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### Viewing cable 09TELAVIV936, CODEL KYL'S MEETING WITH PRIME MINISTER NETANYAHU:

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09TELAVIV936 | 2009-04-28 08:08 | 2010-12-19 21:09 | SECRET | Embassy Tel Aviv

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    VZCZCXRO0626
    OO RUEHBC RUEHDE RUEHDIR RUEHKUK RUEHROV
    DE RUEHTV #0936/01 1180813
    ZNY SSSSS ZZH
    O 280813Z APR 09
    FM AMEMBASSY TEL AVIV
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 1548
    INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
    RUCNIRA/IRAN COLLECTIVE PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY

` `

    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.

    ********************************************* ********************
    Visit Embassy Tel Aviv's Classified Website:
    http://www.state.sgov.gov/p/nea/telaviv
    ********************************************* ********************
    CUNNINGHAM

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