CODEL LIEBERMAN DISCUSSES THE ROAD FORWARD WITH

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001731 SIPDIS CODEL SIPDIS E.O. 12958: DECL: 06/03/2012 TAGS: PREL IS KPAL IR IZ SUBJECT: CODEL LIEBERMAN DISCUSSES THE ROAD FORWARD WITH THE PA, IRAN AND IRAQ WITH FM LIVNI AND PM OLMERT Classified By: Ambassador Richard H. Jones. Reason 1.4 (B/D) ¶1. (C) SUMMARY: In meetings with FM Tzipi Livni and PM Ehud Olmert on June 3, Senator Lieberman (CT) discussed issues regarding the Palestinian Authority (PA),the war in Iraq, and strategies for confronting the nuclear ambitions of Iran. Lieberman reassured the GOI that the US would maintain and escalate its pressure against Iran and remain steadfast in its current campaign in Iraq. Both Olmert and Livni told Lieberman that no progress would be made with the PA in its current state. Previewing his forthcoming trip to Washington, PM Olmert told Senator Lieberman that he wanted to see "an increase in the common ground on what we can accomplish with the Palestinians. I don't want us to build false expectations. With less than two years left in the President's term, this would not serve him well. I find the possibility of reaching an agreed framework (with the Palestinians) unrealistic, although there may be some things that the U.S. and Israel can do together." End Summary. ¶2. (U) On June 3, 2007, CODEL Lieberman took part in two meetings scheduled consecutively with FM Tzipi Livni and PM Ehud Olmert. Senator Joseph Lieberman was accompanied by Mrs. Hadassah Lieberman; Fred Downey, National Security Legislative Assistant; Vance Serchuk, Foreign Policy Legislative Assistant; LTC Ed Fortunato, U.S. Army Military Escort. -------------- OLMERT PREVIEWS EXPECTATIONS FOR JUNE VISIT -------------- ¶3. (C) In response to an opening question by Senator Lieberman regarding prospects with the Palestinians, Olmert noted that his government had been restrained in light of the current attacks launched at Israeli towns bordering the Gaza Strip. While he shared Senator Lieberman's pessimism on prospects for progress with the Palestinians, he saw no alternative to reaching out to those who share Israel's vision like President Abbas. Senator Lieberman relayed Palestinian requests for assistance in the form of U.S. and international aid, and the need for the GOI to release withheld tax/customs monies. Olmert responded by saying that he was willing to meet with Abu Mazen (Mahmoud Abbas),and noted Israel's release of USD 100 million earlier in the year. Olmert claimed that half of the USD 100 million had gone unspent because the PA was not able to allocate the monies according to agreed-upon conditions. The PM's Foreign Policy Advisor, Shalom Tourgeman, mentioned that the GOI had agreed that USD 20 million of the money in question could be used for infrastructure to prevent smuggling across the Philadelphi Corridor. The Ambassador clarified that the money had already been spent. ¶4. (C) Senator Lieberman asked Olmert what the purpose of his visit to Washington would be in two weeks. Olmert replied that he wanted to see "an increase in the common ground on what we can accomplish with the Palestinians. I don't want us to build false expectations. With less than two years left in the President's term, this would not serve him well. I find the possibility of reaching an agreed framework (with the Palestinians) unrealistic, although there may be some things that the U.S. and Israel can do together." If the Administration, however, could motivate the moderate Arab countries to agree on some basic terms, there would be a possibility of moving forward. Senator Lieberman said it was important to continue talking, and complimented recent efforts by Olmert. ¶5. (U) On Iraq, Olmert said he admired Senator Lieberman's courage in remaining steadfast in support for the war. Senator Lieberman said that the recent elections in the U.S. prove that the feelings of the American public towards the Iraq war have become more complicated. Olmert spoke of negative consequences of a U.S. withdrawal from Iraq and thanked the U.S. for removing Saddam Hussein. Olmert complimented President Bush on his unwillingness to waiver from his convictions in the face of public opinion and drew parallels to his own situation. Senator Lieberman assured Olmert that Bush understands Islamist extremism is the greatest threat of the time and will not waiver from his present policy. ¶6. (C) Olmert stated that until now efforts of the U.S. and the EU have been helpful with regard to Iran. Olmert believed that the new President of France, with the help of Chancellor Merkel in Germany, will begin to change the stance of the EU towards Middle East issues. -------------- LIVNI VIEWS ON ARAB INITIATIVE AND IRAN TEL AVIV 00001731 002 OF 002 -------------- ¶7. (C) Senator Lieberman asked Livni about the GOI's current stance on the Arab League's proposed Peace Initiative. Livni said that after meeting them in Cairo she had invited the Egyptian and Jordanian foreign ministers to come to Israel to continue discussing the initiative on behalf of the Arab League. They appear willing to come but are hesitating due to the situation in Gaza. She stated it was crucial that the Arab League not seek to put any "parameters" on final status issues. She said that, with the help of Egypt, it was necessary to halt the illegal smuggling of weapons through the Philadelphi Corridor from Egypt into the Gaza Strip. While the world was focused on establishing safe channels for providing assistance to Palestinians, she agreed that the most important question was whether those who we are seeking to help (Abbas, Fayyad) can even deliver anything. Lieberman asked what Israel wanted to see from the PA. She responded by saying that it appears the Palestinian people still favor Hamas and that the idea of a national unity government (NUG) was a mistake. Lieberman agreed the NUG was a mistake. Livni stated that any "bold" options -- whether new elections or proclaiming an emergency -- that Abbas might take vis--vis the PA would probably not be helpful as long as Hamas remained in control of the government. ¶8. (C) Senator Lieberman expressed his concerns about Iran to Livni. Livni replied that she was unsure that diplomatic efforts and sanctions would be effective against Iran. She rhetorically asked "what's next?" should diplomatic sanctions fail to deter Iran from its current path and argued that the "moderate (Arab) states" must understand that the West is serious about stopping Iran. Lieberman agreed that the best way to stop the Iranian program was to levy extreme pressure on Iran until they felt their "backs were against the wall," understanding that their actions really risked military action against them. Livni responded by saying that the best way to avoid using weapons against Iran would be to make them understand that there is a true willingness to use them. ¶9. (U) Senator Lieberman's office cleared this cable on June 13. ********************************************* ******************** 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