ISRAEL MEDIA REACTION

UNCLAS SECTION 01 OF 11 TEL AVIV 001913

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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1. Mideast


2. Libya


3. Darfur

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Key stories in the media:
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Israel Radio cited a statement issued Monday by the
White House Press Secretary: "President Bush will
welcome Prime Minister Ehud Olmert of Israel to the
White House on May 23, 2006. The President looks
forward to discussing with the Prime Minister the
strong bilateral relationship between the United States
and Israel, as well as a wide range of regional and
international issues." The radio reported that the
President will devote the entire afternoon and evening
hours to the PM.

The Jerusalem Post reported that President Bush will
not discuss with PM Olmert the details of his
convergence plan when he meets him next week, but that
he would prefer to allow him to outline his vision.
Quoting sources who were at a meeting between National
Security Advisor Stephen Hadley and a group of Jewish
leaders Monday, the newspaper reported that Hadley told
the party: "There will be no maps and no exchange of
letters." The Jerusalem Post reported that Hadley and
his deputy, Elliott Abrams told the Jewish leaders that
any discussion about the details of Olmert's
convergence plan would be premature and that it was
"only the beginning of the conversation" about Israel's
future plans. The newspaper wrote that "in what is
seen as an attempt to lower expectations," the senior
administration officials told Jewish officials that the
purpose of the meeting was simply to "get to know
Olmert." The Jerusalem Post reported that they
stressed that it was now important to build a
relationship with him and learn his thoughts for the US
to keep up its support for Israel. The Jerusalem Post
reported that the issue of providing extra aid to
Israel to finance the convergence plan was not raised
in the preparatory talks, and that according to both
Israeli and American sources, this issue is off the
table for now and will not be raised during Olmert's
visit. The Jerusalem Post reported that Hadley and
Abrams were "very clear" regarding the United States'
refusal to fund salaries for PA employees. The
newspaper quoted Hadley and Abrams as saying that the
US was firm in its belief that while the international
community should provide humanitarian assistance to the
Palestinians, it should not fund the PA salaries. The
Jerusalem Post and other media reported that a team of
Olmert's advisers, headed by his chief of staff Yoram
Turbowicz and Dov Weisglass, met with Hadley and with
Secretary of State Condoleezza Rice to discuss the

SIPDIS
details of Olmert's visit.

Ha'aretz quoted Israeli sources as saying Monday that
the U.S. administration is working behind the scenes to
bolster the security forces under the control of PA
Chairman [President] Mahmoud Abbas, Israeli sources
said Monday. According to the sources, the US is also
promoting the creation of a new Palestinian
administration that will manage the border crossings in
the Gaza Strip. Ha'aretz wrote that the same sources
interpret the US administration's moves as indicative
of its desire to preserve the status of Abbas in the
PA. Ha'aretz wrote that a key figure involved in these
activities is General Keith Dayton, who is responsible
for security coordination in the territories, and
maintains close ties with Abbas's bureau and the
Defense Ministry in Israel. The newspaper reported
that since US law bars holding any direct contact with
Palestinian security forces or institutions that are
directly or indirectly controlled by the Hamas-led
Palestinian government, Dayton is in contact solely
with Abbas, officials such as Saeb Erekat, and
institutions directly controlled by Abbas. Ha'aretz
reported that the main Palestinian security force with
which Dayton has links is the Presidential Guard, which
is responsible for the personal security of the
Palestinian leader, as well as his offices and
residence.

Israel Radio quoted Amir Peretz as saying Monday in
Jerusalem in his first speech as Defense Minister,
before a conference of the Movement for Quality
Government in Israel, that he hopes that the
convergence plan will be implemented with full assent
of the Palestinians and the international community.
He was quoted as saying that sincere and serious
efforts would be made to reach a negotiated agreement
before any decision regarding a unilateral step.
Peretz emphasized the fact that a majority in the
Knesset and among Israeli citizens supports the
implementation of the convergence plan.

Ha'aretz printed a Reuters story that the EU pledged on
Monday to resume payments to the Palestinians as soon
as possible, but that it said that a new mechanism
required Israeli support. EU Ambassador to Israel
Ramiro Cibrian-Uzal was quoted as saying in an
interview with The Jerusalem Post that the mechanism
will be crafted in such a way as to encourage Israel to
funnel the PA tax revenues it is withholding toward
Palestinian humanitarian aid. Cibrian-Uzal was also
quoted as saying that the EU does not support
unilateral border moves. The Jerusalem Post reported
that on Monday, the Al-Aqsa Martyrs Brigades, the armed
branch of Fatah, threatened to strike at US and
European interests in response to international
sanctions on the PA. The Jerusalem Post wrote that
another armed group affiliated with Fatah, the Abu Rish
Brigades, threatened to launch a new Intifada unless
the international community agreed to fund the PA.

Major media, including Ha'aretz and The Jerusalem Post,
reported that on Monday, the family and friends of
American teen Daniel Wultz, who was killed in the
latest Tel Aviv bombing held a memorial service in
Jerusalem to pay their last respects to Daniel before
his body was flown to his home in Weston, Florida, for
burial. The media reported that US Ambassador to
Israel Richard Jones offered condolences to the
bereaved family and placed a triangular folded US flag
on the casket. Ha'aretz quoted the Ambassador as
saying: "Although the bloodthirsty terrorists took
Daniel's life, they cannot deprive us of his spirit."

Leading media reported that on Monday, in an address
broadcast on Palestinian television and radio on the
anniversary of the Nakba, the "catastrophe" of the
establishment of the State of Israel, Abbas called on
Israel to abandon its plans for unilateral steps in the
West Bank and return to the negotiating table. Yediot
reported that Abbas reiterated his call for an
international conference to resolve the Israeli-
Palestinian conflict. Ha'aretz also quoted Abbas as
saying that "Israel must also release the funds of the
Palestinian people and abandon its plans for unilateral
withdrawal because not doing so will lead to a regional
conflagration and an end to the chances for peace for a
long time."

All media reported that three Islamic Jihad militants
were wounded Monday evening in an IAF strike east of
Khan Yunis in the Gaza Strip. This morning, Israel
Radio quoted Israeli security sources as saying that
Qassam rocket fire into Israel has decreased over the
past few days and that it is less accurate.

Israel Radio reported that last night in a building of
Petah Tikva in central Israel, security forces found
and arrested 240 Palestinians who were residing in the
country illegally.

The Jerusalem Post reported that in Damascus on Monday,
an Arab League committee called for greater efforts to
block trade with Israel, but that fewer than two-thirds
of the Arab states attended the talks on a boycott that
"has largely run out of steam."

Major media reported that on Monday, at a conference
held by Tel Aviv University's Jaffee Center for
Strategic Studies, former IDF Intelligence chief Aharon
Zeevi-Farkash warned of an impending world jihad
"tsunami" that he said may soon descend on the entire
Middle East. Zeevi-Farkash was quoted as saying that
Iranian President Mahmoud Ahmadinejad has been
overheard promising the "end of history in two or three
years," and that the Iranian threats be taken
seriously, saying that Tehran will soon have nuclear
tipped surface-to-surface missiles with a range of
5,000 kilometers, putting Europe within striking
distance. Media also reported that Zeevi-Farkash
warned that Israel should not rule out the possibility
of a conventional war against Islamic militants. He
was quoted as saying that he foresees this war breaking
out on Israel's northern frontier, against Syria and
Hezbollah.

Major media reported that the State Department
announced Monday that it will remove Libya from the
list of state sponsors of terrorism in 45 days as part
of a three-pronged process of normalizing U.S.-Libyan
relations, declaring that Libya was "out of the
terrorism business." Secretary of State Condoleezza
Rice announced the restoration of full diplomatic
relations with Libya and that it was being rewarded for
its "renunciation of terrorism and the excellent
cooperation Libya has provided to the United States" in
the war on terror. Yediot quoted Israeli political
sources as saying Monday that Israel knew about the
Washington-Tripoli contacts. The newspaper quoted a
senior GOI source as saying Monday that a warming of
relations between Israel and Libya should not be
expected. In another development, Yediot reported that
a Libyan diplomat who holds a senior position at the UN
institutions in Geneva visited Israel several months
ago.

Yediot reported on a draft resolution presented to the
UN Security Council, calling on Syria to take steps to
prevent further weapons transfers into Lebanese
territory.

Maariv and other media quoted Labor Party members as
saying that the party might split and that six of its
Knesset members might join Kadima as an independent
faction. Speaking on Israel Radio this morning,
Education Minister Yuli Tamir (Labor) said that she was
unaware of such developments. The Jerusalem Post
reported that Meretz members, including senior MK Ran
Cohen, are planning to present a motion to bring
forward elections for the party's leader to replace
Yossi Beilin. The motion will be voted on at the party
convention next month.

Leading media (banner in Maariv) cited data released
Monday by the GOI's Central Bureau of Statistics (CBS)
that in the first quarter of 2006, Israel's GDP grew by
a record 6.6 percent. Business sector growth was 10.6
percent in the first quarter of 2006, compared with 7
percent in the previous quarter and 6.1 percent in the
third quarter of 2005. The CBS was cited as saying that
private consumption shot up by 10.3 percent in the
first quarter of 2006 -- marking an 8.7 percent rise
per capita after a 1 percent decline in the previous
quarter. The 2006 figure reflects a 14.6 percent
increase in purchases of durable goods per capita.

Major media reported that senior Kadima members
associated with Olmert are lobbying the Knesset for the
election of former Ashkenazi Chief Rabbi Israel Meir
Lau -- who presently serves as Chief Rabbi of Tel Aviv-
Jaffa -- to the position of President of Israel. The
vote will take place in about a year. Yediot and
Maariv reported that National Infrastructure Minster
Binyamin Ben-Eliezer (Labor) has requested the blessing
of Shas party mentor Rabbi Ovadia Yosef for his running
for president. Yediot reported that former FM David
Levy and former Knesset Speaker Reuven Rivlin are also
interested in the post, and listed the possible names
of High Court Justices Aharon Barak and Mishael
Cheshin, who the newspaper said are less likely to join
the fray.

All media reported that on Sunday, outgoing Industry,
Labor, and Trade DG Ra'anan Dinur was installed as the
DG of the Prime Minister's Office.

Israel Radio reported that Minister for Pensioner
Affairs Rafael "Rafi" Eitan, who was the control
officer of convicted spy Jonathan Pollard, refused to
sign a petition for his release, to be presented to
Olmert before his trip to the US. Eitan was quoted as
saying that Pollard's interest should be advanced
through private, not public moves. The petition was
launched by MK Uri Ariel (National Union-National
Religious Party).

Leading media reported that Olmert has appointed Motti
Sklar as DG of the Israel Broadcasting Authority (IBA).
Sklar is currently DG of the Second Authority for
Television and Radio.

Ha'aretz reported that the Transportation Ministry is
not likely to approve the Israeli airline Arkia's
request to operate regular flights to New York.

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

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

Independent, left-leaning Ha'aretz editorialized: "A
sign of convergence of views between Fatah and Hamas
should be welcomed, especially when the direction in
which they are moving is a positive one."

Deputy Managing Editor and right-wing columnist
Caroline B. Glick wrote in the conservative,
independent Jerusalem Post: "Olmert's assertion that
the existence of isolated Israeli communities in Judea
and Samaria [i.e. the West Bank] is a root cause of the
Palestinian and Arab war against Israel today is
exposed in all its strategic blindness."

Chief Economic Editor Sever Plotker wrote in the
editorial of mass-circulation, pluralist Yediot
Aharonot: "The moral groundwork has already been laid
for historic reconciliation with jihadist Islam. In
that sense, at least, from now on Israel is living on
borrowed time."

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


I. "Don't Be Dismissive"

Independent, left-leaning Ha'aretz editorialized
(5/16): "Last week, Marwan Barghouti of Fatah and
Sheikh Abd al-Halk al-Natshe of Hamas signed the
'National Reconciliation Document,' the first of its
kind, from the Hadarim Prison where they are serving
time. Khaled Mashal and others rushed to reject the
document before the ink with which it was printed had
dried; but in reality, this is an attempt to create a
platform for talks on cooperation between the various
Palestinian factions.... For the first time, the
document refers to the willingness of senior Hamas
officials to establish a Palestinian state alongside
Israel, based on the 1967 borders, and to the need to
respect agreements signed between Israel and the
Palestinians.... The second conclusion stemming from
the document is that Hamas is not monolithic, and that
a more lenient and well-disposed approach may reinforce
the more practical position in the organization -- and
all out of a desire to promote the establishment of an
independent Palestinian state and to gain international
economic support. Israel must talk with the legitimate
representatives of the Palestinians. At present, in
the wake of elections held with Israel's consent,
legitimate Palestinian representation is shared by
Mahmoud Abbas and Hamas.... The conclusion is that a
sign of convergence of views between Fatah and Hamas
should be welcomed, especially when the direction in
which they are moving is a positive one. Meetings
between religious leaders, Muslims and Jews, should be
encouraged, and should include members of the Islamic
Movement in Israel, Israeli rabbis such as Michael
Melchior, and also members of Hamas. And this should
not be regarded as surrendering to terrorism, or giving
up the basic demands Israel posed for holding political
negotiations."

II. "Ehud Olmert's Mythological Settlements"

Deputy Managing Editor and right-wing columnist
Caroline B. Glick wrote in the conservative,
independent Jerusalem Post (5/16): "Last Friday the
PA's Hamas Prime Minister Ismail Haniyeh said, 'From
Lebanon to the West Bank, the Zionist enterprise is in
retreat.' Haniyeh contrasted this perceived retreat
with what he views as the rise of the Palestinians on
all fronts.... Against statements like Haniyeh's,
Olmert's assertion that the existence of isolated
Israeli communities in Judea and Samaria [i.e. the West
Bank] is a root cause of the Palestinian and Arab war
against Israel today is exposed in all its strategic
blindness. Far from moderating the Palestinians,
Israel's retreat from Gaza last summer radicalized them
and their allies throughout the Islamic world by
fanning their faith that Israel will one day disappear
completely.... In light of all of this, it is
terrifyingly clear that Israel's new Prime Minister has
placed as the centerpiece of his government's goals the
implementation of a policy that is based on mythology
and will lead not to the enhancement of Israel's
national security and the strengthening of the forces
fighting the global jihad, but to the destabilization
of Israel's national security and a strategic defeat
for the nations, led by the US, that are fighting the
war against Islamofascism."

III. "On Borrowed Time"

Chief Economic Editor Sever Plotker wrote in the
editorial of mass-circulation, pluralist Yediot
Aharonot (5/16): "The media ran a picture of the Jewish-
American linguist, Professor Noam Chomsky, making a
solidarity visit at Hizbullah headquarters in Lebanon.
One might regard both the incident and Chomsky's
statements in support of Hizbullah as an evanescent,
curious oddity.... But one might also regard the words
of praise that Chomsky had for Hizbullah and Iran as an
expression -- one of the expressions -- of a troubling
and dangerous trend that has become increasingly
popular among the intelligentsia in the West:
reconciliation with fanatical Islam and regarding it as
a legitimate liberation movement. Liberation from
what? That, of course, is clear: from the yoke of
American-Israeli colonialism and oppression....
Regarding the Iranian issue, the opinion that is
beginning to crystallize in the liberal-Left of Europe
and the United States is that Tehran has the full right
to develop nuclear capabilities, including military
capabilities, as long as the US and Israel also do....
[Following a successful Iranian nuclear test],
statesmen would air soft condemnations, and George
Bush, whose public standing has reached an all-time
nadir in any event, would make an angry appearance at a
press conference and lose a few more popularity
points.... Left-wing intellectuals would explain that,
all the problems this entails notwithstanding, the
'Iranian bomb' serves as a necessary counterweight
against the American occupation of Iraq and the Israeli
occupation of Palestine.... The moral groundwork has
already been laid for historic reconciliation with
jihadist Islam. In that sense, at least, from now on
Israel is living on borrowed time."

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2. Libya:
--------------

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

Intelligence affairs reporter Ronen Bergman wrote in
mass-circulation, pluralist Yediot Aharonot: "Libya's
repentance is a shining, if isolated, medal of
excellence on George Bush's chest."

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

"'Crazy' Libya Turned Into a Good Kid"

Intelligence affairs reporter Ronen Bergman wrote in
mass-circulation, pluralist Yediot Aharonot (5/16):
"Libya's repentance is a shining, if isolated, medal of
excellence on George Bush's chest. It is also evidence
used by the 'neoconservatives,' a group of senior
officials serving in the [US] Department of Defense,
who are in charge of shaping the administration's
foreign policy, that an aggressive, consistent foreign
policy works.... On the other hand, the Israeli Mossad
failed twice: first when it didn't succeed in obtaining
any significant information about Libya's nuclear
project, which was at a quite advanced stage -- and
second, when its staff learned about Qadhafi's dramatic
twist from the newspapers."

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3. Darfur:
--------------

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

Shlomo Avineri, Hebrew University Professor of
Political Science and former director-general of the
Foreign Ministry, wrote in the conservative,
independent Jerusalem Post: "The way [Israel] treats
the [Darfur] refugees should be addressed on the only
meaningful plane -- that of basic humanitarian
compassion."

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

"The Doors Are Closed"

Shlomo Avineri, Hebrew University Professor of
Political Science and former director-general of the
Foreign Ministry, wrote in the conservative,
independent Jerusalem Post (5/16): "As a state, Israel
has over the years had to balance political
calculations with moral precepts. Not always did it
emerge from the equation with flying colors.... But
these complexities are not relevant in the Darfur case,
where the way we treat the refugees should be addressed
on the only meaningful plane -- that of basic
humanitarian compassion. It is a moral duty for
Israel, a nation built by refugees, to follow this
example. Otherwise, all the lofty talk about 'Never
again' and 'the world's silence' is mere hypocrisy.
Prime Minister Ehud Olmert and Foreign Minister Tzipi
Livni have a chance to make the world a little less
cruel for a small number of people."

JONES