  He did not mention the Qoccupation,Q QPalestinian 
rights,Q or advancing democracy and freedom in the Middle East. 
From his perspective, the two-state solution speaks to U.S. 
interests, and Israel is being asked to accept this, just as Israel 
expects American support for its security interests.... Netanyahu's 
visit to Washington should be seen as the first act: He wanted to 
understand the extent to which Obama seeks to advance peace and deal 
with Iran, and Obama wanted to understand how far Netanyahu can go 
on both tracks, and how far he wants to.  The answers will become 
clear in the following acts.  In the meantime, Obama will try to 
extend a hand to the Iranians, and Netanyahu will be weighing what 
to do about the Yesha Council of Jewish Settlements in the 
Territories. 
 
¶V.  QThe Week that Was 
 
The conservative, independent Jerusalem Post editorialized (5/22): 
QIt is unlikely in the extreme that the PLO will accept Obama's 
blueprint, despite the moderate-sounding tone lately adopted by 
Nabil Abu Rudeineh, Mahmoud Abbas's spokesman.  Fatah is horribly 
fragmented: The old guard doesn't want to loosen its grip on power. 
Its pragmatists and hard-liners are arguing over how to negotiate 
with Israel.  And the younger generation wants to officially reverse 
Fatah's commitment to end terror if Israel doesn't capitulate to its 
demands.  Meanwhile Hamas, ever more popular, bides its time, 
waiting for the West to reconstruct Gaza for it.  Rather than get 
into a huff over Obama's demands, which are basically in harmony 
with the policies of his predecessors, Israel needs to ensure that 
it does not allow itself to be depicted as the obstacle to peace. 
The good news is that Netanyahu is making a beginning at stressing 
what we are for --  letting the Palestinians rule themselves.  And 
by trying to get the Palestinians to acknowledge Israel's legitimacy 
as a Jewish state, he is correctly addressing the root cause of the 
conflict. 
VI.  QObama: An Innocent Abroad 
 
Jonathan Spyer, a senior researcher at the Interdisciplinary Center, 
wrote in The Jerusalem Post (5/22): QThere were those in Israel who 
suspected Obama of being a kind of wolf in sheep's clothing, 
preparing with a friendly smile to offer up Israel as a sacrifice to 
its regional enemies.  The picture emerging from the alleged details 
of his plan suggest a different, though not necessarily more 
comforting characterization: When it comes to the Middle East, Obama 
is an innocent abroad.... The Obama plan, it would appear, simply 
fails to take into account the fact of Hamas-run Gaza's existence. 
Yet the decision this week by West Bank PA Chairman Mahmoud Abbas to 
form a narrow government is testimony to the Hamas-led statelet's 
durability.  There is no Palestinian force able, or other force 
willing, to destroy it.  It has made clear that it does not intend 
to negotiate itself out of existence.  For as long as it is there, 
armed by Iran and opposed to all moves toward reconciliation, all 
plans based on authoritative peace negotiations between Israel and 
the PA are divorced from reality. It seems more likely, however, 
that the President remains enthralled by the sunny illusions of the 
peace process of the 1990s, and is about to give them another run 
around the block.  He has four years to follow the well-trodden path 
from innocence to experience.  The problem is that further afield, 
there are other, more urgent clocks ticking. 
 
VII.  QDaytonQs End Date 
 
Military correspondent Alex Fishman assessed in Yediot Aharonot the 
policy implications of continued Israeli support for U.S. General 
DaytonQs efforts to build Palestinian security forces: QAs long as 
Israel was officially speaking in terms of a two-state solution -- 
there was also a political rationale for cooperation with Dayton. 
But today, when Israel no longer officially speaks of a Palestinian 
state, it is no longer clear what kind of interest it has to 
continue to cooperate with the establishment of Palestinian 
battalions which will eventually be united into three or four 
brigades.  Israel can no longer continue to exist in a state of 
multiple personalities.  Either it flows with the American policy 
that leads to a Palestinian state, or it ceases cooperation with 
Dayton.  You canQt have it both ways.  This is the perfect example 
of lack of any planning on the part of the Prime Minister or those 
surrounding him.  If you donQt want to go with the American flow, 
and their regional policy is unsuited for you, why wait for the 
battalions to form into an army which will eventually turn its 
weapons against you? 
 
MORENO