PRESIDENT PERES TALKS POLITICS, REGIONAL ISSUES

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 002786

SIPDIS

E.O. 12958: DECL: 12/12/2018
TAGS: PGOV PREL KPAL TU IS
SUBJECT: PRESIDENT PERES TALKS POLITICS, REGIONAL ISSUES
WITH DEPUTY SECRETARY NEGROPONTE

Classified By: Ambassador James B. Cunningham for reasons 1.4 (B/D).


1. (C) SUMMARY: The Deputy Secretary and the Ambassador met
with Israeli President Shimon Peres on December 9 to discuss
upcoming Israeli elections, the peace process with the
Palestinians, and other regional developments. Peres
predicted that there would not be dramatic policy shifts
following Israeli elections in February. He also explained
that Israel soon would need to decide on what land it
ultimately would cede to a Palestinian state, and noted that
the Ariel settlement bloc would pose special problems. He
then suggested that Israel eventually could retain Jewish
neighborhoods in Jerusalem and allow the Palestinians to
obtain control of Arab neighborhoods, while allowing each
control over their respective holy sites. Peres discussed
ways to improve Israeli security, highlighting the importance
of cooperation with Jordan and also economic development
projects that would encourage peaceful coexistence. Peres
briefly spoke on Iran, emphasizing the importance of avoiding
divisions in policy among western powers. He also praised
Turkey's Islamic-oriented government for their constructive
regional engagement. End Summary.

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EXPECTING SOME CONTINUITY IN POLICY FOLLOWING ELECTIONS
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2. (SBU) Peres described the political situation in Israel
as fluid, but he expected a semblance of continuity rather
than profound changes following the elections scheduled to
take place on February 10, 2009. He based his viewpoint on
his belief that the composition of the major parties has
changed, and that the meaning of "left" and "right" on the
political spectrum in Israel has evolved, noting that "(Prime
Minister) Olmert is now to the left of the left."

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KEY DECISIONS FOR THE NEXT LEADER: LAND, JERUSALEM, SECURITY
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3. (C) Peres explained to Negroponte that Israel faces three
critical decisions with regard to the Palestinians. First,
the Israelis will have to determine what will be the "form"
of the land that will go to the Palestinians. Peres said
that it was "unfair" to ask the Palestinians for any
additional land, but said that the two sides needed to make
changes to the 1967 borders, including land swaps, that would
allow Israel to retain concentrated settlement blocs and the
Palestinians to have a contiguous state. Peres highlighted
the Ariel settlement bloc as the biggest obstacle in this
regard.


4. (C) The second important decision Israeli leaders face is
what to do about Jerusalem. Peres proposed that Israel
should retain the neighborhoods with clear Jewish majorities
while leaving those with clear Arab majorities to the
Palestinians. He then suggested that Israel would retain
control of Jewish holy sites, while Muslims would take over
key Islamic sites. Peres left open what to do about some of
the thornier issues, including the disposition of
neighborhoods with mixed populations and possible Jordanian
claims to Islamic holy sites in Jerusalem.


5. (C) The third key decision facing Israel is how to handle
security. Peres suggested working more closely with
Jordanian security and intelligence services-which he
praised-as well as Palestinians forces. Peres, however, put
more emphasis on indirectly solving Israeli security problems
in the long-term by increasing economic development and
cooperation with the Palestinians so that their increased
living standards would encourage peaceful coexistence. He
spoke of open skies, open roads, and joint economic programs,
along with changes in neighboring Arab countries that would
provide greater gender equality and reduce family size. The
private sector can lead in increasing development, but it
needs ideas. Peres was quick to suggest the Red Sea-Dead Sea
development plan that he has promoted for several years,
which entails investment in projects all along the corridor,
primarily focused on tourism.

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A UNITED FRONT NEEDED AGAINST IRAN
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6. (C) Peres told the Deputy Secretary that having a common
policy against Iran was important. Iran has problems -
corruption, inflation, reduced oil revenues - that a united
West can exploit. He noted that Iran continues to use Russia
to further its own interests, so he suggested attempting to
reach an agreement with Moscow that would limit the size of
missiles that Iran could maintain so that Teheran would be

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without the means to deliver a nuclear warhead.

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PRAISE FOR TURKEY
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7. (C) Peres also provided his views on Turkey. He believes
that Turkey serves as a good model for other Islamic
countries, pointing out that Ataturk helped create a middle
class that was receptive to democracy and a nationalist, not
religious, identity. He praised the current
religiously-oriented government in Ankara for working more
constructively with Iraq and the Kurds, fostering a path
toward Israeli and Syrian peace talks, and for reaching out
to Armenia. Peres explained that Turkish accession to the
European Union would further democratize Turkey, and warned
that a rejection would unite Islamists and nationalists there
in opposition to the West.


8. (U) The Deputy Secretary's party cleared this cable.

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