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UNCLAS TEL AVIV 001953 
 
STATE FOR NEA, NEA/IPA, NEA/PPD 
 
WHITE HOUSE FOR PRESS OFFICE, SIT ROOM 
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PARIS ALSO FOR POL 
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E.O. 12958: N/A 
TAGS: OPRC KMDR IS
 
SUBJECT: ISRAEL MEDIA REACTION 
 
-------------------------------- 
SUBJECTS COVERED IN THIS REPORT: 
-------------------------------- 
 
Mideast 
 
------------------------- 
Key stories in the media: 
------------------------- 
 
All major media led by quoting a senior source in the Prime 
MinisterQs Office as saying that PM Benjamin Netanyahu will soon 
approve the construction of hundreds of new housing units in West 
Bank settlements before he declares a moratorium on building in 
those locales. The source was quoted as saying that Netanyahu 
informed U.S. officials of his decision to authorize the 
construction a few weeks ago.  The hundreds of units whose 
construction Netanyahu is expected to approve will join some 2,500 
housing units currently being built, whose construction will not be 
halted.  Officials from the PMQs Bureau were quoted as saying that 
Netanyahu "will agree to consider a temporary freezeQ on 
construction in the West Bank for a few months after he approves the 
additional building permits.  Major media quoted Netanyahu as saying 
in closed talks that he will be prepared to go ahead with the move 
to promote President Obama's peace plan and jump-start stalled peace 
talks.  "The Americans do not agree with [the approval of new 
housing units] and are not happy about it, but we put it on the 
table a long time ago," the source told HaQaretz.  The immediate 
future of construction in West Bank settlements will be determined 
in talks between Israeli officials and U.S. Special Envoy for Middle 
East Peace Senator George Mitchell, who will visit Israel next week. 
 The issue could be decided in Mitchell's two-day visit, which will 
begin on Thursday, according to the source.  HaQaretz wrote that the 
precise length of the moratorium is still subject to debate, and the 
U.S. and Israel are negotiating on this issue. Netanyahu does not 
agree to a freeze exceeding a period of six months, while the 
Americans are insisting on a nine-month period.  Israel Radio cited 
PA President Mahmoud AbbasQs hope that Israel will implement a 
construction freeze in the settlements, which would open the way to 
the resumption of the talks.  Abbas was quoted as saying that, 
otherwise, nothing will happen. 
 
Israel Radio reported that senior PA negotiator Saeb Erekat 
dismissed NetanyahuQs planned move as detrimental to peace. 
Media quoted Silvan Shalom (Likud), Vice PM and Minister for 
Regional Development and the Development of the Negev and the 
Galilee, and Likud Knesset Member Danny Danon, as saying over the 
past couple of days that LikudQs institutions and Knesset members 
are not likely to endorse a freeze in settlement construction.  The 
Jerusalem Post made the same prediction.  Speaking on Israel Radio 
yesterday, Shalom recalled that Likud had founded the settlement 
movement.  Makor Rishon-Hatzofe reported that the opponents of a 
construction freeze in the settlements enjoy a comfortable majority 
in the cabinet. 
 
Israel Radio reported that last night the IAF bombed a tunnel in 
southern Gaza likely meant to smuggle people intent on attacking 
Israeli soldiers or civilians.  There were no Palestinian 
casualties. 
 
Leading media reported that Norway's Finance Minister, Kristin 
Halvorsen, announced at a press conference in Oslo that the country 
had decided to drop the Israeli electronics firm Elbit Systems from 
the Norwegian pension fund investments due to its role in supplying 
technology for the separation fence.  While HaQaretz cited the 
Israeli Foreign MinistryQs low-key response, Israel Radio said that 
Israel was Qgreatly disappointedQ by the Norwegian move and The 
Jerusalem Post noted that Israeli diplomatic officials reacted 
rapidly because they did not want to play into the hands of the 
ruling QRed-GreenQ government, which they said was using this issue 
to curry favor with a specific part of the Norwegian electorate. 
 
The media (banner in Makor Rishon-Hatzofe) quoted State Comptroller 
Micha Lindenstrauss as saying that Jonathan Pollard was not granted 
a fair trial in the U.S. 
 
Leading media reported that the Tel Aviv exhibition depicting 
various female Palestinian suicide bombers as the Virgin Mary 
holding baby Jesus was quickly taken down following an outcry from 
the families of those killed or wounded in the attacks, as well as 
by organizations that represent terror victims. 
 
The media reported that Hamas political chief Khaled Mashal is 
expected to arrive Saturday in Cairo for a round of talks with 
Egyptian officials, attended by the organization's top-brass from 
Gaza and Damascus.  One of the topics up for discussion will be a 
deal for the release of Gilad Shalit. Besides ShalitQs return, the 
parties will also discuss talks for reconciliation between Hamas and 
Fatah.  However, HaQaretz says that this track is seen as having few 
chances to succeed, making it likelier that the parties will focus 
on the prisoner deal, instead. 
 
HaQaretz, The Jerusalem Post, and Makor Rishon-Hatzofe reported that 
Supreme Court Justice Hanan Meltzer (or Melcer) and other justices 
hinted yesterday that the State Prosecution discriminates between 
Arabs and Jews with regard to illegal construction on the West Bank, 
to the latter's detriment.  The court was hearing a petition by 
Regavim, a group that works "to preserve the nation's lands," which 
demanded to know why the state is not destroying homes built without 
permits in the Arab village of Yatma, near the settlement of 
Rehalim. 
 
The Jerusalem Post and other media cited the Russian daily 
Kommersant as saying that Russia has signed a contract to sell 
MiG-29M fighters to Syria, but that it has not yet begun delivering 
the planes. 
 
Yediot cited minutes from an IDF General Staff meeting which show 
that the 1992 assassination of Hizbullah leader Abbas Musawi was 
badly planned -- originally as an intelligence operation.  Israel 
paid a heavy price for the killing and lost the possibility of 
getting back MIA Ron Arad. 
 
The Jerusalem Post reported that ex-FBI agent Richard Marquise, who 
led the U.S. probe into the Lockerbie bombing, told the newspaper 
that Libyan leader Muammar Qadhafi must have personally approved the 
attack on Pan Am Flight 103. 
 
 
 
 
 
 
------------ 
¶1.  Mideast: 
------------ 
 
Block Quotes: 
------------- 
 
¶I.  "A Question of Trust" 
 
Senior columnist Nahum Barnea wrote on page one of the 
mass-circulation, pluralist Yediot Aharonot (9/4): QTepid, cold, 
frozen: Benjamin Netanyahu is now officially willing to declare a 
settlement construction freeze on condition that this is called a 
temporary suspension, not a freeze.  Netanyahu is the first prime 
minister of the right wing who is willing to announce a settlement 
construction freeze in the territories.... Netanyahu is walking a 
thin political wire. In order not to bring down on himself a 
rebellion in the Likud faction, he has to sweeten the suspension 
pill with promises to approve construction plans for hundreds of 
housing units before the agreement goes into effect; but he has to 
do this without betraying the trust of the Americans, without giving 
the Arab states a good excuse to get out of the agreement, and 
without depicting Ehud Barak as a liar.... The outrage of the right 
wing is understandable, which views every comprise step by Netanyahu 
as a betrayal of the voters' will.  That said, they have to remember 
that the voter is not the only one who decides in the world.  Obama, 
who was elected by a much more persuasive majority than Netanyahu, 
is now discovering that the mandate he received is not unlimited. 
There are constraints, disappointments, shifts in public opinion, 
compromises without which even the strongest man in the world cannot 
make progress of one millimeter.  The Prime Minister's power of 
persuasion is great.  Netanyahu can obtain a majority in the Likud 
for any decision he wants.  But there is one option that he should 
pass on: an attempt to have his cake and eat it too.  That won't fly 
in Washington.  It won't fly here. 
 
II.  "Detecting Mines" 
 
Political and parties columnist Sima Kadmon wrote on page one of 
Yediot Aharonot (9/4): QWhat is now clear in Likud is that the bad 
will come neither from the north nor from the south [a play on a 
Biblical verse], but from home.  It is true that there wonQt be 
revolutions as long as there is no American diplomatic plan. But it 
is already possible to see how this might work: the Council of 
Jewish Settlements in the Territories, which has both the funds and 
the ambition, will focus on Likud.  It can be conjectured that if 
Netanyahu makes concessions, it wonQt be necessary to topple Likud. 
Its leader can be replaced. 
 
III.  "The Waiting Period" 
 
Diplomatic correspondent Ben Caspit wrote in the popular, pluralist 
Maariv (9/4): QAt the time of this writing, Israel is gearing 
towards the yearned-for concurrence with the U.S. regarding the 
settlements.  Netanyahu doesnQt want to call this a Qfreeze, 
because there has long been a freeze on the ground (no construction, 
period).  Another word is being looked for.  The leading term is 
Qwaiting.Q   Do you remember the waiting period in 1967?... TodayQs 
QwaitingQ is supposed to lead to negotiations, not to war.... 
Netanyahu is waiting for gestures from the Arab world. 
 
IV.  "Trading Places" 
 
Diplomatic correspondent Aluf Benn wrote in the independent, 
left-leaning HaQaretz (9/4): QAfter another decade of wars and 
disappointments, it's tough to sell the QNew Middle EastQ in a new 
wrapping to cynical populations that have long since lost all belief 
in impassioned speeches promising peace and change.  But Obama's 
declaration will have immediate strategic importance.  By presenting 
a two-year timetable for the peace agreements, the President will 
make it clear that dealing with Iran is more urgent than 
establishing an independent Palestine alongside Israel.  That will 
be a major diplomatic achievement for Netanyahu.... While Obama was 
sinking, Netanyahu behaved like a responsible adult.  He refrained 
from flamboyant military actions that could kindle the region and 
compel Obama to deal with body-strewn crises.  He effectively froze 
authorizations for new construction in the settlements, and he 
announced his acceptance of the principle of a two-state solution. 
He dismantled West Bank checkpoints and toned down his anti-Iran 
rhetoric (until his Berlin visit last week, when he returned to the 
analogy between a nuclear Iran and Auschwitz).  He even apologized 
to Israel's QelitesQ for his inflammatory remarks against them in 
his previous term as prime minister.  At the same time, to preserve 
his right-wing base, Netanyahu announced new construction for Jews 
in East Jerusalem and also quarreled with Sweden.  Obama will have 
to swallow Netanyahu's declarations that Jerusalem is the Qeternal 
capital of the Jewish peopleQ.... There are few supporters of the 
settlements in Congress, but the unity of Jerusalem has been an 
accepted mantra for many years.  Netanyahu has entrenched himself in 
a position that will enable him to recruit supporters in Washington, 
while avoiding both blatant lobbying on Capitol Hill and publicly 
embracing the President's rivals, as he did with Clinton.  Under 
these circumstances, Netanyahu has a chance for a good second round 
with Obama. 
 
¶V.  "Taking a Cue from Kosovo" 
 
Military correspondent Yaakov Katz wrote in the conservative, 
independent Jerusalem Post (9/4): QThe KSF (Kosovo Security Force) 
is in many ways similar to the Palestinian security forces currently 
being trained by U.S. Lt.-Gen Keith Dayton in Jordan.... Another 
organization that operates in Kosovo is called EULEX ... a European 
Union force consisting of police officers and contractors who are 
helping the new government establish a Western-style police force, a 
judiciary system and a prison service.... Sound familiar?  The 
reason is that in the West Bank the EU is doing the same thing for 
the Palestinian Authority, although with a different name -- 
EUCOPPS.... The issue of recognition is important for Kosovars, many 
of whom asked that the Jerusalem Post use its influence to get Prime 
Minister Benjamin Netanyahu to recognize their year-old country.... 
Despite the vague similarities, Kosovo is a lifetime away from the 
Arab-Israeli conflict, and is currently considered a major success 
for NATO. 
 
VI.  "Upping the Ante" 
 
Senior Middle East affairs analyst Zvi Bar'el wrote in the 
independent, left-Ha'aretz (9/4): QIn three years, Gilad Shalit has 
also become a disputed asset between various extremes in the Middle 
East.  It was enough to listen carefully to Egyptian President Hosni 
Mubarak in Washington two weeks ago to understand Shalit's 
importance in the Arab arena.  Mubarak, violating understandings 
between all the interested parties, disclosed Germany's involvement 
in the negotiations for his release and praised its cooperation.... 
Gilad Shalit has developed from a bargaining chip between Israel and 
Hamas into a focus of power struggles between regional extremes.  As 
the bargaining process has dragged on, more and more elements have 
seen the Shalit deal as a source of control and honor.  The question 
now is how an agreement for his release could catalyze other 
processes that from the outset should not have been connected to 
it. 
 
 
 
VII.  "Stability and the Balance of Deterrence" 
 
Yair Evron, Professor Emeritus at Tel Aviv University and a research 
fellow at the Institute for National Security Studies, wrote in 
HaQaretz (9/4): QThe most important step [in the Middle East] must 
be reducing the likelihood of a regional crisis which could give 
rise to the failure of deterrence.  One must make every effort to 
strengthen regional stability to as great an extent as possible.  An 
example of such would be an American-Israeli-Syrian arrangement that 
would be highly crucial for stabilizing the Syrian-Lebanese front. 
Such an arrangement, which is needed anyway for Israel's national 
interest, bears the utmost importance in the context of 
 
Israeli-Iranian deterrence.  It is baffling that the Government of 
Israel, which loudly sounds the siren to warn of the Iranian threat, 
does not understand that a stabilizing diplomatic arrangement with 
Syria is far more important than haggling over pieces of territory. 
Finally, one ought to appreciate a general lesson drawn from the 
nuclear era: Nuclear weapons are aimed solely to deter rather than 
for actual use. 
 
CUNNINGHAM