ISRAEL MEDIA REACTION

UNCLAS SECTION 01 OF 08 TEL AVIV 006659

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. Mideast

2. Israel-Hizbullah Clashes

3. Palestinian parliamentary elections


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Key stories in the media:
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All media report that Shimon Peres is considering
joining Ariel Sharon, who may offer Peres a future
position as "special ambassador for peace affairs" if
the Labor Party elder statesman agrees to support the
prime minister's new Kadima faction. Peres is expected
to announce his decision whether to leave the Labor
party when he returns from a visit to Barcelona on
Wednesday. Amir Peretz, realizing that Sharon's main
goal in courting Peres is to undermine the new Labor
chair, tried to mend matters Sunday, phoning Peres to
offer him the post of party president, which would be
created especially for him and would include
representing the party overseas. Peretz pledged that
such a post would not prevent Peres from becoming a
senior minister in a Peretz government. However, like
Sharon, he is unwilling to offer Peres a guaranteed
spot on his party's list.

Yediot Aharonot and Ma'ariv report that PM Sharon,
waiting 8 December, when his cabinet will be declared a
transitional government and will not require the
Knesset approval for ministerial nominations, is
currently holding 8 portfolios, including the Interior,
Environment, and Infrastructures Ministries.

Ha'aretz cites a senior legal source as saying this
week that the criminal investigation of PM Ariel Sharon
in the Cyril Kern affair is unlikely to be completed
before the March elections. This means suspicions
against Sharon and his son Gilad will remain unresolved
during the campaign. However, it is increasingly
likely that this affair will also end with the closing
of the case against Sharon, unless a recent request for
a judicial inquiry submitted to Austria reveals
valuable evidence. According to the senior source,
"there is no realistic chance of a decision in the case
before the elections."
Ha'aretz and other media report that Russian oligarch
Arkady Gaidamak "dropped a bombshell into the political
arena" yesterday when he announced that he is forming a
new party that will run in the upcoming elections.
Gaidamak is president of the International Betar
Movement, a right-wing movement founded in the pre-
state era by Ze'ev Jabotinsky and affiliated with the
forerunner of the Likud, Menachem Begin's Herut Party.
His aide told Ha'aretz that the new party would reflect
Betar's goals and values. But in an interview with
Ha'aretz last night, Gaidamak said that his party would
take a free-market economic stance, while on security
and diplomacy, it would call for better understanding
between Jews and Arabs in Israel and between Israel and
its Arab neighbors. "Israeli-Arab relations have to be
based on economic cooperation and development," he
said. In a related report, Ma'ariv says the police
will question Gaidamak on suspicion of money laundering
through Bank Hapoalim.
Ma'ariv reports that "in a rare comment," Saudi King
Abdallah said "the situation may improve now that Amir
Peretz was elected Labor chairman." Speaking to the
Arabic language Al-Hayat, the Saudi king added that the
Palestinian firing of mortars is "useless," calling on
the Palestinians to unite. He also condemned
international terror. Speaking to a Spanish newspaper,
Egyptian President Mubarak congratulated Sharon on the
successful disengagement, saying, "Sharon is serious in
his efforts to make peace." Ma'ariv added that the
Sharon bureau reported that the Egyptian president
called Sharon to congratulate him on his new chosen
path.

Yedi'ot Aharonot reports that in Barcelona yesterday,
Finance Minister Olmert met newly-elected German
Chancellor Angela Merkel, who said she will visit
Israel soon, reiterated Germany's pledge to prevent
Iran from obtaining nuclear arms, expressed Germany's
opposition to HAMAS participation in PA elections, and
said she "admires Sharon's courage." Olmert also met
the PA's Abu-Mazen and the Egyptian foreign minister
and prime minister.

Yedi'ot Aharonot reports that the Foreign Ministry
instructed Israeli representatives worldwide to ask
foreign VIP's who intend to visit Israel in the near
future "to reconsider," since their counterpart hosts
may be busy with the elections and might not have the
time for such visits.

Yedi'ot Aharonot carries a report on a security
briefing that the IDF chief of staff and chief of
Intelligence gave the cabinet yesterday. Major General
Farkash said that if the Mehlis report "should stain
Bashar Asad, we could witness an escalation on the
entire (northern) front." The chief intelligence
officer added that despite international pressure,
Syria and Hizbullah keep pursuing terror, and that
"Syria is allowing terrorists to cross its border into
Iraq to harm US troops there." Speaking on the recent
Hizbullah attack, Farkash said "an amazing number" of
50 terrorists in 9 squads took part in the attack,
whose failure will "prompt the organization to launch
more terror attacks soon, to save face." The report
cites the deputy Shin Bet head as telling the cabinet
"suicide bombers are being smuggled from Gaza into
Israel via the Sinai and the Negev," and that there are
presently some 10-15 terror attack warnings. He added
that the Shin Bet expects HAMAS to actually lose power
in the elections after the Rafah crossing has opened
and Gaza economy will improve.


Ha'aretz reports that the IDF is set to modify its
deployment along the border with Egypt in an effort to
better contend with the smuggling of arms from Sinai
into Israel and then on to the West Bank.

IDF Radio reported this morning that a Border Policeman
who was injured last night by stones that were thrown
near the village Anata is in serious condition and may
lose sight in one of his eyes. Another six policemen
were injured by stones that were thrown by Palestinians
at workers involved in the construction of the
separation fence in the area. Border Police officials
criticized the conditions under which the troops were
forced to operate there.

Israel Radio reported this morning on the U.S.-Israel
strategic dialogue between Israel and the US will be
renewed in Washington today. The Americans had
suspended talks in the wake of the arms deal between
Israel and China, and the US administration decided to
renew them once this crisis in US-Israel relations was
over. The Israeli delegation to the talks is headed by
minister Tzahi Hanegbi.




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1. Mideast
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Columnist Akiva Eldar wrote in independent, left-
leaning Ha'aretz that "Sharon's winning card does not
even resemble the road map. His fans do not believe
for a second that he has any interest in a Palestinian
partner for negotiations. They flock to him because
they do not believe his repeated pledges that the
withdrawal from Gaza was the last unilateral
withdrawal.. Sharon is dictating his Bantustan plan on
the ground through fences and walls, through evacuating
two outposts and expanding a dozen settlements... The
last dictate ended with 1,000 Israelis and more than
3,000 Palestinians dead."

Arab affairs commentator Dani Rubinstein wrote in
independent, left-leaning Ha'aretz: "Several days ago,
Palestinian Finance Minister Salam Fayad resigned.
because Interior Minister Nasser Yousef, who is
responsible for the security services, added to the
Gaza services another 2,500 youths. and plans to add
another few thousand young Hamas and Islamic Jihad
activists to the security services in the near future..
The Palestinian treasury cannot afford to pay so many
salaries.. Fayad's resignation is a warning sign of
the serious economic complications facing the PA, which
are liable to also have political ramifications."

Summary:
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Block Quotes:
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I. "The Road Map, Sort Of"

Political commentator Aqiva Eldar wrote in independent,
left-leaning Ha'aretz: "Ariel Sharon has a good chance
of going down in history as the first leader who owes
his election to voters who do not believe him. At the
press conference at which he announced his departure
from the Likud, Sharon promised the continued
implementation of the road map.. How many people who
plan to vote for Kadima will do so because they believe
Sharon plans to talk with Mahmoud Abbas about the
division of Jerusalem, and to invite Bashar Assad to
negotiate over the Golan Heights? Does anybody
seriously believe the claim that all this failed to
happen during the three years that have elapsed since
the road map was drafted solely because the Palestinian
Authority did not "destroy the terrorist
infrastructure.? Sharon's winning card does not even
resemble the road map. His fans do not believe for a
second that he has any interest in a Palestinian
partner for negotiations. They flock to him because
they do not believe his repeated pledges that the
withdrawal from Gaza was the last unilateral
withdrawal. The secret of his success lies in a post-
modern approach to conflict resolution, which has
gained currency here under slogans such as dividing the
land in accordance with your desires, or unilateral
consolidation into settlement blocs. Behind this
approach lies the assumption that what was good for
Gaza cannot be bad for the West Bank.. Sharon . will
not be caught leaning over maps at Camp David, between
George Bush and Mahmoud Abbas. He is dictating his
Bantustan plan on the ground through fences and walls,
through evacuating two outposts and expanding a dozen
settlements. The last dictate ended with 1,000
Israelis and more than 3,000 Palestinians dead."

II. "A Resignation that Is a Warning Sign"

Arab affairs commentator Dani Rubinstein wrote in
independent, left-leaning Ha'aretz: "Several days ago,
Palestinian Finance Minister Salam Fayad resigned.
There were several different reasons given for this
move. The personal circumstances of Fayad, considered
a top professional, are less interesting. What is more
important is whether his resignation is connected to
what is going on among top Palestinian officials, from
an economic and financial perspective.. According to
some reports, he resigned from the government because
he wants to get involved in politics and declare his
candidacy in his hometown district of Tul Karm.. But
other reports (such as in the Al-Hayat Al-Jadida PA
daily, from the end of last week) say Fayad resigned
because Interior Minister Nasser Yousef, who is
responsible for the security services, added to the
Gaza services another 2,500 youths - almost all of them
militants from Fatah and other movements. Yousef did
this with the approval of Palestinian Authority
Chairman Mahmoud Abbas (Abu Mazen),and plans to add
another few thousand young Hamas and Islamic Jihad
activists to the security services in the near future.
Adding thousands of people to the security services
would be a budgetary burden on the Palestinian
treasury, and Fayad, according to these reports, would
not have been able to stand for it.. Some 160,000
people are serving in the Palestinian government, about
a third of them in the security services. The
Palestinian treasury cannot afford to pay so many
salaries.. Fayad's resignation is a warning sign of
the serious economic complications facing the PA, which
are liable to also have political ramifications.

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2. Israel-Hizbullah Clashes
--------------

Columnist Amos Gilboa wrote in popular, pluralist
Maariv: "The IDF high command and the chief of staff
deliberated how to react to the massive Hizbullah
attack, recommending not to attack and settle for a
local reaction for now, which the defense minister
accepted. This decision was severely criticized., but
I believe it was right.. Still, how will it react in
the future, when Hizbullah should succeed in kidnapping
an Israeli? And it will try, no doubt about it!"

Summary
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Columnist Amos Gilboa wrote in popular, pluralist
Maariv: "Last Monday, the IDF high command and the
chief of staff deliberated how to react to the massive
Hizbullah attack. The IDF was pleased with the
results: the Hizbullah kidnapping attempt failed,
Israel had three Hizbullah bodies, the incident ended
without Israeli fatalities, and was clearly an
important intelligence achievement. On the other hand,
Hizbullah clearly violated the rules of the game.; in
other words, it attacked the State of Israel. The IDF
recommendation was not to attack and settle for the
local reaction for now, which the defense minister
accepted. This decision was severely criticized. but I
believe the recommendation was right.. But beyond the
immediate circumstances, Israel is facing a serious and
problematic dilemma vis--vis Hizbullah. Before the
Syrian pullout, we could always blame it., but there
are no more viable Syrian targets in Lebanon, while the
new Lebanese Government is actually under US and French
auspices. so attacking Lebanese targets. does not seem
wise. Stuck in Iraq, the Americans do not want another
conflagration in the Middle East. and it would be wrong
[for Israel] to attack deep inside Lebanon as a UN team
investigates the Hariri murder and is about to question
senior Syrian officials. Why divert international
pressure from Syria toward Israel? Hizbullah is aware
of Israel's limitations and political situation and.
having the Syrian and Iranian blessing in advance. it
was willing to take its chances and violate the rules
of the game with Israel, but it failed tactically. The
current Israeli reaction was correct, but how will it
react in the future, when Hizbullah should succeed
kidnapping an Israeli? And it will try, no doubt about
it!"


Block Quotes
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3. Palestinian Parliamentary Election
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Summary
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Nationalist Hebrew daily, Hatzofe wrote Monday: "The
murderous Tanzim secretary general, Marwan Barghouti,
was sentenced by an Israeli court to five life-terms in
prison. Not one, but five life-term sentences. Now, in
the party primary in advance of the Palestinian
parliamentary elections, Barghouti won 95% of the vote
and, as a result, Israeli politicians have asked to
release him. The reason offered: he will make the
Palestinians more moderate, he is a moderate and Israel
ought not squander an opportunity such as this."

Block Quotes
--------------

"Barghouti the Moderate"

Nationalist Hatzofe editorialized: "The murderous
Tanzim secretary general, Marwan Barghouti, was
sentenced by an Israeli court to five life-terms in
prison. Not one, but five life-term sentences. Now, in
the party primary in advance of the Palestinian
parliamentary elections, Barghouti won 95% of the vote
and, as a result, Israeli politicians have asked to
release him. The reason offered: he will make the
Palestinians more moderate, he is a moderate and Israel
ought not squander an opportunity such as this....
How is it that sane politicians want to release a
murderer such as Barghouti, who was responsible for the
death of many Israeli citizens and the injury of
dozens?.... That question is asked because it is
clear that the United States either is already
pressuring or will soon begin to pressure Israel to
release Barghouti because of his "moderation," and the
government will acquiesce to that request with the
knowledge that the Israeli people has already lost its
healthy senses and is struggling for its financial
survival more than anything else. Wake up from your
sleep, arise from your slumber."
JONES