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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The Jerusalem Post and Israel Radio reported that yesterday State
Department Spokesman Ian Kelly dismissed as QinaccurateQ a report
published in an Israeli media outlet [Yediot] that Israel and the
U.S. administration have struck a deal which would allow the
construction or the completion of 2,500 more housing units in the
West Bank. (The Jerusalem Post reported that officials in the PMQs
Office would not confirm those media reports.) Stating that the
United StatesQ position has not changed, Kelly said: QThis activity
has to stop. This is laid out in the Roadmap.Q Yet, Israel Radio
quoted Israel sources as saying that negotiations are taking place
on the subject. The Jerusalem Post reported that Israel and the
U.S. are moving toward a compromise solution on the settlement issue
that might allow both sides to claim "victory." According to senior
GOI officials, under this type of solution, Israel would declare a
moratorium of a few months on the settlement issue, possibly half a
year, while the U.S. would give Israel a green light to complete a
still-to-be-determined number of housing units in the settlements
that are in advanced stages of construction. Under this type of
arrangement, President Obama would be able to claim a victory in
getting Israel to agree to a moratorium on any new housing starts in
the settlements, while PM Benjamin Netanyahu could claim that he did
not agree to a complete freeze, and that housing construction was
continuing.

The Jerusalem Post quoted National Security Adviser Uzi Arad as
saying at a Knesset press conference marking Netanyahu's 100th day
in office that Netanyahu expects Obama to honor the agreements
reached with the Bush administration on West Bank construction.
Arad revealed that ahead of Netanyahu's meeting with Obama in May,
the National Security Council prepared reports that articulated the
American commitments in great detail. Netanyahu also quizzed his
predecessor, Ehud Olmert, in a meeting on Friday about the
behind-the-scenes agreements he had reached with President George W.
Bush.

Israel Hayom reported that a senior diplomatic official in Jerusalem
told the newspaper yesterday: QThe Americans are completely confused
and their foreign policy is collapsing.Q He was further quoted as
saying : QThis chaos is discernible in nearly every sphere in which
the administration operates, as well as the political sphere in our
region and in the Iranian and North Korea issues.Q According to
Israel Hayom, the senior Israeli official did not speak in order
merely to convey his own opinions. His statements accurately reflect
the prevalent
discourse among Israeli government officials, including officials in
the Prime MinisterQs Bureau, the Foreign Ministry, the Defense
Ministry, and senior cabinet ministers.

Media (banners in HaQaretz and Israel Hayom) quoted DM Ehud Barak as
saying yesterday at a ceremony marking three years since the
outbreak of the Second Lebanon War, in which 121 IDF soldiers died,
that the courage of soldiers repeatedly compensated for the mistakes
of decision-makers during the war.

The Jerusalem Post, Israel Hayom, and Maariv quoted National
Security Adviser Uzi Arad as saying in an interview with the AP that
comments by President Obama and Vice President Biden about a
possible Israeli attack on Iran's nuclear facilities were directed
at Iran and meant to "distinguish" the U.S. from Israel. In an
interview with HaQaretz, Arad said that the Netanyahu government has
inherited a "scorched earth" policy on the Iranian nuclear threat
from the last administration. Israel displayed an "abominable"
failure to address Tehran's nuclear development between 2003 and
2007, Arad said, and while he suggests a potential naval blockade on
the Islamic Republic, he added "The more credible and concrete the
option, the less likely that it will be needed." Regarding the
Palestinian arena, Arad says, "I also do not see a Palestinian
leadership or a Palestinian regime, but a disorderly constellation
of forces and factions." When it comes to relations with
Washington, however, Arad is more conciliatory: "When President
Obama says he is committed to Israel's security, he is speaking the
truth. He is committed in the full sense of the word."

The Jerusalem Post cited Defense Ministry data that almost no
progress has been made toward completing the West Bank security
barrier in the past 15 months.

Israel Radio reported that the G-8 leaders meeting in LQAquila,
Italy, urged Israel and the Palestinians to resume negotiations.

HaQaretz quoted Israeli defense sources as saying yesterday that a
freeze in the attempted reconciliation of Fatah and Hamas has also
brought efforts to negotiate Gilad ShalitQs release to a standstill.
The sources were quoted as saying that the likelihood of a speedy
deal to release Shalit is slim. Yediot cited a confidential report
addressed to the Prime MinisterQs Bureau, according to which Egypt
backs IsraelQs position that, when the negotiations with the
Palestinians are resumed, the latter must pledge to declare the end
of their [unspecified] demands on Israel. Yediot reported that a
few days ago in Egypt, Egyptian intelligence chief Omar Suleiman
told Gilad Sher that Shalit will be released only after Israel gives
up its demand that any Hamas prisoners who are released be deported
to Gaza. Sher managed Ehud BarakQs bureau during his term as PM.
Yediot cited IsraelQs belief that the price that Hamas will demand
for ShalitQs release will not change.

HaQaretz recalled that, prior to the Knesset elections, Netanyahu
presented his program for "economic peace," which he said would
improve the quality of life for Palestinians in the West Bank.
However, 100 days after having formed his coalition government,
there is no practical progress on economic projects. HaQaretz
explained that the main reason for this is the refusal of senior PA
officials to cooperate with Netanyahu and Vice Premier Silvan
Shalom, who has been assigned the task of promoting the "economic
peace" initiative.

The Jerusalem Post quoted UN Secretary-General Ban Ki-moon as saying
in a UN report that hostilities between Israel and Lebanon could
erupt again. Expanding on previous media reports, HaQaretz reported
that Lebanese lieutenant colonel Daher Jarjoui has gone missing, and
military officials there, as well as the officer's family, believe
he fled to Israel after coming under suspicion of spying for Israeli
intelligence. Jarjoui, a resident of the southern Lebanese village
of Qlayaa, was the Lebanese Armed Forces' liaison with a Spanish
company in the UNIFIL peacekeeping force along the Israeli border.

HaQaretz reported that FM Avigdor Lieberman convened a Qclandestine
meeting about a week ago with several senior officials in his
ministry to begin an internal reform. Lieberman's principal message
was that instead of being preoccupied with the Palestinians, the
ministry should wage an international campaign against Iran and
engage in public diplomacy to rehabilitate Israel's international
image.

The Jerusalem Post reported that, days after President Obama sent a
letter to MoroccoQs King Mohamed VI urging the moderate North
African nation to Qbe a leader in bridging gaps between Israel and
the Arab world,Q Israeli experts on Moroccan-Israeli relations
differed on the likelihood of a positive response from the KingQs
government in the coming weeks.

HaQaretz reported that QIsrael is tightening its borders.
Passengers departing via Ben Gurion Airport will now have to pass a
second passport control point before boarding a flight. In addition
to presenting their passports at immigration after checking their
luggage, passengers will have them scanned once again at the gate
before boarding the plane. Until now, passengers had to present
only a boarding card at that point. The new regulations could serve
several purposes -- a response to specific threats; closing a breach
that lets passengers bypass immigration controls; or increasing the
chances of catching people barred from leaving the country.

Erratum: The Jerusalem Post did not report that President Shimon
Peres attended the AmbassadorQs Fourth of July reception. He was on
an official visit to Kazakhstan.











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1. Mideast:
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Block Quotes:
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I. "Outposts for Blocs"

Senior commentator Ari Shavit wrote in the independent, left-leaning
Ha'aretz (7/9): QTo avoid a head-on clash with its ally, Israel must
change its ways immediately. It must prove it will no longer make a
fool of the world and stop sabotaging itself and start enforcing the
law in the West Bank. What we urgently need is a creative
American-Israeli understanding. Israel must make a reality-changing
move, and AMERICA must recognize the complexity of this reality.
Israel must provide proof that the withdrawal is really beginning,
and AMERICA must provide a preliminary commitment to the
withdrawal's border. The new American-Israeli deal must be simple
-- outposts for blocs, i.e. evacuating the illegal outposts in
exchange for recognition of the large settlement blocs.... If
Benjamin Netanyahu insists on keeping the illegal outposts, he will
be defending a criminal act of settlement as well as harming
Israel's interests. If Obama refuses to recognize that settlement
blocs attached to the Green Line will remain within IsraelQs
boundaries, he will be destroying Clinton's legacy. But if Obama
and Netanyahu formulate an outposts-for-blocs policy, they will be
serving their states and administrations' joint interest -- a
realistic peace process.

II. "Better a Doormat"

Far left columnist Gideon Levy wrote in Ha'aretz (7/9): QThe Prime
Minister will be judged by his results, not by his character or the
route he takes to get there. Some who criticized Netanyahu's latest
zigzag -- the U-turn he did by canceling the value-added tax on
fruits and vegetables -- admit that his decision may have been
sound. Yet the most important thing, in their eyes, is that we not
have a prime minister who surrenders, who yields, who folds with
such ease. This logic is twisted. Instead, we ought to sing the
praises of a prime minister who changes his mind, adjusts his views
to prevailing circumstances, and yields on issues to his and our
benefit. Only such a Netanyahu can do well by us. Heaven forbid if
he were to entrench himself in his positions. We would be better
off having a doormat for prime minister than a hero. We have had
more than enough of the latter.

III. "The Lesser Evil"

Editor-in-Chief Amnon Lord wrote in the nationalist, Orthodox Makor
Rishon-Hatzofe (7/9): QThe Americans still continue to demand a
construction freeze in the settlements, but it appears that the
negotiations are going on and that there is no concurrence, to say
nothing about an agreement. If there is something that the Prime
Minister should be warned about while Barak is holding contacts with
the Americans, it is signing an agreement. Any agreement about the
settlements would haunt the government during its entire term, as

RabinQs surrender to [Bill] ClintonQs pressure to return the Hamas
deportees in 1993 haunted him and caused the Oslo Accords to fail.
That surrender continues to haunt us until this very day. Thus it
is better, at a certain stage, to get entangled in a serious crisis
with the U.S. rather than risk surrendering to pressure. In the
mean time, the settlement issue serves as fuel in the persistent
contacts with the U.S., the exact contents of which are unknown to
anyone. It is hard to believe that Mitchell and Barak continue to
turn around the same point for such a long time.... It is preferable
to hold contacts with the Americans about far-flung outposts than to
be within reach of Qpeace,Q as every pressure in the world would be
applied on Israel to agree to a redeeming QcompromiseQ formula
regarding the assimilation of [Palestinian] refugees.

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2. Iran:
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Block Quotes:
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I. "Sanctions instead of Military Force"

Veteran journalist and television anchor Dan Margalit wrote in the
independent Israel Hayom (7/9): QThe U.S. administration is
conducting a complex policy on the harsh issue of a [possible]
Israeli attack on Iran.... There is room for attempting a different
move. If the world had seriously pressed Iran, there would have
been no need for a military action. For this, Russia needs to apply
its whole force. What could cause this? Obama visited Moscow,
offering a deal: Russia would join the pressure on Iran in exchange
for an American renouncement of NATO missile deployment around its
borders. Israel, which is constantly occupied with itself, would do
well to be attentive.

II. "IranQs Regime Only Got Stronger"

Columnist and former intelligence officer Amos Gilboa wrote in the
popular, pluralist Maariv (7/9): QNow that the dust around the
Iranian elections is settling, I believe that neither was there a
coup in that country, nor an uprising against the regime, nor a true
rift among the ruling elite.... Furthermore, the regime never truly
risked being overthrown.... I believe that the Iranian regime
actually got stronger.... At the regional level, support for Hamas
and Hizbullah increased.... The chances for the yearned dialogue
between the liberal Obama and IranQs security-imbued fanatics are
low. In any case, if the United States wants to cope with Iran with
any amount of success, it must act in cooperation with Russia.
Therefore, the results of ObamaQs visit to Moscow are highly
important to Israel.

CUNNINGHAM