ISRAEL MEDIA REACTION

UNCLAS SECTION 01 OF 08 TEL AVIV 000506

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. Iran: Nuclear Program


3. Muhammad Cartoon Controversy

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Key stories in the media:
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Israel Radio reported that early next week, FM Tzipi
Livni will leave for a visit to the U.S.

In its lead story, Maariv reported that on Thursday,
senior Israeli defense officials maintained in internal
discussions that the establishment of a Hamas state
should not be allowed. Maariv cited the officials'
belief that moderate statements by Hamas leaders are a
deception and that Hamas is interested in turning the
PA into part of the Iran-Hizbullah axis. The officials
were quoted as saying that the Palestinians must be
made to understand that they erred in their vote.
Ha'aretz (banner in English Ed.) reported that the
defense establishment is expected to advise Acting PM
Ehud Olmert to transfer to the PA 250 million shekels
(around USD 53 million) in tax revenues, which he froze
following Hamas's victory in the elections to the
Palestinian Legislative Council. Israel Radio reported
that Olmert will convene a meeting on the matter
immediately after Sunday's cabinet meeting. Leading
Kadima minister Abraham Hirchson was quoted as saying
in an interview with The Jerusalem Post that he has
been hearing comments from within Hamas that offer some
hope the terrorist group may now chart a more moderate
course.

Israel Radio quoted U.S. Consul-General in Jerusalem
Jacob Walles as saying that the U.S. is concerned about
the possibility that the PA might request funds from
Iran. However, Walles was quoted as saying that he
doubts whether Tehran would be able to substantially
fund a Hamas-led PA. Walles was also quoted as saying
that since Hamas's victory, the U.S. has suspended new
projects in the PA. Israel Radio reported that dozens
of U.S. Congress members have submitted a bill aiming
at stopping U.S. aid to the PA and cutting off
diplomatic links with it until Hamas recognizes
Israel's right to exist. The radio quoted the bill's
initiators as saying that it will enjoy broad support.

Egyptian President Hosni Mubarak was quoted as saying
in an interview with Yediot's Smadar Perry that he does
not understand why the Hamas win causes Israel to panic
and that Hamas must recognize Israel. He was quoted as
saying that he advises the GOI to help PA Chairman
[President] Mahmoud Abbas and to arm itself with
patience.

The Jerusalem Post quoted Israeli diplomatic officials
as saying Thursday that Russian President Vladimir
Putin's refusal to characterize Hamas as a terrorist
organization does not mean there is a diplomatic crisis
between Jerusalem and Moscow, although Israel has made
its displeasure clear to the Kremlin.

Israel Radio quoted Hamas leader Khaled Mashal as
saying in an article in the Palestinian daily Al-Hayat
Al-Jadida that his movement will never recognize
Israel's exist, but that it could enter a long-term
truce with it.

All media reported (banner in Ha'aretz (Hebrew Ed.))
that today, the Board of Governors of the International
Atomic Energy Commission is scheduled to discuss
referral of the Iranian nuclear program issue to the UN
Security Council. Israel Radio and Hatzofe quoted
Director of National Intelligence John Negroponte as
saying Thursday in a testimony before the Senate Select
Committee on Intelligence that Iran's nuclear
development program is an "immediate concern," although
Tehran probably does not yet have a nuclear device.
The radio also quoted Negroponte as saying that Al
Qaida terrorism remains the most serious threat to U.S.
national security. The Jerusalem Post printed an AP
dispatch about Negroponte's testimony.

Major media reported that on Thursday, Hizbullah's Al
Manar-TV broadcast interviews with South Lebanon
residents, in which they call for avenging the killing
of a Lebanese citizen along the Lebanon-Israeli border.
The media cited similar remarks made by Hizbullah
leader Sheikh Hassan Nasrallah. The media cited
Hizbullah allegations that the IDF had killed an
innocent shepherd, and quoted IDF soldiers as saying
that they shot an armed man who was firing in their
direction. Israel Radio reported that the IDF, which
fear that Hizbullah will try to target Israeli
soldiers, is on high alert along the border.

Internal Security Minister Gideon Ezra was quoted as
saying Thursday in an interview with The Jerusalem Post
that the government will continue dismantling settler
outposts in the West Bank, with three in the Yitzhar
region next in line. Yediot quoted a senior GOI
official as saying Thursday that the government is not
keen to evacuate additional outposts at this time --
before the Knesset elections and after the Amona
clashes. Yediot reported that following Tuesday's
violent incidents in the settler outpost of Amona, the
police's internal affairs unit will investigate
policemen over their violent behavior and that rioters
will be brought to trial. Ha'aretz reported that right-
and left-wing politicians demand that an official
investigative commission into the police's behavior be
established.

All media reported that on Thursday, the IDF decided to
pull out the troops providing security for Yitzhar,
after the residents of the West Bank settlement
attacked soldiers on multiple occasions. Maariv
reported that on Thursday, Justice Minister Tzipi Livni
started talks with settler leaders in order to reach an
arrangement on the matter of settler outposts.

The media reported and commented on ongoing protests
and threats of retaliation in the Arab world, in
particular in the West Bank and Gaza Strip, over
caricatures in some European newspapers of the Prophet
Muhammad.

The Jerusalem Post reported that a leading U.S.
evangelist, Pastor John C. Hagee of San Antonio, is
forming an umbrella organization -- Christians United
For Israel (CUFI) -- under which all pro-Israel
Christians in America can speak as one in support of
Israel.

Prominent American Mideast expert Prof. Bernard Lewis
was quoted as saying in an interview with Yediot that a
hudna (truce) with Hamas could last for years, but that
violence will return and that the end of conflict is
not possible from Islam's point of view.
Major media reported that Likud Chairman MK Binyamin
Netanyahu is considering forming a joint list for the
Knesset elections with the National Religious Party and
Avigdor Lieberman's Yisrael Beiteinu. The media cited
the belief of senior Likud officials that the party's
central committee will not endorse Netanyahu's
initiative. Some media quoted Likud officials as
saying that they will not let Netanyahu turn Likud into
an extreme right-wing party.

Ha'aretz (English Ed.) reported that Palestinian
Americans living in the Ramallah area expressed
cautious optimism this week after Hamas's landslide
victory in last month's PLC elections, despite the
ascendance of an Islamic party denounced as a terror
organization by the U.S. The newspaper wrote that none
of the highly educated and successful Palestinian-
Americans who spoke with the newspaper were even
considering a move back to America, and that all voiced
a commitment in building civil society in Palestine.

Ha'aretz (English Ed.) reported that El Al has reduced
its baggage allowance on flights to North America,
effective since the beginning of 2006.

A Yediot/Mina Zemach (Dahaf Institute) poll held late
this week shows a slight decrease in support for Kadima
following the Amona events:
-"Were elections for the Knesset held today, for whom
would you vote?" (Results in Knesset seats -- in
brackets, results of previous poll.)
-Kadima 42 (40); Labor Party 21 (21); Likud 15 (13);
Shas 10 (9); Arab parties 8 (8); Yisrael Beiteinu 6
(5); United Torah Judaism 5 (6); Meretz 5 (4); National
Union 5 (5); National Religious Party 3 (3).
-"Is Israel to blame for the Hamas win?" No: 52
percent; yes: 42 percent.
-"Should Israel transfer to the Palestinians tax
revenues that it raises on their behalf? The transfer
should be delayed for the moment: 43 percent; it should
be stopped: 28 percent; it should be continued: 27
percent.

A Maariv/TNS/Teleseker Polling Institute survey taken
before the Amona confrontation shows similar results
regarding voting intentions:
-Kadima 42 (42); Labor Party 19 (19); Likud 16 (13);
Shas 10 (10); Arab parties 8 (8); Yisrael Beiteinu 6
(6); National Union 6 (6); United Torah Judaism 6 (6);
Meretz 5 (5); National Religious Party 2 (3).

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1. Mideast:
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Summary:
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Senior columnist and longtime dove Yoel Marcus wrote in
independent, left-leaning Ha'aretz: "[Olmert] will
focus on establishing permanent borders for a state
with a Jewish majority -- even if it means a head-on
collision with the extremists."

Washington correspondent Nathan Guttman wrote in the
conservative, independent Jerusalem Post: "The [U.S.]
administration would not be keen to lose one of its few
points of leverage over the PA."







Block Quotes:
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I. "A Leader Is Born"

Senior columnist and longtime dove Yoel Marcus wrote in
independent, left-leaning Ha'aretz (February 3):
"Olmert believes that the evacuation [of the Amona
settler outpost] gives him the power to be stubborn on
other issues when presenting Israel's case to the
world. The German Chancellor, who was just here, and
now the leaders of Europe and even Mubarak, have
adopted Olmert's ABCs for resuming dialogue: A) Hamas'
total disarmament; B) Hamas' renunciation of its
charter and recognition of Israel; and C) Hamas'
acceptance of all existing agreements between Israel
and the Palestinian Authority.... Olmert's resolve ...
may be a hint that Sharon's stand-in and successor is
sending an independent message, in preparation for the
day when he puts together a government of his own.
Without hugs and kisses, without sly winks at the
settlers, he will focus on establishing permanent
borders for a state with a Jewish majority -- even if
it means a head-on collision with the extremists."

II. "The United States' PA Problem"

Washington correspondent Nathan Guttman wrote in the
conservative, independent Jerusalem Post (February 3):
"Though the [U.S.] administration presented an
unwavering position [regarding the rise of Hamas in the
PA], it is clear that tough words from the President
and Secretary of State will not be sufficient when
maintaining a clear policy for the region is concerned.
First, there is the issue of financial aid.... If the
U.S. does decide to cut its aid, it might find Iran,
Saudi Arabia, or other Arab countries lining up to fill
the financial gap. And though it has been claiming for
a long time that the Arab countries do not give enough
to their Palestinian brethren, the administration would
not be keen to lose one of its few points of leverage
over the PA.... Second, there is the question of
demands made on Hamas.... Though, at the moment, all
parties agree with the U.S. that Hamas has to recognize
Israel's right to exist, it is not clear what will
happen when discussion really begin... The third point
of potential tension is Congress... The time will come
when [the administration] comes in -- as it has in the
past -- and demand that Congress not restrict its
ability to conduct Middle East diplomacy. Finally,
there is the legal issue.... Whom are the Americans
allowed to talk to [in Hamas]?"

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2. Iran: Nuclear Program:
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Summary:
--------------

Washington correspondent Shmuel Rosner wrote in
independent, left-leaning Ha'aretz: "Bush still
believes in the possibility of stopping the Iranians
from getting what they want. But if that is so, why is
it necessary to 'defend' Israel?'"
Block Quotes:
--------------

"Defend Israel? -- Against What?"

Washington correspondent Shmuel Rosner wrote in
independent, left-leaning Ha'aretz (February 3): "In a
Reuters interview aboard Air Force 1, President Bush
conveyed the good news -- or is it really good?.... 'We
will rise to Israel's defense if need be,' he
promised.... Now, what does 'rise to Israel's defense'
mean? Does it refer to the period before Iran acquires
nuclear weapons -- or after? In the press gaggle
aboard Air Force 1 reporters were told that 'the
President spoke with President Putin' of Russia on
Wednesday. They discussed the Iranian nuclear issue
and they both agreed it was important to stay in close
contact as we move forward to address this issue.' The
conclusion here ought to be: Bush still believes in the
possibility of stopping the Iranians from getting what
they want. But if that is so, why is it necessary to
'defend' Israel?'"






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3. Muhammad Cartoon Controversy:
--------------

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

Foreign News Editor Arik Bachar wrote in popular,
pluralist Maariv: "Additional newspapers have ...
decided that all due or undue respect, Muslim
sensitivity has already exceeded what too many people
in the world can bear."

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

"Europeans Are Fed Up With Extremist Islam"

Foreign News Editor Arik Bachar wrote in popular,
pluralist Maariv (February 3): "History is replete with
examples of small events that begat tremendous
processes.... It remains to see whether a European
dwarf [Denmark] fired the opening shot in the European
counteroffensive against Islamic madness.... It
actually is the free press in Europe that is showing
signs of a counter-reaction. While Muslims all over
the world face Denmark with frightening grimaces and
boycott its products, additional newspapers have
climbed up barricades and decided that all due or undue
respect, Muslim sensitivity has already exceeded what
too many people in the world can bear. The problem is
that sensitivity in Islam is ... low.... The real
problem of Europe facing Islam is not the extremism
from the east, but the West's indifference, in the best
case, or its arrogance when it believes this is about a
somewhat childish culture that should be hassled until
it grows up. Perhaps it actually is the little Denmark
that will clarify to the big [European] continent that
the phenomenon will not stop unless it is aided."

JONES