ISRAEL MEDIA REACTION

UNCLAS SECTION 01 OF 08 TEL AVIV 001295

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

--------------
SUBJECTS COVERED IN THIS REPORT:
--------------


1. Mideast


2. Iraq

--------------
Key stories in the media:
--------------


Major media reported that on Sunday, the Central
Elections Committee announced it was correcting a
mistake in the Knesset elections results, taking one
Knesset seat from the Labor Party and adding it to
United Arab List-Arab Renewal, headed by Ahmed Tibi.
At this time, the composition of the 17th Knesset
appears as follows:
Kadima: 29; Labor: 19; Shas: 12; Likud 12; Yisrael
Beiteinu: 11; National Union-National Religious Party
9: Pensioners' Party: 7; United Torah Judaism: 6;
Meretz: 5; Arab parties: 10 (Balad-National Democratic
Assembly: 3; Hadash: 3; and United Arab List-Arab
Renewal: 4).

Over the weekend, all media reported on Labor Party
Chairman Amir Peretz's attempts to form a coalition
with right-wing parties. This morning, Israel Radio
quoted Peretz's associates as saying he is not
interested in heading a right-wing government.

Leading media reported that over the weekend, the GOI
directed the IDF to cut off all contacts with
Palestinian security forces under the authority of the
Hamas government. Over the weekend, all media quoted
Deputy State Department Spokesman J. Adam Ereli as
saying on Friday: "We've advised our mission in
Jerusalem, as well as other missions around the world
that have dealings with the Palestinian Authority, that
there should be no contact between US government
officials and PA officials who are under the authority
of the Prime Minister or any other minister in the
Hamas-led government. This includes ... working-level
officials in those ministries." On Sunday, Ha'aretz
quoted former President Bill Clinton as saying in a
weekend interview with BBC-TV that he backs dialogue
with the Hamas-led government if several conditions are
met, in particular a halt to violence. Leading media
reported that on Sunday, in an interview with the
Chinese news agency Xinhua, Palestinian FM Mahmoud
Zahar, who is considered a Hamas hard-liner, reiterated
Hamas's desire to eliminate Israel and replace it with
an Islamic state. On Sunday, Yediot featured
Palestinian PM Ismail Haniyeh's political adviser,
Ahmed Yousef, who lived for more than 20 years in the
US, where he headed a research center that served as a
cover for Hamas activity. Over the weekend, major
media reported on Haniyeh's call to end public displays
of weapons, and on Palestinian in-fighting.

On Sunday, Ha'aretz and other media reported that over
the weekend the IDF pounded the northern Gaza Strip
with a massive artillery, air, and naval barrage,
targeting Qassam launch sites. All media reported that
two Israeli Arabs were arrested in the Bet She'an area
on Sunday on suspicion of planning a terrorist attack.
They were unarmed. All media reported that the police
had declared a high alert in northern Israel.

Ha'aretz reported that last Wednesday, the day after
Election Day, Elad, one of two organizations working to
purchase houses and settle Jews in Jerusalem
neighborhoods, took control of two large, populated,
and sensitive compounds in two East Jerusalem
neighborhoods, Silwan and A-Tur (on the Mount of
Olives).

Yediot reported that Attorney General Menachem Mazuz
said that the agreement between the Hebron settlers and
the IDF and the state prosecutor's office, which
provided for the voluntary evacuation of settlers from
the city's wholesale market, is null and void. Mazuz
was quoted as saying that the agreement, which said
that the settlers could eventually return to the
market, contradicted the Chief of Staff's instructions.

Ha'aretz reported that Arab banks holding accounts
belonging to the PA have recently tried to convince the
PA to withdraw its assets from the banks. Ha'aretz
wrote that the Arab banks apparently fear that banks in
the US and other Western countries could impose
sanctions on them for holding terrorism-related money.

Yediot cited The Washington Post as saying that Iran
would respond to an attack on its nuclear installations
with a worldwide terror offensive. Yediot wrote that
The Washington Post cited an unnamed terrorism and
intelligence expert. Major media cited an Iranian
announcement that Iran devised the "fastest and most
advanced" torpedo in the world. Maariv reported that
Israeli Foreign Ministry official Meir Yitzhaki was
chosen to represent Western countries at a professional
advisory committee to the UN General Assembly dealing
with WMD proliferation. Maariv noted that the
committee has been inactive for three years.

Ha'aretz reported that American televangelist John
Hagee told Jewish American community leaders over the
weekend that the 40 million evangelical Christians in
the US support Israel and that he plans to utilize this
power by launching a Christian pro-Israel lobby --
Christians United for Israel. Hagee was quoted as
saying that the new lobby will be more powerful than
AIPAC.

Ha'aretz cited the hope of Israeli and Palestinian
professors that the modest math exhibition that opened
on Sunday in the Bloomfield Science Museum in Jerusalem
will be the progenitor of a Palestinian science museum.

Yediot reported that Egypt plans to turn the Taba
border crossing into a large duty-free zone in order to
attract Israeli tourists to the Sinai.

The Jerusalem Post quoted Israeli and Jordanian Health
Ministry representatives as saying that, three weeks
after the discovery of bird flu in the area, Israeli
and international health authorities are being
cautiously optimistic about their progress in combating
the disease in the region, despite the fact that they
are still unable to predict its spread.

Major media reported that on Sunday, US Secretary of
State Condoleezza Rice and British Foreign Secretary
Jack Straw made a surprise visit to Baghdad.

Yediot reported that Shimon Peres, No. 2 in Kadima,
will meet with Pope Benedict XVI at the Vatican on
Thursday.

--------------

1. Mideast:
--------------

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

Senior Middle East affairs analyst Zvi Bar'el wrote in
independent, left-leaning Ha'aretz: "In the American
hierarchy of principles, there is apparently a
distinction between righteousness and interests. It is
... even justified that interests take priority. Even
Hamas understands this."

Ha'aretz editorialized: "If the Palestinians have
chosen to ignite even the region Israel has evacuated,
it is a worrisome precedent with regard to future
withdrawals. Accordingly, Olmert must not radiate
weakness."

Senior op-ed writer Akiva Eldar commented in Ha'aretz:
"Labor and Meretz must not join a 'no partner'
government under any circumstances.... Without peace,
there will be no money to raise the minimum wage or old-
age stipends in any event."

Political parties commentator Sima Kadmon wrote in mass-
circulation, pluralist Yediot Aharonot: "This is a
fraud. A blatant violation of a campaign promise. The
nightmare of anyone who voted for the Labor Party as a
left wing party, and could get a right wing
government."

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


I. "Let Hamas Do Its Work"

Senior Middle East affairs analyst Zvi Bar'el wrote in
independent, left-leaning Ha'aretz (April 2): "In the
American hierarchy of principles, there is apparently a
distinction between righteousness and interests. It is
not surprising and is even justified that interests
take priority. Even Hamas understands this. And not
only today. It demonstrated this when it declared the
first cease-fire, the hudna, and when it modified the
name to tahdiya (calm). It is also acting this way
now, as its leaders begin to formulate a "new language"
in referring to Israel.... No disaster would occur, and
the plan for unilateral convergence would not be
hindered one bit if Israel's new ministers soon begin
to meet with their Palestinian colleagues -- not,
heaven forbid, to discuss the convergence plan or
jointly forge a political solution, but just to
coordinate administrative matters, really. Hamas would
not emerge any stronger from such meetings. After all,
they are already the elected government. On the
contrary, if it is strengthened by meeting with Israel,
this would demonstrate that it recognizes Israel. And
there is another latent issue: Rice noted that
Washington supported the disengagement plan from Gaza,
among other reasons, because what started as a
unilateral step 'was ultimately coordinated with the
Palestinians.' This is a not very subtle hint to those
who still believe in a unilateral withdrawal or who
think that the previous withdrawal was truly
unilateral. If this is also going to be the American
condition in the future, it would be best to start
recognizing the new 'non partners.'"

II. "Ensuring Convergence"

Ha'aretz editorialized (April 2): "Ensuring peace and
quiet in the south [of Israel] and creating an
effective balance of deterrence with the Palestinians
in Gaza is very important. Kadima's achievement in the
elections was smaller than the party had hoped, a fact
that will cast a shadow over attempts by Olmert to
implement his convergence plan. Continued terror in
the Negev will make it difficult to persuade others
that if the attempt to move ahead with the road map
fails, a major unilateral withdrawal from the West Bank
should be implemented. If the Palestinians have chosen
to ignite even the region Israel has evacuated, it is a
worrisome precedent with regard to future withdrawals.
Accordingly, Olmert must not radiate weakness. So that
he does not, the Israel Defense Forces must continue to
take aggressive measures against the Qassam launchers,
as it began to do on Saturday."

III. "Peace Talks First, Wage Talks Later"

Senior op-ed writer Akiva Eldar commented in Ha'aretz
(April 3): "Who said last week's elections were a
referendum on the issue of dividing the land of
Israel?.... Less than a week later, our elected
officials are involved in coalition negotiations to
determine which party will get the Ministry of
Finance.... Perhaps the Hamas victory has already put
paid to the vision of peace, fulfilling the prophecy
that Abu Mazen is not a partner for a final agreement.
Labor and Meretz must not join a 'no partner'
government under any circumstances. In light of the
abyss gaping below us, the new government must make
every possible effort to renew talks with the
Palestinians. Amir Peretz and Meretz chairman Yossi
Beilin must focus their coalition negotiations on an
uncompromising demand to form a coalition for
negotiations. Without peace, there will be no money to
raise the minimum wage or old-age stipends in any
event."

IV. "Laboring to Fool Us"

Political parties commentator Sima Kadmon wrote in mass-
circulation, pluralist Yediot Aharonot (April 3): "This
is a fraud. A blatant violation of a campaign promise.
The nightmare of anyone who voted for the Labor Party
as a left wing party, and could get a right wing
government. Not to mention those who were persuaded to
vote for Labor just to strengthen it in Kadima's
government. Even a country with a memory as short as
ours has not yet forgotten Peretz's promise not to sit
in one government with the Likud.... A coalition
partnership between the Labor Party and the National
Union-National Religious Party? Really, there is a
limit.... Let us not be confused: The government for
which the right wing parties are striving is intended
only for one thing: To postpone, if not to halt, the
process of separation from the Palestinians. And what
does Peretz want? He too wants only one thing: To be
prime minister. And if on the way it is possible to
send Olmert to the devil, and shaft Peres, Ramon and
Itzik: So much the better. Anyone who thinks this is a
tactic, a maneuver aimed at gaining strength versus
Olmert, does not know what he is talking about.
Peretz's appetite reaches much further than a
ministerial position.... Peretz would do well to come
to his senses quickly. To acknowledge the fact that
Kadima is the largest party, and it will be the one to
form the government, which will be headed by Olmert....
If this does not happen, Peretz will be responsible for
the insane prices that the public will pay on the way
to forming the government. He will pay a heavy
personal price for not keeping his promises. There is
a deep abyss between me and the Likud -- he said on the
eve of the elections. There will be such an abyss
between him and his voters."

--------------

2. Iraq:
--------------

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

The Director of the Interdisciplinary Center's Global
Research in International Affairs Center, columnist
Barry Rubin, wrote in the conservative, independent
Jerusalem Post: "It is ... dangerous for the US
government to do what can certainly be called 'the
right thing' in theory."

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

"When 'Being Right' Is Bad Policy"

The Director of the Interdisciplinary Center's Global
Research in International Affairs Center, columnist
Barry Rubin, wrote in the conservative, independent
Jerusalem Post (April 3): "People tend to like those
who are on their side. American and other coalition
forces fight and risk their lives largely to protect
the majority from terrorists whom they despise. As
long as this relationship continues the US task in Iraq
may be heavy but it is not impossible. But what if
that equation should change; what if, instead of
saying, 'Thanks to the Americans, who are helping us be
in power,' Shi'ites shifted to claiming, "Down with the
Americans, who are keeping us from exercising power"?
The anti-American forces in Iraq would increase, in
very rough terms, from about one-tenth of the
population (i.e., some of the Sunni Arabs) to half or
even more. Such a situation would make what has gone on
in Iraq so far seem like a picnic by comparison. That
is why it is so dangerous for the US government to do
what can certainly be called 'the right thing' in
theory.... For the US government to take sides with
Sunni and Kurds against [Acting Prime Minister Ibrahim
Al-Jaafari] injects America into Iraqi internal
politics in a way that will not endear it to the Iraqi
majority.... If [President Bush] actually thinks that
the US should stay until the insurgency is repressed
and an ideal democracy is installed, his administration
is heading for far more trouble than it has yet
accumulated."

JONES