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### Viewing cable 09TELAVIV1184, CODELS ACKERMAN AND CASEY MEETINGS WITH PRIME

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Reference ID | Date | Classification | Origin
--- | --- | --- | ---
09TELAVIV1184 | 2009-06-02 13:01 | SECRET | Embassy Tel Aviv

`

    VZCZCXRO8379
    OO RUEHROV
    DE RUEHTV #1184/01 1531325
    ZNY SSSSS ZZH
    O 021325Z JUN 09
    FM AMEMBASSY TEL AVIV
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 2017
    INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY

` `

    S E C R E T SECTION 01 OF 03 TEL AVIV 001184

    SIPDIS

    E.O. 12958: DECL: 06/02/2019
    TAGS: PREL PGOV KNNP IR KWBG EG IS
    SUBJECT: CODELS ACKERMAN AND CASEY MEETINGS WITH PRIME
    MINISTER NETANYAHU

    Classified By: Deputy Chief of Mission Luis G. Moreno, Reason 1.4 (b),(
    d)

    ¶1.  (S) Summary.  CODEL Ackerman and Casey met separately May
    26 and 27 with Prime Minister Binyamin Netanyahu.  The Prime
    Minister discussed his visit to Washington, focusing on his
    discussions of Iran, a regional approach in support of
    Israeli-Palestinian negotiations, and his approach to the
    Palestinians and settlements, including his opposition to a
    complete freeze on settlement construction.  Netanyahu said
    he was pleased with President Obama's approach to engagement
    with Iran and on a regional component to peacemaking.  On the
    Palestinians, he reiterated his view that the Palestinian
    Authority (PA) must declare its recognition of Israel as a
    Jewish state, and also reviewed his thinking on the
    importance of security for Israelis and his support for
    increased Arab private investment in the West Bank.  On
    settlements, Netanyahu said he would take action against
    illegal outposts and would not build new settlements or
    confiscate more Palestinian land, but he insisted that he
    would not support a complete freeze on construction, and
    noted that his advisers would try to close the gap with the
    U.S. on this issue.  Members of the CODELs pressed Netanyahu
    on the importance of finding ways to strengthen PA President
    Abbas and Prime Minister Fayyad, as well as to address
    humanitarian and reconstruction needs in Gaza.  End summary.

    Washington Visit
    ----------------

    ¶2.  (S) Prime Minister Netanyahu told CODEL Ackerman that he
    did not feel boxed in politically and that his coalition in
    fact reflects the demands of the Israeli public to address
    their concern about security.  While some argue that
    agreements bring security, Netanyahu said Israel's experience
    of the past fifteen years proved that neither agreements nor
    unilateral withdrawals brought security.  Netanyahu said he
    had told President Obama that while he would not condition
    negotiations with the Palestinians on halting Iran's progress
    toward a nuclear weapon, if Iran obtained such a weapon it
    would destroy any progress made toward peace.  He added that
    Egyptian President Mubarak and Jordanian King Abdullah were
    in complete agreement with him on that point.

    ¶3.  (S) For the sake of both security and peace, the first
    task is to stop Iran's nuclear program. Netanyahu noted that
    the President had assured him that by the end of the year,
    the U.S. will decide whether engagement is working and that
    the goal is to stop Iran's program.  The President told him
    that all options remain on the table, a point confirmed by
    Secretaries Clinton and Gates.  Netanyahu said he and Mubarak
    agreed that a nuclear Iran would lead others in the region to
    develop nuclear weapons, resulting in the biggest threat to
    non-proliferation efforts since the Cuban Missile Crisis.
    This "nightmare scenario" is well understood in Washington,
    he said.

    ¶4.  (C) Turning to peace efforts, Netanyahu said the
    President is bringing a fresh approach to regional peace
    whereby the Arabs would enhance the Israeli-Palestinian
    track.  It will be especially important to get the Saudis on
    board, he added.  On the two-state solution, Netanyahu noted
    that the President had stressed his support for two states.
    He had told the President that Israelis did not want to rule
    Palestinians.  Netanyahu said he was prepared for
    "arrangements" with the Palestinians that would entail some
    limits on their sovereignty such as no Palestinian army, and
    Israeli control over borders, airspace, and the
    electromagnetic spectrum.  Netanyahu asserted that seventy to
    eighty percent of Israelis are ready to make concessions for
    peace but they do not believe they have a Palestinian partner
    since Hamas is in control of Gaza and Iran has a base on
    Israel's border.  How can there be peace without a new
    situation in Gaza, he asked.

    ¶5.  (C) Turning to settlements, Netanyahu noted that he had
    told the President that both Israel and the Palestinians had
    unfulfilled Roadmap commitments.  Without elaborating, he
    noted that there were written and oral understandings between
    President Bush and Prime Ministers Sharon and Olmert on the
    Roadmap.  In Gaza, Israel dismantled twenty-seven settlements
    but got six thousand rockets from Hamas in return.

    Support the PA
    --------------

    ¶6.  (C) Chairman Ackerman commented that President Abbas and
    Prime Minister Fayyad are necessary for progress, and noted
    that both Israel and the U.S. will be in trouble if they are
    replaced.  Something needs to be done to help them stay in
    power.  They need material support but also the promise of

    TEL AVIV 00001184  002 OF 003

    statehood.  Foreign investment in the West Bank would give a
    real horizon as well.  Netanyahu agreed, saying Gulf Arab
    investors had been successful in transforming their own
    societies and could make a great contribution to the
    Palestinians.  He added that he wanted to bring Gulf
    investors into the West Bank since they would change reality
    for the Palestinians but also give Israelis confidence.
    Ackerman responded that this was a great idea, but it should
    come from Abbas, not Israel.  The more credit Abbas can take
    for steps forward, the better.

    ¶7.  (C) In response to a question about the PA security
    forces' capabilities, Netanyahu commented that he supports
    the PA's desire to keep Hamas at a distance.  A national
    unity government without Hamas' acceptance of the Quartet
    conditions would serve Hamas' interests, adding that Israel
    has a common interest with the PA to prevent a Hamas takeover
    of the West Bank.  Netanyahu said there is a steady flow of
    Iranian weapons to Gaza through Sudan or Syria and then by
    sea, but he said Egypt's performance in stopping the tunnels
    has improved now that Cairo understands that the Iranian arms
    pipeline is a direct threat to Egypt as well.

    ¶8.  (C) On the economic side, Netanyahu said he wants to
    establish a joint plan with the PA to improve conditions in
    the West Bank.  He cited Cyprus as an example of economic
    prosperity leading to reduced political tensions.  Sen.
    Lautenberg pushed Netanyahu to &put Israel,s best face
    forward8 in the West Bank, and to work with the PA on water
    issues, conservation and health, where Israel could
    contribute a great deal and there are many opportunities to
    build cooperation that would benefit people.  Netanyahu
    responded that his ministerial committee on improving the
    lives of Palestinians in the West Bank met earlier in the day
    and that he is committed to overcoming the turf wars and
    excessive caution that have undercut development efforts in
    the West Bank in the past.  He said the GOI is looking at
    creative ideas, such as how to facilitate tourism to Jericho,
    advance projects in water and agriculture, in addition to
    promoting business (note: he estimated that there are 100
    projects Israel is examining in the West Bank).  &It is
    beyond belief8 what can be done in the West Bank, he said,
    but he hoped the PA would engage with Israel on these
    efforts.  Netanyahu added that the fact that there had not
    been any large anti-Israel demonstrations in the West Bank
    during Operation Cast Lead meant that Palestinians in the
    West Bank want a better life, not confrontation with Israel.

    ¶9.  (C) Representative Ellison, noting that he is the first
    Muslim to be elected to Congress, said he visited Gaza in
    February and met with NGO representatives who could deliver
    assistance without the credit going to Hamas.  He urged
    Netanyahu to consider opening the Gaza crossings, adding that
    Gazans he had met told him they want peace and would like to
    get their jobs back in Israel.  Netanyahu responded that he
    is looking at ways to balance Israeli security with enabling
    Gazans to have a normal life.  The flow of money and weapons
    to Hamas remains a problem since Hamas is extending the range
    and payload of the rockets it possesses.  In response to
    Representative Ellison's comment that Israel should allow
    USAID to return to Gaza, Netanyahu said he thought that it
    might be a good thing to have USAID operate in Gaza.

    Settlements and Outposts
    ------------------------

    ¶10.  (C) Netanyahu said that illegal outposts were a legal
    question and his government would enforce the law.  The
    outposts should be removed through dialogue with the GOI if
    possible, but it should be done in any case.  Regarding
    settlements, Netanyahu said he wants to work with the U.S. on
    the basis of the understandings reached with the Bush
    Administration, i.e. that Israel will not build new
    settlements or seize more land, but if families grow, they
    will still have the right to build within existing settlement
    boundaries.  Now Israel is hearing that the U.S. wants no
    construction at all.  Israelis consider this position to be
    unfair, he said.  The question is whether the U.S. is seeking
    a geographic or a demographic restriction on settlements.

    ¶11.  (C) Netanyahu commented that Israel needs a common
    understanding with the U.S.  The U.S. position should be
    "reasonable," since opposition to a total freeze cuts across
    political parties in Israel.  This is more of an issue with
    the U.S. than with the Palestinians, Netanyahu asserted,
    arguing that the PA will go along if there is an
    understanding between Israel and the U.S.  He noted that
    Israeli officials were meeting with U.S. officials on this
    issue, adding that there could be an understanding if the
    U.S. wants one.  Netanyahu commented that he understood there
    should be no land seizures, but he could not tell settlers

    TEL AVIV 00001184  003 OF 003

    not to have children.  In response to a question about GOI
    incentives to settlers, Netanyahu's adviser Ron Dermer said
    the Olmert government had already removed them.  Netanyahu
    said this was an issue that Israel could discuss further with
    the U.S.

    Iranian Threat
    --------------

    ¶12.  (S) Chairman Ackerman said that in his meetings with
    Arab leaders, he found them all concerned about Iran.  They
    said it would helpful to resolve the Palestinian issue, but
    Israel-Palestine is not the main threat to the region.
    Netanyahu, following a similar comment during his meeting
    with CODEL Casey, responded that there are no Arab leaders
    who would tell the U.S. to wait on Iran until there is a
    settlement to the Israeli-Palestinian issue.  Ackerman also
    explained that the U.S. will try engagement in order to
    prevent an unwise and premature use of force.  We will
    tighten sanctions at the same time, for which we need the
    support of the international community, Ackerman explained.
    Netanyahu noted that Ahmadinejad had said he would not stop
    Iran's nuclear program.  President Obama had been clear in
    his comments to Netanyahu that U.S. engagement would be
    results-oriented and not open-ended.  If engagement did not
    work, the U.S. would gain the moral high ground, which would
    help make economic pressure more effective.  Ackerman agreed
    that more pressure was needed and said we need to figure out
    what the Russians and others want.  Netanyahu said that in
    contrast to North Korea, the Iranian nuclear and missile
    programs were direct threats to Israel, Europe and U.S.
    interests in the Gulf, and he emphasized that the program was
    not defensive in nature.  In response to a question from
    Representative Jackson-Lee, Netanyahu encouraged quick action
    on a bill in the Congress to pressure foreign oil companies
    not to sell refined petroleum to Iran.  This might not be
    enough to stop Iran's program but it would send a strong
    signal.  Netanyahu also urged that the U.S. demand that Iran
    stop all uranium enrichment since enrichment is the main
    element of their program.  He commented that Iran might try
    to use the talks with the U.S. to continue or accelerate
    their enrichment process.  Netanyahu cautioned that he was
    skeptical of the idea that the Iranian leadership could
    change.  They have a dangerous worldview, a violent
    theocracy, but it may be possible to move them if they find
    the U.S. strong and determined.  Iran, he commented, is bent
    on becoming a global and not just a regional power.

    ¶13.  (U) CODELS Ackerman and Casey did not have the
    opportunity to clear this message.

    ********************************************* ********************
    Visit Embassy Tel Aviv's Classified Website:
    http://www.state.sgov.gov/p/nea/telaviv
    ********************************************* ********************
    CUNNINGHAM

`