On the way to his first visits to Israel and Egypt as US Defense Secretary, Leon Panetta warned Israel of increasing isolation in the Middle East and said "Israeli leaders must restart negotiations with the Palestinians and work to restore relations with Egypt and Turkey." While Israel is still the most powerful state in the region, Panetta said, “Is it enough to maintain a military edge if you’re isolating yourself in the diplomatic arena? Before meeting Prime Minister Binyamin Netanyahu, Defense Minister Ehud Barak and military and intelligence chiefs in Tel Aviv, the Defense Secretary said:

“It’s pretty clear that at this dramatic time in the Middle East, when there have been so many changes, that it is not a good situation for Israel to become increasingly isolated. And that’s what’s happening."

The Secretary of Defense did not question US commitment to Israel's security, reflecting President Barack Obama's fundamental policy, but his words indicated that the administration would not be able to coordinate its positions with the Netanyahu government for much longer on Egypt, the Palestinians and Turks with the result that Israel would be "increasingly isolated."

But there was another subtext.

“Real security can only be achieved by both a strong diplomatic effort as well as a strong effort to project your military strength,” said Panetta. When the United States invests so substantially in maintaining Israel's military edge over the Arab nations and Iran, why does Israel not use that advantage as leverage to improve its diplomatic performance, he seemed to be saying..
debkafile's analysts comment: The new position Washington appears to be taking reflects a measure of hypocrisy dating back to a former US administration: In 2007, the Bush White House adopted the National Intelligence Estimate which stated that Iran's nuclear program had halted weapons development and on that false premise held Israel back from a military strike against the Islamic Republic at an early stage of its nuclear development .
By faulting Israel at this late stage for not using its military strength for political gains, is the Obama administration showing impatience with the Netanyahu government for its exaggerated military restraint? In almost three years in power, Netanyahu, Barak and Foreign Minister Avigdor Lieberman have managed to avoid a single military campaign for diplomatic ends – an almost unique demonstration of passivity in the annals of Israeli governments.
Are the Americans now saying this was a mistake?

Panetta seems to be saying that by not applying Israel's military prowess in the dramatically changing time in the Middle East Israeli leaders failed as statesmen.
debkafile adds: The Obama administration and Panetta's predecessor Robert Gates not only objected strongly to an Israeli military strike against Iran's nuclear program but also against using its military to curtail the spread of Iran's influence and support for terrorist groups across the Middle East and along its borders.

Instead, Israel was urged to wait patiently for sanctions to be imposed and bring about Iran's economic collapse. This was a bad miscalculation because sanctions failed and the Iranian economy, along with its nuclear weapons program, is thriving.
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