ISRAEL MEDIA REACTION

UNCLAS SECTION 01 OF 10 TEL AVIV 006512

SIPDIS

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
USCINCCENT MACDILL AFB FL FOR POLAD/USIA ADVISOR
COMSOCEUR VAIHINGEN GE FOR PAO/POLAD
COMSIXTHFLT FOR 019

JERUSALEM ALSO FOR ICD
LONDON ALSO FOR HKANONA AND POL
PARIS ALSO FOR POL
ROME FOR MFO

E.O. 12958: N/A
TAGS: IS KMDR MEDIA REACTION REPORT
SUBJECT: ISRAEL MEDIA REACTION


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SUBJECTS COVERED IN THIS REPORT:
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1. "Agreement on Movement and Access"


2. Mideast


3. Iran: Nuclear Program

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Key stories in the media:
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All media (lead stories in Ha'aretz and Yediot)
reported on the "Agreement on Movement and Access,"
which was brokered on Tuesday by Secretary of State
Condoleezza Rice. Quartet Special Envoy James
Wolfensohn was quoted as saying in an interview with
Israel Radio that the sides may have ignored him, but
that they could not ignore Secretary Rice. Wolfensohn
was also interviewed in other media. Ha'aretz and
Yediot wrote that convoys will start running between
the Gaza Strip and the West Bank (according to Yediot,
through Ashkelon and Kiryat Gat) within a month. The
Jerusalem Post reported that Gazans are divided
regarding the necessity of building a seaport in Gaza.
Ha'aretz reported that speaking on Tuesday at the
Knesset's Foreign Affairs and Defense Committee,
Knesset Member Binyamin Netanyahu blasted the
agreement, saying that Israel's security comes before
the Palestinians' convenience, and that Israel must
reject dictates regarding the passages that could
endanger the nation.

Yediot reported that both Israel and the Palestinians
welcomed the agreement. The newspaper quoted Defense
Minister Shaul Mofaz as saying: "This might be the
basis for continued cooperation." Yediot quoted PA
Chairman [President] Mahmoud Abbas as saying: "The
independent Palestinian state is within reach. If we
have an Israeli partner, we will be able to complete
the final status arrangement negotiations within six
months." Similarly, The Jerusalem Post quoted chief
Palestinian negotiator Saeb Erekat as saying at an
event held Tuesday at the Netanya Academic College to
mark the 10th anniversary of Yitzhak Rabin's
assassination: "We do not need more than six months to
see a historic treaty with Israel." The Jerusalem Post
further quoted Erekat as saying: "We made our historic
compromise. We recognized your right to live as a
state with secure and recognized borders." Erekat
reportedly noted that he was speaking on Abbas's behalf
and urged Israel to contribute to the peace process.
This morning, Israel Radio reported that Abbas told FM
Silvan Shalom in Tunis that contacts should not be
interrupted after every incident. The radio said that
Shalom begged to disagree.

Yediot reported that President Bush has named General
Keith Dayton as U.S. security coordinator in the
region, replacing Lt. General William Ward. The
Jerusalem Post reported that the European Union has
decided to upgrade the assistance it provides the PA
and that, starting January 1, it will deploy a police
mission -- code-named EUPOL-COPPS -- to the Gaza Strip
and Palestinian territories. Ha'aretz reported that
the PA intends to allow members of Hamas and Islamic
Jihad to leave the Gaza Strip through the Rafah border
crossing to "freshen up" in Egypt.

Israel Radio reported that the IDF made use of
artillery fire throughout the night, in response to
launchings of mortars from the northern Gaza Strip.

Israel Radio quoted senior Likud sources as saying that
PM Sharon has decided to remain in the party and that
the political atmosphere has changed since the election
of Knesset Member Amir Peretz to the position of Labor
Party chairman. Maariv reported that most senior Labor
Party members with whom Peretz has spoken recently do
not want to see Shimon Peres in a secure second place
in the party's list for the Knesset elections. Israel
Radio reported that Labor Party sources have asked the
Yahad-Meretz party to abandon the idea of the
unification of the two parties, which was put forward
by Yahad-Meretz Knesset Member Yossi Sarid in an
article published in Ha'aretz on Friday. The sources
reportedly voiced the concern that voters could flee
the Labor Party in the wake of such a union. The
Jerusalem Post reported that the Labor Party, Shinui,
National Religious Party, and National Union Knesset
factions agreed with Peretz on Tuesday that the ideal
date for the general elections would be March 7.
Israel Radio quoted Labor Party Secretary-General,
Knesset Member Eitan Cabel, as saying that his party
favors March 2006 as the date of the next Knesset
elections, but that he did not rule out late February.
Ha'aretz reported that Peretz has reportedly won a
pledge from Shinui party Chairman Yosef (Tommy) Lapid
that his party will not join Sharon's foundering
coalition when Labor quits. Israel Radio reported
that this morning, at a meeting of the Likud Knesset
faction, Likud Knesset members from the Sharon loyalist
camp as well as the Likud rebels took turns talking
about need for unity in the party in order to defeat
newly elected Labor chairman Amir Peretz. The radio
quoted Sharon as saying afterwards that he was
unimpressed with those calls. Ha'aretz quoted Sharon
associates as saying that over the last few days the PM
has widened his clear lead over Knesset Member Binyamin
Netanyahu, his main rival in the Likud chairmanship
race.

All media reported that on Tuesday, FM Silvan Shalom
and Communications Minister Dalia Itzik (Labor) arrived
in Tunisia, where they will attend the World Summit on
the Information Society. Ha'aretz notes that this is
the first visit to Tunisia by Israeli ministers.
Israel Radio quoted UN Secretary-General Kofi Annan as
saying, following a meeting with Shalom, that the time
has not yet come to bring the issue of Iran's nuclear
program to the UN Security Council. Maariv quoted
Israeli representatives at the conference as saying
that Iranian representatives are eager to visit the
Israeli booth and are demonstrating "openness,
curiosity, pride, and a tremendous thirst for Israeli
information."

The Jerusalem Post reported that Saudi Arabia's
decision to lift its boycott against Israel was adopted
after a strong ultimatum from the U.S., which stated
that any bilateral trade agreement would depend on a
Saudi renunciation of the Arab embargo against Israel.
Ha'aretz notes that Saudi Arabia's readiness to lift
the embargo is a more far-reaching step than those
taken by other Arab countries that have joined the WTO
such as Oman, Qatar, and the United Arab Emirates.

Israel Radio reported that on Tuesday, the Consuls-
General of Israel and Pakistan in New York met at a
cultural event in support of the victims of the recent
South Asian earthquake. The radio reported that the
Israeli artist Eidan Reichel performed at the event.
All media reported on, and The Jerusalem Post bannered,
Knesset Member Omri Sharon's conviction in Tel Aviv's
Magistrate's Court Tuesday on charges that he concealed
illegal donations to his father's (PM Sharon's)
election campaigns. The media note that the verdict
was less lenient than Omri Sharon had expected and that
he could face a jail sentence. Leading media reported
that Omri Sharon is apparently planning to use new
campaign finance regulations to minimize his sentence.
In another development, Yediot reported that the legal
case against Sharon in the Cyril Kern affair --
involving alleged illegal loans to Sharon during the
1999 Likud primaries -- will be closed within two
months, due to lack of cooperation by the Austrian and
South African authorities.

Leading media reported that on Tuesday, a military
tribunal acquitted an IDF captain of all charges
relating to the killing of a Palestinian girl in the
Gaza Strip in October 2004.

Ha'aretz reported that the government is advancing a
bill to prevent Palestinians suspected of security-
related offenses from meeting with a lawyer for a
period of up to 50 days. The bill is in an advanced
stage of legislation.

Yediot reported that at a meeting with EU foreign
policy chief Javier Solana on Tuesday, Sharon asked the
EU to maintain its pressure on Syria.

Israel Radio reported that President Moshe Katsav
received an enthusiastic welcome during his official
visit to Italy. The radio reported that on Tuesday, at
a state dinner at the Quirinale, the residence of
Italian President Carlo Azeglio Ciampi, Katsav called
on the world to set up an anti-terror HQ. Katsav is
scheduled to meet with Italian PM Silvio Berlusconi
today, and with Pope Benedict XVI on Thursday.

Yediot cited intelligence emanating from Arab sources,
according to which Abu Musab al-Zarqawi, Al-Qaida's
chief of operations in Iraq, plans to abduct and murder
Israeli citizens in Jordan. Yediot quoted a senior
Arab intelligence official as saying that Israeli
businessmen and tourists should exercise extreme
caution during their visits to Jordan, and shorten
their stays in that country.
The Jerusalem Post cited an announcement made Tuesday
by Qatar Airways that it has signed a special prorate
agreement with the Israeli airline Arkia, marking the
first time such partnership has been forged between an
Israeli and a Gulf state airline.

Ha'aretz and The Jerusalem Post reported that Baruch
Marzel, a leader of the outlawed far-right Kach
movement, announced on Tuesday that he plans to start a
new party and run for the Knesset. The party would be
called Jewish National Front.

Last night, Channel 2-TV reported on the visit of
senior NATO officials to Israel, and on other senior-
level contacts in Europe between the two parties. The
Jerusalem Post reported that the defense ministers of
Israel and Greece agreed on Tuesday in Jerusalem to
move forward with a defense pact and increase bilateral
defense relations.

Yediot reported that Education Minister Limor Livnat
has instructed all Israeli schools to devote one hour
next Monday to discuss the affair of Jonathan Pollard,
who is detained in a federal U.S. jail after being
convicted of spying for Israel. The purpose of the
move is to bring Pollard's suffering to the
consciousness of the Israeli youth. Yediot quoted
Livnat as saying: "Israel's commitment to Pollard is
part of the combat heritage and the Jewish heritage: a
soldier cannot be abandoned on the field."

All media reported that on Tuesday, the police
interrogated Israel Aircraft Industries CEO Moshe Keret
on suspicion of accepting bribes and illegal benefits.
Leading media cited alleged deals with Eastern European
countries.

Maariv reported that Coca-Cola will open a new 650
square-meter visitor center in Israel, at a cost of USD
2.5 million. The company's previous visitor center
closed down one year ago.

Erratum: The American equity investment fund that has
become a majority shareholder in Bank Leumi, Israel's
second bank, is Cerberus-Gabriel, and not as reported
on Tuesday.
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1. "Agreement on Movement and Access":
--------------

Summary:
--------------

Diplomatic correspondent Herb Keinon wrote in the
conservative, independent Jerusalem Post: "The growing
political instability here made it clear to the U.S.
that the window of opportunity to close a deal such as
this was narrowing quickly."

Diplomatic correspondent Aluf Benn wrote in
independent, left-leaning Ha'aretz: "Sharon went much
further here than Ehud Barak's proposals in Camp David
and even further than Yossi Beilin's Geneva Accord,
which dealt with an Israeli presence of several years
on the borders of the Palestinian state."

Military correspondent Arieh O'Sullivan wrote in The
Jerusalem Post: "The danger of the Rafah precedent will
be apparent when the Palestinians open their sea- and
airport where [Katyusha rockets and artillery] could be
more readily imported."



Block Quotes:
--------------


I. "Why Rice Pushed So Hard On Rafah"

Diplomatic correspondent Herb Keinon wrote in the
conservative, independent Jerusalem Post (November 16):
"It is not every day that the U.S. Secretary of State
changes her schedule, rolls up her sleeves and gets
into the nitty-gritty on two hours of sleep - of very
technical negotiations between Israel and the
Palestinians.... While during another period the US may
have tolerated this foot dragging for a bit longer, the
country's newfound political instability, brought about
by Amir Peretz's stunning defeat of Shimon Peres in the
Labor party primary last week, has jolted the
Administration into action.... The growing political
instability here made it clear to the U.S. that the
window of opportunity to close a deal such as this was
narrowing quickly. And this deal, with its call for
enhanced cargo capacity at Karni and a target [date] to
begin passenger and truck convoys from Gaza to the West
Bank, was considered by the U.S. and Quartet envoy
James Wolfensohn as critical to attracting the
investment and donor dollars into Gaza necessary for
the region's economic development. The Rafah deal was
the first agreement between the PA and Israel since
disengagement, and it is likely, with elections looming
so large, to be the last until the country goes to the
polls. Rice had to strike while the irons were still
hot because once Labor and Likud agree on an election
date, the diplomatic irons will cool down significantly
for a number of months."

II. "Rafah Deal Is Sharon's Last Act on the PA Stage"

Diplomatic correspondent Aluf Benn wrote in
independent, left-leaning Ha'aretz (November 16): "The
Rafah agreement reached Tuesday to operate the Gaza
Strip's border crossings is probably the last political
act by the Sharon government on the Palestinian stage.
It may be seen as the final chapter of the
disengagement in which Israel is pulling out the cork
that has blocked the Strip from the rest of the world
until now.... Sharon went much further here than Ehud
Barak's proposals in Camp David and even further than
Yossi Beilin's Geneva Accord, which dealt with an
Israeli presence of several years on the borders of the
Palestinian state. However, with the IDF pullout from
Rafah it transpired that Israel can no longer control
Gaza's gates. The Palestinians also conducted a
successful public opinion campaign, claiming the
Israeli occupation was continuing around it, and that
the Strip was 'the world's largest prison.'"

III. "Rafah Deal Will Only Have Marginal Impact on
Security"

Military correspondent Arieh O'Sullivan wrote in The
Jerusalem Post (November 16): "[Officials in Israel's
defense establishment] maintain that Israel has long
known that it would have to give up control of the
international border as part of the disengagement. The
attempts to keep a semblance of overall rule were part
of the Middle East negotiation bazaar. The
'concessions' paid were to portray to the Americans a
sense of how difficult it was for Israel. Palestinians
made no concessions apart from the fact that they now
have a camera over their shoulder, and European
supervision. But whether or not the monitors have
teeth able to bite into the flow of terrorism remains
to be seen. Military and security officials point out
that the impact on Israeli security of this deal was
marginal since the Gaza Strip itself was still sealed
off from Israel and the West Bank.... The danger of the
Rafah precedent will be apparent when the Palestinians
open their sea- and airport where [Katyusha rockets and
artillery] could be more readily imported. It will be
difficult for Israel to insist on a veto here after
giving it up on the land crossing to Egypt."

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2. Mideast:
--------------

Summary:
--------------

Chief Economic Editor Sever Plotker opined in the lead
editorial of mass-circulation, pluralist Yediot
Aharonot: "If not for the disengagement from Gaza and
the renewal of cooperation between the Israeli
government and the Palestinians, the Saudi boycott of
Israel would not have been lifted, and Minister
Shalom's state visit to Tunisia would not have come to
pass."

Block Quotes:
--------------

"Boycott Lifted"

Chief Economic Editor Sever Plotker opined in the lead
editorial of mass-circulation, pluralist Yediot
Aharonot (November 16): "Two pieces of good news about
the renewing relations with the Arab world: Saudi
Arabia has completely lifted the economic boycott
against Israel, and Tunisia opened its gates to an
official delegation from Israel headed by Foreign
Minister Silvan Shalom.... The Saudi regime was faced
with a choice: to stop the boycott against Israel or
international economic isolation -- and it chose to
lift the boycott. This is how globalization lays the
groundwork for the warming of relations between the
Arab states and Israel.... However, this is not just
about the fruits of globalization. If not for the
disengagement from Gaza and the renewal of cooperation
between the Israeli government and the Palestinians,
the Saudi boycott of Israel would not have been lifted,
and Minister Shalom's state visit to Tunisia would not
have come to pass."

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3. Iran: Nuclear Program:
--------------

Summary:
--------------

Independent, left-leaning Ha'aretz editorialized: "It's
important for Israel to make it clear that time is
running out and that diplomacy must have a clear and
final target date."

Block Quotes:
--------------

"Don't Let Up on Iran"

Independent, left-leaning Ha'aretz editorialized
(November 16): "The effort to stop the 'Iranian bomb'
took on secondary importance in the wake of the call by
Iran's president, Mahmoud Ahmadinejad, to 'wipe Israel
off the map.' The radical comment clarified the
severity of the threat facing Israel and generated
worldwide condemnation. But Israel cannot allow
expressions of sympathy to suffice when it faces an
enemy threatening to destroy it and aiming to arm
itself with the means necessary to do so.... Now the
time has come for another decision. The International
Atomic Energy Agency board of governors is to meet
again next Thursday to discuss turning the Iran matter
over to the UN Security Council, which can impose
sanctions. Russia is persistent in its opposition to
this and insists that diplomacy be given another
chance.... It's important for Israel to make it clear
that time is running out and that diplomacy must have a
clear and final target date.... Iran today feels strong
in light of the increase in oil prices and the
political difficulties the American and French leaders
have encountered. There's no doubt that in such
circumstances it will be more difficult to pressure
Tehran, but we must not stop trying. The Iranian bomb
must be stopped before it becomes operational and
fundamentally changes the balance of power in the
Middle East."

JONES