The sources said the White House has been closely monitoring political
developments in Netanyahu's Cabinet amid tense relations between Jerusalem
and Washington. They said Chief of Staff Rahm Emanuel and White House senior
adviser David Axelrod have received daily reports on the stability of the
Israeli government ahead of U.S. plans to release a Middle East peace
initiative in September 2009.
"The administration has concluded that the only way out of the
settlement deadlock is for an expansion of the Israeli government coalition
by centrist elements," the source said.
Under the scenario relayed to the White House, Lieberman would resign
from office immediately after his indictment. At that point, the sources
said, Netanyahu would invite the
opposition Kadima, the largest party in the Knesset, to join the coalition.
The sources said some members of Kadima, particularly chairman Tzipi
Livni, were not expected to join the Netanyahu government. But the majority
of the 28-member Kadima parliamentary faction, led by Ms. Livni's rival,
Shaul Mofaz, would enter the coalition and replace some of the right-wing
ministers.
Under the scenario, Mofaz would be appointed defense minister, the
sources said. The current defense minister, Ehud Barak, regarded as the most
fervent supporter of Obama in Netanyahu's Cabinet, was expected to agree to
assume the post of foreign minister.
The sources said the government reshuffle would marginalize the
influence of ministers who support Jewish settlement in the West Bank.
Lieberman, a resident of the Jewish community of Nokdim, was said to have
opposed Obama's demand for the demolition of more than 100 Jewish
outposts in the West Bank.
Still, the administration has succeeded in winning an Israeli agreement
to suspend all Jewish construction in the West Bank until early 2010, the
sources said. But the White House wants the suspension to extend until
through 2011 as the United
States accelerates efforts to establish a Palestinian state.
The sources said Netanyahu, whose defiance of Obama has been supported
by most Israelis, was not expected to announce a settlement freeze unless it
was part of a comprehensive Middle East plan. But they said the entry of
Kadima in the Cabinet would be likely to further soften Netanyahu's
position.
"The Israeli government has taken discussions with us very seriously,"
Obama said on Aug. 18.
