ISRAEL MEDIA REACTION

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SUBJECT: ISRAEL MEDIA REACTION


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SUBJECTS COVERED IN THIS REPORT:
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1. Mideast


2. Iran

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Key stories in the media:
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Yediot reported on Sunday that Minister Amir Peretz has instructed
the officialin charge of security for the ministry, Yehiel Horev, to
begin an official investigation on whether an official of the
Defense Ministry helped the USG draft its "benchmarks" document,
which was presented to Israel ten days ago. According to the media,
IDF officials strongly oppose the benchmark plan, especially the
proposal to remove roadblocks across the West Bank and the
resumption of "safe passage" for Palestinians between the West Bank
and Gaza, saying it may spawn more terror. Ha'aretz reported that PM
Olmert agreed with the IDF's stance.

All media reported that the security cabinet decided on Sunday to
expand, but not escalate, the latest Gaza operation. The media
noted that the cabinet has adopted a vague stance, postponing
further decisions until next week.

All media reported that four Palestinian were killed and 14 hurt in
a new wave of Gaza infighting. The Fatah and Hamas militants blame
each other for the renewed violence..

On Sunday, Ha'aretz reported that Prime Minister Ehud Olmert and
Palestinian Chairman Mahmoud Abbas are scheduled to meet in a few
weeks to discuss the future of a Palestinian state.

All media on Sunday quoted Minister of Foreign Affairs Tzipi Livni
as saying that Israel will have to make territorial withdraws from
the West Bank in order for a Palestinian state to be established.

All media quoted Mossad Chief Meir Dagan as saying in a closed forum
last week that even if Israel decides to hold talks with Syrian
President Bashar Assad, he will not cease support for Hizbullah. He
also warned that the chances of war with Syria will increase if
Israel enters negotiations that fail. Maariv cited Minister of
Defense Amir Peretz as saying in an interview on Channel 10 that PM
Olmert should meet the Syrian President and that he himself is not
afraid to meet with him.

All media reported that a visit by Jordan King Abdullah to Ramallah
was postponed due to bad weather.

Ha'aretz reported on Sunday that Israelis and Palestinians are
planning to establish five industrial zones close to the Green Line,
which would supply hundreds of jobs for Palestinians. The
information was disclosed to the paper by Deputy Minister of Defense
Efrayim Sneh.

Sunday's Ha'aretz cited US Deputy National Security Advisor Elliot
Abrams as saying to a group of Jewish Republicans that the effort
the US is investing in the Israeli Palestinian conflict are aimed at
reducing pressure from Arabs and Europeans.

Leading media reported on Sunday that the waiting time for Israeli
citizens to get a US visa is two months. The papers quoted a US
Embassy press release encouraging people to apply for their visas as
early as possible, since the waiting time for an interview is very
long due to high demand in the summer months.

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1. Mideast:
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Summary:
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Palestinian affairs correspondent Danny Rubinstein wrote in the left
leaning, independent Ha'aretz (05/14): "In other words, the
government of Israel can and should try the diplomatic way to stop
the firing of the Qassams -- by agreeing to expand the truce to the
West Bank as well."

Right-wing columnist Elyakim Ha'etzni wrote in the mass-circulation,
pluralist Yediot Aharonot (05/14): "If there is any chance of
preventing the 'next war or the 'summer war' it is only if Israel
signals that it is still capable of uniting.... If a war is declared
upon us after all, a unity government would be ideal to prepare for
it. Unity is also desired facing the Iranian threat."

Block Quotes:
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I. "Extend the Truce to the West Bank"

Palestinian affairs correspondent Danny Rubinstein wrote in the left
leaning, independent Ha'aretz (05/14): "It is doubtful that there
are any reasonable military means for stopping the firing of Qassam
missiles at Israel. However, it is perfectly clear to all
Palestinian spokesmen, as well as to a good many Israelis, that
there is only one diplomatic way to stop the Qassam attacks, and
that is to extend the fragile truce in Gaza to the West Bank as
well. To put this more clearly: It is necessary to stop preventive
actions taken by the Israel Defense Forces in Judea and Samaria....
The prevailing Israeli argument has been that the IDF has to act in
the West Bank because that is where the terror cells that prepare
suicide attacks are organized. It is difficult to accept this
argument because preparation for such attacks inside Israel is going
full steam ahead not only in the West Bank, but also in the Gaza
Strip and southern Lebanon and undoubtedly also in Syria. There is
a series of reasons, diplomatic and other, that the government of
Israel is not sending the IDF to act against everyone who is
organizing to harm us, and it is definitely possible to use these
reasons to explain what goes on in Jenin, Nablus and Tul Karm as
well. In other words, the government of Israel can and should try
the diplomatic way to stop the firing of the Qassams -- by agreeing
to expand the truce to the West Bank as well."

II. "Unity Government - Now"

Right-wing columnist Elyakim Ha'etzni wrote in the mass-circulation,
pluralist Yediot Aharonot (05/14): "Ehud Barak's idea might pull
this country out from the mud: a date for general elections would be
decided by all parties and in the intermediate time -- a year at the
most -- an emergency unity government would be established. If
there is any chance of preventing the 'next war or the 'summer war'
it is only if Israel signals that it is still capable of uniting....
If a war is declared upon us after all, a unity government would be
ideal to prepare for it. Unity is also desired facing the Iranian
threat.... National unity would announce that we have found powers
within us to stand on our feet again.... A unity government would
give each side -- left and right -- what it wants: the building of
the separation fence will continue but the suffocation of the
settlements will stop.... National unity is good for economy, it
would do us good among the Jewish world and towards elections it
would grant everyone a fair chance. And if it lowers, even by little
the inner hatred among us -- amen."

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2. Iran:
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Summary:
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The conservative, independent the Jerusalem Post wrote (05/14): "In
principle, there is nothing wrong with a second track indicating
that the door is open if Iran were to decide that it was abandoning
terrorism and aggression, nuclear-backed and otherwise. The problem
is that this second track has no chance of bearing fruit unless the
first track, the 'or else' side of the equation, is greatly
ratcheted up."

Block Quotes:
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"Mixed Signals"

The conservative, independent the Jerusalem Post wrote (05/14):
"Judging from the headlines, ViQ President Dick Cheney did some
serious saber-rattling against Iran during his swing through the
region last week.... Just a week before Cheney's tough speech,
Secretary of State Condoleezza Rice met briefly with Iran's foreign

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minister at a conference on Iraq.... In principle, there is nothing
wrong with a second track indicating that the door is open if Iran
were to decide that it was abandoning terrorism and aggression,
nuclear-backed and otherwise. The problem is that this second track
has no chance of bearing fruit unless the first track, the 'or else'
side of the equation, is greatly ratcheted up. According to a new
Web site tracking trade with and investment in Iran ... global
investment in Iran rose from about $5 billion in mid-2006 to over
$45b. in the first few months of this year.... In this context, it
is not surprising that Iran does not take the West's sanctions too
seriously, certainly not seriously enough to abandon its nuclear
program. For Western policy to work, Iran must understand two
things: both that sanctions will be drastically tightened and that
there is a meaningful threat of military action if sanctions are not
effective. Cheney's speech notwithstanding, military threats are
unlikely to be credible unless the sanctions piece is being
seriously pursued not just by the US, but by Europe as well."
SIEVERS