December 16, 2010
Netanyahu and Iran

http://213.251.145.96/cable/2009/04/09TELAVIV936.html
S E C R E T SECTION 01 OF 03 TEL AVIV 000936



SIPDIS



H PASS TO CODEL KYL



E.O. 12958: DECL: 04/14/2019

TAGS: PREL PTER PGOV KNNP KWBG IR IS

SUBJECT: CODEL KYL'S MEETING WITH PRIME MINISTER NETANYAHU:

WHAT WILL THE U.S. DO ABOUT IRAN?



Classified By: Ambassador James B. Cunningham, Reason 1.4 (b) (d)



1. (S) Summary. CODEL Kyl, accompanied by the Ambassador,

called on Prime Minister Benyamin Netanyahu April 6 in the

first official U.S. meeting with Netanyahu since he formed a

government. The main topics of discussion were stopping

Iran's nuclear program and Netanyahu's approach to

peace-making with the Palestinians. On Iran, Senator Kyl

raised ways to increase the effect of sanctions, including

possible legislation targeting Iranian imports of refined

petroleum. Adopting a forceful stance, Netanyahu asked

repeatedly what the U.S. plans to do if sanctions and

engagement fail to stop Iran's program. Calling Iran's

development of a nuclear bomb a world-changing event,

Netanyahu said all other issues become insignificant by

comparison. On the Palestinians, Netanyahu reviewed his

intent to pursue a three-track approach with political,

economic, and security aspects. While noting that his

government is conducting a review of Israeli policy toward

the Palestinians, Netanyahu asserted that there is agreement

within the government and among 80% of Israelis that the

Palestinians should be able to rule themselves, but with

limits imposed by Israel's security requirements. Netanyahu

said the only difference between his position and that of

opposition leader Tzipi Livni is over the name of the goal,

i.e. the two-state solution. In response to comments by

Senator Sessions that the Palestinian Authority needs

functioning courts and jails as well as police, Netanyahu

agreed but said he had not yet focused much on Palestinian

governance issues. Netanyahu said he wants to show the

Palestinians the benefits of peace, but with the proviso that

if Iran goes nuclear, peace will fail. Predicting that his

government would pleasantly surprise many critics, Netanyahu

concluded that he hopes to come up with a common approach

with President Obama. End Summary.



2. (U) CODEL Kyl, consisting of Senator Jon Kyl (R, AZ);

Senator Jeff Sessions (R, AL); Representative Jane Harman (D,

CA); Representative John Kline (R, MN); and Representative

Chris Carney (D, PA), called on Prime Minister Benyamin

Netanyahu April 6. The Ambassador, Congressional staff, and

Pol Couns (notetaker) participated in the meeting. Netanyahu

was joined by National Security Adviser Uzi Arad, Spokesman

Mark Regev, Policy Adviser Ron Dermer, former chairman of the

Knesset's Foreign Affairs and Defense Committee Kadima MK

Tzachi Hanegbi (Senator's Kyl's counterpart in the

U.S.-Israel Joint Parliamentary Committee on National

Security), and the Israeli Embassy in Washington's

Congressional liaison officer. The meeting was the first

official U.S. face to face contact with Netanyahu since he

formed his government.



What Will the U.S. Do About Iran?

---------------------------------



3. (S) After a brief discussion of the world economic crisis,

Senator Kyl raised Iran, noting the "sobering" briefings the

CODEL had received from senior Israeli defense and

intelligence officials the previous day. Kyl said the

Congress is looking at legislation that would target Iran's

imports of refined petroleum products, adding that there are

only four or five companies that supply refined petroleum to

Iran and the U.S. has considerable leverage over most of

them. Kyl added that Israeli experts had told the CODEL that

they thought such legislation would be helpful. Netanyahu

said nothing is slowing the progress of Iran's nuclear

program. The Prime Minister asked what will happen to the

Middle East if Iran obtains a nuclear weapon? If such a

prospect is unacceptable, what will the U.S. do as Iran

reaches the nuclear threshold? What will the U.S. do if

Pakistan is taken over by Islamic radicals?



4. (S) Representative Harman told Netanyahu that no one in

the CODEL disagreed with his analysis, but the U.S. should

give engagement an opportunity to see if it works. If it

does not, at least it would show the world that the U.S. had

tried. She added that Congress supports engagement on a

bipartisan basis. Senator Kyl added that the Europeans tried

to engage Iran for five years but it did not work. President

Obama will pursue engagement, but Kyl said he doubted it

would be successful. We should consider what to do in the

mean time. Netanyahu responded that the U.S. should move

quickly. Engagement should have a short time limit and a

specific goal, for example talk to the Iranians for four to

twelve weeks and make clear that the U.S. goal is an end to

their nuclear program. Leaning forward, Netanyahu repeated

his earlier question: "What will you do if it does not work?"





TEL AVIV 00000936 002 OF 003





5. (S) Netanyahu said that learning to live with a nuclear

Iran would be a big mistake which would lead to a different,

more dangerous world. While he noted that he could not say

for certain that Iran would use a nuclear weapon against

Israel, if Iran had a bomb Israelis would have to ask that

question every day. This is a historic moment, and leaders

have a responsibility to make decisions. All other issues

are insignificant by comparison. For a third time, Netanyahu

asked, "What are you going to do?"





Netanyahu's Approach to the Palestinians

----------------------------------------



6. (C) Senator Kyl asked the Prime Minister about his view of

the two-state solution. Netanyahu said he plans to engage

the Palestinian Authority quickly and will not tie political

talks with the Palestinians to developments with Iran.

Reviewing a now familiar formula, Netanyahu said he will

approach the Palestinians on parallel political, economic and

security tracks. Political talks would aim at achieving an

agreement within certain limits, the economic approach would

promote foreign and Arab investment and joint projects with

Israeli partners, while the security track would continue to

build up the PA's security forces. In order to do any of

this, Netanyahu noted, he will need a Palestinian partner.



7. (C) Representative Harman observed that the CODEL had

visited units of the PA's National Security Forces and the

Presidential Guard. PA Prime Minister Fayyad said he was

happy with the PA's security forces, and they want to take on

increased responsibility for security in Jericho and Jenin.

Netanyahu replied that Israel would be happy to let them do

more, but it is not clear what Hamas will do next. If Hamas

forces a confrontation, Israel will have to initiate further

military action in Gaza. Israel did not want to go back into

Gaza, but it will do what is necessary to protect its people.



8. (C) Netanyahu said his government is reviewing Israel's

policy toward the Palestinians. There is a consensus in the

government and among 80% of the Israeli public that the

Palestinians should be able to govern themselves. The only

limits on Palestinian sovereignty would be elements that

affect Israel's security. A Palestinian state must be

demilitarized, without control over its air space and

electro-magnetic field, and without the power to enter into

treaties or control its borders. Netanyahu concluded that he

and opposition leader Tzipi Livni "only disagree about the

name," i.e. the two-state solution.



9. (C) Senator Sessions noted that people everywhere want law

and order. Palestinians not only need to deal with

terrorism, they also need a functioning legal system. Moving

from a lawless system, the Palestinian Authority is showing

some pride, but police are not enough, they need courts and

jails that work. Economic development is impossible in a

lawless society. Netanyahu agreed this was a valid point and

uncharacteristically admitted that he had not focused much on

Palestinian governance. He added that international

assistance should provide funding for jails and courts. It

is possible to create crime-free zones and begin economic

development "in bubbles" which would then be expanded.

Senator Sessions noted that Lt. General Dayton is focused on

this issue. Representative Harman commented that "bubbles"

in the West Bank would not be enough, Palestinians need law

and order everywhere.



10. (C) Netanyahu said the "classic rhetoric" of the peace

process has been that if Israel withdraws, all will be well.

Now, however, if Israel withdrew from the West Bank, Hamas

would take over. Economic development would not be a

substitute for a political settlement, but it would change

the environment and show Palestinians the benefits of peace.

Israel has been trying to "build a roof without a foundation"

and it has not worked. Netanyahu said there was one proviso:

If Iran gets a nuke, peace efforts will fail.



11. (C) Netanyahu pointed to the example of Jordanian King

Hussein, whom he termed Israel's best Arab ally and a man

deeply committed to peace. Yet when Saddam Hussein took

Kuwait, King Hussein got on board with the Iraqis. In the

event of a nuclear Iran, "all the Arabs will become Qatar."

We should therefore move in parallel to work for peace with

the Palestinians while acting to stop Iran. Netanyahu said

he thought his government would pleasantly surprise many of

its critics. He concluded the meeting by saying that he

wants to coordinate Israel's positions with the U.S. and

hopes to come to a common position with President Obama.



TEL AVIV 00000936 003 OF 003







12. (U) CODEL Kyl has cleared this cable.









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