AM AHAD AND LABOR MERGER LIKELY

C O N F I D E N T I A L TEL AVIV 002457

SIPDIS

STATE FOR NEA/IPA

E.O. 12958: DECL: 04/29/2014
TAGS: PGOV PREL IS GOI INTERNAL
SUBJECT: AM AHAD AND LABOR MERGER LIKELY


Classified By: POL/C Norman Olsen for reasons 1.4 (b) and (d).


1. (C) Histadrut International Secretary Nawaf Massalha told
poloff April 22 that it is likely Amir Peretz's Am Ahad Party
will merge into the Labor Party by January 2005. According
to Massalha, who served as a deputy foreign minister in the
Barak government, a draft agreement is being circulated
between the two parties outlining the process for merger.
Massalha said that the agreement provides for Am Ahad MKs to
take 20 percent of any ministerial positions awarded to
Labor, claiming the proportion is calculated on the basis of
the number of votes awarded to each party in the last Knesset
election, where Labor took 19 seats and Am Ahad fell slightly
short of four. Commenting on the speculation that a new
Likud-Labor government might be formed in the wake of the
disengagement debate, Massalha noted with dismay that such a
move would likely occur before the merger is completed,
precluding Am Ahad KMs from taking any ministerial seats.


2. (C) The current leader of Am Ahad, Histadrut Chairman
Amir Peretz, broke away from Labor in 1999 to form the
social-issues-focused Am Ahad Party. Massalha claims that
the Labor Party in general, and Shimon Peres in particular,
will be happy to bring Peretz back into Labor to boost the
party's credibility with the middle and lower-middle classes.
According to Massalha, the Labor Party, unlike its European
counterparts, has grown disassociated from core issues like
eliminating unemployment and poverty. In today's Israel,
Massalha said, no politician is more clearly associated with
those issues than Amir Peretz. Massalha noted that Peretz
was a Peres protege for years and indicated Peres is actively
seeking Peretz's return. Massalha also said that it is
highly likely Peretz will compete for leadership of the Labor
Party when Peres steps aside.


3. (C) Am Ahad has three MKs: Amir Peretz, Ilan Cohen, and
David Tal. Massalha acknowledged that David Tal, a former
Shas MK who ran as Am Ahad because of his strong interest in
social issues, will almost certainly leave the party if it
merges into Labor. Massalha said that Tal cannot return to
Shas, and would likely join Likud when the merger becomes
final.

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