CODEL PELOSI URGES FM SHALOM NOT TO ALLOW

C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 001918

SIPDIS

CODEL

E.O. 12958: DECL: 03/22/2010
TAGS: PREL KWBG OREP IS ISRAELI PALESTINIAN AFFAIRS SETTLEMENTS GOI EXTERNAL
SUBJECT: CODEL PELOSI URGES FM SHALOM NOT TO ALLOW
SETTLEMENT EXPANSION, OUTPOSTS AND THE FENCE TO DERAIL PEACE

Classified By: Ambassador Daniel C. Kurtzer for Reasons 1.4 (B) and (D)
.


1. (C) SUMMARY: In a March 21 meeting with Codel Pelosi,
Foreign Minister Shalom spoke positively about the direction
of Israeli relations with the PA and other Arab neighbors.
While lauding some of President Abbas's steps, he said the PA
had failed so far to resolve to dismantle terrorist
infrastructure. Several members of the Codel expressed
concern that settlement expansion, a failure to deal with
outposts, and construction of the separation barrier could
impede momentum towards peace, an outcome they urged the GOI
to avoid. Shalom defended the fence as a temporary and
reversible measure for saving lives. He noted that reports
suggesting that the GOI might legalize outposts referred only
to outposts built before March, 2001, and thus were not a
subject of Israel's roadmap commitments. Israeli settlement
expansion, he suggested, is for natural growth. On regional
issues, Shalom said Arab leaders are now more willing to deal
with Israel, and underlined Israel's interest in seeing Syria
withdraw from Lebanon. He underlined, as well, what he
termed the Iranian nuclear threat, and Israel's desire to
find a diplomatic solution to it. He told the Codel that the
U.S. could send a positive signal to Israelis by lifting the
warning in its travel advisory for Israel. END SUMMARY.


2. (SBU) Foreign Minister Silvan Shalom reviewed the state of
relations with the Palestinians and Arab states,
Lebanon/Syria, and Iran in a March 21 meeting with Codel
Pelosi and the Ambassador. He also complained about the
State Department travel advisory for Israel. Codel members
were House Minority Leader Nancy Pelosi and Representatives
Darrell Issa, Henry Waxman, George Miller, Edward Markey,
Anna Eshoo, James McGovern, and Linda Sanchez.

--------------
Assessing Progress with the Palestinians
--------------


3. (C) Shalom said Israel is trying hard to make progress
with the PA, and pointed to Israel's commitments to release
prisoners and turn over security authority in five West Bank
towns. He credited President Abbas with stopping the firing
of Qassam rockets, delivering the right message in public,
and stopping incitement on television. He criticized Abbas,
however, for not moving forward with the dismantlement of
terrorist infrastructure, and for not ending incitement in
schools and textbooks.


4. (C) Rep. Waxman commented that the Codel had just heard
PLO negotiator Sa'eb Erekat complain that the PA has
difficulty convincing the Palestinian people of Israel's
peaceful intentions when the GOI is proceeding with
settlement expansion and fence construction, and not stopping
settlers from erecting outposts. The PA needs to have
confidence in Israel's commitment to the peace process, just
as Israel needs confidence in the PA commitment to combat
terrorism, Waxman said.


5. (C) Rep. Miller noted reports that day from the Israeli
media claiming that PM Sharon intends to "legalize" outposts
in exchange for support from disengagement opponents on the
2005 budget. "We all know political bootstrapping when we
see it," Miller commented, but expressed concern that the
parties to the Israeli-Palestinian conflict are "falling back
into the same old patterns." Hope expressed in other parts
of the region about the peace process, he said, is "less
obvious" as one gets closer to Israel.


6. (C) Noting the strong messages of support for Israel that
she said she received from her constituents before leaving on
this trip, Rep. Eshoo expressed her hope that the
settlements, outposts and fence issues would not become
obstacles to peace. She said the Codel was savvy enough to
recognize the "theatrics" in PA complaints about Israeli
actions, but urged the GOI not to allow outposts to be "a
finger in the eye" of the Palestinians.


7. (C) Observing that this is not the first "moment of hope"
for the peace process, Rep. McGovern commented that peace
depends on Abbas's ability to show that he can "control a
viable, contiguous state." The GOI, he said, therefore needs
to help Abbas enhance his credibility by allowing him to
demonstrate that his leadership has meant a "difference on
the ground."


8. (C) FM Shalom defended Israel's construction of the
separation barrier as a temporary and reversible action that
has already demonstrated its value in saving lives. Israel,
he said, has been targeted by 22,000 terrorist acts in the
course of the current Intifada, and terrorists continue to
plan attacks daily. No other state would have hesitated to
build a barrier after only 22 attacks, he asserted, and
alluded to the fence along California's border with Mexico.

9. (C) On outposts, Shalom pointed out that the media reports
cited by Rep. Miller spoke of the GOI legalizing only those
outposts erected before March, 2001. The roadmap, however,
obligates Israel to dismantle outposts erected since March,

2001. Shalom then pointed to the political resistance PM
Sharon faces in moving forward with disengagement. Rep.
Miller responded that GOI leadership cannot allow opponents
to derail the disengagement process. Rep. Issa added that
democratic governments cannot use the excuse that they are
democracies to avoid fulfilling international commitments
such as those in the roadmap. Shalom responded that the GOI
is exceeding its roadmap commitments by taking steps not
called for in the roadmap, such as releasing prisoners and
discussing development of a Gaza seaport. He commented, as
well, that Israel has built no new settlements for years.
The GOI, however, cannot ignore that families living in
existing settlements are growing and need more housing.

--------------
Regional Issues
--------------


10. (C) Shalom said that the atmosphere for Israel's
relations with the Arab world has improved. The combination
of Arafat's death, Saddam's removal, and Qaddafi's change of
course has left Arab leaders feeling freer to deal with
Israel, he said. He pointed to the Iraqi and Palestinian
elections, Mubarak's opening of Egypt's presidential
election, and events in Lebanon as ominous signs to
authoritarian Arab regimes. The fact that ordinary Lebanese
are now "asking for their freedom and sovereignty" is
potentially good news for Israel, he continued. Israel has
no conflict with Lebanon and always supported an end to the
Syrian occupation of Lebanon. Syria, he charged, runs the
world's second largest drug industry (after Colombia) in
Lebanon.


11. (C) Turning to Iran, Shalom commented that most of the
world realized only recently that Iran's development of a
nuclear capability and its support for terrorism is a problem
for everyone, not just Israel. Iran's development of
missiles capable of reaching European capitals awoke the
Europeans to the threat that Iran's "tyrannical regime could
attack the whole world." The EU-3 effort to deal with the
threat, while putatively based on a carrot-and-stick
approach, appears to be all carrot and no stick, he
commented, calling for referral of Iran to the UN Security
Council.


12. (C) Rep. Pelosi noted that the Codel, during a visit to
Beirut the day before, had heard Lebanese leaders say that
resolution of the Israeli-Palestinian conflict would have a
huge, positive impact on Lebanon. Mubarak and King Abdallah
had both described themselves as more optimistic than ever
about prospects for peace. On Iran, she cautioned that
Russia, China and the Europeans are unlikely to be of
significant help in dealing with Iran's nuclear program
because all have incentives for good relations with Iran,
such as a need for Iranian oil and an interest in military
sales to Iran. Just as the U.S. and Israel expect these
countries to avoid supplying Iran with WMD-related
technology, so does the U.S. expect our ally, Israel, to
avoid transferring technology to China that could ultimately
be turned against U.S. forces. Issa echoed the latter point,
commenting that friends must look out for friends when
selling weapons to third countries.


13. (C) Pointing to Israel's foresight in destroying Iraq's
Osirak nuclear facility in 1981, Rep. Markey asked whether
Israel now "reserves the right" to respond to a similar
nuclear threat from Iran. Shalom responded that Israel is
now trying to pursue a diplomatic solution. While concurring
in general with Rep. Pelosi's comments about Russian and
Chinese interests in preserving good relations with Iran, he
commented that Russia has become more cooperative in efforts
to block the Iranian nuclear program. While Iran may believe
that it "bought" China's vote on the UNSC with a large oil
deal, China might not cast its veto in Iran's favor, Shalom
suggested, because the PRC also needs to preserve its trading
relationship with the West.

--------------
Travel Advisory
--------------


14. (SBU) Shalom called for the USG to lift the warning about
travel to Israel in the State Department travel advisory.
Given the changes taking place in the Israeli-Palestinian
relationship, and the difficult decision Israel has taken to
leave Gaza, a change in the travel advisory, he asserted,
would show the Israeli population that its efforts are
bearing fruit. He said that other governments claim that
they cannot realistically be expected to change their travel
advisories for Israel before the USG does so. Rep. Issa
commented that the HIRC is looking into possible changes in
the travel advisory process. He said he views the process as
"flawed" because advisories, apart from urgent updates, are
reviewed only annually. The process should find a way, he
said, to "reward the outbreak of peace."


15. (U) The Codel did not clear this cable.

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