US embassy cable - 04TELAVIV2457

C O N F I D E N T I A L TEL AVIV 002457 
 
SIPDIS 
 
STATE FOR NEA/IPA 
 
E.O. 12958: DECL: 04/29/2014 
TAGS: PGOV, PREL, IS, GOI INTERNAL 
SUBJECT: AM AHAD AND LABOR MERGER LIKELY 
 
 
Classified By: POL/C Norman Olsen for reasons 1.4 (b) and (d). 
 
1.  (C) Histadrut International Secretary Nawaf Massalha told 
poloff April 22 that it is likely Amir Peretz's Am Ahad Party 
will merge into the Labor Party by January 2005.  According 
to Massalha, who served as a deputy foreign minister in the 
Barak government, a draft agreement is being circulated 
between the two parties outlining the process for merger. 
Massalha said that the agreement provides for Am Ahad MKs to 
take 20 percent of any ministerial positions awarded to 
Labor, claiming the proportion is calculated on the basis of 
the number of votes awarded to each party in the last Knesset 
election, where Labor took 19 seats and Am Ahad fell slightly 
short of four.  Commenting on the speculation that a new 
Likud-Labor government might be formed in the wake of the 
disengagement debate, Massalha noted with dismay that such a 
move would likely occur before the merger is completed, 
precluding Am Ahad KMs from taking any ministerial seats. 
 
2.  (C) The current leader of Am Ahad, Histadrut Chairman 
Amir Peretz, broke away from Labor in 1999 to form the 
social-issues-focused Am Ahad Party.  Massalha claims that 
the Labor Party in general, and Shimon Peres in particular, 
will be happy to bring Peretz back into Labor to boost the 
party's credibility with the middle and lower-middle classes. 
 According to Massalha, the Labor Party, unlike its European 
counterparts, has grown disassociated from core issues like 
eliminating unemployment and poverty.  In today's Israel, 
Massalha said, no politician is more clearly associated with 
those issues than Amir Peretz.  Massalha noted that Peretz 
was a Peres protege for years and indicated Peres is actively 
seeking Peretz's return.  Massalha also said that it is 
highly likely Peretz will compete for leadership of the Labor 
Party when Peres steps aside. 
 
3.  (C) Am Ahad has three MKs: Amir Peretz, Ilan Cohen, and 
David Tal.  Massalha acknowledged that David Tal, a former 
Shas MK who ran as Am Ahad because of his strong interest in 
social issues, will almost certainly leave the party if it 
merges into Labor.  Massalha said that Tal cannot return to 
Shas, and would likely join Likud when the merger becomes 
final. 
 
********************************************* ******************** 
Visit Embassy Tel Aviv's Classified Website: 
http://www.state.sgov.gov/p/nea/telaviv 
 
You can also access this site through the State Department's 
Classified SIPRNET website. 
********************************************* ******************** 
KURTZER