US embassy cable - 05TELAVIV6552

C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 006552 
 
SIPDIS 
 
NOFORN 
 
E.O. 12958: DECL: 11/18/2015 
TAGS: PGOV, PTER, PREL, KWBG, KPAL, IS, ELECTIONS 2006, GOI INTERNAL 
SUBJECT: AMIR PERETZ: NOT YET READY FOR PRIME TIME? 
 
Classified By: Deputy Chief of Mission Gene A. Cretz for reasons 1.4 (b 
,d). 
 
1.  (C) Summary: Newly elected Labor Party Chairman Amir 
Peretz told DAS Danin November 18 that he will focus his 
upcoming election campaign on socio-economic issues, rather 
than on peace and security.  He stressed the importance of 
the Labor Party serving as a real opposition party and added 
that by November 20, Labor would quit the government.  While 
he said he supports disengagement, Peretz stressed that 
Israel should work with a strong Palestinian partner on any 
agreement concerning the West Bank.  Peretz praised the 
Secretary for having pushed the GOI and the Palestinian 
 
SIPDIS 
Authority (PA) to close an agreement during her recent visit. 
 When queried, Peretz did not address the details of the 
roadmap, but commented only that "there are many roads to 
peace."  He also acknowledged that he does not have enough 
information to take a position on whether Hamas should 
participate in the PA elections.  He did not rule out joining 
Prime Minister Sharon if the latter left Likud to form a 
third party, but was unwilling to accept a number two slot in 
such a new grouping.  (Comment: Peretz came across as a man 
with broad visions, but shallow on detail.  He discussed 
security, terrorism, and peace with the Palestinians through 
the prism of economics.  He was not well-versed on the 
roadmap, or on other security or terrorism issues, including 
on Hamas.  It is clear that Peretz will have to bone up on 
these issues when up against the likes of security-maven 
Sharon.  End comment.)  End Summary. 
 
--------------------------------------------- ---- 
Peretz: My Victory Strengthened Israeli Democracy 
--------------------------------------------- ---- 
 
2.  (C) A relaxed and confident Amir Peretz -- ever wearing a 
blue shirt without a tie --  met with DAS Danin and DCM Cretz 
November 18 in the new Labor Party headquarters, located in a 
poor section of Tel Aviv.  A visiting AIPAC delegation was 
just leaving his office.  New advisor and former consultant 
for Ben-Or Communications Oriella Ben-Zvi (originally from 
the U.S., who has very close ties to the Israeli-Arab 
community), Histadrut international relations advisor Avital 
Shapiro, and Haigga Alon joined Peretz in the meeting.  DCM 
and Poloffs accompanied DAS Danin.  Peretz spoke in basic 
conversational English, turning frequently to his staff for 
help in translating more complex concepts.  Peretz began the 
discussion by saying that the election campaign for prime 
minister, in his mind, has already started, even though Prime 
Minister Sharon has not set an election date.  He noted that 
while he prefers a March date, he told Sharon in their 
November 17 meeting that he would accept a date amenable to 
Sharon -- from the end of February to the end of March. 
Stressing the important role that the opposition plays in a 
healthy democracy, Peretz said repeatedly that the Labor 
Party once again has become a real opposition party.  He 
added that Labor will leave the coalition on Sunday, November 
20.  The Labor Party could not advocate changing the 
government and still remain in the government, Peretz 
stressed.  Peretz asserted that his victory as Labor Party 
Chairman strengthened Israeli democracy by placing Labor 
firmly in the opposition. 
 
3.  (C) In response to the DCM's query as to why Peretz 
believes he won the Labor Party primaries, Peretz, searching 
momentarily for the right words, said that Labor voters "did 
not want to be left in the freezer."  (Comment: Peretz likely 
meant that he believes Labor voters were ready for some type 
of change, and that they were tired of the status quo under 
octogenarian Shimon Peres.  End comment.)  He commented that 
maybe a Peres victory would have been better for the USG 
since Peres would have preserved Sharon's government.  At 
that point, Peretz advisor Ben-Zvi added quickly that the 
Peretz camp "views (the Israeli) relationship with the U.S. 
as critical." 
 
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Possible Coalitions 
------------------- 
 
4.  (C) In response to DCM's query whether Peretz would 
consider joining a coalition with a new party formed by 
Sharon, Peretz stressed the need for an opposition to sustain 
Israeli democracy, but did not directly rule out such a 
possibility.  "Either I lead (the government)," Peretz 
underscored, "or I lead the opposition."  He added that he 
knows this is not a popular approach, and that it might even 
cost Labor several Knesset seats, but added that it serves to 
strengthen Labor's credibility.  Peretz advisor Alon added 
that Peretz "will bring accountability back to politics." 
 
----------------------------------- 
Peretz Campaign To Focus on Economy 
----------------------------------- 
 
5.  (C) Peretz asserted that the upcoming election campaign 
would, for the first time in Israel's history, focus on 
socio-economic issues rather than on security issues.  Peace 
and security issues, Peretz said, should be addressed in a 
professional and logical manner, not within the heat and 
emotions of an election campaign.  "The (Israeli) people are 
ready to be a normal country," Peretz underlined, "and to 
vote on economic issues."  To back up his claim, Peretz said 
that in a recent poll, 48% of those surveyed said that in the 
next elections Israelis will vote based on economic and 
social issues, with 38% saying they will vote on security 
issues.  Claiming that 40% of Israeli workers do not earn 
enough to pay taxes, Peretz emphasized that the critical 
issue will be the gap between rich and poor. 
 
-------------------- 
Security and Terror 
-------------------- 
 
6.  (C) "I am a (man of peace) more than any other," Peretz 
remarked.  He noted that he had been mayor of Sderot, where 
"all the Qassam missiles fall," and that he lived there for 
50 years.  He underlined that, despite the security situation 
in Sderot, "when you ask the people (of Sderot) what they 
fear most, missiles or unemployment, they will say 
unemployment."  Peretz said that as far back as 1984, when he 
became active in Labor, he advocated for the creation of an 
independent Palestinian state.  "Time is working against us," 
Peretz asserted, noting that by waiting so long to build a 
Palestinian state, a new generation of Palestinians had been 
raised "who only know Israel through guns."   Peretz said 
that the average Israeli feels that the peace being sought 
today is not for them, but rather "the product for rich 
Israelis."  Peretz said he is trying to show people that if 
peace is achieved, their lives will be better. 
 
7.  (C) Peretz highlighted that the disengagement plan was 
very important and that he supported it.  "The Bush 
Administration should know," Peretz asserted, "that 
disengagement was a security step, not a peace measure."  He 
said that Israelis do not believe that disengagement brought 
any change in the relationship between Israel and the 
Palestinians.  He asserted, however, that while disengagement 
could work in Gaza or in Lebanon, where it is a matter of 
"only" returning to the internationally recognized frontiers, 
when addressing the West Bank, dealing with a Palestinian 
partner is essential.  He said that he "doesn't buy" the 
argument of the need to wait until the Palestinians are 
democratic before engaging with them.  "If a country like 
Saudi Arabia came to Israel to talk about peace, would we 
turn them away (because they are not democratic)?" Peretz 
asked.  Danin stressed that it was important for Peretz to 
understand that the U.S. is committed to the promotion of 
democracy throughout the region.  Peretz called on the "free 
world" to address world poverty, which he asserted is the 
"greenhouse" of terrorism. 
 
8.  (C) In response to Danin's query about the Israeli 
response if the PA does not fight terror, Peretz responded 
that he does not believe the PA will neglect fighting terror. 
 Peretz asserted that Palestinian terrorism is also against 
PA President Mahmud Abbas.  In response to the DCM's query 
about how Peretz will address security issues in his 
campaign, Peretz downplayed the importance of addressing 
these issues, commenting that "Israel is full of generals who 
can take care of security."  He characterized his generation 
-- those in their 40s and 50s -- as savvy about security, 
having served in the military.  He stressed that people 
rather want to hear about the link between peace and their 
quality of life. 
 
------------------------------- 
On U.S. Efforts and the Roadmap 
------------------------------- 
 
9.  (C) Turning to the Secretary's recent visit to Israel, 
Peretz underlined that he views the Secretary's achievement 
in convincing the GOI and the PA to close an agreement very 
important.  He praised the Secretary for "tying together the 
ends" and having provided the necessary push to both sides. 
When asked about his views on the roadmap, Peretz commented 
that "there are many roads to peace," and acknowledged that 
he "cannot comment on the details of the roadmap."  He 
stressed the importance that Israel have a strong partner in 
the peace process and that "time is working against us." 
Peretz added that as a "negotiator" he believes it is a 
mistake to conclude an agreement wherein your partner loses 
everything.  In his role as labor union Histadrut negotiator, 
he always made sure that both sides were left with something 
of what they wanted.  It is important, Peretz said, to show 
the Palestinians that they stand to lose by not entering into 
an agreement with Israel. 
 
----- 
Hamas 
----- 
 
10.  (C) In response to Danin's query as to Peretz's position 
on Hamas' participation in the January 2006 Palestinian 
Legislative Council elections, Peretz acknowledged that he 
does not have enough information on the issue to respond.  He 
added, however, that, in the end, the Israeli people will 
have to decide how they view Hamas participation in any 
future PA government.  The argument is split, Peretz said, 
between those who argue that Hamas participation in the 
political process could make Hamas more moderate and those 
who argue that it could make the PA more extreme.  "I don't 
know the answer to this question," Peretz repeated, "but 
(this) is a very important issue," he said.  He said that the 
Israeli people could view Hamas participation in the PA 
government as a "get" (divorce) between the Israelis and the 
Palestinians.  Hamas participation could cost Abbas his 
legitimacy among Israelis, Peretz said. 
 
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Comment 
------- 
 
11.  (C) Peretz, clearly enjoying his new status as Labor's 
new leader, is very personable, warm, and a relaxed 
interlocutor.  He clearly enjoyed the meeting, and did not 
seem uncomfortable exercising his English.  He comes across 
as an advocate for the blue-collar sector and the average 
man-in-the-street, who speaks their language and knows what 
they really want.  Peretz is clearly more comfortable talking 
about the socio-economic faults in Israel, rather than the 
details of security issues and terrorism.  He clearly has a 
significant learning curve before he can be a real contender 
against Sharon when Israelis ask the tough questions on the 
PA, Hamas, and terrorism.  He had ample opportunity to expand 
on security issues in Hebrew, but was either unable or 
unwilling to do so. 
 
12.  (U) DAS Danin cleared this message. 
 
 
 
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