DAY 209 OF THE WAR: The Waiting Game, Rafah, Campuses, Yair Lapid's Plans, New Army Appointments

Tel Aviv Diary, May 2, 2024

ZOOM BRIEFING SUNDAY 6 PM Israel 4 PM UK 11 AM EDT 7AM PDT

Today was yet another day of waiting, waiting for a response from Hamas. The signals keep changing. One moment, there are indications that Hamas is likely to say no, and the next, there is a different message suggesting that Hamas is leaning positively towards reaching an agreement. It's now anticipated that we will not receive a response from Hamas until Saturday.

Discussions continue about whether to enter Rafah. Netanyahu reiterated his determination to enter Rafah, regardless of what happens. When questioned about Netanyahu’s remarks, Secretary of State Blinken responded: “So he said it; the question is not what is said but what actually happens.” Regrettably, Rafah has become more of a political goal than a military necessity. It remains unclear when, if ever, IDF’s entry into Rafah will happen. Meanwhile, the Army has already released some of the reservists who were just recently called up.

A reader recently accused me of being defeatist, and another reader, whom I met not long ago, commented on how pessimistic I seem to have become. While I generally consider myself an optimist and am certainly not a defeatist, I must admit that I have become pessimistic, along with nearly everyone I know. We have all become very concerned about our current state of affairs. It’s difficult to remain hopeful after October 7th. Initially, many of us were optimistic that once the IDF mobilized, it would be able to achieve the designated wartime objectives quickly. However, seven months have passed, and Hamas still largely controls Gaza. Residents of the North are unable to return to their homes, and 130+ hostages remain in the hands of a terrorist organization. Moreover, nearly all the officials, except for one lowly major who were responsible for the catastrophic failures of October 7th, remain at their posts and continue to make critical decisions in the conduct of the war and for the country.

My concerns are echoed in the shifting public attitudes. In February, 54% of the Jewish population in Israel believed that total victory was possible against Hamas. Today, that figure has dropped to 30%, with 61% viewing such a victory as impossible.

It should be noted that the same survey also reveals that 58% of the public believes that Prime Minister Netanyahu should resign immediately. Additionally, 53% believe that Ronen Bar, Head of the Internal Security Services, should step down. A full 50% of Israelis believe that IDF Chief of Staff Herzi Halevi should resign. Finally, 48% of Israelis believe that Defense Minister Gallant should resign.

HOSTAGE KILLED ON OCTOBER 7TH

Kibbutz Be'eri has announced that Dror Or, previously believed to have been taken hostage by Hamas, was actually murdered on October 7th. The kibbutz's statement also noted that Hamas is still in possession of Or's remains. The kibbutz community has called for the return of Dror Or's remains, as well as the immediate release of all the other hostages.

Tragically, Dror’s wife, Yonat, was also killed in their home on the kibbutz. Their children, 17-year-old Noam and 13-year-old Alma, were kidnapped, but both were released in November.

NEW ARMY COMMAND APPOINTMENTS

The Army’s recent series of new appointments to command positions is generating controversy. The debate centers not only on the individuals selected but also on the timing of these appointments. Critics question whether it is appropriate to proceed with these appointments given that there has been no inquiry into the Army's failures on October 7th. Moreover, at least one of the nominees is considered to have profoundly underperformed on that cursed day.

TURKEY BOYCOTTS ISRAEL

Turkey has announced that it is will halt all trade with Israel. Historically, Turkey has been a significant supplier to both Israel’s construction and textile industries. This decision by Turkey is not entirely unexpected. Over the past decade, Turkey’s President Erdoğan, who espouses Islamist views, has shifted Turkey’s stance from being an ally of Israel to an adversary. Erdoğan is up for reelection, and his opponent has expressed a desire to improve relations with Israel. Trade between Israel and Turkey has involved $6.8 billion in imports from Turkey and $2.4 billion in exports to Turkey.

HAMAS SUPPORTERS ON US CAMPUSES

Supporters of Hamas on university campuses have clearly gone too far, leading to police interventions to clear demonstrations at Columbia University and, more recently, UCLA. At Columbia, 300 individuals were arrested, and at UCLA, the count was 150. As discussed in the clips below from my appearance last night on i24News, I believe Jewish students should not abandon places like Columbia; instead, they need to fight and stand their ground.

However, doing so will require robust support from the broader Jewish community. One of the largest problems lies with the faculty at many of these schools, particularly in departments focused on the Middle East, where the Arab faculty often presents a united front in their beliefs and actions, unlike their Jewish counterparts. One potential partial solution could be to endow chairs for Israel studies at numerous major universities— although this is just one of many steps needed.

Also, for additional insight into the issues at Columbia, consider watching the documentary — “Columbia Unbecoming,” released in 2000.

Today,  President Biden spoke about the protests on Campuses and stated:

Violent protest is not protected. Peaceful protest is. It's against the law when violence occurs. Destroying property is not peaceful protest. It's against the law. Vandalism. Trespassing. Breaking windows, Shutting down campuses. Forcing the cancellation of classes and graduations. None of this is a peaceful protest.

Threatening people. Intimidating people. Instilling fear in people. It's not peaceful protest. It's against the law. There's a right to protest, but not the right to create chaos.

There should be no place on any campus, no place in America for antisemitism, threats of violence against Jewish students. There is no place for hate speech, violence of any kind, anti-Semitism, Islamophobia, or discrimination against Arab-Americans or Palestinian Americans. It's simply wrong. There's no place for racism in America. It's all wrong. It's un-American.

YAIR LAPID SPEAKS OUT, FINALLY

Amidst today's chaos in Israel, Opposition Head Yair Lapid has presented a plan. Whether one supports Lapid or not, at least he has developed and issued a structured roadmap.

Here’s Yair Lapid’s call for an alternative set of policies:

The Israeli government is in complete turmoil. It lacks a coherent policy and vision. If you don't believe me because I'm the head of the opposition, ask others: ask the residents of the North, the residents around Gaza, the families of the abducted, the heads of the security establishment, the Americans, and the reservists.

There are eight things we need to do differently:

1. The most urgent task – a deal for the abducted.

It's a tough decision, but it's time to make it: the government needs to arrange a deal for the abducted, even if it means ending the war. Israel is not currently waging a war effectively, and the current stagnation is not beneficial to us. We can return to Rafah later (see item 3); now, we must do everything to bring the abductees home.

2. Increase humanitarian aid to Gaza.

The Israeli government had two options regarding aid:

  –  Flood Gaza with aid to relieve international pressure and because it aligns with our democratic values.

  –  Deny aid to Gaza as a way to pressure Hamas regarding the abductees. It didn't work, but it was at least a policy decision.

Instead, the government created a third, worst option: it provided too little aid and made every effort to hide even that, to avoid angering Ben-Gvir and Smotrich. This not only caused immense anger worldwide but also strengthened Hamas. When too little aid enters, it becomes a control lever over the population. Israel has a clear interest in ensuring there is no hunger or shortage of basic goods in Gaza.

3. Reach an agreement with Egypt on the Philadelphia Corridor and the Rafah crossing.

For Israel to act in Rafah in the future, it must first finalize a plan with Egypt for the Philadelphia Corridor and the operation of the Rafah crossing. Without control over all entrances to Gaza – above and below ground – Hamas can rebuild its strength or simply escape whenever the IDF approaches. The Egyptians are willing to cooperate but want the Palestinian Authority to be part of operating the Rafah crossing, as was the case until 2017.

4. Set a date for the return of the displaced to the North.

The Israeli government cannot give up a whole, flourishing, and beautiful region just because it lacks a policy. It should announce that the school year will start in the North as usual on September 1st. Preferably, this would happen due to a political agreement that pushes Hezbollah beyond what's called "the Katyusha range" (about 10 kilometers), but if not, it will be enforced by might. Israeli citizens will not be exiles in their own country.

5. Present a planned program for “the day after.”

What the government needs to do is start discussing "the day after" in Gaza with the Saudis, Emiratis, Americans, and yes, also the Palestinian Authority. The PA will not be part of Gaza's security arrangements but only of the civilian mechanism managing the strip. This model already exists and works today. The right-wing government maintains close security, economic, and civilian relations with the Palestinians in all Judea and Samaria territories. There's no reason not to operate similarly in Gaza.

6. Tell the Saudis and Americans that we do not rule out the possibility of separating from the Palestinians.

Nobody is asking us to establish a Palestinian state tomorrow or to sacrifice even a single grain of land. All the world is asking from us is to say that if the Palestinians prove to be as peaceful as the Swiss, peace-loving as the Dutch, and calm as the Australians, we'd be willing to consider separating from them. It's a process that will take years, and the burden of proof is on them. The reward for this symbolic willingness would be a historic agreement with Saudi Arabia, the creation of an anti-Iranian regional alliance, further development of the Abraham Accords, the Negev Forum to get the economy back on track, and ending the political isolation closing in on us. The fact that we refuse to say this because of fears that Ben-Gvir might get upset is madness.

7. Change the entire foreign policy and public diplomacy approach.

Stop staging unnecessary confrontations with the Biden administration. Strengthen ties with liberal American Jewry. Support Ukraine unreservedly. Do not boycott countries that criticize us, like Spain, but continue to engage with them publicly and through the media. Centralize all public diplomacy in the Foreign Ministry (today it is split among five different government offices), establish a special task force for American campuses, create an immediate response team as in the past, and institutionalize collaborations with civil society bodies like the "Civilian Public Diplomacy Headquarters," "Israelis," and the ACT-IL project.

8. Establish a different government.

A government without extremes, fair, good, and efficient, without a failing and destructive prime minister who is responsible for the greatest disaster that has befallen us and continues to incite against his citizens. Without the harmful structure of two quarreling cabinets. A government that will restore deterrence and establish a military alliance against the Iranian nuclear threat, which remains our central challenge. A government that will efficiently rebuild the communities around Gaza, establish a state commission of inquiry for the events of October 7th, nurture Israel's foreign relations, and strengthen the alliance with the Americans. A government that will not hesitate to enlist the ultra-Orthodox, will provide personal security to its citizens, will strengthen state education and higher education, will work to reduce the cost of living, and will assist the middle class. There is a word in Hebrew that describes such a government: HOPE.

BUSINESS

Apex Security, founded by two former officers from Unit 8200, specializes in cybersecurity for artificial intelligence and has just announced a $7 million funding round. The round includes major investors such as Sequoia Capital and Index Ventures, with notable participation from private investors, including Sam Altman, CEO of OpenAI, the company behind ChatGPT. Apex, supported by high-profile American investors, is the latest in a series of Israeli cybersecurity companies focusing on AI security. This includes firms like Aim Security, Lasso Security, Prompt Security, DeepKeep, and others still operating under the radar. Apex aims to address emerging threats by providing a security platform that offers comprehensive visibility into AI activities within an organization. This platform enables users to set usage modes, enforce security policies, detect suspicious user activities, identify AI attacks, and respond to issues in real-time. It operates through a secure chat connected to all AI applications and services used by the organization, including those developed internally.

Two Israeli companies have developed competing products to provide secure browsing. The first, Island, announced this week that it had raised $175 million. Its product is a stand-alone secure browser. The other is LayerX, which developed an add-on to existing browsers so users can keep using their current browser.

LayerX announced today that it had raised $26 million. This is LayerX's second fundraising round after the company announced in September 2022 that it had raised $7.5 million. The current round is led by Galiloth Plus, the growth fund of Galiloth Capital — whose early investment fund also led the company's initial seed investment round. A new investor joining LayerX in this round is Dell Technologies Capital.

Ceragon Networks Ltd. a leader in 5G wireless solutions, announced new contracts worth nearly $10 million during Q1 2024, setting a record for quarterly bookings in the energy sector. These deals, spanning the global energy industry, emphasize Ceragon's role in driving digital transformation through advanced connectivity solutions. In key projects, Ceragon will upgrade networks for Floating Production Storage and Offloading (FPSO) units in the oil and gas sector using its cutting-edge PointLink technology. This will enhance data transmission speeds and reliability, improving operational efficiency at lower costs. Additionally, Ceragon secured a multimillion-dollar deal to enhance a 1,600-kilometer natural gas pipeline with technology critical for sophisticated monitoring and control. Ceragon will also provide stabilized connectivity for a fleet of mineral-transporting vessels, utilizing its reliable PointLink solution. Ceragon's move into the energy sector is an example of a successful pivot to address the needs beyond its traditional customer base.

The startup company OASIS SECURITY has completed a second funding round within less than a year. Founded only in 2022, the company raised $35 million at a valuation twice that of the previous round, which was completed last August. The current round is defined as an extension of the Series A from August, and this is exceptional despite the change in valuation. OASIS SECURITY explains that the reason for this is the desire to conduct a quick round, which all the existing investors wanted to participate in to inject additional capital into OASIS, which is experiencing rapid growth. According to estimates, it might exceed a revenue rate of $10 million in the coming year if it meets the recent demands it is receiving from major clients. OASIS operates in a new niche within the identity management sector, focusing on non-human identities.

The Israeli insurtech startup Sproutt submitted an urgent request this week to the Tel Aviv District Court for the initiation of insolvency proceedings, as it is unable to meet its financial obligations to employees, suppliers, and the bank. According to the request document submitted by the company to the court, Sproutt has debts to employees for April salaries due to be paid in the coming days, redemption of vacation days, and recuperation pay totaling 760,000 shekels; debts to suppliers and service providers amounting to $739,000; and an unpaid balance of a loan amounting to $2.2 million. However, according to Sproutt's statement, only a few thousand shekels remain in the company's accounts at Leumi and Hapoalim banks, with no additional reserves. Therefore, it is requesting to freeze the collection proceedings against it.

Sproutt developed a software product that was able to quickly sell a life insurance policy to an individual. The company was founded in 2017 and raised $40 million. Unfortunately, it discovered that customers preferred to buy their insurance through a live agent, and thus it spent a significant portion of the money raised on marketing.

Permira, a private equity fund, is purchasing control of the Israeli company BioCatch, which protects major banks from online financial fraud. Last year, Permira bought shares in BioCatch worth $40 million as part of a secondary transaction. Now, they are acquiring an additional roughly 60% of the company from existing shareholders for an additional $750 million, thus becoming the controlling owner. The transaction is carried out at a valuation of $1.3 billion for BioCatch. Permira will primarily purchase control by acquiring holdings from Bain Capital and Maverick Ventures, two of BioCatch's significant investors. Two additional investors—Sapphire Ventures and the Australian financial group Macquarie—will also increase their stakes in BioCatch. BioCatch employees will be able to exercise some of their options. According to estimates, they can exercise about a quarter of the matured options they hold.

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A PIECE OF HISTORY

The Eichmann Trial

Adolf Eichmann was in charge of the Jewish department of the SS (Gestapo), placing him directly in charge of carrying out the "final solution”— the extermination of European Jewry. After WWII, Eichmann fled to South America. In May 1960, Israel's Mossad captured Eichmann in Argentina, and covertly transported him to Israel to stand trial.

Eichmann’s trial began on April 11, 1961, at Binyanei Ha'Ooma, in Jerusalem. A special bullet proof cage was constructed for his protection. After a 14-week trial, Eichmann was convicted and sentenced to death for his crimes against humanity. The trial had a major impact on Israel, which marked the first time many Israelis heard the harrowing accounts of the Holocaust directly from survivors. Until then, survivor had been reticent to share their personal stories. The trial provided them with an opportunity to open up and relate their stories to their family and friends for the first time.

After his appeal was denied, Eichmann was executed on May 31, 1962, making him the only person to be officially executed by the State of Israel.