SPECIAL ISRAEL MEDIA REACTION

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SUBJECT: SPECIAL ISRAEL MEDIA REACTION

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SUBJECTS COVERED IN THIS REPORT:
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Secretary Rice to Israel, West Bank, March 25-27, 2007

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Key stories in the media:
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All media -- lead stories in all media, except Maariv -- reported on
the first day Secretary of State Condoleezza Rice's visit to Israel
and the PA. The media reported that Secretary Rice arrived in
Israel on Sunday and met over dinner for three hours with PM Ehud
Olmert at his home in Jerusalem. Earlier she visited Ramallah and
met with PA Chairman [President] Mahmoud Abbas, whom she will meet
again Monday morning in Jordan. The Secretary is scheduled to meet
Monday with Jordan's King Abdullah II in Amman this morning and
return to Ramallah. Later today, Secretary Rice will meet with
Defense Minister Amir Peretz and FM Tzipi Livni.

Ha'aretz reported that Rice told reporters on Sunday that her
earlier visit to the region, five weeks ago, and her tripartite
meeting with Abbas and Olmert in Jerusalem took place with the Mecca
agreement for the establishment of a Palestinian NATIONAL unity
government as the background. Unlike that meeting, which Rice
hinted had taken place because it had already been scheduled, this
visit aims to jump-start a separate negotiation process. Ha'aretz
quoted the Secretary as saying that that she sat for many hours with
President Bush in order to formulate a diplomatic strategy, and that
she does not exclude the possibility that a special envoy will be
appointed for talks with the two sides.

Ha'aretz and Israel Radio reported that the US is planning to hold
separate talks with Israel and the PA aimed at achieving an accord
that will lead to the establishment of a Palestinian state.
Ha'aretz quoted Rice as saying on Sunday night that the US will hold
separate negotiations with the two sides, present questions and
request clarifications regarding their positions, in an effort to
reach an agreed-upon agenda for the renewal of peace talks.
Ha'aretz wrote that Rice is planning to present the two sides with
questions on two main issues: territory and security. Ha'aretz
quoted the Secretary as saying that it is possible to learn from the
experience that has accumulated since the end of negotiations in
2000, particularly with regard to SECURITY arrangements. She
pointed to the management of the border crossings at Karni and Rafah
in the Gaza Strip as examples that should be studied closely. The
Secretary of State was also quoted as saying that she intends to

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request clarifications from Israel as to how it intends to implement
the vision of a territorially contiguous Palestinian state in the
West Bank.

Ha'aretz reported that on Monday evening she intends to hold a press
conference in Jerusalem, which will open with a short statement
summarizing her visit. Ha'aretz said that the Israeli political
team held talks with Rice's aides Sunday in an effort to soften the
statement. Ha'aretz wrote that Israel would like to avoid
formulations that will be binding in a final agreement or which deal
with issues of serious dispute (most likely, Jerusalem and the
refugees). Yediot, which banners "American Pressure to Resume
Negotiations," reported that the Secretary will present a series of
measures to both sides in order to jump-start the diplomatic
process. Yediot wrote that she will demand of the Palestinians that
the cease Qassam rocket fire and release abducted IDF Cpl. Gilad
Shalit, and that she will require that Israel expand the cease-fire
and strengthen Abbas. All media reported that Olmert scolded Abbas
for failing to keep his personal promise to him that Shalit would be
released before the establishment of a Palestinian NATIONAL unity
government.

The Jerusalem Post quoted senior Israeli officials saying on Sunday
that Israel would "not dismiss" an Arab diplomatic initiative that
talks about normalization of relations, Palestinian statehood within
the pre-1967 lines and the right of refugee return as the opening of
a negotiating process and not as a take-it-or-leave-it deal. "We
would not reject this out of hand," one official was quoted as
saying. "This would challenge Israel and cause a serious discussion
here."

Maariv and other media reported that Secretary Rice arrived in
Israel with a new plan. Maariv quoted a senior Western diplomat as
saying that, based on her talks with UN Secretary-General Ban
Ki-moon on Sunday and apparently with Olmert, Rice is interested in
Israel not continuing direct talks with the Palestinians and
focusing its efforts on the Saudi initiative. On Sunday Maariv
reported that Olmert has resolved to accept the Saudi initiative,
provided the clause calling for the right of Palestinian refugees to
return to lands within the State of Israel is stricken from the
initiative. Maariv quoted a high-ranking political source as
saying: "The Prime Minister believes that the initiative contains
positive elements alongside of which are issues that Israel
perceives as non-starters, such as Resolution 194.



Hatzofe reported that Abbas and Rice agreed that there will be no
changes in the Saudi initiative. Hatzofe quoted the Secretary as
saying that the initiative is compatible with President Bush's
vision.

Yediot reported that Rice refuses to meet with the families of the
abducted IDF soldiers.

UN Secretary-General was quoted as saying last night in an interview
with Ha'aretz that the international Quartet is planning to invite
to its next meeting Israel, the Palestinians and the Arab Quartet,
comprising Saudi Arabia, Egypt, Jordan and the UAE. The UN chief
was quoted as saying that the issue was discussed in a meeting with
Secretary Rice on Sunday, in which they exchanged their impressions

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of meetings held with leaders in the region. Ban was quoted as
saying that the meeting with Rice was good and expressed his hope
the international community will be able to take full advantage of
the diplomatic momentum that is currently being created. Ha'aretz
wrote that the UN Secretary-General, who will participate in the
Arab League summit in Riyadh during the weekend, expressed his hope
the Arab peace initiative will be authorized at the gathering and
that the composition of the Palestinian unity government will serve
as the basis for the renewal of the diplomatic process in the
region. Ban was also quoted as saying that he expects to meet
Syrian president Bashar Assad in Riyadh and that the renewal of
negotiations between Israel and Syria will be one of the subjects
the two will discuss. Over the weekend the media cited Ban's strong
criticism of violations of the basic human rights of the
Palestinians. He was referring to the separation fence and the road
blocks that are disrupting routine life in the territories.
Ha'aretz reported that on Sunday Ban told Abbas that the
international community will judge the new PA government on its
conduct on the ground. He was quoted as saying that fulfilling the
three preconditions of the Quartet -- recognition of Israel,
accepting earlier PLO-Israel accords, and relinquishing violence --
are in line with the interest of preserving world peace. However,
Ha'aretz said that Ban noted that he intends to emphasize to Olmert
the need for Israel to comply with its obligations, including an end
to the settlements and a removal of the illegal outposts.

In its lead story on Sunday Yediot told about a new initiative to
coordinate a public Israeli-Saudi summit meeting. The initiative,
which is described as a joint American-EU initiative and whose
existence was confirmed recently by EU foreign policy director
Javier Solana, is to arrange for Israeli and Saudi officials to meet
publicly for the first time either in late April or early May.
According to the report, Solana took it upon himself to persuade the
Saudis to hold the meeting, while Condoleezza Rice is supposed to
cajole Israel into confirming its attendance. The envisioned
Israeli-Saudi summit is also supposed to include representatives
from the Quartet, Egypt, Jordan and the PA

Ha'aretz reported that Palestinian Information Minister Mustafa
Barghouti told the newspaper: "Whoever boycotts [the new Palestinian
government] also boycotts the entire Palestinian people."
Hatzofe reported on the birth of a "Palestinian Peace Now" in
Ramallah. The new movement -- "Wasatiyeh" ("Moderation") --
reportedly rejects the right of return and is opposed terror.

In its lead story, Maariv reported that violent clashes might erupt
between SECURITY forces and 5,000 right-wing demonstrators, who are
expected to march today to the West Bank settlement of Homesh, which
was evacuated in the summer of 2005 during the disengagement.

Ha'aretz reported that on Sunday IDF OC Central Command Yair Naveh
canceled a ban prohibiting Israelis from taking Palestinian
passengers in their vehicles within the West Bank.

The Jerusalem Post quoted Gen. Pietro Pistolese, commander of the
Border Assistance Mission, as saying that it Israel coninues to
close the Rafah border terminal, the EU will need to reconsider
extending its observer team's presence in the Gaza Strip.

Ha'aretz said that the Gaza Strip has become a "Palestinian
Somalia."

Leading media reported that over the weekend former PM Ehud Barak
hinted that he is more interested in regaining the premiership than
in accepting the post of defense minister if he is elected Labor
Party chairman. All media quoted Olmert as saying on Sunday that he
will fight with all his might to get Vice PM Shimon Peres elected
president of Israel. The media reported that Labor Party Knesset
Member Ami Ayalon is calling on his party to support Peres, instead
of its official candidate Colette Avital. On Sunday Maariv had
cited claims by high-ranking Kadima officials that Peres's chances
of being elected president are weak in the wake of the report about
his testimony before the Winograd Committee, during which he said
that he would not have gone to war in Lebanon. They were quoted as
saying that Peres's statements greatly annoyed the high-ranking
faction members, especially Olmert.
Ha'aretz Washington correspondent Shmuel Rosner reported that the
Agahozo Shalom Youth Village in Rwanda will "bring US donors,
Ethiopian immigrants, and an operation to rescue Rwandan orphans
under the Israel flag." Ha'aretz quoted James Wolfensohn, former
World Bank president and previously a US special envoy in Gaza as
saying: "The Jewish community cannot ignore what is happening in the
rest of the world."

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Secretary Rice to Israel, West Bank, March 25-27, 2007:

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Summary:
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The conservative, independent Jerusalem Post editorialized: "If the
US, Europe, and the UN want the Arab states to more boldly lead the
Palestinians toward moderation, they need to undermine radical Arab
positions that are obstructing peace by openly rejecting such
positions themselves."


Very liberal columnist Gideon Levy wrote in the independent,
left-leaning Ha'aretz: "Whom does the boycott -- which is pushing
Hamas into the arms of Iran -- serve? Not Israel and not the
chances for peace."

Liberal contributor Rami Livni wrote in the popular, pluralist
Maariv: "The refugees are the heart of the conflict and the core of
the Palestinian NATIONAL ethos."

Op-Ed Page Editor Ben-Dror Yemini wrote in Maariv: "The Saudi
initiative is worthy. But the question of what the Arabs' intention
is with respect to the refugees remains unanswered. The only chance
for progress along the Saudi track is if the refugee issue is fully
and completely neutralized."

Block Quotes:
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I. "Reinforce Positive Developments"

The conservative, independent Jerusalem Post editorialized (3/26):
"Prime Minister Ehud Olmert's meetings today with UN
Secretary-General Ban Ki-moon and with US Secretary of State

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Condoleezza Rice occur against the background of two important
developments: a new UN SECURITY COUNCIL resolution on Iran and a new
US push for constructive action by the Arab states on a Mideast
peace process. These two advances are intimately related and should
be encouraged.... [A] major positive development is that Rice has
added a critical new plank to American diplomacy. In a press
roundtable on Friday before leaving for this region, she said: 'It
is absolutely the case that I see the Israeli-Palestinian issue as
having to be augmented by... and, in fact, you could even say, it's
embedded in a broader Arab-Israeli reconciliation. ...what I believe
is very important is that all parties in the international
community, and that includes the Arab states, should recognize in
order to get to... a Palestinian state and an end to the
Israeli-Palestinian conflict, you need the energy and the help of
moving forward on the Arab-Israeli side not at the end of the
process but earlier in the process.' It is blazingly clear, in a
context where Israel has amply demonstrated its desire for a
two-state solution and the Palestinians are too weak and radicalized
to accept the state they have supposedly been fighting for, that the
Arab states need to do their part.... Not surprisingly, the Arab
states are resisting such pressure and are so far rejecting the
ideas of modifying the 2002 Beirut initiative (the Saudi plan) and
of taking steps toward normalizing relations with Israel now. The
US, however, should not be dissuaded, because this is the only
approach that has a chance of producing real movement toward
peace.... If the US, Europe, and the UN want the Arab states to more
boldly lead the Palestinians toward moderation, they need to
undermine radical Arab positions that are obstructing peace by
openly rejecting such positions themselves."

II. "A Dangerous Masked Ball"

Very liberal columnist Gideon Levy wrote in the independent,
left-leaning Ha'aretz (3/26): "The rules of decorum are binding:
Welcome -- to the US Secretary of State and United Nations
Secretary-General, who have come here, and to the German Chancellor,

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who is due next week. But the rules of logic are no less binding,
and we must ask: So, why have you come? All three have declared
that they are coming here to further a solution. But this whole
show, we must tell them, is no more than a ridiculous masked ball:
In their pointless and fruitless visits, they only perpetuate and
entrench the conflict that most threatens world peace. The fact
that all three boycott the elected Palestinian Prime Minister
predetermines that there is no chance for progress. This blind trio
is looking in the wrong place. If they really wished to contribute,
they would have to do two things: meet with Ismail Haniyeh and
pressure him to recognize Israel, and meet with Ehud Olmert and
pressure him to put an end to the occupation. Without these two
elements -- nothing will move forward.... Israel should be the main
interested party in ending the boycott. If it truly wished for
peace, it should have welcomed the establishment of a unity
government, and it should encourage world leaders to meet with its
leadership. Whom does the boycott -- which is pushing Hamas into
the arms of Iran -- serve? Not Israel and not the chances for
peace."

III. "To Understand the Tragedy"

Liberal contributor Rami Livni wrote in the popular, pluralist
Maariv (3/25): "Despite what might appear as a changed tone towards
the Saudi initiative, Israel is liable once again to miss an
opportunity for peace because of an ossified preconception and an
historic miscomprehension. The positive statements made by Prime
Minister Olmert notwithstanding, Israel has rejected negotiations on
the basis of the Saudi initiative as long as it contains any
reference to the issue of the refugees. This is the case even
though the wording of the initiative stipulates that any solution to
the refugee problem will have to be agreed to by Israel and the
Palestinians, to wit, it grants Israel veto power over the nature of
the arrangement on this issue. Despite Israel's experience in
managing the conflict and negotiations, it still suffers from myopia
and misunderstands the roots of the Palestinian problem.... The
issue of the refugees is not an appendix to the Palestinian
problem.... The refugees are the heart of the conflict and the core
of the Palestinian NATIONAL ethos.... Israel, which is strong and
confident in its identity, can allow itself to recognize the story
of Palestinian refugeeism as part of the story of this land. The
Palestinians, for their part, are going to have to accept that the
results of the march of history cannot be reversed. It is on the
basis of this mutual understanding that a solution is going to have
to be found. It is certainly going to be complicated, but there are
some people who believe that the fact of recognition will neutralize
a significant part of the charge in the question of Palestinian
refugees, and might pave the way to creative agreements."

IV. "The Illusion, the Conceit, and the Fraud"

Op-Ed Page Editor Ben-Dror Yemini wrote in Maariv (3/25): "The
illusion, the conceit and the fraud are the formative elements of
the refugee issue. The illusion that there is a right of return.
The conceit that Israel is to blame for the creation of the Arab
worldQs problems in general and the refugees in particular, and the
fraud that has turned the Palestinian refugees into the heart of the
conflict.... Most of the Israeli Left is proof that the illusion,
the conceit and the fraud do not belong solely to the Palestinians.
They have infiltrated the world at large.... Yes, Arab aggression
created the refugee problem. And similar problems in various focal
points of conflict created 38 million people who were forced to
undergo the unpleasant experience of population swaps. That
happened in recent decades in Cyprus and in the former Yugoslavia.
And look, in no case was the 'refugee problem' blow to such
monstrous proportions as it was in the Palestinian case. Nearly all
of the tens of millions of refugees stopped being refugees long ago.
And only the Palestinians have been left as an open wound, and they
provide a livelihood today for dozens of non-profit organizations,
journalists and researchers, all of whom inflate the problem.... The
Saudi initiative is worthy. But the question of what the Arabs'
intention is with respect to the refugees remains unanswered. The
only chance for progress along the Saudi track is if the refugee
issue is fully and completely neutralized. Because repeating a
conceit, even a hundred times, does not make it a fact. There are
more than enough people who prefer the illusion, the conceit and the
fraud. They only perpetuate the problem. It isnQt Israeli
blindness. Not at all. It is Palestinian fraud, which has been
given too much support in the media and the academic world. But,
actually, there is blindness on the Israeli side as well."

JONES