Second Private Netanyahu

(First here)

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

¶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...

...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
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.

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

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