MI Chief: Obama Mideast policy threatens Israel

Military Intelligence Chief Amos Yadlin said Monday that the Middle East policy of U.S. President Barack Obama's administration could endanger Israel.

"The Obama administration is determined to take initiative and move forward central processes in the Middle East," Yadlin told ministers at a special cabinet meeting.

"Obama wants to advance the peace process in the direction of realistic discussions with extremist elements," Yadlin said, adding that the struggle between extremist and moderate elements in the region was worsening.

In a surprising shift, Yadlin also said that the Islamist Hamas movement has been deterred and is now interested in reaching a peace settlement with Israel.

Yadlin added that the struggle between moderates and extremists in the Middle East is intensifying and that the moderate Arab states understand that Iran is a threat to the region.

He said Hezbollah's operations expanded well beyond those uncovered recently in Egypt.

"Iran and Hezbollah have an infrastructure of terror around the world with the aim of striking against Israel," Yadlin said. "Hezbollah is restrained and deterred on the northern border because it fears an Israeli reaction during the upcoming elections in Lebanon."

"The accompanying dispute with Egypt embarrassed the organization, but it is still committed to attacks in revenge for the elimination of Mughniyeh, so long as it does not lead to an escalation," Yadlin said.

Over the last three years, Yadlin's security updates to ministers have mainly focused on the challenges facing Israel and have rarely referred to diplomatic opportunities with Syria or the Palestinians.

In his first appearance before the ministers in the newly installed Netanyanu cabinet, Yadlin offered his assessment of the strategic situation in the Middle East.

Yadlin commented on the threats facing Israel as well as the diplomatic efforts on the Syrian and Palestinian fronts. What was noteworthy about the day's developments is that in a briefing held by the Prime Minister's bureau following the session with Yadlin, the MI chief's remarks about the threats against Israel were the only comments released to the press.

Yadlin noted that Palestinian President Mahmoud Abbas is lobbying the U.S. and European countries to force Israel to meet conditions to counter those demanded of the Palestinians by the Quartet. The Palestinian leader is seeking to secure an Israeli recognition of the principle of two states for two peoples, a cessation of settlement expansion, and restoring the security situation to that which was extant prior to September 2000.