"Olmert [...] said that Bill Gates had told him that all real technical innovations in today's world originate in either the U.S. or Israel."

C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 001470 




SIPDIS 




E.O. 12958: DECL: 04/12/2016 
TAGS: PREL [External Political Relations], PGOV [Internal Governmental Affairs], 
PTER [Terrorists and Terrorism], PARM [Arms Controls and Disarmament], 
KPAL [Palestinian Affairs], KWBG [West Bank and Gaza], IR [Iran], 
IS [Israel], U.S.-ISRAEL RELATIONS, ISRAELI-PALESTINIAN AFFAIRS 
SUBJECT: SENATOR LIEBERMAN AND ISRAELI A/PM OLMERT DISCUSS 
THE CONVERGENCE PLAN 




Classified By: Ambassador Richard H. Jones; Reasons: 1.4 (B and D). 




ۦ1. (C) Summary: On April 11 -- the day that the Cabinet 
elected him Acting Prime Minister -- a confident and relaxed 
Ehud Olmert met with Senator Joseph Lieberman and the 
Ambassador.  Olmert outlined his "convergence plan," with 
which he hopes to create defensible security borders, 
minimize Israeli-Palestinian contact, relocate 80,000 
settlers, and separate Israelis from 95 percent of the 
Palestinians and 90 percent of the West Bank within the next 
four years.  Olmert expressed hope that his plan to set 
Israel's borders will be coordinated with and supported by 
the United States.  He maintained that such steps will be 
necessary due to a lack of a Palestinian partner needed to 
make progress on the Roadmap.  On other issues, Olmert 1) 
stressed the need for tough UN sanctions against Iran, 2) 
analyzed the outcome of the Knesset elections, 3) expressed 
his intention to form a new government including parties from 
across the political spectrum by the end of the month, and 4) 
presented a rosy picture of the Israeli economy.  Senator 
Lieberman's legislative assistant Frederick Downey and 
military escort LTC Edward Fortunato, as well as GOI foreign 
affairs adviser Shalom Tourgeman, PM military aide MG Gadi 
Shamni, and MFA Congressional liaison Eyal Sela also 
participated in the meeting.  End summary. 




------------------------------------- 
Olmert Discusses the Convergence Plan 
------------------------------------- 




ۦ2. (C) After expressing admiration for the manner in which 
Olmert has handled the difficult period following PM Sharon's 
illness and welcoming his upcoming visit to Washington, 
Senator Lieberman asked Olmert about his "convergence" plan 
to relocate settlers from isolated parts of the West Bank 
into settlement blocs.  In Olmert's assessment, Israel 
"cannot live with the Palestinians more or less as we live 
now" and avoid the outbreak of another Intifada.  Although he 
saw the Roadmap (negotiations) as the best way forward, with 
no Palestinian partners his answer is to set "defensible 
security borders" that minimize Israeli-Palestinian contact, 
and separate Israelis from 95 percent of Palestinians who 
will be left with 90 percent of the West Bank.  Such a step 
entails the relocation of 80,000 settlers from isolated areas 
to existing or newly built sections in the major settlement 
blocs. 




ۦ3. (C) Olmert described his timeline as two years to try 
negotiations, plan, prepare, and consult with the USG, 
followed by two years to implement the move of the settlers. 
He termed the effort a "huge, major, dramatic undertaking ... 
unprecedented in the State of Israel," cautioning that its 
scale and Israel's emotional attachment to what it calls 
"Judea and Samaria" would result in much controversy. 
Senator Lieberman called the plan achievable and courageous. 




------------------------------- 
Olmert's Views of the U.S. Role 
------------------------------- 




ۦ4. (C) Olmert repeatedly stressed that he hopes to carry out 
convergence with the full understanding and support of the 
United States.  He claimed that the plan is consistent with 
the President's letter of April 14, 2004.  Senator Lieberman 
sought clarification of what this support might entail.  As a 
start, Olmert urged Congress to pass legislation prohibiting 
assistance to Hamas in order to send a clear message that 
there will be no assistance without a change in Hamas policy. 
 Senator Lieberman replied that both the USG and EU were 
moving in the right direction on the assistance issue. 




ۦ5. (C) Olmert also expressed a desire that consultations with 
Washington will result "in an agreement with the United 
States that these (the convergence borders) are the final 
lines."  He expected that the USG will assist Israel in 
obtaining European acceptance for the border, a possibility 
he said was more likely with leaders such as German 
Chancellor Angela Merkel.  Olmert repeatedly praised 
President Bush, saying that he believes that the President's 
commitment to fight terror is a moral -- and not just a 
political -- decision.  "In the end of the day," added 
Olmert, "this is what brings us closer together as nations, 
as people, and as leaders." 




ۦ6. (C) Olmert claimed that convergence would also realize a 
Palestinian dream by creating a contiguous area free of 
Israelis -- except for moves by security forces as needed -- 
as a basis for a Palestinian state.  He cautioned that 
conflicts with the Palestinians would continue at a lower 
level until they realize that a return to the 1967 borders 
"will never happen" and are prepared for a permanent peace. 




--------------------------------------------- - 
Gaza-West Bank Link and Palestinian Employment 
--------------------------------------------- - 




ۦ7. (C) Senator Lieberman asked about links between Gaza and 
the West Bank, as well as about the future of Palestinian 
workers in Israel.  Olmert suggested that Israel has several 
ideas for a Gaza-West Bank link, but would not offer them 
without receiving concrete concessions in return.  He said 
that the frequent closings of crossing points make it 
impractical for the 25,000 Palestinians currently employed in 
Israel to retain their jobs, adding that he preferred in 
principle that they work in the Palestinian areas.  He 
suggested options such as industrial parks located along the 
barrier route, but acknowledged that this idea is also 
impractical without partners on the Palestinian side. 




--------------------------------------------- ------ 
Lack of Roadmap Partner Makes Convergence Necessary 
--------------------------------------------- ------ 




ۦ8. (C) Olmert called the Roadmap a reasonable framework for 
resolving the Israeli-Palestinian conflict, but lamented the 
lack of a Palestinian partner.  He assessed the chances of 
the Palestinians taking necessary steps to restart 
negotiations as "nonexistent" and questioned their ability to 
do so even if Hamas collapses.  He complained that President 
Mahmud Abbas remains reluctant to take concrete action, 
noting that he had spoken with Abbas by phone a few days 
earlier.  When asked by Senator Lieberman what steps Abbas 
could take, Olmert replied he should disarm the terrorist 
organizations.  Olmert suggested that the USG and GOI might 
agree on benchmarks that the Palestinians must meet to avoid 
unilateral Israeli moves, but added that there is "no use 
waiting forever."  He expressed a clear intention to proceed 
with the convergence plan during the term of the current U.S. 
administration. 




ۦ9. (C) Olmert noted that the Israeli Cabinet had earlier in 
the day decided to boycott the PA's "terrorist government." 
He added that Abbas would be treated separately as the 
elected President; Tourgeman later told the Ambassador that 
Abbas would be excluded from the boycott of the PA but that 
GOI officials would not meet with him as they had nothing to 
discuss.  Tourgeman noted that the exception for Abbas was 
personal rather than for the Presidency as an organization. 
The GOI could not exclude the possibility that some of the 
Presidency's employees might have contact with Hamas. 




------------------------------- 
Iran: Olmert Urges UN Sanctions 
------------------------------- 




ۦ10. (C) Senator Lieberman requested Olmert's views on the 
Iranian nuclear program.  Olmert called Russian and French 
ideas on joint enrichment "a surrender to Iranian 
aggression."  He urged the USG to take a "much more 
aggressive position in the United Nations," claiming that 
effective sanctions are the only opportunity to stop Iran 
short of military action.  Stressing that Iran is an 
international -- not just an Israeli -- problem, Olmert said 
he intends to raise the issue with the President in 
Washington. 




--------------------------------------------- -------- 
Olmert Seeks Broad Domestic Coalition by End of April 
--------------------------------------------- -------- 




ۦ11. (C) Senator Lieberman asked Olmert to analyze the outcome 
of the Knesset elections.  Olmert said that voters had sent 
two clear messages: 1) they were opposed to the policies and 
personalities of Likud, while at the same time distrustful of 
Labor's ability to lead; and 2) they wanted Kadima to win, 
but with a limited mandate to keep the party from becoming 
"too ambitious."  Olmert claimed that Likud leader Bibi 
Netanyahu was harmed by his right-wing views and by what 
Olmert described as the irresponsible manner in which he had 
split with PM Sharon.  At the same time, Labor had lost seats 
despite the collapse of Likud and Kadima's last-minute 
formation.  He attributed Kadima's smaller-than-expected 
victory to pre-election polling, which led some voters to 
switch to the pensioners party to help it over the threshold 
for entry into the Knesset without affecting Kadima's 
expected majority. 




ۦ12. (C) Olmert claimed that he is not personally involved in 
the details of coalition negotiations, which are being 
handled by his advisers.  He predicted "the usual bargains" 
during coalition talks, adding that he wants parties from 
both sides of the political spectrum in his coalition.  His 
goal is to avoid over-reliance on either Labor or the 
right-wing parties.  Nevertheless, Olmert stressed the 
important role that a right-wing party or parties could play 
for the coalition in reducing anxiety over the convergence 
plan and building bridges to the settlers.  He expressed his 
intention to form the new government by the end of April and 
have it functioning in early May. 




-------------------------------- 
Rosy Outlook for Israeli Economy 
-------------------------------- 




ۦ13. (C) Olmert presented a glowing assessment of the Israeli 
economy, predicting growth of 4.3 percent this year and a 
reduction in the unemployment rate from current levels of 8.8 
or 8.9 percent.  He gave former Finance Minister Netanyahu 
credit for adopting policies to facilitate growth, but 
claimed that his hubris and doctrinaire belief in free 
markets had blinded him to the need to provide relief for 
under-privileged members of society.  Olmert also gave credit 
to PM Sharon for creating an "environment of good-will to 
Israel and confidence," making the country a more secure 
location for business.  Olmert proudly noted that Intel, 
Microsoft, and IBM have all invested recently in Israel and 
said that Bill Gates had told him that all real technical 
innovations in today's world originate in either the U.S. or 
Israel. 




ۦ14. (U) This cable was cleared by Senator Lieberman. 




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