LABOR PARTY OBJECTS TO YISRAEL BEITEINU MEMBERSHIP

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 004034

SIPDIS

E.O. 12958: DECL: 10/12/2011
TAGS: PGOV PINR IS KPAL
SUBJECT: LABOR PARTY OBJECTS TO YISRAEL BEITEINU MEMBERSHIP
IN THE COALITION

REF: A. TEL AVIV 4013

B. TEL AVIV 4002

Classified By: Charge d'Affaires Gene A. Cretz. Reason 1.4 (B/D)


1. (C) Summary: Labor Party MKs have awakened to the
political challenge posed by coalition-broadening talks
between Prime Minister Olmert and Yisrael Beiteinu party
leader Lieberman, but have yet to speak with one voice.
Although Party Chairman Peretz conveyed his opposition to the
Yisrael Beiteinu "worldview" to PM Olmert (ref A),Labor
activists remain worried that the Prime Minister will bring
in Lieberman, and thus, in their view, abandon the peace
process with the Palestinians, spell disaster for Israeli
Arabs, endanger Israel's relations with moderate Arab states,
and hamper Labor efforts to promote the social agenda that is
important to their party base. Separately, Lieberman showed
his "clash of civilizations" mindset and reiterated his
"separation is the solution" approach to the Arab-Israeli
conflict in a recent discussion with Tel Aviv diplomats. He
also portrayed his proposal for a presidential system of
government as the panacea for Israel's political problems and
a key component of his party's political agenda. End
Summary.

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Vociferous Labor Opposition to Lieberman
--------------


2. (C) Nadia Helou, one of two Arab Israeli MKs in the
19-Member Labor Party parliamentary group, told poloff
October 12 that she and many other Labor MKs are distressed
by the possibility that Olmert will ask Lieberman's party to
join the governing coalition. Olmert's apparent rationale
for coalition expansion is to buttress the coalition in the
event that a fractious Labor Party won't back Olmert's budget
when it comes up for debate in the Knesset this fall,
according to Helou -- and many political analysts in the
Israeli press. Colette Avital, another Labor MK who opposes
Lieberman, suggested, however, that Olmert's distrust of
Labor intentions vis-a-vis the budget was unwarranted. She
said there were only two or three rebels on the budget issue
that they "could easily be replaced," and Peretz could still
effectively rally the others.


3. (C) MK Avital told poloff she is firmly opposed to
Lieberman joining the coalition because "he's a fascist."
She recalled how Lieberman once said Israel should bomb the
Aswan High Dam. "How could we accept such a person in our
own government?" She said bringing Lieberman into the
government would be disastrous for Israeli Arabs, and that
Lieberman would prevent negotiations with the Palestinians or
removal of settlement outposts. Avital argued that
Lieberman's inclusion would also damage Israel's relations
with moderate Arab states, alluding to Jordanian King
Abdallah's Reuters interview to that effect. Avital also
took issue with Yisrael Beiteinu's social policies, saying
that with 1.5 million poor Israelis, Israel could not afford
to follow Lieberman's "let 'em fend for themselves" ideology.
With Lieberman in the coalition, Avital concluded, the
coalition would never agree on a platform and this would be a
recipe for paralysis. Regarding Lieberman's government
reform bill, Avital asserted that it was merely a
distraction.


4. (C) MK Helou told poloff that she had requested a Labor
party caucus of all MKs and ministers on October 15 to
discuss the Lieberman issue. Helou surmised that only the
three Labor MKs who are ministers in the coalition actually
support Olmert's gambit: Fuad Ben Eliezer, Isaac Herzog, and
Shalom Simchon. Helou's analysis tracks with a Yediot
Aharonot breakdown of Labor party positions, but she added
that the party whip in the Knesset, MK Ephraim Sneh, who just
returned from travel abroad, also opposes Lieberman. Helou,
who hails from Jaffa, said she hoped Sneh would be able to
convince most of the five Labor MKs who remained undecided on
the Lieberman issue to close ranks and form a party position
on the question. If not, Helou expressed her view that Labor
might have to leave the government if Olmert crossed this
redline issue and brought Lieberman in.

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Background on Lieberman's Worldview: Separation
-------------- --


5. (SBU) Lieberman shared his worldview with Tel-Aviv based
diplomats in an open forum in September. He argued that the
Palestinian question was mainly a manifestation of a conflict
of civilizations -- between two nations and two religions.
With the hubris that comes with rising popularity in Israel's
much-discussed (but not always scientific) polls, Lieberman
dismissed the Quartet Roadmap and possibility of a "new
Middle East" and reiterated his "simple solution" to the
conflict: separation between Arabs and Jews by moving the
border between Israel and a future state of Palestine so as
to exchange territory and people. Divided Cyprus and
post-war Yugoslavia are his models, Lieberman announced
before the crowd of mainly European diplomats. "I don't
believe in coexistence between two nations -- just good
neighbors, nothing more."


6. (SBU) The presence of Israeli Arabs together with a
future Palestinian state would tear Israel apart, Lieberman
stressed. "They (the Israeli Arabs) define themselves as
Palestinians!" When pressed by the Georgian ambassador on
what option the Yisrael Beiteinu vision presents for Israeli
Arabs not eager to be uprooted, Lieberman replied: "Such an
individual must formally recognize Israel as a Jewish/Zionist
entity, serve in the Army or alternative service.
Alternatively, he can continue to live in Israel, but without
the right to vote for MKs -- much as the Palestinians
residing in East Jerusalem, who pay Israeli taxes and vote in
municipal rather than parliamentary elections."


7. (SBU) Lieberman also shared his personal perspective on
Israeli politics and his plan to change the system of
government. "We don't have political stability -- in eleven
years we've had five elections, ten foreign ministers, and
nine ministers of finance -- and this makes it difficult to
set policy. New elections won't solve the problem; a change
in the political system to a presidential system is required.
Without this change, the government will not be able to move
in any direction."


8. (C) Comment: Among the Israeli academics and pundits who
are busy debating the consequences of the Lebanon war, few
have pointed to the absence of "presidential" political
muscle in the hands of the Prime Minister as the root of the
current political crisis in Israel. Rather, abuse of
political power by corrupt politicians, myopic strategic
thinking on the part of the current government, and
mismanagement of the war by the IDF Chief of Staff are the
issues that matter most to them and many other Israelis (ref
B). Avital's assessment that talk of changing the government
system is a "diversion" is probably an apt description of the
issue when viewed from Olmert's perspective. Olmert, who
sidelined the Russian-speaking politicians in his own party,
now appears eager -- if press reports are accurate -- to
create a new deputy Prime Minister berth for Lieberman in
hopes of bolstering his coalition for the cheap political
price of one portfolio. While Olmert has tried to mollify
Labor with assurances that the principles governing the
coalition will remain unchanged, few Labor MKs find that to
be a sufficient protection against the serious threat posed
by Lieberman to their own party objectives on the peace
process and a host of other social issues.

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