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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: 
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Israel Radio reported that, in his press briefing yesterday, State 
Department Spokesman Ian Kelly did not rule out compromise with 
Israel regarding settlement construction.  The media reported that 
DM Ehud Barak will meet in New York today with U.S. Special Envoy to 
the Middle East George Mitchell in an effort to agree on such a 
compromise.  HaQaretz reported that the meeting takes place in light 
of a recent disagreement among the "forum of six" ministers over 
this issue.  HaQaretz quoted a diplomatic source in Jerusalem as 
saying yesterday that a "temporary freeze" of construction in the 
settlements was met with objections by three of the six senior 
ministers in the forum -- Avigdor Lieberman, Benny Begin, and Moshe 
Ya'alon -- who argued that such a freeze will create a precedent and 
may become permanent.  Another argument put forth was that Israel 
must request guarantees from the U.S., so that it is not surprised 
by American initiatives without earlie consultation. 
Barak supported a formula accordin to which Israel would freeze 
settlement constrution completely, except for projects that have 
aready started, and would require U.S. guarantees o the future of 
the peace process.  HaQaretz repoted that it is unclear what the 
positions of PM Benjamin Netanyahu and Dan Meridor were. 
 
Accordin to the three ministers opposing Barak, Israel mus not 
propose a "temporary freeze" without a commitment for similar and 
equal concessions by Arab states and the Palestinian Authority, and 
as part of a broader package deal. Another argument put forth was 
that Israel must request guarantees from the U.S., so that it is not 
surprised by American initiatives without earlier consultation. 
Nonetheless, HaQaretz quoted Deputy FM Danny Ayalon as saying 
yesterday that "Israel and the U.S. will not enter a confrontation 
over the settlements.  The shared interests are too strong and the 
joint aim is to work together and avoid a dead end."  During the 
meeting with Mitchell, Barak intends to present a more watered-down 
proposal, which will include a declared wish to resolve the 
settlements issue during negotiations with the Palestinian Authority 
over a final settlement agreement.  Moreover, the proposal will be 
to limit new construction to the addition of levels to existing 
structures in the settlements, except for projects that have already 
begun.  HaQaretz reported that Netanyahu has dispatched his special 
adviser, Yitzhak Molcho, to the meeting between Barak and Mitchell. 
Molcho met Mitchell last week but the formula he presented to the 
U.S. envoy was rejected. The failure of that meeting resulted in the 
cancelation of a planned meeting between the PM and Mitchell in 
Paris last week. 
 
In a lead-story interview with The Jerusalem Post, right-leaning 
Knesset Member Otniel Schneller (Kadima) lashed out yesterday 
against the U.S. demand for a settlement freeze, labeling it 
QextortionQ and warning it could set back Israeli readiness for 
peace,  Schneller assailed Obama administration officials as holding 
beliefs shaped by Qfar-LeftQ opinions outside of the Israeli 
consensus.  Schneller was quoted as saying in an interview with 
Maariv that President Obama is inducing a rift in Israel. 
 
Yediot quoted a source in the U.S. administration as saying that 
even Israeli readiness to freeze construction in settlements for a 
limited period -- three to six months, as reported in Yediot 
yesterday -- is unacceptable. 
 
HaQaretz quoted Barak as saying, prior to his departure yesterday, 
that the Qintimate and direct dialogue with the U.S. continues and 
its purpose is to advance regional order.  Within this framework it 
is possible to have effective and practical negotiations with the 
Palestinians, and within this framework it is also possible to find 
an appropriate solution to the issue of settlement construction." 
 
Major media reported that sources close to FM Avigdor Lieberman went 
on the offensive yesterday, charging that French President Nicolas 
Sarkozy is interfering in Israel's internal affairs.  This followed 
a report on Channel 2-TV that the French leader had urged PM 
Netanyahu to replace Lieberman with Kadima head Tzipi Livni. 
 
Israel Radio quoted the Gulf newspaper Al-Khalij as saying that that 
the U.S. intends to convene a Mideast conference in Washington in 
September. 
 
Maariv reported that a senior source in the Defense Ministry told 
the newspaper yesterday that it the High Court of Justice approves 
the evacuation agreement for the outpost of Migron, it will be the 
model for the evacuation of the 22 outposts that Israel has pledge 
to vacate.  Media reported that the residents of Migron are opposed 
to the compromise.  Leading media quoted DM Ehud BarakQs settlement 
affairs adviser Eytan Broshi as saying that the 1,450 housing units 
planned for the settlement of Adam require further approval. 
 
Leading media reported that yesterday Iran recalled its ambassador 
to Azerbaijan for consultations, a day after President Shimon Peres 
visited the central Asian country.  Media reported that, two weeks 
ago, the Iranian Chief of Staff visited Azerbaijan in an effort to 
forestall the visit, informing Baku in no uncertain terms that 
Iranian President Mahmoud Ahmadinejad wanted it called off.  Iran 
also pressured Azerbaijan to cancel the visit via other diplomatic 
channels.  However, the Azeris flatly refused.  Today, Peres will be 
in Kazakhstan for a meeting with that country's President, Nursultan 
Nazarbayev. 
 
The Jerusalem Post reported that Israel rejected as "scandalous" a 
highly critical report released by the International Committee of 
the Red Cross yesterday marking six months since Operation Cast 
Lead, saying it was inconceivable that the document would chastise 
Israel for the situation in Gaza while ignoring the continued 
detention of IDF soldier Gilad Shalit or the "intransigent 
belligerence" of Hamas.    According to the report, Gazans are 
"living in desperation" due to their "daily struggle for 
existence." 
 
The Jerusalem Post cited a report published yesterday by Gisha: 
Legal Center for Freedom of Movement, which charges that Israel has 
come up with a new way to make it difficult for university students 
from Gaza to study abroad and at the same time embroiled foreign 
diplomats in activities that violate international law.  According 
to the report, titled QObstacle Course: Students Denied Exit from 
Gaza,Q only students who win academic scholarships may enter Israel 
to reach university destinations abroad.  Anyone who meets this 
requirement must also pass a rigorous test to prove he does not 
prove a security threat to Israel. 
 
The media speculated that the international conference being held in 
Prague this week is the very last attempt to restore to Jewish 
individuals and institutions artwork stolen by the Nazis. 
 
All media reported on the sentencing by a New York court of 
fraudster Bernard Madoff to 150 yearsQ imprisonment and carried 
testimonies by some of his Israeli and Jewish victims. 
 
-------- 
Mideast: 
-------- 
 
Block Quotes: 
------------- 
 
¶I.  QWhy Is He Pressing?" 
 
Correspondent Shmuel Rosner wrote in the popular, pluralist Maariv 
(6/30): QTwo issues that are truly unrelated have become confused in 
the course of the ongoing debate over the continued pressure being 
applied by the Obama administration to stop construction in the 
settlements.  The first issue is the question of the Qagreement 
that either existed or did not exist between Israel and the United 
States.  The second issue is the substantive debate about the 
justice of the AmericansQ demands.  Both are important questions, 
but they are not the most important ones.  The following question is 
more important than either of them: Why is Obama doing this in the 
first place?  Why is he pressing, why now, why overtly, why 
uncompromisingly?.... It is more likely that the U.S. administration 
is operating on the basis of a well-designed plan and not on the 
basis of a QmistakeQ that stems either from a misunderstanding or 
professional indiscretion.  This is a plan that poses a special 
challenge to Israel because its target audience is not in Jerusalem 
but in Arab and European capitals.  Obama is pressing now in order 
to declare publicly that the formerly close relations between 
Washington and Jerusalem have grown weaker.  That is a move that 
many members of his administration perceive as being a crucial step 
on the way to boosting AmericaQs clout in the rest of the world. 
Israel is actually a tool that is being used by Obama to 
rehabilitate the United StatesQ standing.  That isnQt pleasant, but 
it doesnQt have to be awful either, provided two basic things are 
retained.  The first is that Israel enjoy, after the fact, the 
anticipated increase in American clout.  In other words, if ObamaQs 
plan is successful, he needs to exercise the options in a way that 
will also be good for Israel (for example, by using AmericaQs 
increased clout to persuade Arab states to help more actively bring 
about an Qend of conflictQ).  The second thing is that a mechanism 
be found to prevent too much from being read into the Qdeterioration 
of relationsQ by decision-makers in the Arab world.  Such a 
situation, in which the Arab world comes to believe that Israel no 
longer enjoys its quondam American supportQwill create the 
temptation to go to war, and not peace. 
 
II.  "What a Settlement Freeze Would Do" 
 
The conservative, independent Jerusalem Post editorialized (6/30): 
QHow can Netanyahu garner more domestic support to move vigorously 
against illegal outposts when Obama is essentially saying that in 
his eyes, Ma'aleh Adumim is an illegal outpost. It's hard to see.... 
Were he to piggy-back on the Israeli consensus, Obama could bring us 
closer to the two-state solution George W. Bush envisioned.  To do 
so, however, he would need to embrace the former president's 
commitments on settlement blocs and his administration's 
understanding regarding settlement growth.  Remarkably, these now 
dovetail with the position taken by a sitting Likud premier. 
Netanyahu has also taken extraordinary and potentially risky steps 
to improve the negotiating atmosphere -- a dramatic reduction in 
preventative IDF operations and the lifting of virtually all 
internal checkpoints in the West Bank.  Israel is so disinterested 
in a confrontation with the popular American President that Obama 
may feel he can insist upon an across-the-board and unconditional 
settlement freeze.  The danger, if that were to happen, is that 
support for a deal among Israelis, predicated on Netanyahu's 
articulation of Bush's vision, would decline.  And the Palestinians 
would become even more intransigent. 
 
III.  "Dealing with Obama" 
 
Former Ambassador to the U.S., former Minister of Foreign Affairs, 
and former Minister of Defense Moshe Arens wrote in the independent, 
left-leaning Ha'aretz (6/30): QNetanyahu made a serious error of 
judgment in trying to parry Obama's opening serve by explaining the 
need for additional settlement construction due to the "natural 
growth" of the Jewish population there. Expecting heartfelt 
sentiments from your opponent in this game is not going to get us 
anywhere.  Obama is playing hardball. Succumbing to the pressure 
that is being applied on the settlement issue will only result in 
additional pressure on other issues, and before long Israel's 
position on matters of principle and substance will begin to 
crumble.  This is not going to be easy, but Israel's staunch 
supporters in the U.S. will stand by it.  It will be a test for the 
American Jewish leadership -- and for the people of Israel. 
 
IV.  "The American Mess" 
 
Columnist Ariel Cahana wrote in the nationalist, Orthodox Makor 
Rishon-Hatzofe (6/30): QA bit surprisingly, not to say amazingly, 
orderly America cannot QfindQ or QrecognizeQ agreements between the 
previous American administration and the previous Israeli government 
regarding the continuation of construction in the settlements.... It 
is not that [Hillary] Clinton, Obama, and [Rahm] Emanuel cannot find 
the understandings -- they do not want to find them.  American 
orderliness has suddenly waned; the careful change of administration 
of which U.S. President Barack Obama was so proud has abruptly 
evaporated.  What is strange is that those malfunctions occurred 
regarding the settlements while many other topics kept the world 
busy.  It is actually on the Israeli side that regime continuity is 
real.... The QMigron agreementQ [on outpost evacuation] has been 
making the rounds of the corridors for months; it is a fluke that it 
was brought to the High Court of Justice this morning -- unless the 
political echelon had no choice to do so despite its uneasiness 
about it.  The regime must keep its commitments, even if they were 
given by another government in other times -- even if this 
represents in fact a finger into ObamaQs eye.  This is how an 
orderly state works. 
 
¶V.  QWelcome and Overdue 
 
HaQaretz editorialized (6/30): QOnce more it is clear that Israeli 
decision makers understand the language of force and threats better 
than they do the language of justice and logic.  Following threats 
and protests from the international community, with the U.S. 
administration at the lead, Jerusalem Mayor Nir Barkat initiated a 
plan for legalizing much of the unauthorized Palestinian 
construction in the city.  At the same time the municipality is 
expected to limit the extent of the house demolitions in Arab 
neighborhoods.... The state that is demanding that settlers who 
choose to live outside its borders, including those who took over 
private properties, should be allowed to continue to build, must 
show some sensitivity to the hardship of 270,000 residents living in 
the sovereign territory of its capital. 
 
CUNNINGHAM