DATE= 10/6/97 TYPE=CORRESPONDENT REPORT NUMBER=2-220908 TITLE=NETANYAHU (L) BYLINE=MARK LAVIE DATELINE=TEL AVIV CONTENT= VOICED AT: INTRO: ISRAELI PRIME MINISTER BENJAMIN NETANYAHU HAS SPOKEN OUT AT A NEWS CONFERENCE ABOUT ISRAEL'S BOTCHED ASSASSINATION ATTEMPT IN JORDAN OF A LEADER OF THE ISLAMIC EXTREMIST ORGANIZATION HAMAS. MARK LAVIE REPORTS THAT IN THE FACE OF WIDESPREAD CRITICISM, MR. NETANYAHU IS DEFIANT. TEXT: AFTER A SPECIAL ISRAELI CABINET MEETING TO DISCUSS WHAT'S BEING CALLED HERE THE WORST FIASCO IN ISRAELI INTELLIGENCE OPERATIONS, ISRAELI PRIME MINISTER BENJAMIN NETANYAHU CAME OUT SWINGING AT HIS CRITICS. HE APOLOGIZED FOR NOTHING, SAYING IN THE UNENDING WAR AGAINST TERRORISM, SOMETIMES THINGS GO WRONG -- AND THAT'S PART OF WAR. // NETANYAHU CUT IN HEBREW AND FADE UNDER // IN EVERYTHING WE DO...DECLARED MR. NETANYAHU...WE HAVE ONE GOAL IN MIND..A GOAL THAT IS TOTALLY JUSTIFIED -- FIGHTING TERROR, TO PROTECT THE LIVES OF ISRAELI CITIZENS. HE LASHED OUT AT HIS CRITICS, DECLARING THAT THEY SHOULD HAVE RALLIED ROUND THE GOVERNMENT AT A TIME OF CRISIS WHEN ISRAELI AGENTS WERE STILL IN THE FIELD -- A REFERENCE TO THE TWO MOSSAD AGENTS WHO TRIED TO KILL THE HAMAS LEADER IN JORDAN BUT WERE CAPTURED. MR. NETANYAHU BRUSHED OFF QUESTIONS ABOUT HIS OWN JUDGMENT -- OF CHOOSING JORDAN AS THE BATTLEGROUND FOR THE STRUGGLE AGAINST HAMAS ... AND OF DAMAGING ALREADY SHAKY RELATIONS WITH AN ARAB NATION THAT HAS A PEACE TREATY WITH ISRAEL. THE ISRAELI CABINET APPOINTED A COMMITTEE TO CHECK INTO THE AFFAIR. IT INCLUDES A FORMER HEAD OF THE MOSSAD. BUT IT REPORTS BACK TO THE CABINET -- AND ITS FINDINGS MIGHT NOT BE MADE PUBLIC. THIS COMES AS ISRAEL AND THE PALESTINIANS RENEW THEIR PEACE NEGOTIATIONS AFTER A SIX-MONTH BREAK. AMERICAN ENVOY DENNIS ROSS ARRIVED HERE TO ATTEND THE FIRST SESSION. THE ISRAELI AND PALESTINIAN COMMITTEES WILL GO BACK TO TRACKING ISSUES THEY'VE BEEN DISCUSSING FOR YEARS ... OPENING SEAPORTS AND AIRPORTS FOR THE PALESTINIANS IN GAZA, AND ALLOWING FREE PASSAGE FOR PALESTINIANS THROUGH ISRAEL BETWEEN THE WEST BANK AND GAZA. BUT BOTH SIDES SAY THEY'LL RAISE TOUCHIER ISSUES. THE ISRAELIS WILL INSIST THAT THE PALESTINIANS FIGHT TERRORISM...AND THE PALESTINIANS WILL DEMAND THAT ISRAEL STOP BUILDING (JEWISH) SETTLEMENTS IN THE WEST BANK. (SIGNED) NEB/ML-EMAIL/RRM 06-Oct-97 5:04 PM EDT (2104 UTC) NNNN Source: Voice of America .