ISRAEL MEDIA REACTION

UNCLAS SECTION 01 OF 09 TEL AVIV 001426

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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Mideast

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Key stories in the media:
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Maariv reported that President Bush, Acting PM Ehud
Olmert, German Chancellor Angela Merkel, and UN
Secretary-General Kofi Annan will be the guests of

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honor at the annual convention of the American Jewish
Committee in Washington on May 4.

Over the weekend, all media continued to report on
Qassam rocket launchings and IDF responses. The media
reported that around 15 Palestinians were killed. The
media reported that on Friday, Iyad Abu Alinin, a high-
ranking official in the Popular Resistance Committees
who was the target of the operation, was one of those
killed, along with his 3-year-old son. Leading media
reported that the military branch of Islamic Jihad said
that the movement will not agree to a cease fire,
contradicting an earlier report circulated Sunday that
the Islamic Jihad intended to stop Qassam rocket
attacks on Israel provided that Israel cease its
attacks on launch sites in Gaza. Ha'aretz quoted
Israeli security officials as saying Sunday that Hamas
is close to a decision on initial steps aimed at
retraining the terrorist organizations that are
launching Qassam rockets at Israeli targets. The
Jerusalem Post reported that Hamas officials told the
newspaper that some Fatah-affiliated militias are
behind the latest wave of rocket attacks, in the hope
of prompting a massive IDF operation in the Gaza Strip
that would eventually bring down the new Hamas cabinet.
Minister-Without-Portfolio Tzachi Hanegbi was quoted as
saying in an interview with Israel Radio that Israel
does not plan to engage in a land offensive in the Gaza
Strip for the time being. Israel Radio reported that
UN Secretary-General Kofi Annan intends to convene
representatives of the Quartet in late April to discuss
the situation in the Gaza Strip.

The media quoted Olmert as saying Sunday that Israel
will cut off ties with the PA, view it as a "hostile"
entity, and will act to prevent Hamas from becoming an
established government. The media reported that Olmert
also decided that Israel will refuse to hold meetings
with any public figures from abroad who meet with Hamas
officials. The move is a renewal of the boycott Israel
imposed on officials who met with the late Palestinian
leader Yasser Arafat. Media quoted Olmert as saying
that Israel viewed the Palestinians as "one authority,
and not having two heads," but that Israel would
refrain from a "personal disqualification" of PA
Chairman [President] Mahmoud Abbas. Israel Radio
reported that the IDF has ordered Palestinian forces to
leave the District Coordination Office (DCO) near
Jericho today. Leading media reported that it was
decided at Sunday's cabinet meeting that while the
policy of not transferring USD 50-60 million a month of
customs and tax revenue collected on behalf of the
Palestinians to the PA would continue, Israel would
deduct from this sum money it was owed for electricity,
water, and medical services provided to the
Palestinians. These bills total about USD 30 million a
month. On Sunday, Yediot reported that Hamas suspects
that Fatah people are "concealing" hundreds of millions
of dollars that Yasser Arafat raised many years ago and
holds in accounts abroad. Yediot reported that Israeli
intelligence officials noted that while the Hamas
government has not succeeded in holding discussions,
due to Israeli restrictions, senior Fatah officials,
who are former ministers, continue to function as
acting ministers in a shadow government, with the
purpose of being prepared to recapture control, should
Hamas fail. Leading media reported that over the
weekend, the US and EU terminated their direct aid
payments to the Palestinians. On Sunday, Ha'aretz
quoted a fact sheet distributed by the State
Department, according to which the cut in US aid will
amount to some USD 300 million. On Sunday, Maariv
reported that the Israeli defense establishment urged
limited talks with the PA in order to prevent a
humanitarian disaster in the territories.

Major media quoted Olmert associates as saying during
coalition talks that the next withdrawal from the West
Bank is expected to take place in November 2008.
Yediot and Israel Radio quoted a senior Kadima member
as saying after the first day of the talks that the
Labor Party, Shas, and Yisrael Beiteinu are well placed
to join the coalition. The media reported that the
term "convergence" was erased from the government
guidelines presented by Kadima. On Sunday, Yisrael
Beiteinu leader Avigdor Lieberman confirmed during an
interview to Channel 2-TV that his party would agree to
sit in a cabinet that would carry out an additional
unilateral withdrawal. "We are in favor of creating
permanent borders for Israel. If this issue is
included in the basic peace plan of Olmert, we will
support it. If this is to be a withdrawal without any
purpose or receiving anything in exchange, and without
improving the security situation, we will not be
partners," said Lieberman, stressing that his positions
"are right wing practical, not fanatical." Over the
weekend, Lieberman was quoted as saying that he will
not give up on the Internal Security portfolio. On
Sunday, Maariv reported that the two main figures
representing European foreign policy -- EU FM Benita
Ferrero-Waldner and Javier Solana -- over the weekend
criticized Olmert's plan to carry out a unilateral
withdrawal in the West Bank. Both senior officials
spoke before the European Parliament in Strasbourg.

Israel Radio quoted Olmert as saying in an interview
with TIME Magazine that his withdrawal plan can be
completed through the trust and understanding he and
President Bush have for each other. Olmert was quoted
as saying in the interview that "Bush will emerge in
history as the person who had more courage to change
the Middle East than any person before him." Israel
Radio cited Olmert's belief, as sated in the interview
with TIME Magazine, that Israel should not be at the
forefront of the struggle against Iran.

Yediot cited a Washington Post story that Israeli
representatives visited Washington, warning US
administration representatives that Iran is closing in
on obtaining nuclear capability, and pressuring the US
to attack Iran. The media reported that on Sunday, The
Washington Post and The New Yorker detailed alleged US
plans to attack Iran.

Maariv cited the British newspaper The Sunday Times as
saying that senior members of Israeli intelligence are
angry at the US administration, saying that it harmed
Israeli attempts to infiltrate Al Qaida in Iraq. The
Sunday Times claimed that last October, President Bush
and Director of National Intelligence, Ambassador John
Negroponte exposed the involvement of Israeli
intelligence in the publication of a letter sent by
Osama bin Laden's deputy, Ayman Al-Zawahiri. On
Sunday, Maariv cited the London-based Al-Hayat that
Hamas's military wing in Gaza, under the command of
Mohammed Deif, is holding talks with members of al-
Qaida in Iraq and Jordan.

Maariv reported that an Israeli delegation led by Labor
Knesset member-designate Ami Ayalon will soon leave for
Casablanca for informal talks with senior PLO members
led by Yasser Abed Rabbo, in an attempt to reach
understandings in order to resume the Israeli-
Palestinian dialogue. Maariv wrote that the talks will
be held under the auspices of Moroccan King Mohamed VI.
The Jerusalem Post quoted former FM Shlomo Ben-Ami as
saying on Sunday in East Jerusalem at a launching of
his new book, "Scars of War, Wounds of Peace: The
Israeli-Arab Tragedy," that Israel and the
international community should hold negotiations with
Hamas and continue to fund the PA rather than boycott
it.

Leading media reported that clashes broke out in the
East Jerusalem neighborhood of A-Tur on Sunday, after
police evicted an Arab family that had been squatting
in a newly acquired Jewish home.

Maariv reported that convicted spy Jonathan Pollard
that the entry into the Knesset of Pensioners Party
leader Rafi Eitan, who was Pollard's control officer,
and the talk about the possibility of his being
appointed minister will be like poking a finger in the
eyes of the Americans, which will not cost anything,
but for which Pollard will pay with his life. Maariv
cited Eitan's response that he took action for Pollard
over the years, and that he hopes that it will be
easier for him to contribute to contribute his part in
Pollard's release during his ministership. Maariv also
reported that Eitan's party does not plan to join the
parliamentary lobby for the release of Pollard.

Yediot reported that for the first time, starting next
summer, Israeli students will be able to be employed
legally in the US, since the State Department has
decided to integrate Israel into its Work and Travel
Program. The newspaper reported that the company A. A.
America Israel, which has received a license from the
US Embassy in Israel, has started enrolling Israeli
students into the program.
Citing The Jewish Telegraphic Agency (JTA),The
Jerusalem Post on Sunday featured Jay Zeidman, 22, who
was named White House liaison for the American Jewish
community last month.

Maariv reported that PM Sharon will undergo head
surgery today.

Maariv reported that The Israel Project, a Washington-
based Israel advocacy group, has recruited Yossi
Olmert, the Acting PM's brother, as a fellow lecturer.
Yossi Olmert fled his Israeli creditors a year and a
half ago, when he was bankrupt.

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Mideast:
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Summary:
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Liberal op-ed writer Ofer Shelach commented in mass-
circulation, pluralist Yediot Aharonot: "How can Israel
really deal with the meaning of Ismail Haniyeh's hints
and with the effects of coming to power on Hamas, if
Big Brother is wagging his finger at us from the
sidelines?"

Chief Economic Editor Sever Plotker wrote in the
editorial of mass-circulation, pluralist Yediot
Aharonot: "Preventing the Palestinian Authority from
undergoing an 'Iranization"' process is not only an
Israeli interest.... The Hamas revolution will not stop
at the borders of the Gaza Strip and the West Bank."

The Director of the Interdisciplinary Center's Global
Research in International Affairs Center, columnist
Barry Rubin, wrote in the conservative, independent
Jerusalem Post: "Here's a way to assess the Middle
East's current state that's a real shocker: compare it
to the hopeful expectations of 15 years ago."

Senior op-ed writer Akiva Eldar commented in
independent, left-leaning Ha'aretz: "[The Israeli
government's] reckless policy of boycotting the PA ...
upsets the balance of authority in the territories and
makes the chance for a solution more remote."

Columnist Shlomo Gazit, a former head of IDF
Intelligence, wrote in popular, pluralist Maariv: "I
would not be surprised if the new Hamas leadership is
... waiting for such external intervention in order to
climb down from its perch."

Arab affairs commentator Danny Rubinstein wrote in
Ha'aretz: "It is still too early to say whether the
Hamas government ... is about to fall; but judging by
its performance so far, it can't be expected to last
long."

Block Quotes:
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I. "We Shouldn't Dance"

Liberal op-ed writer Ofer Shelach commented in mass-
circulation, pluralist Yediot Aharonot (April 10): "The
Americans are apparently a people that insist on taking
action. First they went to war in Iraq, the outcome of
which could be destructive.... And now they are
legislating bills against the Palestinian Authority,
which will hasten the day when the territories will
finally sink into poverty and anarchy. The
'Palestinian Anti-Terrorism Act of 2006' is in the eyes
of its initiators a requisite moral act, and a step
towards toppling the Hamas government. For us, it
could have serious consequences.... How can Israel
really deal with the meaning of Ismail Haniyeh's hints
and with the effects of coming to power on Hamas, if
Big Brother is wagging his finger at us from the
sidelines? We should not rejoice at the American anti-
terrorism act, just as we had no reason to rejoice over
the war in Iraq. Reality is much more complex than
what is seen from Washington, and much more painful in
places where American actions have consequences on life
itself. Even those who dance to the tune of the big
and powerful brother, and take pride in writing some of
the sheet music themselves, should not always dance for
joy."

II. "Hamas and the World"
Chief Economic Editor Sever Plotker wrote in the
editorial of mass-circulation, pluralist Yediot
Aharonot (April 9): "Under the guise of 'unity,' an
Iran-like regime is evolving in the Palestinian
Authority.... The real rulers are the various security
and terror organizations, which are subordinate to
secret headquarters.... We ought not to delude

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ourselves with fantasies: The entrenchment of a Hamas
government means the gradual implementation of the
notorious Islamic Charter. The earlier Israel and the
international community act, and the more forceful and
determined that action is ... the better things will be
for everyone. Preventing the Palestinian Authority
from undergoing an 'Iranization' process is not only an
Israeli interest, but it is an interest shared by the
entire Middle East and the world; the Hamas revolution
will not stop at the borders of the Gaza Strip and the
West Bank."

III. "What Went Wrong"

The Director of the Interdisciplinary Center's Global
Research in International Affairs Center, columnist
Barry Rubin, wrote in the conservative, independent
Jerusalem Post (April 10): "Here's a way to assess the
Middle East's current state that's a real shocker:
compare it to the hopeful expectations of 15 years ago.
It's remarkable how far things have gone in the
opposite direction.... What went wrong? Just about
everything. Briefly, the regimes were able to
rationalize their failures by blaming the West in
general, the United States in particular, and Israel.
Posing as defenders of the Arabs and Muslims, using
their traditional methods, the regimes retained control
both in Iran and every Arab state without making real
concessions. A brief list of bad outcomes includes:
Saddam's obduracy, failure to solve the Israeli-
Palestinian conflict, the Iranian government's
continuing, even deepening, radicalism and drive toward
nuclear weapons, little progress toward democracy,
stronger radical Islamist groups, and more terrorism.
Instead of responding to the situation effectively by
changes, the main ideas governing the Middle East
during the previous half-century were reaffirmed. The
problems so visible at the start of the 1990s did not
bring down regimes or force any far-reaching
restructuring."

IV. "The Real Insult"

Senior op-ed writer Akiva Eldar commented in
independent, left-leaning Ha'aretz (April 10): "[The
Israeli government's] reckless policy of boycotting the
PA, including the doctors, teachers and clerks on its
payroll, upsets the balance of authority in the
territories and makes the chance for a solution more
remote. The individual who occupies the office of
prime minister is responsible for collectively
punishing the Palestinian population for voting Hamas
in. This policy not only goes against the call to
negotiate a final solution; it is directed toward a
unilateral return to the Gaza Strip and continuing the
occupation of the West Bank."


V. "Qassam Illusion"

Columnist Shlomo Gazit, a former head of IDF
Intelligence, wrote in popular, pluralist Maariv (April
10): "The military balance of power has not changed.
It is only a matter of time before Israel unsheathes
its sword again. Sooner or later we will witness a
painful terror attack originating from the Gaza Strip,
and as happened four years ago after the Passover night
at the Park Hotel in Netanya, Israel will be required
to change its military response and restore the balance
of deterrence. If and when we do so, this may lead to
the intervention of Palestinian, Arab, and
international elements with the aim of proposing a
solution, which will enable real dialogue, negotiation,
and perhaps even arrangements that will be acceptable
to both sides. I would not be surprised if the new
Hamas leadership is also waiting for such external
intervention in order to climb down from its perch.
Israel's method of handling the Palestinian threat and
all our responses so far, unfortunately, are no more
than an illusion."

VI. "On the Way Down"

Arab affairs commentator Danny Rubinstein wrote in
Ha'aretz (April 10): "It is still too early to say
whether the Hamas government ... is about to fall; but
judging by its performance so far, it can't be expected
to last long. Powerful forces seek its demise -- Arab
leaders, including Palestinian Authority Chairman
Mahmoud Abbas, European countries, the Unites States
and Israel, of course. It is hard to find someone who
is in favor of the elected Muslim government, whose
leaders have made a number of moves to hasten its
collapse.... In its election campaign, Hamas promised
to bring an end to the anarchy in the territories, but
no one can make exact distinctions among the various
armed gangs, each of which purports to be a patriotic
militia. Instead of an end to the anarchy, it has
intensified in the West Bank and Gaza Strip, sparking
much anger among the Palestinian population. In
addition to the worsening security situation, all
Palestinian analysts are predicting the imminent
financial collapse of the PA.... Haniyeh and his
ministers do not have the time to launch their promised
reforms; they are too busy putting out fires, arguing
with Abbas over authority and issuing confused policy
statements. If they continue in this vein, they are
likely to fall quickly."

CRETZ