HOUSING CONSTRUCTION IN WEST BANK/GAZA SETTLEMENTS

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001614 SIPDIS NEA FOR BURNS AND SATTERFIELD NSC FOR ABRAMS E.O. 12958: DECL: 03/15/2014 TAGS: ECON PBTS IS SETTLEMENTS ISRAELI PALESTINIAN AFFAIRS SUBJECT: HOUSING CONSTRUCTION IN WEST BANK/GAZA SETTLEMENTS INCREASES SUBSTANTIALLY IN 2003 Classified By: DCM Richard LeBaron for Reasons 1.4 (B) and (D) ¶1. (SBU) Summary. Newly released statistics indicate that housing starts in West Bank and Gaza settlements increased 35% in 2003, in a year when total housing starts in Israel and the settlements dropped 8% compared to 2002 figures. The great majority of the new housing appears to be within "the Jerusalem district," that includes settlements surrounding but not within the city's municipal border (examples are Ma'ale Adumim, Givat Ze'ev, and Beitar Illit.) Housing starts in central West Bank settlements, however, also increased markedly. A contact at the Ministry of Construction and Housing insisted that the increase did not reflect any new policy to build more housing in the settlements, but reflected decisions made in 2001 and 2002, when the planning process to build the new housing began. Building in the West Bank and Gaza Strip settlements accounted for 16% of all government-initiated housing construction in 2003, despite the area only accounting for 4 percent of the Israeli population. End summary. -------------- CBS Statistics Show 35% Increase in Housing Starts in Territories -------------- ¶2. (U) Statistics released March 2 by the Central Bureau of Statistics indicated that housing starts (actual construction initiated) in West Bank and Gaza settlements jumped from 1,369 starts in 2002 to 1,849 starts in 2003, a 35% increase. The CBS statistics covered both public and private construction. The 35% jump compared to an 8% drop overall in housing starts in Israel and the settlements. Housing starts declined in every city or region in Israel surveyed, except Haifa (where housing starts grew 5%). Housing starts in the territories accounted for about 6% of total public and private housing starts in Israel and the settlements. 2003 Housing Percent Change City or Region Starts From 2002 -------------- -------------- -------------- WB/G Settlements 1,849 35% Jerusalem 2,260 -15% Tel Aviv 2,725 -23% Haifa 3,238 5% South 4,568 -23% �00A;North 5,959 - 3% Center 9,074 - 6% Total 29,673 - 8% Source: Israel Central Bureau of Statistics -------------- -------------- Ministry of Housing Statistics Show the Same Trend -------------- -------------- ¶3. (U) Provisional Ministry of Construction and Housing data showed similar trends to the CBS statistics and provided more detail about where the housing is being built. MOCH-sponsored construction in the settlements increased 48% in 2003 over 2002 levels. The great majority of that construction took place in areas of the West Bank within "the Jerusalem District" which includes settlements like Ma'ale Adumim and Beitar Illit but not settlements like Har Homa within the Jerusalem municipality. Housing starts in the West Bank areas of the Jerusalem District increased from 717 starts in 2002 to 1,034 starts in 2003. Construction in the "central" area of the West Bank nearly doubled, from 55 starts in 2002 to 107 in 2003. Construction in settlements accounted for 16% of all MOCH-sponsored housing construction in 2003. 2003 Housing Starts Percent Change City or Region Initiated by MOCH From 2002 -------------- -------------- -------------- Settlements in Jerusalem District 1,034 44% Settlements in Central District 107 95% Total Israel and Territories 7,258 -6% Source: Ministry of Construction and Housing ¶4. (SBU) Contacts at the Central Bureau of Statistics would not comment on the significance of the increase in housing starts in the territories, except to note the strong contrast with the overall drop in housing starts throughout Israel. A contact at the Ministry of Construction and Housing insisted that the 2003 increase in settlement housing starts did not reflect any recent policy decision to increase housing in settlements. He noted that the planning process for new housing typically takes well over one year. The increase in housing starts in 2003, he said, reflected planning decisions made in 2001 and 2002. ¶5. (C) Comment: Although the rise in housing starts in the territories may not reflect a recent government decision to prioritize housing in the settlements, it does reflect the GOI's decision not to enforce commitments it has made to freeze settlement activity. Whether building decisions were made two years ago or the Ministry of Construction and Housing (led by vocal settlement proponent Effie Eitam) is pushing its own agenda, the simple fact is that new housing is being built in the settlements. This is taking place despite a depressed housing market, significant existing vacancy rates, and a dangerous security environment. End comment. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** KURTZER