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.

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OLMERT PREVIEWS EXPECTATIONS FOR JUNE VISIT
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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.

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LIVNI VIEWS ON ARAB INITIATIVE AND IRAN

TEL AVIV 00001731 002 OF 002


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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.

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