PERETZ: REMOVE ILLEGAL OUTPOSTS, SPEED UP PEACE

UNCLAS SECTION 01 OF 02 TEL AVIV 007096

SIPDIS

SENSITIVE

NEA FOR IPA

E.O. 12958: N/A
TAGS: PGOV KWBG KPAL IS SETTLEMENTS ISRAELI PALESTINIAN AFFAIRS GOI INTERNAL
SUBJECT: PERETZ: REMOVE ILLEGAL OUTPOSTS, SPEED UP PEACE
PROCESS

REF: TEL AVIV 7059


1. (SBU) Summary: Labor Party Chairman Amir Peretz, who has
tried to focus the Israeli electorate on economic issues
(reftel),recently criticized the proliferation of Israeli
outposts and expansion of settlements in the West Bank as
damaging to Israel's international reputation and to
prospects for developing the Negev and the Galilee. Peretz
also criticized the roadmap process in favor of immediate
final status talks with the Palestinians, a stance that may
soon evolve into a more fleshed-out platform calling for
possible long-term leasing of West Bank settlements from the
Palestinians based on a "Hong Kong" model. End Summary.

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Outposts And Settlements "Damaging"
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2. (SBU) In recent media interviews, Labor Party Chairman
Amir Peretz has begun to stake out positions on the peace
process and security issues, and has been particularly
critical of Prime Minister Sharon's policy toward illegal
outposts. He told the Jerusalem Post December 26 that, were
he elected prime minister, he would "immediately adopt the
recommendations of the Talia Sasson report and dismantle the
illegal outposts." Ha'aretz December 28 quoted Peretz as
saying, "The outposts are damaging Israel's image as a lawful
state. While Sharon continues funneling resources to the
outposts he ignores the periphery towns, the Negev and the
Galilee." Peretz said he considers "the fact that Sharon is
considering reaching a compromise between the rule of law and
the Yesha council (of the West Bank settlements)" an "unheard
of scandal," according to a Ha'aretz report. Peretz
submitted a bill to the Knesset November 16 that would grant
compensation to any West Bank settlement where 60 percent of
the residents agreed to leave voluntarily. He reportedly
intends for this bill to preserve the momentum of
disengagement from the Gaza Strip and four northern West Bank
settlements.

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Peretz Critical of Roadmap
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3. (SBU) In other reports, Peretz all but dismissed the
relevance of the roadmap. According to Yedioth Ahronoth,
Peretz told 25 European Union diplomats December 8 that "the
road map is a formula for utter political stagnation that
could last for decades. It is a waste of our time." Yedioth
reported that he argued further that "the road map is not
sacred, and is also a condition for negotiations on the final
status arrangement. It can be skipped." Peretz also spoke
to Yedioth about Israel's relations with Palestinian
Authority Chairman Mahmud Abbas. "I do not accept the
approach that there is no partner," Peretz said, because it
"perpetuates the conflict between the Israelis and the
Palestinians."


4. (SBU) Peretz backpedaled somewhat December 10 from his
criticism of the roadmap, when he told Yedioth that he is
opposed to canceling the roadmap agreement, since it was
signed by the two sides with international backing and
supervision. "The map's problem is that it is given to many
interpretations," Peretz explained, "and can be acceptable
both to the extreme right and the extreme left. There is the
possibility of a Palestinian state in this plan, but also the
possibility of a deep freeze." Labor MK and close Peretz
confidante Yuli Tamir confirmed to Poloff December 29 that
Peretz does not dismiss the roadmap, but rather believes it
is open to interpretation and to attempts to stall the peace
process.


5. (SBU) Peretz also found fault with the roadmap in recent
media reports because it calls for a provisional Palestinian
state, which he said "will remain hostile towards Israel,
whereas the Palestinian state in the final status arrangement
will be of a friendly nature to Israel. The final status
arrangement should be accelerated instead of the roadmap."
In a December 12 interview with Ma'ariv, Peretz again
stressed this position, stating, "I am in favor of a final
status arrangement, in favor of quick negotiations
immediately after the elections." Tamir said that Peretz
believes that terrorism can be prevented by empowering those
Palestinians who want to negotiate with Israel. She said
that these Palestinians need to show they can deliver
something to the people.


6. (SBU) Tamir also confirmed that Labor is also discussing
inclusion of a so-called "Hong Kong" model for inclusion in
its peace process platform, as reported December 28 in
Ha'aretz. This option would provide for the long-term
leasing by the GOI of settlement blocs from the Palestinians,
adopting the model of Great Britain and China with regard to
Hong Kong. (Comment: We are uncertain of the extent of
Peretz's knowledge of Asian history. Hong Kong (Hong Kong
island and Kowloon) was ceded in perpetuity to Britain after
China's defeat in the Opium Wars. The New Territories were
leased to Britain by the Qing Dynasty government in 1898
under duress. This is hardly a historical model that a
left-leaning Labor politician should want to emulate to solve
the settlement question. End comment.)

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