LIKUD CHAIRMAN NETANYAHU TALKS IRAN, PALESTINIANS,

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 000363 SENSITIVE SIPDIS E.O. 12958: DECL: 02/09/2019 TAGS: PTER PREL PGOV IR KWBG SY IS SUBJECT: LIKUD CHAIRMAN NETANYAHU TALKS IRAN, PALESTINIANS, AND SYRIA WITH CODEL SMITH Classified By: Classified by DCM Luis G. Moreno for reasons 1.4 (B/D). ¶1. (C) SUMMARY. Likud Chairman Binyamin Netanyahu met with members and staff of the House Armed Services Committee and House Permanent Select Committee on Intelligence on January 30 to discuss Iran, peace talks with the Palestinians, and the possibility of conducting negotiations with Syria. Netanyahu stressed the importance of fighting terrorism by confronting its state sponsors, most notably Iran. He advised that the international community could roll back Iranian influence, but that it was critical to prevent Iran from attaining nuclear weapons. He said that if President Obama and other world leaders wanted to engage Iran they should do so after Iranian elections and should limit the period of time allotted for the talks. Netanyahu also discussed his desire to focus on improving economic conditions in Palestinian territories instead of embarking on final status negotiations. He added that any partial agreements reached with Palestinian leaders would not include the Gaza Strip. He characterized Israel's offensive in Gaza as a "punch in the nose" that got HAMAS's attention and suggested that ousting HAMAS might produce a less threatening regime. Netanyahu was pessimistic about progress on peace talks with Syria, saying that Damascus cannot pull itself away from Iran. End Summary. ¶2. (SBU) Israeli participants in the meeting included Netanyahu, foreign policy advisers Uzi Arad, Dore Gold, and former Ambassador to the U.S., Zalman Shoval. The U.S. delegation consisted of Reps. Adam Smith (D-WA),Susan Davis (D-CA),Ted Poe (R-TX),Dutch Ruppersberger (D-MD),Gabrielle Giffords (D-AZ),Frank Kratovil (D-MD),and Glenn Nye (D-VA); staff members Bill Natter, Alex Kugajevsky, John Bohanon, and Robert Minehart; military escorts David Colberg and David Silverman; PolCouns and Poloff. -------------- IRAN, IRAN, IRAN -------------- ¶3. (SBU) Netanyahu began the lunch meeting by saying the key issue in the region is "Iran, Iran, and Iran," which he referred to as the "mother regime" for terrorism. He said that the way to effectively combat terrorism is to confront the states that back it. Pointing to the decline of communist states following the Soviet Union's collapse, he predicted that terrorism would decline if we cut off Iran's willingness and ability to support terrorists with money, training, and directives. ¶4. (C) It was important - and possible - to roll back Iranian influence now, Netanyahu stressed. If Iran were able to develop a nuclear weapons capability, it would embolden Iran and its allies, usher in even more terror, and delay militant Islam's death for decades, according to the Likud leader. When asked how to proceed against Iran, Netanyahu said that if President Obama or other parties want to engage with Teheran they should do so after Iranian elections and should limit the time period in which they will engage the regime. The international community also could impose a naval blockade on Iran as an option short of a military attack, with Russia being a key country in this effort. Netanyahu adviser Arad added that Russia has been helpful at times - agreeing to forego sales of advanced anti-aircraft weapons, for example - and that western powers might have to make concessions with Russia on other issues to get them to work more cooperatively against Teheran. -------------- (ECONOMIC) PEACE WITH THE PALESTINIANS -------------- ¶5. (SBU) Netanyahu also explained his vision for engaging with the Palestinians. He advised that he would not "build the pyramid from its apex" by plunging into final status negotiations, but added that he could pursue partial agreements with the Palestinian Authority. Netanyahu explained that improving economic conditions and creating jobs in the Palestinian territories would be key to his overall strategy. An improved economy would help cut down on terrorism because, he claimed, HAMAS's second- and third-tier recruits come from among the unemployed. Netanyahu said that Israeli bureaucratic inertia would be an obstacle to implementing economic measures in the Palestinian territories, but promised that he would meet weekly with responsible ministries and would "lock everyone inside the room" to ensure that administrative hurdles did not prevent progress. ¶6. (C) Turning to Gaza, Netanyahu explained that it would TEL AVIV 00000363 002 OF 002 not be part of any agreement reached with the Palestinians as long as HAMAS continued to run that territory. He was mildly critical of the present government's decision to end Operation Cast Lead when it did, characterizing the hostilities as only "a punch in the nose that had gotten HAMAS's attention." He averred that removing HAMAS from power would not necessarily produce a worse regime there, as alternative groups are not as close to Iran as is HAMAS. -------------- PESSIMISTIC ON SYRIA -------------- ¶7. (SBU) Netanyahu responded to a question about efforts to reach peace with Syria by saying that he is much more hopeful for progress with the Palestinians than he is with the Syrians. Damascus is straddling the fence and it will not disconnect itself from Iran, according to the Likud leader. If Syria began to tilt toward the West it would reverse course and again side with Iran once Teheran obtained a nuclear weapons capability. ¶8. (U) CODEL Smith did not review or clear this cable. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv ********************************************* ******************** CUNNINGHAM