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"Israel is not on a collision path with the United States," said Lerman in the interview. "The US is still the US; the American people are still pro-Israel, and the foundations of the connection with Israel are strong. It is true that the US has undergone political changes that affect their perceptions and priorities, but, in its deepest essence, nothing has changed in the relationship with Israel."

"Now there is a little friction, and this isn't necessarily a bad thing - as long as these frictions don't penetrate the discussion on defense aid and other subjects at the heart of the relationship. It is still early to know where this disagreement will lead, but I believe it is about to be solved."

Alongside relations with the US administration, Israel has another relationship that is no less important, though often times perceived as trivial and taken for granted – the relationship with American Jewry. The American Jewish community is a very advanced one, very urban, very affluent, and intensely connected to Israel.  Though Israel invests in its relations with the Diaspora, Lerman did not withhold criticism from the upper echelons. "Israel has a problem reflected in its lack of awareness on all sorts topics," explained Lerman. "For instance, the issue of conversion and the relationship with the non-Orthodox denominations of Judaism. In these fields, the Israeli government's continuing perspective is reveals a lack of sensitivity to the deep structure of the Jewish community in North America."

"The despicable treatment of non-Orthodox denominations is a very sore point. If the State of Israel grows darker in its religious interpretations and the Jewish character sharpens into one that American Jewry is uncomfortable with, there is potential for immense alienation," continued Lerman, noting that this is a particularly poignant source of contention given that most American Jews identify with these same non-Orthodox denominations.

Lerman is mainly concerned that North American Jews will stop sending their children to Jewish schools out of financial considerations. "These schools are not entitled to federal aid and are reliant on the purchasing power and donations from the Jewish community, as well as good will because there is nothing stopping a family from sending its children to public school for free," explained Lerman.  "This is a critical struggle because it is about Jewish continuity. The chance that this will stop is more worrisome than mixed marriages, which at least have the potential to expand the Jewish community."

And Stephen Walt, one of two writers who in 2006 famously described the influence of the Israel lobby as dangerous, chimed in on ForeignPolicy.com: "For all of you out there who may have questioned whether there was a powerful 'Israel lobby,' or who admitted that it existed but didn't think it had much influence . . . think again." (Foreign Policy is owned by a subsidiary of The Washington Post Co.)

The earliest cry of alarm about Freeman's appointment -- a week before it was announced -- came from a former AIPAC lobbyist. Steve Rosen wrote Feb. 19 on his blog that Freeman was a "strident critic of Israel" and described the potential appointment as "a textbook case of the old-line Arabism" whose "views of the region are what you would expect in the Saudi foreign ministry." Rosen said yesterday that he had been "quite positive" about President Obama's previous appointments for Middle East positions but that he was "surprised" about Freeman. The appointee's "most extreme point of view," he said, was not what he had expected for the head of the NIC. Rosen has a unique position in Washington. A former chief foreign policy lobbyist for AIPAC, he and a colleague were indicted by the Bush administration in 2005 on suspicion of violating the Espionage Act, the first nongovernment employees ever so charged. AIPAC cut him loose, and a trial date has been set for May.

Also on March 2, the Zionist Organization of America called for support of a letter by Rep. Mark Steven Kirk (R-Ill.) that called on the DNI inspector general to investigate Freeman for possible conflicts of interest because of his financial relations with Saudi Arabia. That letter, signed by Kirk and seven other congressmen, including House Minority Leader John A. Boehner (R-Ohio), was sent to Inspector General Edward Maguire on March 3.

Netanyahu has been aware of the letter's content for some time, according to his senior adviser, Ron Dermer. Dermer said that despite the letter's language, the important issue was that of underlying policy. var adsonar_placementId=1392266; var adsonar_pid=952767; var adsonar_ps=10912223; var adsonar_zw=200; var adsonar_zh=200; var adsonar_jv='ads.adsonar.com'; "On the substance, I don't think there's a difference in our position and the position of AIPAC," he said.

It is understood that the letter is being advanced despite its discrepancy with the prime minister's stated positions, because its content reflects both longstanding American policy and longstanding AIPAC positions.

Several versions of the letter are included in the kits being given out to participants in this week's AIPAC conference. One version, bearing a "United States Senate" letterhead, addressed to Obama, and left open for signature, states: "We must also continue to insist on the absolute Palestinian commitment to ending terrorist violence and to building the institutions necessary for a viable Palestinian state living side-by-side, in peace with the Jewish state of Israel." This version also gives explicit support for programs such as the US-supervised training of Palestinian Authority security forces. "The more capable and responsible Palestinian forces become, the more they demonstrate the ability to govern and to maintain security, the easier it will be for [the Palestinians] to reach an accord with Israel," it states. "We encourage you to continue programs similar to the promising security assistance and training programs led by Lieutenant-General Keith Dayton, and hope that you will look for other ways to improve Palestinian security and civilian infrastructure."

A second, similar version, also addressed to Obama and signed by staunchly pro-Israel Majority Leader Stony Hoyer and Republican Whip Eric Cantor, sets out a series of "basic principles" that, if adhered to, offer "the best way to achieve future success between Israelis and Palestinians." Among the principles cited is the requirement for the two parties to directly negotiate the details of any agreement, the imperative for the US government to serve as "both a trusted mediator and a devoted friend to Israel," and the need for Arab states to move toward normal ties with Israel and to support "moderate Palestinians." The clause that discusses statehood demands "an absolute Palestinian commitment to end violence, terror, and incitement and to build the institutions necessary for a viable Palestinian state living side by side in peace with the Jewish state of Israel inside secure borders." It continues: "Once terrorists are no longer in control of Gaza and as responsible Palestinian forces become more capable of demonstrating the ability to govern and to maintain security, an accord with Israel will be easier to attain."

A third version of the letter, addressed to their colleagues, is signed by Senators Christopher Dodd, Arlen Specter, Johnny Isakson and John Thune. It states that "we must redouble our efforts to eliminate support for terrorist violence and strengthen the Palestinian institutions necessary for the creation of a viable Palestinian state living side-by-side, in peace with Israel."

Netanyahu has long indicated that his concerns about Palestinian statehood are practical, rather than ideological - arising from the fear that a fully sovereign Palestinian state might abuse its sovereignty to forge alliances, import arms and build an offensive military capability to threaten Israel.

A former Pentagon analyst, Lawrence Franklin, has already pleaded guilty to disclosing classified information to Rosen and Weissman.

The case has been further complicated by a scandal revealed last month by a political publication, Congressional Quarterly, around a member of Congress, Jane Harman, who was secretly taped telling an Israeli agent that she would pressure the justice department to reduce spying charges against the two former Aipac officials.In return, the Israeli agent offered to get a wealthy donor who helps funds election campaigns for Nancy Pelosi, the then-minority leader in the House of Representatives, to pressure Pelosi to appoint Harman to a senior position on the congressional intelligence committee.Aware of the sensitivity of the position she has put herself in, Harman finished the discussion with the Israeli spy by saying: "This conversation doesn't exist."

Congressional Quarterly obtained a transcript of the tape recorded by the National Security Agency. An FBI probe of Harman was dropped after the intervention of President Bush's attorney general, Alberto Gonzales.

But Aipac delegates were told by the US vice-president, Joe Biden, that the administration favours "mutual respect" in dealing with Iran.Biden said the Israeli-Palestinian conflict strengthened Iran's strategic position and Israel must take concrete steps – including fulfilling often-broken commitments to stop the expansion of Jewish settlements – towards the creation of a Palestinian state.

Aipac's move to put pressure on members of Congress came at the end of its annual conference in Washington this week.Some of the loudest applause at the gathering came in response to calls for military attacks on Iran's nuclear facilities – something Netanyahu has attempted to portray as a more urgent issue than the Palestinian question.

The letter calls for the maintenance of the status quo, with an emphasis on Palestinian institution-building before there can be an end to Israeli occupation.It says the US "must be both a trusted mediator and devoted friend of Israel".

Last week, General James Jones, Obama's national security adviser, told a European foreign minister that the new administration would be "forceful" with Israel, according to a classified Israeli memo reported by the Ha'aretz newspaper.

Jones was quoted as saying that Obama believes Washington, the EU and moderate Arab states must define "a satisfactory endgame solution"."The new administration will convince Israel to compromise on the Palestinian question," he was quoted as saying. "We will not push Israel under the wheels of a bus, but we will be more forceful toward Israel than we have been under Bush."

During his election campaign, Obama alarmed Israel's hardline supporters by saying he regarded the lack of a resolution to the conflict as a "constant sore" that "infect[s] all of our foreign policy".

Aipac has moved to counter any new White House initiative by trying to mobilise Congress against it through the letter, written by two people seen as extremely close to the lobby group – Steny Hoyer, the Democratic majority leader in the House of Representatives, and Eric Cantor, the Republican whip.

The two men addressed an Aipac banquet attended by more than half the members of Congress on Monday, each standing in turn at a "roll call" of support for Israel.On the face of it, the letter is a call for a peace, but its specifics urge Obama to maintain years of US policy that has tacitly accepted Israeli stalling of peace negotiations.The letter says that "the best way to achieve future success between Israelis and Palestinians will be by adhering to basic principles that have undergirded our policy".These include "acceptance that the parties themselves must negotiate the details of any agreement" as well as demanding that the Palestinians first "build the institutions necessary for a viable state" before gaining independence.