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UNCLAS TEL AVIV 001181 
 
STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
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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 
 
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SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
The media highlighted rising tensions between the U.S. and Israel 
over West Bank settlements.  Yediot bannered: QThe American Threat 
and Maariv: QQPressure.Q  HaQaretz reported that senior Obama 
administration officials told the newspaper that PM Benjamin 
Netanyahu found out that the U.S. is serious about a settlement 
freeze.  The media reported that yesterday Netanyahu told Knesset 
members that Israel would continue to build in existing Jewish 
enclaves in the occupied territories.  "Freezing life would not be 
reasonable," Netanyahu was quoted as saying.  The media cited The 
New York Times as saying that the U.S. might take additional steps 
to pressure Israel, including not always vetoing UN Security Council 
resolutions opposed by Israel, a report denied by Deputy State 
Department Spokesman Robert Wood.  Maariv quoted a senior Israeli 
diplomatic source as saying that that the U.S. administrationQs 
moves could make Netanyahu face a reality in which he would have to 
decide between new elections or including Tzipi LivniQs Kadima in 
the government. 
 
Israel Radio quoted President Obama as saying yesterday in an 
interview with National Public Radio, in which he reiterated his 
adherence to the Qtwo-stateQ principle and his opposition to 
settlement expansion: "Part of being a good friend is being honest. 
And I think there have been times where we are not as honest as we 
should be about the fact that the current direction, the current 
trajectory, in the region is profoundly negative, not only for 
Israeli interests but also U.S. interests.   And that's part of a 
new dialogue that I'd like to see encouraged in the region."  The 
President was also quoted as saying: QOver time, in the absence of 
peace with Palestinians, Israel will continue to be threatened 
militarily and will have enormous problems on its borders.Q  Yediot 
expects DM Ehud Barak to propose to senior U.S. administration 
officials today that Israel stop construction in isolated 
settlements.  Yediot reported that Barak told special envoy George 
Mitchell in New York: QAvoid a confrontation and do not worsen the 
tone with Netanyahu. 
 
Leading media quoted GOI spokesmen as saying that previous 
administrations made promises to Israel.  The leading Internet news 
service Ynet reported that a GOI official told it that in the case 
of the settlements, the Israeli government was maintaining policies 
set by its predecessors.  "It's the Americans who have changed their 
policies," he was quoted as saying.   He said that Israel would 
stress three key points to the U.S. administration in light of the 
dispute between the two countries.  The first, he said, was the 
public support for the expansion of settlements due to Qnatural 
growthQ.  He said the Labor Party also supported this move.  QThe 
second is the Israeli government is continuing the policies of 
previous governments and honoring the obligations they took upon 
themselves, the official said.  The third is that the U.S. 
Government is not honoring the commitments of previous 
administrations, such as George BushQs obligation to allow the 
continuing construction in the settlements. 
 
HaQaretz cited the United StatesQ anger over the Interior Ministry's 
anticipated approval of a plan to build a new hotel in East 
Jerusalem, just 100 meters from the Old City's walls.  The plan, 
which would see the demolition of a wholesale market and 
kindergarten, is slated to be approved today.  The newspaper 
reported that in conversations with Israeli officials, senior 
American officials have made it clear that they want Israel to 
freeze all plans for expanding the Jewish presence in East 
Jerusalem, and especially in the Holy Basin -- the area adjacent to 
the Old City.  The regional planning and building committee for 
Jerusalem will discuss the plan today. 
 
The media reported that yesterday, as a protest against the planned 
evacuation of outposts, settlers stoned Palestinians and set fire to 
Palestinian fields.   Police arrested MK Michael Ben-Ari (National 
Union).  Disturbances also took place at the main Western entrance 
to Jerusalem. 
 
Major media reported that yesterday Brig. Gen. Yossi Baidatz, head 
of IDF IntelligenceQs research division, warned the KnessetQs 
Foreign Affairs and Defense Committee that, by the end of the 
summer, Tehran could have enough low-grade uranium to build a 
nuclear weapon. 
 
All media reported that yesterday Attorney General Menachem Mazuz 
criticized Avigdor Lieberman's appointment as foreign minister, 
saying that the Yisrael Beiteinu chairman would never have been 
given this job in a "properly run country."  Police have said 
recently that they believe it will be possible to indict Lieberman 
on several serious charges, including taking bribes, money 
laundering and obstruction of justice.  Mazuz made his remark at the 
Israel Bar Association's annual Eilat conference. 
 
Mossad veteran Rami Igra told media yesterday that the appointment 
of Haggai Hadas to head the Gilad Shalit dossier may suggest future 
efforts to free the captive soldier will proceed at the operational 
level, with less of a focus on diplomacy. 
 
HaQaretz reported that over the past few months the right-wing 
association Elad, which promotes settlement in East Jerusalem, has 
held weekend seminars for soldiers and officers, including tours and 
propaganda about Jewish settlement in Palestinian areas. 
 
HaQaretz quoted Lebanese security sources as saying on Sunday that a 
Lebanese army colonel and a senior retired customs officer have been 
detained on suspicion of spying for Israel.  Lebanese authorities 
were quoted as saying that the army officer is the second colonel 
arrested in less than a week in an espionage investigation that has 
produced charges against at least 21 suspects and several 
confessions.  Israel has not commented on the arrests. 
 
The Jerusalem Post quoted DM Barak as saying in New York yesterday 
that Israel would not cooperate with a UN probe into alleged war 
crimes by both the IDF and Hamas during Operation Cast Lead earlier 
this year.  Barak told reporters that he thought that investigators 
would not be objective. 
 
Leading media assessed that the collapse of General Motors would 
have a negative impact on Israeli automotive companies. 
 
HaQaretz reported that Likud is hoping to prevent Kadima Knesset 
Member Roni Bar-On from filling the opposition slot in the Knesset 
Judges Appointments Committee, instead pushing for right-wing 
Knesset Member Uri Ariel of the National Union. The move comes after 
Netanyahu gave Yisrael Beiteinu control over the justice and public 
security ministries as well as the Knesset's Constitution, Law and 
Justice Committee, and could affect the composition of the High 
Court of Justice.  Ariel is a staunch opponent of Supreme Court 
President Dorit Beinisch and to what is known as "judiciary 
activism." 
 
Yediot mentioned the favorable impression that Israel made on 80 
visiting Harvard Business School students. 
 
The media reported that the American singer Madonna will perform in 
Tel Aviv on September 1.  Tickets will sell for 500-2,500 shekels 
(around $125-600). 
 
-------- 
Mideast: 
-------- 
 
Block Quotes: 
------------- 
 
¶I.  "WeQve Lost Our Spark" 
 
Senior columnist and longtime dove Yoel Marcus wrote in the 
independent, left-leaning Ha'aretz (6/2): QU.S. governments were ... 
pro-Arab because of the country's dependence on oil.  But over time 
they came to see Israel as a strategic asset -- which then gradually 
turned into a strategic burden because of its settlements, its 
policy of annexation and its opposition to the principle of two 
states for two peoples.  We went through difficult periods under 
presidents George H.W. Bush and Jimmy Carter, but during the good 
periods we managed to create the impression that it was our 
adversaries who were the rejectionists.  Now the wheel has turned, 
and Bibi's rightist government is the one viewed as rejectionist. 
 
 
 
 
II.  "The Games Are Over" 
 
Military correspondent Alex Fishman wrote in the mass-circulation, 
pluralist Yediot Aharonot (6/2): QThe Defense Minister's departure 
for Washington two days ago is not just an important state visit, 
but a crucial one. Ehud Barak left to minimize the damage and to 
halt the erosion and he is counting on his personal relationship 
with many top American officials, mainly in the defense sphere. 
People like Defense Secretary Robert Gates, National Security 
Adviser James Jones, special envoy to the Middle East George 
Mitchell, and others.  The Americans, for their part, view Barak as 
the moderate in the government -- the man who represents Israel's 
commitment to Qtwo states for two peoples,Q the man directly 
responsible for reinstating order in the territories, for freezing 
construction and for removing illegal outposts.... The Americans 
expect of Barak not only straight talk, but action.  They have no 
interest in more empty promises.... In a recent meeting between 
White House Chief of Staff Rahm Emanuel and Jewish leaders in 
Washington, he said: My name is Rahm Yisrael Emanuel.  I served as a 
volunteer in the IDF.  My father is a native Israeli.  We will never 
give up on Israel's security.  But you have to listen well and to 
understand that this story of the settlements has to stop.  You 
can't play games any more. 
 
III.  "Netanyahu Has a Month to Decide" 
 
Diplomatic correspondent Ben Caspit wrote on page one of the 
popular, pluralist Maariv (6/2): Q[Israeli-Arab] Knesset Member 
Ahmed Tibi, one of the most knowledgeable people about the peace 
process (since it began in 1992), told Maariv yesterday in response 
to a question that the American demands of Netanyahu had a deadline. 
 QBarack Obama,Q said Tibi, Qpresented Netanyahu with a target date 
for answering two clear and firm questions: the demand for a 
complete settlement freeze and acceptance of the two-state 
principle.  That date is the beginning of July.  In other words, he 
has a month from now.Q  If Tibi is right, and there are clear signs 
that he is, the Americans intend to launch their grand plan in the 
course of this summer.  They are working on a tight schedule. 
General David Petraeus, the commander of U.S. Army CENTCOM, who is 
responsible for the activity and wellbeing of American soldiers in 
20 countries in the region, most of which are Muslim, made an 
astounding comment in the course of an interview to Al-Hayat this 
week: The resolution of the Israeli-Palestinian conflict will make 
things far easier for me and will greatly improve the security of 
U.S. troops in the region, said Petraeus.  In other words: The 
Americans are determined to promote this issue -- either with 
Netanyahu or without him. Now, the only thing that he needs to do is 
to decide whether he wants to prove that heQs a man, make history, 
and enter a collision course with the largest superpower in the 
world -- which is also IsraelQs only strategic ally -- or to stay 
alive. 
 
IV.  "We May Build, with a Proviso" 
 
Dov Weisglass, who was former prime minister Ariel Sharon's top 
diplomatic advisor, wrote in Yediot Aharonot (6/2): QSince the 
mid-nineties Israel has pledged not to allow the establishment of 
new settlements in Judea, Samaria [i.e. the West Bank], but claimed 
it was entitled to develop settlements based on Qnatural growthQ. 
Until 2002 the Israeli claim was based on QunderstandingsQ reached 
between then Foreign Minister Shimon Peres and Secretary of State 
Colin Powell.  However, the Americans strenuously denied their 
existence.... In the [Roadmap] clause regarding Qsettlements, 
Israel was required, Qin accordance with the Mitchell Report,Q to 
Qfreeze all settlement activity, including natural growth in 
settlements.Q  Israel objected to the phrase, which was deleted from 
the counter-draft that was presented to the administration.... The 
United States is committed to the Roadmap and I donQt believe it 
deviated from it on its own initiative.... It is the Israeli 
government that recently raised doubts regarding its intention to 
abide by the Roadmap; thus, one can understand the American version, 
which states that without removing the commitments inherent in the 
Roadmap, Israel is not entitled to demand the QrightQ to build 
within existing settlements.  The quicker Israel confirms its 
adherence to the Roadmap, the speedier it will be able to promote 
the possibility of ending the dispute [with the U.S.]. 
 
¶V.  QSo WhatQs Your Solution? 
 
Former Ambassador to the U.S., former Minister of Foreign Affairs, 
and former Minister of Defense Moshe Arens wrote in Ha'aretz (6/2): 
QLet's agree on a few axioms that any proposed [diplomatic] solution 
should not violate.  Axiom No. 1.  Jews have a right to settle and 
live in the Land of Israel.... Axiom no. 2.  There is a limit to the 
size of the minority population that can be included within the 
borders of the State of Israel without endangering the Jewish 
state's ethnic coherence.... Axiom no. 3.  No populated region on 
this earth will remain permanently without some national 
sovereignty.... Axiom no. 4.  Jordan is a Palestinian state.... So 
what are the possible alternative solutions that do not violate 
these axioms? Here are four.  1.  Judea, Samaria [i.e. the West 
Bank], and Gaza become a Palestinian state -- the Qtwo-state 
solution.  2.  Judea and Samaria become a Palestinian state, and the 
Gaza Strip becomes another Palestinian state -- the Qthree-state 
solution.  3. Judea, Samaria and the Gaza Strip are incorporated 
into Jordan.  4.  Judea and Samaria are incorporated into Jordan, 
and the Gaza Strip is incorporated into Egypt.... The withdrawal of 
the IDF from Judea and Samaria would turn the area, much of it next 
to Israel's major cities, into bases for acts of terror against 
Israel's civilian population, whether by suicide bombers or rockets. 
 Inevitably the IDF would have to respond against the areas from 
which these acts of terror originated.  In other words, neither the 
Qtwo-stateQ nor Qthree-stateQ solution can be implemented before 
Palestinian terrorism has been suppressed. 
VI.  QWorse than a Crisis 
 
Editor-in-Chief Amnon Lord wrote in the nationalist, Orthodox Makor 
Rishon-Hatzofe (6/2): QThe developments of the past few days in the 
relations between Israel and the United States cannot be described 
as a crisis.  A diplomatic and media assault against Israel is not a 
crisis.  It is an assault that was launched by the Obama 
administration, without any Israeli provocation.  It is worse than a 
crisis.... The Americans' insistence on demanding of Israel a 
comprehensive freeze of settlement including natural growth is not 
about the issue itself but, rather, its intention is to create an 
atmosphere against Israel in the international arena.... Taking a 
similar tactic, Barack Obama's staff members have been attacking 
Benjamin Netanyahu personally.  The displeasure that they have taken 
pains to display for Prime Minister Benjamin Netanyahu, in addition 
to insulting comments, are geared to foster that very same 
international anti-Israel effect.  It is also a form of making 
Israel's political blood forfeit, in advance of making its literal 
blood forfeit, paving the way to terrorism and understanding the 
Palestinians' motives for murder.  Worst of all, the personal 
attacks on Netanyahu impede Netanyahu's efforts to neutralize the 
Iranian nuclear threat.  Obama and his aides know that personal 
attacks on Netanyahu will be received well in many quarters in 
Israel.  They have the capacity to manipulate the Israeli media 
against the government and its prime minister's policies.  The 
opposition and the media become members of the anti-Israel coalition 
that is being formed by Barack Obama. 
 
 
VII.  QWelcome to Our Reality 
 
The conservative, independent Jerusalem Post editorialized (6/2): 
QThough Muslim extremists struck in Spain, Britain and the United 
States, the sense that any further danger looms is not widespread. 
That's why no one undergoes a security check to enter a supermarket, 
department store or cinema.  And why armed guards are not posted 
outside schools.  We Israelis live in a very different reality [as 
the country holds a week-long nationwide emergency drill].... 
Efforts to reach an accommodation with a violently fragmented 
Palestinian polity have thus far proven fruitless.  The Qmoderates 
appear no less unyielding than the fanatics.  We caught the Syrians, 
to our north, building a clandestine nuclear facility under North 
Korean tutelage.  They make no secret about hosting Hamas's 
politburo, pressuring it to resist even a tactical timeout in its 
anti-Israel belligerency.  Hizbullah dominates Lebanese affairs and 
provides Iran with shock-troops along our border.  Then there is 
Iran, which may have enriched enough uranium to manufacture a 
nuclear bomb by year's end.  Even as Mahmoud Ahmadinejad threatens 
our obliteration, he insists that the Nazis did not systematically 
destroy European Jewry. Yet he is feted at UN forums, while 
Europeans shamelessly subsidize trade with his country.  That is our 
reality. 
 
CUNNINGHAM