ISRAEL MEDIA REACTION

UNCLAS SECTION 01 OF 07 TEL AVIV 001745

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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Major media reported that today in Washington,
President Bush, UN Secretary-General Kofi Annan, and
German Chancellor Angela Merkel will address the
American Jewish Committee (AJC),which celebrates its
100th anniversary. Israel Radio noted that no
representative of the GOI will participate in the
event, due to the swearing-in of the government.
Maariv, The Jerusalem Post, and Israel Radio quoted
prominent liberal Israeli writer A. B. Yehoshua as
saying during a panel discussion that was part of the
AJC celebrations held at the Library of Congress on
Tuesday that Zionism was the only thing that succeeded
in the Jewish world in the past 100 years. The media
reported that Yehoshua's comments angered senior Jewish
American leaders.

All media highlighted the swearing-in of the 25 members
of Ehud Olmert's new government, which is expected to
take place at the Knesset today. At noon, the
electronic media reported that the Knesset unanimously
elected MK Dalia Itzik (Kadima) to the post of Speaker
of the Knesset. Ha'aretz quoted political sources as
saying that Olmert plans to implement the convergence
plan to define Israel's borders in the West Bank within
two years. Israel Radio reported that further to
managing culture, sports, and Jerusalem affairs, Ophir
Pines-Paz (Labor) will be science minister. In an
interview with Yediot, designated education minister
Yuli Tami (Labor) was quoted as saying that the Israeli
school systems will prepare students for the
convergence move.

An interview with PA Chairman [President] Mahmoud Abbas
led Maariv's coverage. Abbas was quoted as saying that
Israel-PA negotiations must resume immediately, that
Hamas is not an obstacle to talks, that he has a
mandate to reach an agreement with Olmert, and that the
opportunity should not be missed. Ha'aretz quoted
Khaled Mashal, head of Hamas's political bureau, as
saying in a public appearance in Damascus Wednesday
that Hamas could offer a "serious step" toward peace if
Israel withdraws from all lands occupied in 1967 and
recognizes Palestinian refugees' "right of return."
However, Mashal was quoted as saying that he did not
think Israel was likely to do in the foreseeable
future, leaving the Palestinians no option but to
continue to resist the occupation.

Like other media, Yediot reported that Morocco, Italy,
Sweden, and France have refused to admit Hamas
representative in their countries. This morning,
Israel Radio reported that Egyptian FM Ahmed Ali Abu al-
Gheit canceled a meeting with his PA counterpart,
Mahmoud Zahar. Ha'aretz reported that the US is
thwarting several initiatives by donor states to bypass
the Hamas government and get money directly to the
Palestinians. Ha'aretz mentioned that the British
government, in partnership with the European Commission
and the Arab League, suggested last week that donor
states' money and the taxes that Israel collects for
the PA be transferred directly to the Palestinians
through the World Bank-managed Holst Fund. The
newspaper reported that the US objected to the plan and
blocked it, with the encouragement of senior officials,
and that this was one of the reasons for Quartet envoy
James Wolfensohn's resignation on Sunday. Ha'aretz
reported that the leaders of the Quartet are expected
to discuss these issues at a meeting with UN Secretary
General Kofi Annan next Tuesday. Ha'aretz wrote that
the US has also prevented the transfer of USD 71
million in Arab League funds directly to Palestinians'
accounts. The newspaper reported that on Wednesday, a
Western diplomat familiar with the matter accused
Deputy National Security Advisor Elliott Abrams and
Assistant Secretary of State David Welch of recklessly
trying to engineer the collapse of the PA's systems.
The diplomat was quoted as saying that the two assume
that this would lead to the collapse of the Hamas
government and to Fatah's regaining control. Ha'aretz
said that outgoing Defense Minister Shaul Mofaz and his
senior advisor, Amos Gilad, have encouraged the US to
foil any initiative to transfer funds for vital
services in the territories.

Ha'aretz quoted Egyptian President Hosni Mubarak as
saying Wednesday, in an interview with American media
outlets, that Israel needs to respond favorably to
peace efforts and understand that unilateral measures
will not bring lasting peace. However, Mubarak was
quoted as saying that peace negotiations cannot begin
until the Palestinians resolve their internal
disagreements.

The Jerusalem Post and other media reported that on
Wednesday, at a reception for diplomats, church
leaders, and heads of non-Jewish communities in Israel,
President Moshe Katsav called on Palestinian leaders to
respect the conditions set by the Quartet for renewal
of the political dialogue between Israel and the
Palestinians. Katsav was quoted as saying that such a
process would eventually lead to the realization of the
proposed two-state solution.

Major media reported that the police and the IDF are
bracing for the possible evacuation today of three
settler families from a Palestinian home in Hebron.
The media reported that the High Court of Justice is
expected to rule today on a petition against the
eviction order submitted by the Jewish community of
Hebron.

All media reported that Sgt. Hananel Dayan, one of 120
soldiers who received commendations at Wednesday's
traditional Independence Day ceremony at the Israeli
President's Residence, refused to shake hands with IDF
Chief of Staff Lt. Gen. Dan Halutz, in protest over
what he called the "expulsion" of the Gaza settlers.

The Jerusalem Post reported that following
assassination threats by Hamas and Al Qaida against top
Fatah officials, Fatah gunmen in the Gaza Strip have
announced the formation of a new security force to
protect their leaders.

The Jerusalem Post quoted former US Ambassador to
Israel Daniel Kurtzer as saying at Harvard University
last week that the asymmetrical relationship between
Israel and the Palestinians caused the failure of the
Oslo peace process. However, The Jerusalem Post quoted
Kurtzer as saying that both sides were to blame for
lacking political strategies to follow their military
strategies.

Leading media reported that the US, Britain, and France
are seeking to pass a UN Security Council resolution
that would make the Council's earlier demand mandatory.
Israel Radio reported that during their meeting at the
White House on Wednesday, President Bush and German
Chancellor Angela Merkel said that Iran should not be
allowed to obtain nuclear weapons. Israel Radio quoted
Russia's UN envoy as saying that Moscow would be
prepared to back a UNSC draft resolution on the Iranian
nuclear crisis if its concerns were addressed. Citing
news agencies, Ha'aretz reported that on Wednesday the
Iranian military rejected a statement by Mohammad
Ebrahim Dehghani, a top Revolutionary Guards commander,
according to a dispatch published by the Iranian
Student News Agency on Tuesday, that Israel would be
Iran's first retaliatory target in response to any US
attack.

Hatzofe quoted Undersecretary of State for Political
Affairs Nicholas Burns as saying Tuesday in Paris that
the US and France intend to introduce a new "strongly
worded" UN resolution against Syria.

Maariv reported that on Tuesday, two PA policemen were
killed and two others were wounded by a Qassam rocket
in the Jebalya refugee camp in the Gaza Strip. The
newspaper wrote that the rocket appears to have been
launched in the direction of Israel and that its
trajectory was too short.

Ha'aretz found that Mofaz took advantage of his
authority under the so-called "Intifada Law" to exempt
the IDF almost entirely from liability or property
damage in the territories since September 2000. The
"Intifada Law" was passed in July 2005 as an amendment
to the Torts Law (Liability of the State).

Ha'aretz reported that over 2,500 people, including
public figures from the Israeli Arab sector, took part
in Wednesday's ninth annual march to mark the "Nakba"
(catastrophe),the term used by Palestinians for
Israel's victory in the 1948 War of Independence and
its aftermath. The march took place on the site of the
abandoned village of Umm al-Zinat on Mt. Carmel.

Ha'aretz reported that FM Tzipi Livni has appointed
former journalist Ilan Jonas as her bureau chief.
Jonas, who has been studying at Princeton University
for the past few years, will enter his post in the next
few weeks.
Ha'aretz and Yediot reported that officials of Brandeis
University have removed artwork that depicts injured
and bloodied Palestinian children. The images were
painted by Palestinian teenagers at the request of an
Israeli Jewish student at the Jewish-sponsored college.
AP (cited in Ha'aretz) wrote that the student wanted to
bring the Palestinian viewpoint to the campus, but that
school officials said that the paintings were too one-
sided.

Maariv reported that the American Jewish Committee
(AJC) has suggested to Egyptian President Hosni Mubarak
that he help preserve 12 remaining synagogues in Egypt,
in exchange for their restoration by the AJC.

Yediot cited The New York Times as saying Wednesday
that at a government observatory called Starfire in the
New Mexico desert, the Bush administration is seeking
to develop a powerful ground-based laser weapon that
would use beams of concentrated light to destroy enemy
satellites in orbit.

Major media reported that a US jury in Alexandria,
Virginia, decided on Wednesday that 9/11 conspirator
Zacarias Moussaoui should spend his life in prison
instead of being executed for his role in the hijacked
airliner attacks.

Yediot and Maariv reported that American actor Jim
Carrey arrived in Israel on Wednesday. He will be
staying in the country until Sunday.

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Mideast:
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Summary:
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Military correspondent Amos Harel wrote in independent,
left-leaning Ha'aretz: "The Americans will not get in
the way of [Olmert's] convergence plan.... [However],
without an agreement with the Palestinians, it is
doubtful that Israel will get any American financing
for it."

The conservative, independent Jerusalem Post
editorialized: "[Olmert must be] careful not to
exaggerate Abbas's standing as the 'good cop' compared
to Hamas as the 'bad cop.'"

Block Quotes:
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I. "Ehud Barak as Convergence Chief"

Military correspondent Amos Harel wrote in independent,
left-leaning Ha'aretz (5/4): "At the end of May, Olmert
is slated to make an official visit to Washington. He
will be received with all due ceremony. The Bush
administration, after all, wanted Kadima's victory.
The Americans will not get in the way of the
convergence plan. Iraq and Iran are much higher
priorities for them. Unofficially, the administration
might put out feelers about the possibility of a
withdrawal agreement with the Palestinians, on the
assumption that any agreement could help Abbas continue
in his job. Few know today what is included in the
convergence plan. At this stage, it appears to be
mostly a collection of general ideas. However, if it
is executed, it will be a complex national project.
First, it will be enormously expensive, and without an
agreement with the Palestinians, it is doubtful that
Israel will get any American financing for it.
Secondly, who will plan and execute it for Olmert? The
combined experience of the triumvirate of Olmert-Amir
Peretz-Tzipi Livni on diplomatic and security issues is
fairly limited. In light of the vacuum that has been
created, an interesting idea has come up lately in
defense circles: appointing Ehud Barak to chair the
National Security Council."

II. "Meeting Abbas"

The conservative, independent Jerusalem Post
editorialized (5/4): "Vice Premier Shimon Peres told
The Jerusalem Post this week that a meeting between
Ehud Olmert and Palestinian Authority Chairman Mahmoud
Abbas is likely to take place later this month, after
Olmert returns from his first trip to Washington as
prime minister. The announcement was not surprising.
Olmert had already spelled out his intention, in his
electoral victory speech, to give the Palestinians one
last chance to 'change their ethos, to accept
compromise as soon as possible.' Olmert said then, 'If
they manage to do this soon, we will sit and work out a
plan. If not, Israel will take control of its own
fate...' Olmert must make good on his election night
pledge, both to maintain his credibility and to
demonstrate to the international community -- much of
which strongly prefers a bilateral agreement over
unilateral action -- that he is not running roughshod
over the Palestinians by single-mindedly forging ahead
with his convergence plan. However, he must do so
while being careful not to exaggerate Abbas's standing
as the 'good cop' compared to Hamas as the 'bad
cop'.... The chances that Olmert's talks with Abbas
will produce positive, concrete results are slim, but
the possibility of their facilitating a crack in the
wall of international opposition to the Hamas
government is real. Olmert would do well, therefore, to
publicly frame the discussions very carefully, clearly
explaining Israel's expectations of Abbas and the
Palestinians, and emphasizing that the talks are a last
gasp attempt to salvage bilateralism -- and not
recognition of the legitimacy of the Hamas-dominated PA
that Abbas ostensibly leads."

JONES