ISRAELI MOD DG TOREN ON NOVEMBER 14 AGREEMENT

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 006798

SIPDIS

STATE FOR NEA/IPA, NP/RA
PENTAGON FOR OSD (JAMES ANDERSON)

E.O. 12958: DECL: 12/06/2015
TAGS: PREL PTER PARM MARR MASS KPAL KWBG ISRAELI PALESTINIAN AFFAIRS GOI EXTERNAL ISRAEL RELATIONS
SUBJECT: ISRAELI MOD DG TOREN ON NOVEMBER 14 AGREEMENT
IMPLEMENTATION, U.S.-ISRAEL RELATIONS, CHANGES TO EXPORT
CONTROL SYSTEM

Classified By: Ambassador Richard H. Jones. Reasons: 1.4 (b, d).

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SUMMARY
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1. (C) Israeli MOD Director General Jacob Toren told the
Ambassador December 5, only hours after the deadly Netanya
suicide bombing, that his people are sparing no effort to
implement their undertakings vis-a-vis the Palestinians per
the November 14 agreement brokered by Secretary Rice. Toren
complained, however, that the Palestinians are not
responding, and pointed to their (negative) position on
development of the Erez crossing between Gaza and Israel as
an example. Toren said he was satisfied with the November 28
Strategic Dialogue session in Washington, but urged the USG
to stiffen European resolve in confronting Iran's nuclear
program. He briefly noted steps the MOD is taking to modify
its lead role in Israel's export control system, stressing
that the MOD would not wait for the Knesset to pass needed
legislation before moving to improve its handling of export
controls. The Ambassador praised GOI efforts to comply with
the Statement of Understanding and restore USG trust in
Israel's export control system, but cautioned that much work
remains to be done over a long time ahead. The Ambassador
expressed condolences for the victims of the suicide bombing
in Netanya earlier in the day that killed five people and
wounded 50. He urged caution and precision in Israel's
punishment of the source of the terrorist attack. End
Summary.

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TOREN ON GAZA CROSSINGS: "WE ARE SPARING NO EFFORTS."
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2. (C) Referring to the MOD's responsibility to expedite
crossings between Gaza and Israel per the November 14
agreement brokered by Secretary Rice, Toren said he and his
staff are "sparing no efforts" to meet their obligations.
Toren, however, complained that the Palestinian side is,
rather than cooperating with improving the terminal and
making progess on opening the Erez crossing, is instead
focusing on disputing where the northern border between Gaza
and Israel runs. He asked the Ambassador to weigh in with
the Palestinian negotiators. Toren confirmed that MOD
POL-MIL Director Amos Gilad and Baruch Spiegel are working
overtime to get this year's Gaza harvest out of Gaza and to
markets in Israel and beyond on time. He claimed that the
Palestinians are, however, giving priority passage at the
Karni crossing to scrap metal merchants at the expense of
farmers. In response, Gilad is examining whether some of the
harvest could be processed through Kerem Shalom. Toren said
that the unresolved security issues at the Rafah crossing
will soon lead the Israeli side to tighten security at the
other crossings between Gaza and Israel. The Ambassador
urged that the MOD ensure there are sufficient budget and
manpower resources to achieve agreed milestones for expedited
movement through crossings, noting that the USG has USD 50
million to invest in scanners and other security upgrades for
crossings between Gaza and Israel. Toren said that Israel
will seek to use some of this amount to cover the scanners'
installation and maintenance costs.

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ISRAEL LOOKING TO BROADEN STRATEGIC COOPERATION WITH U.S.
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3. (C) Toren expressed satisfaction with the November 28
Strategic Dialogue in Washington, D.C., and said he had
fruitful side meetings with Defense Under Secretaries Cambone
(Intelligence) and Krieg (Acquisitions, Technology and
Logistics). Toren said more consideration needs to be given
to optimizing U.S.-Israeli cooperative research on defense
and counterterrorism technologies, noting that Israel's
contributions in counter-IED technology are just a "sample"
of what can be done. Toren noted that he also met with
Defense Under Secretary for Policy Edelman to discuss Israeli
defense contracts with Venezuela, and looks forward to
further discussion of the matter at the Joint Pol-Mil Working
Group session in Israel in January.


4. (C) Toren noted that Israel's anxiety level over Iran's
nuclear program had increased palpably over the last few
days. He said Israel understands European and Russian
positions, but looks to the U.S. to set the world approach
and timetable. He acknowledged that some Israeli
politicians' comments on Iran have been intemperate, but
assured the Ambassador that Israel will work for a
"responsible solution." Toren said that "Syria is being
taken care of, but Hizballah is not being treated fully in
the way we expect." (NOTE: Toren did not elaborate on his
comment regarding Hizballah. END NOTE.)

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MOD MAKING CHANGES TO IMPROVE EXPORT CONTROL SYSTEM
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5. (C) Without prompting, Toren said that the MOD is
implementing the Statement of Understanding (SOU) and making
regulatory and administrative changes to Israel's export
control system. Toren said he will enact those changes in
parallel to legislative work being carried out by the
Knesset, and stressed that, "We cannot wait for the Knesset."
In response to the Ambassador's query on the possibility of
an inter-ministerial export licensing process in the future,
Toren said that this cannot be done: "It would take at least
three years for the MFA and other GOI agencies to get up to
speed on the issues." The Ambassador praised GOI efforts to
date to make needed changes to its export control system and
implement the SOU. He cautioned, however, that restoring USG
trust in Israel's export control system would take time and
require more work on Israel's behalf. He urged Toren to
consider allowing a greater role for the MFA in the export
control system.

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ISRAEL TO CAUTIOUSLY PUNISH SOURCES OF NETANYA TERROR ATTACK
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6. (C) The Ambassador expressed condolences for the families
and victims of the suicide bombing that took place earlier in
the day in Netanya, killing five people and wounding 50. The
Ambassador said he understands that Israel will want to
punish terrorist group reponsible for the attack, but urged
that Israel strive for precision and avoid other measures
which could have unintended negative consequences on economic
activity. Toren suggested that terrorists in the Al Qaeda
mold (i.e., PIJ) were behind the attack, and that they
probably hope to influence the domestic political situation.
He noted that he would be meeting with DefMin Mofaz
immediately after his meeting with the Ambassador to discuss
options for a response.

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