AGENDA FOR NETANYAHU'S FIRST 100 DAYS AND FIRST

C O N F I D E N T I A L TEL AVIV 000662

SIPDIS

NSC FOR SHAPIRO AND PASCUAL; SECDEF FOR OSD

E.O. 12958: DECL: 03/20/2019
TAGS: PGOV PREL ECON KWBG IS
SUBJECT: AGENDA FOR NETANYAHU'S FIRST 100 DAYS AND FIRST
VISIT TO WASHINGTON

Classified By: Ambassador James B. Cunningham, Reason 1.4 (b) (d)


1. (C) Summary. In a March 11 meeting with the Ambassador
and PolCouns, PM-designate Bibi Netanyahu's transition team
laid out their agenda for the first one hundred days of the
new government, which Netanyahu is expected to announce March

18. The top item on their agenda is passing a budget, which
the new government must do within forty-five days. Other
items include political, education and internal security
reforms, a new approach to peace with the Palestinians, and
coordination with the U.S., including an early decision on
setting a date for Netanyahu's first visit to Washington.
They stressed that Netanyahu must make a decision soon on
whether to accept an invitation to address AIPAC's annual
conference the first week in May, and asked if that would be
a convenient time for the first meeting with the President.
If not, they asked that the White House provide an
alternative. In response to the Ambassador's comment that
Special Envoy Mitchell plans to visit Israel shortly after
the new government is formed, they said that while Mitchell
will be welcome any time, he should expect his GOI
interlocutors to be largely in listening mode pending the
outcome of their review of policy toward the Palestinians.
On other issues, they were aware that a decision is pending
on settlement expenditures-based deduction from the loan
guarantees. They expressed interest in resuming the
Strategic Dialogue, reengaging on missile defense, and
requested an early briefing on the outcome of the U.S. Iran
policy review. End Summary.


2. (C) The Ambassador, accompanied by PolCouns, met at their
request March 13 with Prime Minister-designate Netanyahu's
transition team, headed by Member of Knesset Yuval Steinitz,
and including NSC adviser-designate Uzi Arad, strategic
adviser Ron Dermer, and likely Director General of the PM's
office Izzi Tapuchi, among others. Steinitz noted the
importance Netanyahu attaches to Israel's relations with the
U.S. was demonstrated by the fact that the U.S. Ambassador
was the only ambassador they had requested to meet. Steinitz
described their agenda for the first one hundred days of the
new government as including immediate focus on passing the
budget and addressing the impact on Israel of the world
economic crisis; reforms in the areas of the political
system, education, and internal security; a review of policy
toward the Palestinians including a new emphasis on "economic
peace" in the West Bank while deciding how to deal with Gaza;
and engagement early on with the U.S. Steinitz stressed the
need to decide on a date for Netanyahu's first visit to
Washington. April is difficult for Israel due to the
Passover holidays early in the month and Holocaust Day,
Remembrance Day, and Independence Day all in late April.
Steinitz noted that Netanyahu is considering whether to
attend the AIPAC conference in Washington in early May. If
that timing is not suitable for President Obama, Steinitz
asked that the U.S. propose another window.


3. (C) National Security Adviser-designate Arad noted that
the new government's engagement with the U.S. will occur
under unusual circumstances, including a new U.S.
Administration dealing with an economic crisis, and a new GOI
under pressure to make weighty decisions about Iran and the
Palestinians. Netanyahu promised a review of Israeli policy
toward the Palestinians, and the new GOI will want to tackle
that right away. The process will be complicated by the
Palestinian reconciliation talks, since Israel will not
engage a Palestinian unity government that includes Hamas and
does not see a viable replacement for PA Prime Minister
Fayyad. The new government will also need to deal with the
budget, the economic crisis, the ongoing rocket fire from
Gaza and possibly the negotiations over the kidnapped soldier
Gilad Shalit if the prisoner exchange issue remains
unresolved. The Israeli team noted that in addition to a
Netanyahu visit to Washington, the incoming ministers of
foreign affairs and defense will want to meet their American
counterparts early on.


4. (C) The Ambassador pointed out that Special Envoy Mitchell
has expressed interest in visiting Israel shortly after the
formation of the new government, possibly before Passover
(Note: Passover begins at sunset on April 8.) The Israelis
responded that while the review of Palestinian policy will
just be getting underway, Mitchell will be welcome whenever
he wants to visit, with the understanding that the Israeli
side will be largely in listening mode. The Ambassador said
Mitchell will want to present U.S. views and ideas about what
needs to be done as early as possible, and Arad suggested
Mitchell might return for a more substantive exchange before
Netanyahu goes to Washington.


5. (C) The Israelis asked about Iran policy, including Senior
Adviser Dennis Ross's role. The Ambassador said that Ross is
working with an interagency team to pull together a global
Iran strategy. Asked if the new GOI should invite Ross to
visit, the Ambassador responded that when the policy review
is complete, the U.S. intends to consult Israel and our Arab
allies, as well as other key players. Steinitz said Israel
will want to present its views on Iran and learn what it can
expect from the U.S. as soon as possible.


6. (C) Dermer mentioned Netanyahu's possible interest in
using the loan guarantees program, and asked if the U.S.
had decided to take a deduction based on GOI expenditures on
settlements. The Ambassador replied that there has been
discussion of a deduction of about one billion dollars, but a
decision has not been made.


7. (C) Other areas of interest included the resumption of the
strategic dialogue and a renewed discussion of missile
defense issues. Regarding the strategic dialogue, Arad said
a session should be held in Israel before the summer. He
suggested we start planning dates without waiting for the new
government to decide who will head the Israeli side.
Steinitz commented that the missile threat to Israel is
increasing and said the new government will likely want to
accelerate the Arrow III program. The Ambassador said we had
recently conducted some exchanges on missile defense and the
upcoming Joint Political-Military Group and Defense Policy
Advisory Group meetings could provide a good opportunity to
resume these discussions with the new GOI. Steinitz said
Israel's civil aviation problems were on their agenda as
well. The Ambassador said the problem must be fixed by
Israel. General Rom has a plan but he will need the backing
of the new government. The Ambassador added that we also
have issues with Israel on Intellectual Property Rights and
Trafficking in Persons that are not as high profile but will
need to be addressed.


8. (C) On economic issues, Dermer said that Netanyahu is not
a socialist and may "go against the grain" of the worldwide
response. Tapuchi noted there may be opportunities for
Israeli companies to participate in President Obama's plans
to reform health care and protect the environment. Steinitz
expressed his "faith in America" and stressed Netanyahu's
desire to raise the level of cooperation with the U.S.



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CUNNINGHAM