C O N F I D E N T I A L JERUSALEM 000926


NEA FOR BURNS/SATTERFIELD AND NEA/IPA
NSC FOR ABRAMS/DANIN/KIFAYAT
TREASURY FOR OASIA/MILLS

E.O. 12958: DECL: 03/23/2014
TAGS: PTER EFIN KPAL KWBG PREL IS
SUBJECT: ARAFAT BLOCKS COURT ORDER UNFREEZING HAMAS ACCOUNTS

REF: JERUSALEM 915

CLASSIFIED BY: CONSUL GENERAL DAVID D. PEARCE, REASONS 1.5 (B) AND (D).


1. (C) ON THE EXPLICIT INSTRUCTIONS OF YASIR ARAFAT,
PALESTINIAN MONETARY AUTHORITY (PMA) GOVERNOR AMIN HADDAD
CALLED ECON/C MARCH 23 TO REPORT THAT ARAFAT HAD INSTRUCTED
THE PMA AND THE PA SECURITY SERVICES TO BLOCK IMPLEMENTATION
OF THE MARCH 21 HIGHER JUDICIAL COUNCIL ORDER UNFREEZING 39
BANK ACCOUNTS ASSOCIATED WITH HAMAS-AFFILIATED ISLAMIC
CHARITIES (REFTEL). ARAFAT HAD ORDERED HADDAD AND THE
SECURITY CHIEFS TO INSTRUCT THE BANKS TO KEEP THE ACCOUNTS
FROZEN BY "PRESIDENTIAL DECREE."


2. (C) HADDAD SAID HE HAD MET MARCH 23 WITH INTERIOR
MINISTER HAKAM BAL'AWI, NSF WEST BANK CHIEF HAJ ISMA'IL
JABIR, PA POLICE CHIEF GHAZI JABALI, ATTORNEY GENERAL HUSSAIN
ABU AL-ASI, AND HIGHER JUDICIAL COUNCIL HEAD ZUHAIR SURANI,TO
DISCUSS NEXT STEPS. ALL AGREED TO IMPLEMENT ARAFAT'S DECREE.
THEY ALSO DECIDED TO ESTABLISH A MECHANISM FOR DISBURSING
THE FUNDS REMAINING IN THE ACCOUNTS TO NEEDY BENEFICIARIES
DIRECTLY THROUGH THE MINISTRY OF SOCIAL AFFAIRS; ALL
APPLICANTS WOULD BE SCREENED BY PA SECURITY TO ENSURE NO
LINKS TO TERRORIST ORGANIZATIONS, AND NO FUNDS WOULD BE
RELEASED WITHOUT ARAFAT'S EXPLICIT CONSENT, HADDAD REPORTED.
(NOTE: IN A MINISTRY OF INTERIOR REPORT SHARED BY BAL'AWI'S
STAFF ON HIS INSTRUCTION WITH THE CONSULATE, THE ACTION IS
PORTRAYED AS A BAL'AWI DECISION AND ACTION ITEM. END NOTE)


3. (C) COMMENT: ARAFAT'S EXPLICIT INSTRUCTIONS TO HADDAD TO
INFORM THE USG OF THIS DECISION INDICATE THAT ARAFAT HOPES TO
GARNER SOME POLITICAL BENEFIT (OR AT LEAST CREDIT) FOR THE
MOVE. WHILE IT IS INHERENTLY GOOD THAT MILLIONS OF DOLLARS
ARE NOT GOING TO BE RETURNED TO CHARITIES AFFILIATED WITH
HAMAS, HADDAD HIMSELF SAID THAT ARAFAT'S DECREE BLOCKING THE
HJC ORDER HAD NO BASIS IN PALESTINIAN LAW. END COMMENT.


PEARCE