Today's Situation

DEFENSE AND DOLLARS, August 8, 2007

All of Israel's leading four daily newspapers cover different stories in their top stories on Wednesday, but a common theme runs through all of the issues covered: security.

Yedioth Ahronoth leads with a report that a $500 million increase in American military aid promised to Israel as part of Washington's recent drive to drum up support for a regional conference in November will not be available for the 2008 budget. According to the report, the reason for the decision is the higher than expected cost of the Iraq war. As a result, the paper says, Israel is now facing a NIS 2.2 million budget shortfall, which can only be met by further cuts to other departments.

Maariv leads, for the second day in a row, with the problem of refusal to obey orders among right-wing soldiers in the IDF. In its report in Wednesday, the paper claims that senior IDF have been turning a blind eye to - or in some cases, actively cooperating with - soldiers' refusal to participate in certain missions.

Haaretz, meanwhile, leads with comments by Defense Minister Ehud Barak, who told the paper that any further Israeli withdrawal from the West Bank must be conditioned on a significant improvement in the army's technological capability to shoot down missiles fired from Palestinian territory. Barak underscored the need for Israel to acquire and implement an effective anti-missile defense system prior to withdrawal from any territory. Former defense minister Amir Peretz said prior to his departure that Israel had settled on the purchase of an anti-rocket defense system, but that further development and installation were several years away.

The Jerusalem Post's lead story claims that Hamas and Fateh have already renewed contacts aimed at reestablishing the national unity government the collapse of which preceded Hamas' military coup in Gaza in June. According to the paper, Palestinian sources said Tuesday that Fateh and Hamas officials confirmed they were conducting secret talks in a bid to patch up their differences.

On the regional front, Israel Radio reports on a meeting of the security cabinet on Wednesday, described by those attending as 'very sensitive'. According to Ynet, ministers were asked to leave their cell phones outside the meeting room while they discussed the possibility of a conflict with Syria. 

Wednesday's meeting was the sixth on the topic in the past two months, although defense establishment sources continued to maintain that 'Syria does not intend to attack Israel.' Ministers were briefed on Syria's military capacity, the scope of its arsenal and Israel's home front readiness in case of attack.

Olmert said that he did not expect a war with Syria, and that the deployment of Syrian troops in the Golan was for defense purposes only. He said that Israel did not intend on attacking Syria, but that both armies should be ready for any scenario.

Saudi Arabia, meanwhile, reiterated its support for a U.S.-sponsored Middle East peace conference and said a future Palestinian state should be 'viable on contiguous territory.' Saudi Foreign Minister Prince Saud al-Faisal in a statement, did not call for full Israel withdrawal but used U.S. language about a 'viable state.'

Prince Saud said at a news conference in Jeddah aired on state television that...'We have noted a wide Arab and international welcome for the positive elements in the American initiative, especially since the idea of holding an international conference was an Arab demand.'

Israel Radio adds that U.S. Undersecretary of Political Affairs Nicolas Burns will arrive in on Wednesday to discuss America's plan to increase military aid to Israel and to supply Saudi Arabia and other gulf states with weapons.  Burns will hear Israeli concerns over the sale, which is rumored to be worth $20 billion.

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