(C) LIKUD MK STEINITZ ADVOCATES DISMANTLING AND

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 002643 SIPDIS E.O. 12958: DECL: 06/30/2016 TAGS: PREL PGOV PTER KWBG KDEM KPAL MOPS EG IR IS ISRAELI PALESTINIAN AFFAIRS GOI INTERNAL SUBJECT: (C) LIKUD MK STEINITZ ADVOCATES DISMANTLING AND ISOLATING THE HAMAS GOVERNMENT Classified By: Ambassador Richard H. Jones for reasons 1.4 (b,d). ¶1. (C) Summary: In a June 29 meeting with the Ambassador, Likud MK Yuval Steinitz advocated dismantling the Hamas-led Palestinian Authority (PA) and the Palestinian Legislative Council (PLC) and isolating them much the same way that former PM Sharon had isolated Yasser Arafat. The IDF should respond to the kidnapping of IDF Corporal Gilad Shalit and the continued Qassam fire from Gaza into Israel, Steinitz said, with a short-term, wide-scale operation in Gaza designed to wipe out the terrorist infrastructure there, similar to that of Operation Defensive Shield in the West Bank in April 2002. Steinitz expressed strong opposition to PM Olmert's "realignment plan," although, he noted, he had supported Sharon's disengagement. He called for the USG to press Egypt to prevent what Steinitz referred to as wide-scale weapons-smuggling operations across the Egypt-Gaza border. Steinitz said that pressure from Arab countries has hardened Palestinian resolve not to compromise with Israel on certain issues, such as Jerusalem and the law of return. On Iran, Steinitz said that the danger of Iran developing nuclear weapons is not its actual use of such weapons, but its use of that threat as a tool to wield power in the region. Steinitz noted that he hopes to continue his role as chairperson of the informal joint interparliamentary forum between the U.S. and Israel on security and defense issues. End summary. -------------- Isolate Hamas -------------- ¶2. (C) Likud MK Yuval Steinitz, former chairman of the Knesset's Foreign Affairs and Defense Committee, began his discussion with the Ambassador June 29 on the current IDF operations in Gaza by criticizing the GOI for ever having allowed the PLC elections to have taken place with Hamas on the ballot. Steinitz advocated two courses of action for the GOI now, in light of the kidnapping of IDF Corporal Gilad Shalit and the continued firing of Qassam rockets from Gaza into Israel: 1) dismantling the Hamas-led PA and PLC and isolating their members much the same way that ARAFAT was isolated in Ramallah, and 2) conducting a wide-scale, short-term military operation in Gaza similar to that of Operation Defensive Shield to wipe out the terrorist �00A;infrastructure there. Steinitz said that the latter should have really been conducted before disengagement was completed. He noted that he supported disengagement -- although it damaged his popularity within Likud -- but stressed that he is vehemently opposed to PM Olmert's "realignment" plan. Steinitz said that "realignment" would open up the center of Israel to threats, including to Ben Gurion Airport. ¶3. (C) Steinitz reasoned that the PA is currently violating the Oslo Accords and argued that a wide-scale military operation to attack the "terrorist infrastructure" in Gaza could take at a maximum three weeks since the GOI already has much of the intelligence it would need to conduct the operation. In response to the Ambassador's query, Steinitz assessed that the operation could be accomplished without much fighting between the IDF and Palestinians as the IDF has the technology to do this, as he claimed was done in Khan Younis about one year ago. The Ambassador said that both the PA and Israel have been in breach of the Oslo Accords, with continued militant actions by the Palestinians and continued construction of illegal outposts by Israelis. Steinitz said that it was not possible to enforce the agreement since the PA could not be pressured into compliance. ¶4. (C) In response to the Ambassador's query about what would take place after any wide-scale military operation, as Steinitz had described, Steinitz said that he does not have an answer. "I don't see a bright forecast," Steinitz said adding, "things look gloomy." He said that the IDF could expel Hamas government members to Gaza and that this might lead to a new Palestinian government. "But," he added, "we can't proceed with a Hamas-led government." Steinitz warned against continuation of the status quo, since in one year the situation will be more "volatile," with more long-range weapons reaching Gaza and better-trained terrorists. -------------- Arab Influence -------------- ¶5. (C) Steinitz continued that Arab countries as well as the Arab media exert "significant pressure" on the PA not to compromise with Israel. Steinitz commented that the situation in Iraq and with Iran could also affect the Israeli-Palestinian conflict. On Iran, Steinitz said that the real threat of an Iran with nuclear weapons is not that Iran would use the weapons against another country, but that it would use the threat of such weapons to exert its influence on other countries in the Middle East. Steinitz assessed that Libya had decided to give up its nuclear weapons program because of the U.S. military operation in Iraq. -------------- Weapons Smuggling from Egypt -------------- ¶6. (C) Steinitz asserted that wide-scale weapons smuggling continues across the border from Egypt into Gaza, with 10,000-15,000 guns being smuggled annually and, he said, referring to Shin Bet data, 500-1,000 anti-tank missiles and launchers. Steinitz blamed the GOE for "allowing this to happen," unlike Jordan, which has cracked down on smuggling. In response to the Ambassador's point that the Camp David accords limit the number of Egyptian troops on the Sinai border, Steinitz said that Egyptian police officers could be used, as they are exempt from this limitation. Steinitz said that Egypt should intercept the weapons to be smuggled, which, he said, comes from various sources, before they reach the border. He commented to the Ambassador in confidence that if Egypt really wanted to crack down on smugglers, the GOE knows who they are. In response to the Ambassador's question as to why Egypt would want to enable Hamas in this way, Steinitz said that Egypt wants the Palestinians and Israel "to bleed together." Steinitz also asserted that the GOE "doesn't like Abu Mazen." Steinitz called on the USG to do more to pressure Egypt to crack down on smuggling. -------------- Security Forum -------------- ¶7. (SBU) Steinitz noted that he had been chairman of a joint parliamentary security forum between U.S. members of Congress and Knesset members to discuss defense and security issues. He said that that he had led a delegation of Knesset members for meetings in Washington, D.C. with congressional counterparts last fall. Steinitz said he "assumed" he would remain in this role, and said he is seeking the backing of Knesset Speaker Dalia Itzik. He added that a decision on the chairmanship would likely be reached within three weeks. He could not comment as to whether the current chairman of the Knesset Foreign Affairs and Defense Committee, Tzachi Hanegbi, might seek to take on this role. ¶8. (C) Steinitz said that the joint parliamentary forum had also promoted joint U.S.-Israel projects. He highlighted one project, the THEL (Tactical High Energy Laser),which produced laser weapons that could intercept incoming rockets and artillery shells. Steinitz claimed that two years ago, the laser had successfully engaged incoming fire in all of its 22 tests, including at least one with multiple targets. He said that the project had been canceled one year ago because the laser weapon was considered too large for practical use and could only defend a rather restricted area. Steinitz commented that it was a "great mistake" to cancel the project, noting its possible use to defend a town like Sderot, which has been the target of Qassam rocket attack from Gaza. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES