ISRAEL MEDIA REACTION

UNCLAS SECTION 01 OF 07 TEL AVIV 000751

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. Muhammad Cartoon Controversy


2. U.S.-Israel Relations

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Key stories in the media:
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Israel Radio quoted Israel's representative to the UN
Danny Gillerman as warning at the UN Security Council
Tuesday that an Iran-Syria-Hamas "terror axis" might
emerge and that ignoring it could lead to a new world
war. The radio cited the Syrian representative's reply
that Israel is stockpiling nuclear weapons on the
Golan. Yediot also cited Gillerman's remarks.
Speaking on Israel Radio, Gillerman said that Russia
and Turkey's attitudes toward Hamas were strange,
because of Chechnyan and Kurdish terrorist activities.

Ha'aretz and Israel Radio quoted President Bush as
saying Tuesday aboard Air Force One as he returned to
Washington from Colorado: "So long as Hamas does not
recognize Israel's right to exist, my view is we don't
have a partner in peace and therefore shouldn't fund a
government that is not a partner in peace." Israel
Radio reported that in Cairo Tuesday, Secretary of
State Condoleezza Rice referred to Hamas: "You cannot
have one foot in the camp of terror and another foot in
the camp of politics." The Jerusalem Post quoted
Israeli officials as saying there was no intent by Rice
to "slight" Jerusalem by skipping Israel during her
Mideast trip.

The Jerusalem Post reported that on Monday, a day
before Secretary Rice set out for a trip in the region,
Quartet principals decided that financial support for
the PA should continue while there is an interim
government. Maariv quoted the Quartet's Middle East
envoy James Wolfensohn as saying that the PA will reach
bankruptcy in two weeks.

Israel Radio and the leading news web sites Ynet and
NRG quoted Acting PM Ehud Olmert as saying this morning
before the Knesset's Foreign Affairs and Defense
Committee that the entire Palestinian Authority has
turned into Hamas in the wake of the new parliament's
swearing-in ceremony. Meretz Knesset Member Ran Cohen
was quoted as saying that if the GOI does not
differentiate between Abbas and Hamas, there will be
more terrorist attacks and people killed, and that
Israelis would pay for Olmert's color-blindness with
their blood. Olmert was also quoted as saying that
Israel's commitment to dismantling illegal settler
outposts would be upheld without restraints. Media
reported on a verbal clash between Olmert and right-
wing Knesset Member Effi Eitam regarding the evacuation
of the Amona outpost, during which Eitam was injured.

The Jerusalem Post reported that Henry A. Crumpton, the
State Department's Coordinator for Counterterrorism,
"who last month said he did not rule out military
action against Iran," arrived in Israel Tuesday night
for three days of talks.

Major media reported that a Federal Court in Virginia
will hear verbal arguments today to dismiss the charges
against two former lobbyists of the American Israel
Public Affairs Committee, Steve Rosen and Keith
Weissman. Israel Radio reported that the prosecution
in the case is opposed to Israeli diplomats testifying
in court.

Yediot reported that today, the Israeli human-rights
group Civil Coalition will file a criminal suit against
Iranian President Mahmoud Ahmadinejad at Germany's
Constitutional Court for Holocaust denial, harming the
rights of Holocaust victims, inciting hatred and
racism, and violating the UN Charter. Ha'aretz
reported that documents published on an Internet site
involved in Holocaust denial show that Holocaust
deniers from the West played a key role in attempts by
Iran to cast doubts on the veracity of the Holocaust.

All media reported that the IDF blew up an explosives
factory in Nablus on Tuesday. At least three
Palestinians were wounded in the operation. Leading
media reported that a major blast occurred at the Karni
crossing last night. Yediot and Israel Radio cited the
IDF's belief that the cause was an explosives tunnel
dug by Palestinians. Major media reported that on
Tuesday, former IDF Chief of Staff Moshe Ya'alon, in a
speech during a conference of the Jerusalem Center for
Public Affairs, accused the GOI of responsibility, for
Hamas's victory in the recent Palestinian Legislative
Council (PLC) elections, particularly through Israel's
withdrawal from Gaza. He was quoted as saying: "We
need to escalate military action against the Qassam
rocket launchers, even if it means entering the Gaza
Strip."

Yediot cited a confidential Foreign Ministry document
that says that Israel's decision to stop transferring
funds to the Palestinians will bring about the collapse
of the PA and harm the population of the territories.
The Jerusalem Post reported that Israel has canceled
the VIP travel privileges of PLC members, barring them
from enjoying unrestricted travel between Gaza and the
West Bank.

Ha'aretz reported that Ismail Haniyeh now has three
weeks to form a government, with the possibility of a
two-week extension.

Yediot cited the belief of Israeli defense sources that
the Iranian security and intelligence services intend
to use the strategic alliance between Tehran and
Damascus to encourage terrorist activity against
Israeli targets through Hamas and Islamic Jihad. The
Jerusalem Post reported that Hamas leaders are divided
on the role of Iran in Palestinian affairs.

Ha'aretz and other media reported that Labor Party
leader Amir Peretz will visit Cairo today for talks
with Egyptian President Hosni Mubarak and Egyptian
intelligence chief Omar Suleiman. Senior Labor Party
members will accompany Peretz on his trip.

Leading media (banner in Yediot) reported that former
Likud cabinet ministers Silvan Shalom and Yisrael Katz
are boycotting Likud Chairman MK Binyamin Netanyahu's
efforts to reduce the power of the party's central
committee and to introduce party primaries.

Ha'aretz cited a report published on Tuesday by the
Israeli human-rights groups B'Tselem and Bimkom -
Planners for Planning Rights, according to which the
main consideration behind the route for "numerous
segments" of the security fence was settlement
expansion.

Citing Reuters, Ha'aretz reported that Turkish PM Recep
Tayyip Erdogan on Tuesday criticized Israel's use of
economic sanctions against Palestinians for voting
Hamas into power and defended Ankara's decision to hold
talks with the militant group. Reuters further
reported that Israel's envoy in Ankara, Pinchas Avivi
met leaders of Turkey's ruling party AKP on Tuesday in
an apparent bid to patch up the quarrel. However,
Maariv reported that FM Tzipi Livni ordered Avivi not
to meet Turkish Foreign Ministry officials to hear an
update about Hamas's meetings with Turkish officials.

Yediot reported that the Turkish government has
requested assistance from Israel regarding the
establishment of a PR structure that would improve
Turkey's image in the world.

Yediot reported that Al Qaida attacks against Israelis
have been thwarted in Turkey and Jordan.

Yediot reported that hundreds of fake Israeli passports
are sold annually all over Asia, and that they have
been used by Iranians, Pakistanis, and Turks. The
newspaper quoted Israeli representatives in Asia as
saying that such documents might be used by terrorists.

All media reported that State Comptroller Micha
Lindenstrauss has decided to probe the sale by Olmert
of his private Jerusalem residence to an offshore
company registered in the British Virgin Islands for a
sum of USD 2.7 million. Olmert continues to reside in
the house. U.S. businessman S. Daniel Abraham, a
former campaign contributor, is behind the company.
Ha'aretz reported that Lindenstrauss also plans to look
into Olmert's ties with Abraham, who contributed money
to Olmert's campaign in the Jerusalem mayoral elections
and to Shimon Peres for last November's Labor Party
primaries. Leading media reported that Olmert refuted
the charges. Maariv reported that Olmert demands that
Lindenstrauss conclude his investigation this week.

Leading media reported that Attorney General Menachem
Mazuz has resolved that Minister Without Portfolio
Tzachi Hanegbi not be appointed minister after the
elections.

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1. Muhammad Cartoon Controversy:
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Summary:
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Chief Economic Editor Sever Plotker wrote in the
editorial of mass-circulation, pluralist Yediot
Aharonot: "Who is asked to apologize [for Muslims'
violence over the Muhammad cartoons]? Not the
jihadists, but the cartoonists -- since they 'offended
Islam.' Those who were murdered in the name of Islam
can no longer be offended. Their body parts are buried
deep in the ground of New York, London, Madrid, Bali,
Djerba and Jerusalem."

Block Quotes:
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"The Reticence, the Hypocrisy and the Apology"

Chief Economic Editor Sever Plotker wrote in the
editorial of mass-circulation, pluralist Yediot
Aharonot (February 21): "The 14th Dalai Lama, the
exiled spiritual leader of the Tibetan people, recently
visited Israel.... The Dalai Lama preaches non-
violence, understanding between people, compassion and
many other such good virtues. And all of them are truly
good and desirable; it is only astonishing that the
honorable Dalai Lama XIV did not think it appropriate
to preach his beliefs of complete non-violence to the
Palestinian Islamic radicals.... An unbalanced approach
is characteristic of many people who seek to improve
the world. For them the West, and particularly Israel
and the United States, are routinely to blame for the
ills of civilization. The Muslims, conversely, are
given special discount rates. A newspaper in Denmark
ran a cartoon six months ago in which the Prophet
Muhammad was cast as a promoter of terrorism;
undoubtedly, this cartoon was inspired by the cries of
'Allah akbar' that are aired by suicide terrorists.
Anyone who goes on a bloody holy war and murders, in
the name of religion, hundreds of train passengers in
Europe should not be taken aback when his religion is
construed as one that preaches terrorism. In response
to the cartoon, Muslim riots and unruly demonstrations
erupted; an incited minority once again imposed its
delusional agenda on the cultured world. And who is
asked to apologize? Not the jihadists, but the
cartoonists -- since they 'offended Islam.' Those who
were murdered in the name of Islam can no longer be
offended. Their body parts are buried deep in the
ground of New York, London, Madrid, Bali, Djerba and
Jerusalem."

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2. U.S.-Israel Relations:
--------------

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

Washington correspondent Shmuel Rosner wrote in
independent, left-leaning Ha'aretz: "[Former AIPAC
employees Steve Rosen and Keith Weissman] did not
threaten, did not pay, did not scheme. It was merely
the mundane routine of the lobbyist and journalist and
entrepreneur and scholarly researcher."

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

"Aiming For the Bird -- and Missing"

Washington correspondent Shmuel Rosner wrote in
independent, left-leaning Ha'aretz (February 22): "What
generated the sudden interest [in Section 793 of the
American Espionage Act] was the surprising recruitment
of a celebrity to the defense team [of former AIPAC
employees Steve Rosen and Keith Weissman]. Viet Dinh,
a former Justice Department deputy secretary and a key
architect of the controversial U.S. Patriot Act, co-
authored a detailed and persuasive memorandum that will
be the focus of today's hearing. The man who helped
write the legislation that is often described as
preferring 'security' over 'individual rights' will now
be arguing against the overuse of an inherently
security-minded law. Section 793, Dinh writes, is not
appropriate for the case against Rosen and Weissman: it
is vague, has never been used against citizens who are
not civil servants, and also does not pertain to
transmitting information orally. The state is trying
to set a precedent that will greatly expand the
boundaries of the law that the legislature did not
intend.... It is the moment of truth in which the
establishment apparently decided to do away, once and
for all, with chatter.... Those who were aiming for the
bird hit [Rosen and Weissman] in the face instead. And
those who are not among their followers or AIPAC's
followers -- and there are quite a few of these -- also
have to understand how far-reaching the suit against
them is. They were never warned, Dinh points out, and
why should they suspect that their actions are illegal?
After all, they did what everyone in Washington does.
They went to restaurants, heard stories, told them to
others. They did not threaten, did not pay, did not
scheme. It was merely the mundane routine of the
lobbyist and journalist and entrepreneur and scholarly
researcher."

JONES