US embassy cable - 04TELAVIV6466

C O N F I D E N T I A L TEL AVIV 006466 
 
SIPDIS 
 
E.O. 12958: DECL: 12/21/2014 
TAGS: PGOV, IS, GOI INTERNAL 
SUBJECT: SHARON AND PERES AIM FOR UNITY GOVERNMENT WITHIN 
THE WEEK DESPITE LEGAL HICCOUGH OVER PERES' ROLE 
 
 
Classified By: Political Counselor Norman Olsen for reasons 1.4 (b,d). 
 
1.  (C) Summary: Prime Minister Sharon is well on his way to 
gaining passage of an amendment to the country's Basic Laws 
that will meet Labor's demands for senior government 
positions and allow Sharon to form a new government by New 
Year's.  The amendment would allow for a second alternate 
prime minister position -- to be held by Shimon Peres -- a 
position demanded by Labor in lieu of receiving the Defense, 
Foreign Affairs, or Finance portfolios.  Sharon is exerting 
strong pressure on his party to expedite Knesset approval of 
the bill, and Labor Party leader Peres is pushing his own 
party to approve the coalition agreement and elect its seven 
ministerial candidates.  The outcome of internal party 
squabbles over process and expediency will determine whether 
a unity government will be formed this week or next.  End 
Summary. 
 
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"Peres Bill" Key to Unity Government 
------------------------------------ 
 
2.  (C) Labor and Likud are expected to ram through the 
Knesset within days the necessary amendment to the Basic Laws 
to create a second alternate prime minister position to be 
held by Shimon Peres, as detailed in the proposed Likud-Labor 
agreement.  Likud MK Ehud Olmert already occupies the single 
alternate PM slot allowed under Israel's Basic Laws, which 
are similar in effect to a constitution. 
 
3.  (C) Likud Party officials have been greasing the 
legislative process to allow for expedited passage of the 
amendment -- now referred to as the "Peres Bill."  Although 
Knesset Constitution and Law Committee Chairman Michael 
Eitan, whose committee must consider the amendment, is 
opposed to rushing the action, the 21-member Knesset House 
Committee approved abbreviated consideration December 20, 
allowing the Knesset plenary to refer the bill to Eitan's 
committee for consideration December 21.  Ministry of Justice 
Knesset Liaison Paz Barnett told poloff December 21 that 
Eitan is under pressure to complete work on the bill in only 
one or two sittings and refer the bill back to the Knesset 
for votes as early as December 22.  Eitan has indicated, 
however, that his committee's deliberations could last 
through the week.  The bill requires three Knesset readings 
and votes after it leaves the committee, but all three could 
be completed back-to-back on the same or consecutive days. 
 
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Getting Labor's Ducks in Line 
----------------------------- 
 
4.  (C) Despite internal Labor squabbles over timing, Labor's 
Central Committee is now scheduled to meet December 21 to 
endorse the Likud-Labor agreement -- including a contingency 
clause requiring passage of the Basic Laws amendment -- and 
determine how and when it will select its ministerial and 
deputy minister candidates.  Party elections will likely take 
place within a week. 
 
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