Israeli Leaders Find Generous Donors in U.S.

The exposure of the Talansky-Olmert relationship has prompted speculation over just how many other Israeli politicians have similar U.S. benefactors. A recent cartoon in the Israeli newspaper Haaretz depicted a group of Talanskys milling about, each one sporting his distinctive shock of white hair and stubbled face. One turns to another, asking, "Whose Talansky are you?"

Indeed, Olmert is far from the first Israeli politician to be tripped up by allegations of taking money improperly from overseas donors. The previous four prime ministers -- Shimon Peres, Netanyahu, Barak and Ariel Sharon -- have all faced ethics complaints over their dealings with foreign businessmen.

Each of the major players in Israeli politics today has enjoyed prominent foreign support. Netanyahu, for instance, has long had the backing of Las Vegas casino magnate Sheldon Adelson. Adelson has launched a daily Hebrew-language newspaper that is widely seen as a mouthpiece for Netanyahu's views.

Both Adelson and Netanyahu are stalwart opponents of the U.S.-backed Annapolis peace process, which is aimed at creating a Palestinian state side-by-side with Israel, and believe Israel should resist pressure to halt its settlement of the West Bank.

The Labor Party's Barak, meanwhile, has received support from Slim-Fast diet company founder S. Daniel Abraham, who is also a prominent Democratic Party donor. During Barak's tenure as prime minister, Abraham was deeply invested in trying to help achieve Arab-Israeli peace, going as far as to personally broker a meeting between Barak and Palestinian leader Yasser Arafat.

Abraham H. Foxman, director of the Anti-Defamation League and a prominent Jewish American leader, said he's uncomfortable with the idea of Americans playing such an important part in determining who gets to lead Israel. "It is the height of arrogance," Foxman said, "for someone living in Great Neck to make life or death decisions on behalf of someone living in Israel."

The fact that non-Israelis can give at all is controversial. The United States, for instance, does not allow foreigners to contribute to political campaigns. Israel has contemplated a similar ban. But Israeli leaders are reluctant to change a law that has served them well.

"The question is: Is this how you want to organize your political system, so that to succeed you need to raise money from foreign philanthropists?" asked Larry Garber, executive director of the New Israel Fund, which pushes for progressive changes in Israeli law.

Michael Eitan, a member of Israel's parliament from Netanyahu's Likud Party, has led efforts to change Israel's campaign finance rules. Although he calls Israel's finance system for general election campaigns "one of the most advanced in the world," he said work remains to be done on the primary system.

"My position has been that the donations should come only from Israel citizens. But the majority of Knesset members did not agree," Eitan said. "When you raise money abroad you feel less committed to the donors than when you raise it in Israel."

Those involved in the fundraising say the process is more informal than the sophisticated fundraising machines built by American politicians. Internet campaigns, or even direct mail, are rare.

Instead, said Hofnung, "it's dinner. It's small meetings in houses. It's meeting with people in the hotel." It's also occasional speeches to intimate groups, where donors are asked to leave contributions on their chairs if they like what they hear.