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Thus, for example, Koteret Rashit, an anti-Likud weekly modeled after the French L'Express, folded this past January after seven years of publication. Nachum Barnea, its editor, says its elite Ashkenazi (European Jewish) readership simply could not provide a viable economic base for the paper. Meanwhile, the 65-year-old Davar — one of Israel's most respected dailies, Davar is owned by the trade union Histadrut, which is affiliated with the Labor party — is be- ing kept alive only by means of large financial infusions from Histadrut-owned indus- tries. Ironically, most of Israel's workers, the target au- dience of the paper, are either Arabs from the occupied ter- ritories or lower-middle class Jews of Sephardi (or Middle East) background who vote for the Likud. The four Hebrew-language dailies that dominate the market — Ha'aretz, often refer- red to as The New York Times of Israel, Ma'ariv, Yediot Ahronot, and Hadashot — tend, like the English- language daily, The Jerusalem Post, to be sympathetic to the Labor party agenda. A maverick among the media is Ha'olam Ha'zeh, a 53-year-old weekly whose pub- lisher and editor, the bearded Uri Avneri, is in many ways the enfant terrible of the Israeli press. Avneri's muckraking publication has, over the years, exposed corruption in high places, taken on some of the most sacred institutions in Israel political life, and generally upheld an ultra- liberal political agenda, in- cluding support for negotia- tions with the PLO and the establishment of a Palestinian state. Avneri shocked the Israeli government and the public, too, when he met with and interviewed PLO chair- man Yassir Arafat in Beirut during the Israeli invasion of Lebanon. Shortly after becoming edi- tor of Ha'olam Ha'zeh in 1951, Avneri began to develop the so-called two-covers strategy, a unique Israeli media concept designed to appeal to both the university professor and the greengrocer. The front cover of the paper would focus on a major political issue, while the back cover might display a naked woman or a figure in- volved in some society scan- dal. The formula worked and Ha'olam Ha'zeh became a pro- fitable enterprise with political clout. Avneri won a seat in the Knesset and serv- ed for several years. In the late '60s, however, young reporters at mainstream publications were emulating Ha'olam Ha'zeh's style of aggressive reporting; at the same time, as sexual permissiveness spread to the Jewish state, bare breasts seem to have lost their former appeal. (Bob Guccione, publisher of Penthouse, is bet- ting that they have not. In Ju- ly, Guccione established a partnership with a left-wing political monthly, Monitin, which he then turned into a Hebrew-language and Middle East edition of Penthouse.) By 1980, declining reader- ship and advertising had forced Avneri to look for new investors. Enter Arie Genger. An Israeli who emigrated to the United States in the early '60s "with $300 in his pocket," as he told a Ha'aretz reporter, Genger met in New York Genger's return did not go unnoticed. The Israeli press, led by "Ha'olam Ha'zeh," launched a vigorous attack. another Israeli emigrant who had struck it rich in America — Meshulam Riklis. Riklis, a successful businessman whose recent marriage to film ac- tress Pia Zadora had won him attention in American gossip magazines, was — and is — a close friend of Ariel Sharon, whose political campaigns he has helped to finance. In late 1981, Riklis introduced Genger to Sharon, who, dur- ing a lunch at The '21' Club in Manhatten, persuaded Genger to return to Israel and work for him as a department head in the defense ministry. Genger's return did not go unnoticed. The Israeli press, led by Ha'olam Ha'zeh, launched a vigorous attack against Genger, arguing that an Israeli who had "aban- doned" the country should not be put in charge of sensitive defense industries. Avneri, whose editorials have made it clear that he regards Sharon as Israel's public enemy number one, referred to Genger as "Sharon's Gangrene." Stung by such criticism, Genger returned to New York. But not for long. Back in the U.S., Genger started putting out feelers, expressing an in- terest in buying or investing in one or another of Israel's financially hard-pressed papers. Finally, early this year, in a classic case of economic interests overcoming political differences, Avneri agreed to sell 50 percent of the company's stock to Genger