ISRAEL MEDIA REACTION

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SUBJECT: ISRAEL MEDIA REACTION

Please note: The Israel Media Reaction report will not appear on
Thursday, April 9, due to the Passover holiday.

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SUBJECTS COVERED IN THIS REPORT:
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Mideast

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Key stories in the media:
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HaQaretz reported that, Qin an unprecedented move,Q the Obama
administration is readying for a possible confrontation with PM
Benjamin Netanyahu by briefing Democratic congressmen on the peace
process and the positions of the new government in Israel regarding
a two-state solution. The media reported that the Obama
administration is expecting a clash with Netanyahu over his refusal
to support the establishment of a Palestinian state alongside
Israel. HaQaretz says that the preemptive briefing is meant to foil
the possibility that Netanyahu may try to bypass the administration
by rallying support in Congress. HaQaretz reported that the message
that administration officials have relayed to the congressmen is
that President Obama is committed to the security of Israel and
intends to continue the military assistance agreement that was
signed by his predecessor, George W. Bush. However, Obama considers
the two-state solution central to his Middle East policy, as he
reiterated during a speech in Turkey on Monday, and he intends to
ask that Netanyahu fulfill all the commitments made by previous
governments in Israel: accepting the principle of a Palestinian
state; freezing settlement activity; evacuating illegal outposts;
and providing economic and security assistance to the PA. HaQaretz
also reported that administration officials made it clear to
congressmen that the Palestinians will also be required to fulfill
their obligations in line with the Roadmap and the Annapolis
process.

Makor Rishon-Hatzofe reported that Netanyahu intends to show
President Obama that he is also striving for a diplomatic solution
to the Palestinian issue, without explicitly advocating Palestinian
statehood.

The Jerusalem Post and Yediot quoted FM Avigdor Lieberman as saying
yesterday at a Yisrael Beiteinu forum in Jerusalem that the new
government will formulate a diplomatic program compatible with the
wishes of the electorate, but that the world "should not stand over
us with a stopwatch." Saying that after 16 years of a diplomatic
"dead end" in the peace process, the world must be ready to listen
to new ideas, Lieberman declared that "we intend to work with
determination on the diplomatic plane and formulate a detailed and
up-to-date assessment. This will not happen overnight, and they
should not stand over us with a stopwatch in hand. We will
formulate the policy compatible with our world view and as the
voters wanted in the elections." Speaking on Israel Radio this
morning, Deputy FM and former ambassador to the U.S. Danny Ayalon
said that there is no chance of a confrontation with the U.S.

Maariv reported that IDF Chief of Staff Lt. Gen. Gabi Ashkenazi and
senior Israeli defense officials showed Netanyahu plans to contain
the Iranian nuclear project. The newspaper reported that Netanyahu
was pleasantly surprised by progress in training and preparations to
this effect. Maariv also quoted senior defense sources as saying
that the U.S. defense establishment is aware of IDF preparations
against the Iranian threat. The leading online news service Ynet
quoted Vice President Joe Biden as saying yesterday on CNN that he
does not believe that Netanyahu will decide to attack Iran, and that
such an attack would not be wise. HaQaretz reported that Israel's
successful test yesterday of the upgraded Arrow II anti-ballistic
missile system has made defense officials hopeful that the U.S. will
continue funding the system, which is designed to defend against
possible ballistic missile attacks by Iran and Syria. Other media
doubted the possibility that the funding would continue. The
Jerusalem Post quoted Haim Eshed, who has headed IsraelQs space
program for three decades, as saying that Israel could be losing its
Qqualitative edgeQ as other Middle East nations Q notably, Iran
invest in space-based capabilities.

HaQaretz quoted the armaments development authority Rafael as saying
yesterday that the first complete short-range missile interception
"Iron Dome" system is expected to become operational as early as
summer 2010.

Maariv reported that a first incident has occurred between Netanyahu
and DM Ehud Barak, after less than a week since the formation of the
government: Yesterday Barak approved the transfer of some 100
million shekels (around $25 million) to banks in Gaza, an approval
given without the knowledge of the Prime Minister.

Maariv reported that Ofer Dekel, the PMQs point man on prisoners,
was not invited to PM NetanyahuQs meetings with the parents of Noam
Shalit. The newspaper cited assessments that Netanyahu will name a
new envoy.

Claiming that far-Left organizations are pressuring the IDFQs Judge
Advocate General, Makor Rishon-Hatzofe reported that an IDF officer
who slapped a Palestinian in the face was arrested until the
conclusion of the legal proceedings against him.

HaQaretz reported that the U.S. has been training senior Palestinian
security officials in an advanced officers' course in Ramallah for
top brass. The new course, entitled "senior leaders' course," is a
two-month long program conducted in Ramallah with the assistance and
supervision of the U.S., and is part of the project overseen by the
U.S. security coordinator in the territories, Gen. Keith Dayton. So
far, the program has produced 80 graduates divided into two
40-student classes. A third class, made up of commanders from the
Palestinian National Security Force -- the largest security force
with 15,000 members, tasked with policing borders, providing
military intelligence, military police services and presidential
security -- is currently being trained in Jordan. That class is
undergoing special training by Jordanian instructors under American
auspices. The Jerusalem Post reported that Moscow has promised to
supply PA security forces in the West Bank with new weapons,
including two helicopters.

The Jerusalem Post quoted former national security adviser Giora
Eiland as saying in a document penned for the right-leaning
Jerusalem Center for Public Affairs that IsraelQs Qpresent border
line [with Syria] is the only one affording plausible defense for
Israel.

The Jerusalem Post and other media quoted Dani Dayan, head of the
Yesha Council of Jewish Settlements in the Territories, as saying
that IDF budget cuts will leave a Qlarge numberQ of settlements
unguarded.

Yediot quoted an American source as saying that the elite naval
commando unit QShayetetQ took part in the Israeli raid on an arms
convoy in Sudan.

Israel Radio cited an Al Jazeera-TV report that seven Israeli Arabs
were arrested in Egypt over Hizbullah-linked activities. The radio
reported that the Foreign Ministry denies any knowledge of this.
The Jerusalem Post reported that Israel will not facilitate Northern
Ireland politician Gerry AdamsQ entrance into Gaza through the Erez
rossing because he will not commit to not meeting amas officials.
The Jerusalem Post reported on te long, cozy IRA-PLO cooperation.

The JerusalemPost reported that on March 31 Jerusalem Mayor Nir
Barkat met with film industry figures in Los Angees to encourage
more filming in his city.

TheJerusalem Post cited Tel Aviv UniversityQs March 209 War and
Peace Index (held on March 30-31) as saying that for a clear
majority of the Israeli public, the economic crisis is the most
important issue facing the new government (62% put it in first or
second place). Trailing far behind are the security and political
issues -- the Iranian threat at 39% and the negotiations with the
Palestinians at 27%. A majority of the Jewish citizens of Israel
(53%),but not of the Arabs (33%),believe NetanyahuQs declaration
that his government will strive for peace with the Palestinians.
However, a majority of both sectors supports NetanyahuQs view that
the key to achieving stability and quiet is Qeconomic peaceQ based
on advancing the economic condition of the Palestinians. In
contrast, however, to NetanyahuQs refusal to commit himself to the
formula of two states for two peoples, a majority of both sectors
(56% of the Jews and 78% of the Arabs) currently favors working
toward this solution. That is, the Israeli public thinks Qeconomic
peaceQ is a good idea but not enough to achieve ongoing quiet and
stability. The support for the two-state idea is especially evident
when comparing it to two other possibilities: continuing the
existing situation or establishing a binational state. Among the
Jews, 51% now back the two-state formula, 28% favor continuing the
existing situation, and only 7% are for setting up a binational
state. For the Arabs the parallel figures are 66% for the two-state
formula, 8% for continuing the existing situation, and 17% for
binationalism. In other words, the Arabs, not surprisingly,
overwhelmingly oppose continuing the existing situation; at the same
time a large majority also opposes the idea of a binational state
and supports, like the Jewish public, the two-state solution. A
further interesting finding is that a majority -- about
three-quarters -- of both groups disagrees with the ominous claim
that unless the two-state idea is realized soon, the result will be
the rise of a binational state between the Jordan and the
Mediterranean. A majority of Israelis, both Arab (59%) and Jewish
(54%),believe that despite the new governmentQs right-wing
composition it will maintain a good relationship with the Obama-led
U.S. administration when it comes to advancing Israeli-Palestinian
peace. However, while a majority of the Jewish public (55%) expects
Obama to pressure Israel harshly if it does not cooperate in
advancing the negotiations, a majority of the Arab public (51%) sees
the chances of U.S. pressure on Israel as low.

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Mideast:
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Summary:
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Defense commentator Amir Oren wrote in the independent, left-leaning
Ha'aretz: QVery soon, in Netanyahu's visit to Washington and Obama's
visit to Jerusalem, either a change will be imposed on Israeli
policy, or a change will be imposed on the Israeli government.

Liberal columnist Larry Derfner wrote in the conservative,
independent Jerusalem Post: QLieberman is more dangerous than
Ahmadinejad because we have the military power to deter Iran's
threat to destroy us physically. I don't know if we have the power
to deter Lieberman from destroying us morally.

The nationalist, Orthodox Makor Rishon-Hatzofe editorialized:
QProgress with the Palestinians should only be made in conjunction
with the ability of Abu MazenQs leadership to abide by its respect
of understandings and agreements reached with Israel.



Block Quotes:
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I. "ObamaQs Seder [Passover Night or Order]"

Defense commentator Amir Oren wrote in the independent, left-leaning
Ha'aretz (4/8): QFrom the Israeli standpoint, the most essential
strategic development is the shift of American interest eastward
from Iraq, which took center stage during the Bush years. The focus
is moving to Iran, Afghanistan and North Korea. The significance is
that the attention devoted to existential threats of terrorism and
nuclear weapons intensifies exactly as it did during the Bush
presidency, yet it is disconnected from the Arab-Israeli conflict.
Concessions on the Israeli front will not aid in the fight against
Al Qaida and the Taliban, nor will they dissuade Kim Jong-il from
launching missiles that can carry nuclear warheads.... Conversations
with U.S. civilian and military officials suggest that in recent
weeks there has been greater recognition among members of the Obama
administration that the danger of a nuclear Iran to the entire
Middle East and, together with North Korea, to the spread of nuclear
weapons around the world, is greater than the anticipated cost of an
Israeli operation against Iran.... But only an Israeli government
that seeks peace can convince the public that its order to the IDF
to act was given free from ulterior motives. If Netanyahu's natural
partner is Avigdor Lieberman, Obama is indicating that his natural
partner is Tzipi Livni. Very soon, in Netanyahu's visit to
Washington and Obama's visit to Jerusalem, either a change will be
imposed on Israeli policy, or a change will be imposed on the
Israeli government.

II. QThe Threat from Within

Liberal columnist Larry Derfner wrote in the conservative,
independent Jerusalem Post (4/8): Q[Ahmadinejad and Lieberman] both
exult in beating the drums for racism and war. They both brand
entire ethnic and religious groups as the enemy and promise a
sweeping, violent solution. They both appeal to a nation's spleen.
The main ideological difference between them is that Ahmadinejad is
a religious fanatic, while Lieberman is secular -- which, I imagine,
is one reason he left Kach to develop his secular brand of Kahanism
in the political mainstream. Otherwise, he and Ahmadinejad are cut
from the same cloth. Lieberman talks a lot about the Qthreat from
withinQ being more dangerous than the threat from without -- that
the Arabs inside our borders can destroy this country easier than
the Arabs outside. He's right about the threat from within, but it
isn't from Israeli Arabs, it's from Lieberman himself and what he
represents and the power he's gained. He's now taken over the
Foreign Ministry. He's gotten the stamp of approval from the
leading parties of the right, center and center-left -- the Israeli
consensus. He's being laundered and sanitized by virtually the
entire American Jewish establishment. And he's not through by a
long shot. At this point, he seems to have an even brighter future
ahead. Lieberman is more dangerous than Ahmadinejad because we have
the military power to deter Iran's threat to destroy us physically.
I don't know if we have the power to deter Lieberman from destroying
us morally -- from turning us into the image of what we claim to
hate.

III. "Obama and the New Israeli Government"
The nationalist, Orthodox Makor Rishon-Hatzofe editorialized (4/8):
QThose who did not find the declaration of the European foreign
ministers around two weeks ago clear, heard President ObamaQs speech
to the Turkish Parliament.... Everybody repeats the mantra of two
states for two peoples, the code word being Annapolis.... This
approach is the recipe for an impasse from the very first stop of
the Obama administration and the Netanyahu government.... There is a
consensus in Israel that the country should not take upon itself
QshelfQ commitments and that progress with the Palestinians should
only be made in conjunction with the ability of Abu MazenQs
leadership to abide by its respect of understandings and agreements
reached with Israel.

CUNNINGHAM