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UNCLAS TEL AVIV 001619 
 
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: 
------------------------- 
 
Israel Radio reported that yesterday, at the daily State Department 
briefing, Assistant Secretary of State Philip Crowley reiterated the 
U.S. view that Israeli construction in East Jerusalem Qis the type 
of issue that should be subject to permanent status negotiations, 
and that we are concerned that unilateral actions taken by the 
Israelis or the Palestinians cannot prejudge the outcome of these 
negotiations.Q  HaQaretz reported that PM Benjamin Netanyahu has 
instructed his aides not to comment on the tense relations between 
Israel and the U.S. over the issue, in a bid to defuse the 
situation.  The media report that the U.S. is demanding a halt to 
the Shepherd Hotel residential construction project in East 
Jerusalem, and that remarks by Israeli officials -- especially 
Netanyahu -- on the issue caused tempers to flare within the Obama 
administration. In a private meeting, top American officials said 
they could not understand why details were leaked to the media. 
HaQaretz quoted a senior Israeli official who is in contact with the 
U.S. administration as saying: "The whole thing definitely didn't 
make them happy."   Israel Radio quoted the London-based Al-Hayat as 
saying that a senior American source warned Israel against taking 
unilateral steps before the resumption of negotiations on a 
permanent status.  The source was also quoted as saying that the 
U.S. is worried about Government of Israel leaks regarding Israeli 
moves in East Jerusalem. 
 
State Department sources in Washington told HaQaretz yesterday that 
Ambassador Michael Oren, who yesterday presented his letter of 
accreditation to President Obama, was not summoned for a 
"talking-to," as some reports indicated.   HaQaretz quoted the 
sources as saying that, on Thursday, Oren attended a previously 
scheduled meeting with Deputy Secretary of State for Management 
Jacob Lew.  "The meeting dealt with at least eight different issues, 
the first of which was the presentation of Oren's letter of 
accreditation," a State Department source was quoted as saying. 
"The messages were routine, and one of them touched on the issue of 
East Jerusalem, and we expressed our concerns about the matter." 
However, HaQaretz quoted senior Jerusalem officials who maintain 
contact with Washington as saying that that the East Jerusalem issue 
came up in phone calls with Oren even before the Thursday meeting, 
and that it was clear that the matter would be raised there.  These 
sources say it was a major topic of discussion. 
 
HaQaretz reported that the IDF is drafting a plan to forcibly 
evacuate 23 illegal outposts -- populated by around 1,200 settlers 
-- in one day.  The plan was formulated by the defense 
establishment, with NetanyahuQs knowledge.   In talks with the U.S., 
Israel had said it would clear out 23 outposts built after March 
2001 that it had told the George W. Bush administration it would 
evacuate five years ago.  So far as is known, a timetable has not 
been set for the evacuations.  The media reported that yesterday 
police evacuated three illegal structures in various outposts.  In 
response, settlers torched Palestinian olive groves (according to 
HaQaretz, at least 1,500 trees), threw stones at Palestinian cars 
and blocked roads around the West Bank.  Two Palestinians were 
lightly hurt, as were a soldier and a settler.  Five settlers were 
arrested. 
 
The Jerusalem Post quoted Jordanian and Palestinian officials as 
saying yesterday that Jordanian authorities have started revoking 
the citizenship of thousands of Palestinians living in Jordan to 
avoid a situation in which they would be "resettled" permanently in 
the kingdom.  The new measure has increased tensions between 
Jordanians and Palestinians, who make up around 70 percent of the 
kingdom's population.  The tensions reached their peak over the 
weekend when tens of thousands of fans of Jordan's Al-Faisali soccer 
team chanted slogans condemning Palestinians as traitors and 
collaborators with Israel.  The Jerusalem Post quoted Palestinians 
as saying that several Jordanian government officials are convinced 
that Netanyahu and FM Avigdor Lieberman are secretly working toward 
turning Jordan into a Palestinian state. 
 
Israel Radio reported that Kadima Knesset Member Otniel Schneller, a 
former settler leader, has publicly criticized, in a letter to 
Jewish American communities, the influence of American Jews in the 
White House on its alleged negative attitude towards Israel.  The 
Jerusalem Post reported that this week, in a letter addressed to 
American rabbinical organizations and the Conference of Presidents 
of Major American Jewish Organizations -- his first public 
declaration on settlements in the West Bank -- Chief Sephardi Rabbi 
Shlomo Amar called this week on American Jews to explain to the 
Obama administration the religious obligation of every Jew to live 
in every part of the Land of Israel.  He was quoted as writing: QThe 
Torah commands the Jewish people to live in Israel.  And we hear 
that the U.S. is putting pressure on the Israeli government to 
prevent Jews from living or building their homes in large parts of 
the Land of Israel [i.e. Israel including the territories].  This is 
being done at a time when every person is allowed to live wherever 
he wishes to live in every area of the world, while here in Israel 
[Americans] want to create a [Palestinian] state in which it will be 
prohibited for Jews to live. And even expanding existing settlements 
is prohibited.  We ask you to take advantage of your strength and 
power to influence the authorities in the U.S., that they should 
examine the issue with truly democratic criteria and to take into 
consideration the Torah and the Halacha [Jewish religious law] that 
obligate Jews to settle everywhere." 
 
All media reported that yesterday investigators from the police 
national fraud squad announced that they will recommend that former 
PM Ehud Olmert be charged with fraud and breach of trust in making 
political appointments during his term as (Likud) industry, trade 
and labor minister.   On the other hand, Attorney-General Menachem 
Mazuz announced yesterday that he was closing the corruption case 
against Olmert over the purchase of a house on Cremieux Street in 
Jerusalem, due to lack of sufficient evidence.  The media quoted 
Olmert associates as saying that the apparent well-timed link 
between the two events is not a coincidence. 
 
Former Israeli ambassador to the U.S. Sallai Meridor was quoted as 
saying in an interview with the Ynet news Web site that not only 
does the dispute between Israel and the U.S. adversely effect 
bilateral relations, but that it also impairs peace chances in the 
Middle East.  In a critique of Netanyahu, Meridor was quoted as 
saying that while the U.S. is moving to the left, Israel is veering 
to the right. 
 
HaQaretz reported that the GOI is considering confiscating 
privately-owned Palestinian land near the West Bank settlement of 
Ofra, contrary to Netanyahu's pledge during his Bar-Ilan speech not 
to take such actions.  This announcement was made by the State 
Prosecutor, in response to a High Court petition filed by a resident 
of the West Bank town Ein Yabrud and the human rights association 
Yesh Din.  The parties were seeking the demolition of a sewage 
treatment plant built illegally on the town's land by the Mateh 
Binyamin Regional Council.  The announcement says that the state is 
considering turning the site into a regional sewage treatment plant 
that would serve both Ofra and the nearby Palestinian communities. 
 
HaQaretz reported that the nationalist Ateret Cohanim organization 
-Q which runs a yeshiva -- has moved several Jewish families into a 
building in the Muslim Quarter of Jerusalem's Old City, where former 
prime minister Ariel Sharon owns an apartment.   A HaQaretz 
examination found that, despite PM NetanyahuQs claim this week that 
Jerusalem is an "open city" that permits all its inhabitants, Jewish 
and Palestinian, to purchase homes in both its eastern and western 
parts, Israel Lands Administration rules determine  that East 
Jerusalem residents cannot take ownership of the vast majority of 
Jerusalem homes. 
 
Israel Radio reported that, in a letter to UN Secretary-General Ban 
Ki-moon, IsraelQs Ambassador to the UN complained about two recent 
violations of UN Security Council 1701: the prevention by Hizbullah 
of a UNIFIL check of arms infringements in South Lebanon and the 
lack of UN intervention when ShiQite demonstrators infiltrated the 
border at the Sheba Farms on Friday.   The radio also reported that 
Israel complained about the performance of the UN Human Rights 
Council-appointed fact-finding mission to investigate international 
human rights and humanitarian law violations related to Operation 
Cast Lead, which is headed by Judge Richard Goldstone.  HaQaretz and 
other media reported that the Lebanese Army has increased its 
presence in the Kafr Shuba and Sheba Farms area in South Lebanon, 
warning residents not to approach the border for fear that Israeli 
forces will fire upon them.   HaQaretz says that local media 
reported that Israel had stepped up its military readiness levels in 
the region and deployed tanks and armored personnel carriers to the 
area. 
 
HaQaretz reported that the Finance Ministry continues to deny that 
it has vetoed the use of guarantees provided to Israel by the USG in 
order to avoid an embarrassing announcement by the Obama 
administration that the guarantees had been used for investment in 
the territories "beyond the green line."  The treasury was quoted as 
saying that it has no plan to utilize the guarantees in any case, 
and that its considerations are solely economic ones.  HaQaretz 
reported that, during a recent visit by Finance Ministry Director 
General Yoram Ariav to the U.S., Israel received a pledge for 
another $670 million in guarantees, bringing the total amount of 
U.S. debt guarantee to $2.7 billion.  It is estimated that the U.S. 
administration could be expected to deduct between $600 million and 
$1 billion attributable to investments in the "territories" -- the 
West Bank (including East Jerusalem), Golan, and Gaza areas. 
Maariv quoted Shaikh Salman bin Hamad Al-Khalifa, Crown Prince of 
Bahrain, as saying in an interview with The Washington Post that the 
Arabs have not done enough to hold contacts with Israelis.  The 
newspaper noted that this is an exceptional statement from a member 
of the Arab League and that it challenges the LeagueQs stance that 
Israel should not be approached before it withdraws from the 
territories. 
 
HaQaretz quoted the Foreign Ministry as saying that FM Lieberman's 
QlandmarkQ visit to South America -- Brazil, Argentina, Peru, and 
Colombia -- is aimed at helping curb Iranian influence there. 
HaQaretz reported that Valter Pomar, secretary of international 
relations for BrazilQs ruling Workers Party told the newspaper that 
"Lieberman is a racist and a fascist.  The Brazilian left is 
organizing protests against him and against the policy he 
represents."  HaQaretz quoted the leader of Brazil's Jewish 
community as saying that the visit is needed to "reverse exactly 
such attitudes."  The newspaper quoted a spokesman for the Brazilian 
FM as saying that "Pomar's view certainly does not represent the 
government's position."  The Jerusalem Post noted that Lieberman 
will miss Special Envoy George Mitchell and Defense Secretary Robert 
GatesQ visits.  The Post writes that Lieberman essentially 
QdisengagedQ from the U.S.-led diplomatic process earlier this 
month, when he said it would be a conflict of interest for someone 
who lives in the settlement of Nokdim to deal with the future of the 
settlements. 
 
Maariv reported that 100 Israeli Jews convert to Islam every year. 
 
HaQaretz described developments in the long-standing dispute among 
the various branches of the Israeli intelligence community involving 
boundaries and distribution of authority. 
 
-------- 
Mideast: 
-------- 
 
Block Quotes: 
------------- 
 
¶I.  "The Old BibiQs Back" 
 
Diplomatic correspondent Aluf Benn wrote in the independent, 
left-leaning Ha'aretz (7/21): QIt seems like the QBibiQ of old has 
come back to edge aside the balanced, responsible, politically 
central QnewQ Benjamin Netanyahu.... Netanyahu is not the only one 
binding himself with rigid statements.  The Palestinian Authority 
Chairman does so too.  Mahmoud Abbas has reiterated his commitment 
to the refugees' right of return.  What happened to the two leaders? 
 Perhaps they're bracing for the American peace plan, expected in 
about two months, and trying to block internal pressure on the core 
issues.... Netanyahu and Abbas, despite their disconnect, are trying 
to influence Obama's peace plan.... Next week will be crucial to 
Israel's relations with Obama, when envoys George Mitchell, 
Secretary of Defense Robert Gates, and National Security Advisor Jim 
Jones. Their visits show that Israel is not a pariah in Washington 
and that the administration wants to reach an understanding with 
Netanyahu, despite the argument over freezing the settlements.  But 
the real test will be around the presentation of Obama's plan, and 
when it is revealed how much energy he intends to invest in pushing 
it.QII.  "Why the President Disappoints" 
 
Contributor and conservative international Jewish leader Isi Leibler 
wrote in the independent Israel Hayom (7/21): Q[President Obama] 
continues to stress his commitment to IsraelQs tranquility and 
well-being, and his admiration for U.S. Jewry, but happenings prove 
otherwise.  Beyond the congenial masks, his policy reflects an 
unprecedented deterioration in U.S.-Israel relations.  It looks as 
if the worst is still ahead.... [ObamaQs] Cairo speech id part of 
his well thought-of policy to reconcile with the Arabs by toughening 
stances vis-`-vis Israel.... ObamaQs demands are bigger than those 
called for by Arafat during the negotiations over the Oslo 
Accords.... The U.S. Jews must not shut up.  By urging Obama not to 
abandon Israel, they will also promote American national interests. 
There is no example in history of success created by appeasing 
jihadists and tyrants. 
 
 
III.  "One City. One State" 
 
 
 
Conservative Op-Ed Page Editor Ben-Dror Yemini wrote in the popular, 
pluralist Maariv (7/21): QJerusalem residents can buy apartments 
anywhere in the city, Benjamin Netanyahu said just two days ago.... 
It is the right of every Jew to live anywhere in the Land of Israel, 
Minister [Moshe] QBugiQ YaQalon told the Knesset a few weeks ago.... 
[But] the logic of Netanyahu and YaQalon, which they used to appeal 
to the international community, can also be used the other way 
around.  If it is the right of a Jew to live anywhere, Jerusalem or 
Hebron, then it is also the Arab's right.  What did Netanyahu mean 
to tell the Americans exactly?  That he was restricting this right 
to Jews?.... Those who support the right of Jewish return to areas 
populated by Arabs, basically support the Palestinian right of 
return to Jewish population centers in Israel.  Netanyahu and 
YaQalon are showing the way. 
 
IV.  "Start with the Outposts" 
 
Senior columnist and longtime dove Yoel Marcus wrote in Ha'aretz 
(7/21): QThe U.S. administration's body language toward Israel is 
changing for the worse.  The consideration, sympathy and esteem 
American presidents have toward Israel are not what they used to be, 
at least not since Obama's election.  Even when their presidents and 
our prime ministers loathed each other, like Menachem Begin and 
Jimmy Carter for example, it did not stop them from working together 
to achieve a peace treaty.... Anyone who thinks we'll exhaust the 
Americans is wrong.  Why?  Because the conflict requires the 
Americans to choose sides.  Each choice has a price tag.... The 
Obama administration's attitude toward us is becoming increasingly 
formal.  They focused the conflict mainly on the settlements, as 
though if this problem were solved the entire conflict would be 
solved and 100 years of hatred would disappear in a blink of an eye. 
 As though the building of one additional room for a family who had 
twins will determine whether or not there is peace.  Political 
deadlock in the Middle East produces terror.  A political standstill 
here also weakens Obama, who must solve the Iranian threat.... Obama 
is expected to present his plan in September.  Before we submit all 
our conditions and demands from the Palestinians, it's important for 
Israel to implement all the things it has undertaken to do.  One 
fine day it must dismantle all 23 illegal outposts forcibly.  Not 
for Jerusalem, not for the Palestinians and not for Obama -- but for 
our image as a law-abiding state. 
 
¶V.  QLend an Ear to QBreaking the Silence 
 
Prominent liberal author A. B. Yehoshua wrote in the 
mass-circulation, pluralist Yediot Aharonot (7/21): QThe accounts 
given by the soldiers to Breaking the Silence [an organization that 
collects IDF soldiers' testimony on human rights abuses by the 
military] ought to be listened to attentively and seriously, and 
they ought to be examined individually in order to learn lessons for 
the future.  Even if some of the accounts prove to be exaggerated, 
we still need to honor the motivation that prompted those soldiers 
to air them.  After all, none of them thought they stood to gain 
anything personally by doing so.  On the contrary, their civic 
courage is liable to tax them in the form of possible hostility from 
their comrades in arms and the public.... It behooves us to keep a 
fundamental truth in mind: the methods of warfare with the enemy do 
not remain outside the borders of Israel, but seep into Israel.... 
The rules of the struggle with the Palestinians must be carefully 
adhered to since they have been and are going to be our neighbors 
forever. 
CUNNINGHAM