Identifier
Created
Classification
Origin
04TELAVIV6375
2004-12-15 14:16:00
CONFIDENTIAL
Embassy Tel Aviv
Cable title:
THE LOW-DOWN ON DISENGAGEMENT LEGISLATION
how-toThis record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 04 TEL AVIV 006375
SIPDIS
E.O. 12958: DECL: 12/15/2014
TAGS: PREL KWBG IS GAZA DISENGAGEMENT ISRAELI PALESTINIAN AFFAIRS GOI INTERNAL
SUBJECT: THE LOW-DOWN ON DISENGAGEMENT LEGISLATION
Classified By: Economic Counselor William Weinstein for reasons 1.5 (b)
and (d)
C O N F I D E N T I A L SECTION 01 OF 04 TEL AVIV 006375
SIPDIS
E.O. 12958: DECL: 12/15/2014
TAGS: PREL KWBG IS GAZA DISENGAGEMENT ISRAELI PALESTINIAN AFFAIRS GOI INTERNAL
SUBJECT: THE LOW-DOWN ON DISENGAGEMENT LEGISLATION
Classified By: Economic Counselor William Weinstein for reasons 1.5 (b)
and (d)
1. (C) Summary: Embassy economic officer on December 9 met
with Dr. Shavit Matias and Malkiel "Mike" Blass, Deputy
Attorneys General at the Ministry of Justice, to discuss the
details of the evacuation legislation. While there have been
complaints from settlers and MKs that the compensation
amounts are too low, the MOJ lawyers stressed that the GOI is
trying to be generous and fair, and that it understands the
potential trauma evacuation may have on the settlers. To
this end, the MOJ has devised a compensation package, with
about 100 academics and businessmen, that includes
compensation for homes, land, lost income, various grants,
and also includes monetary help for businesses that will have
to be closed down with disengagement. End summary.
--------------
We Want to be Fair
--------------
2. (C) Dr. Shavit Matias, Deputy Attorney General at the
Ministry of Justice (MOJ),explained to econoff on December 9
that with respect to compensation for evacuating settlements,
"the idea was to be generous" but not extravagant. While the
MOJ thinks it is giving the settlers a good deal, it will not
object if the GOI ultimately decides to compensate the
settlers with more money. In order to come up with the
compensation figures, the MOJ led a team of about 100
government officials, businessmen and academics to work out
the package. According to Matias, settlers were invited to
the negotiations but they did not want to come, although she
acknowledged that some sent lawyers in their place. Matias
stated that if Labor and Shas join the government coalition,
the settlers will realize disengagement will be a reality and
they will eventually get more involved in the process and
actively lobby the Knesset for what they want.
--------------
Killer Bureaucracy
--------------
3. (C) Malkiel "Mike" Blass, Deputy Attorney General at the
MOJ, told econoff that the legislation for the disengagement
plan for now consists of 150 provisions, and the Knesset is
negotiating hard time on everything down to the last comma.
So far the MOJ has had at least four meetings with the
Knesset Law Committee and one meeting with the Knesset
Finance Committee to explain the provisions of the law, and
Blass expects that there will be many more meetings in the
future. Blass related that one of the biggest challenges of
disengagement would be to keep the bureaucracy from killing
the process, but he explained that it was important to
undertake disengagement in a democratic manner regardless
because Knesset approval is the only way for the plan to gain
legitimacy in the eyes of Israelis.
-------------- -
The Disengagement Authority's Responsibilities
-------------- -
4. (C) In a presentation to econoff of the actual
legislation, Blass explained that the purpose of the law was
"regulating all matter of implementation of the disengagement
plan, evacuation of Israelis and their properties, and giving
fair and just compensation from the State to those entitled."
The law gives the GOI the authority to establish the
Disengagement Authority -- SELA headed by Yonatan Bassi --
and states that the main job of this entity will be to decide
who is entitled to compensation and to decide on places for
relocation, whether they be agricultural plots in kibbutzim
or moshavim, or whether whole communities move together.
5. (C) Blass opined that the option of moving entire
communities together was the best for psychological and
social reasons since people would be moving with their
families, friends and neighbors, but also the most
complicated because the residents all have to agree amongst
themselves whether this is what they want and because it
usually takes three years to establish a new community from
the ground up. As a result, the GOI is looking at small
existing communities within Green Line Israel that already
have the required zoning permits and infrastructure so that
settlers can relocate to their new homes as quickly as
possible.
6. (C) Blass said that in order to determine who is
entitled to compensation, the GOI will establish an
Entitlement Committee with a judge appointed by the MOJ to
serve as chairman, either Bassi or his deputy from SELA, and
an accountant from SELA. They will study the cases and
conduct negotiations with approximately 1500 families and
hundreds of businesses affected, and they will have the
authority to verify documents and sign contracts relating to
compensation on behalf of the GOI.
7. (C) Blass explained that settlers will have up to three
years to claim their compensation with very clear evidence
for their requests, but said that the GOI hopes settlers will
submit their claims before the evacuations. In response to
econoff's question, Blass said the GOI expected many
ideological settlers to hold out "on principle" and related
the story of a settler who left Yamit in 1982 but did not
claim his compensation for another 15 years. Blass said SELA
will give its decision in writing, and that settlers will be
able to appeal in Magistrate Courts exclusively in Jerusalem
because the GOI wants judges to build up expertise on
disengagement.
--------------
Evacuation is the Heart
--------------
8. (C) While compensation provisions account for 90 percent
of the legislation, Blass said the evacuation provisions were
naturally the heart of the matter. He explained that the law
gives the GOI the authority to evacuate the settlers, but at
the end of the day Prime Minister Ariel Sharon will decide
which group goes on which day. In response to econoff's
question, Blass replied that there was nothing written down
about giving the settlers a warning of their evacuation date,
but the MOJ is negotiating this point with the Knesset.
9. (C) Blass also said the PM, the Ministry of Defense and
the Ministry of Internal Security will all agree on a date
before evacuation on which entry into the settlements will be
limited. The rationale behind this is that the GOI does not
want sympathizers to go into the areas beforehand and cause a
"big balagan." Blass explained that between this day and the
day of actual evacuation, visitors will need permits to enter
the settlements but he acknowledged that working out a
description of what constitutes a visitor versus a
sympathizer will be difficult. He concluded that the more
violent settlers and their visitors become, the more
restrictive the GOI will be.
10. (C) According to Blass, on the day of evacuation the
settlers' right to the land will be canceled and they will
return the property to the authorities when they leave. They
should be prepared to move all fo their possessions ahead of
time because any furniture left behind will become the
property of the GOI. In addition, the security forces will
have the authority to evacuate those who remain illegally
with "reasonable force" and the MOJ has suggested creating a
category of "special offenses" that would be different from
criminal offenses for anyone who tries to stay, although it
is negotiating this point with the Knesset, as well.
--------------
The Complicated Compensation Package
--------------
11. (C) Blass explained that the calculation of
compensation packages will be very complicated but basically
settlers will be compensated for the house and land, for loss
of income, and for the loss of a business. In response to
econoff's question, Blass replied that even if settlers are
leasing the land but do not own it, they will still receive
compensation (Note: in many cases, settlers have 49- or
50-year leases with the GOI but they do not technically have
a title to the land, even if they may own the house on it.
End note). Blass said that since these settlers had an
expectation that they would be able to live on this property
for 49 years, they should "get something."
12. (C) To compensate for the house and land, the MOJ has
broken down the package into three options. Option A is for
settlers who have lived in the houses for a short time,
perhaps two years, or for settlers who own the property but
do not live in it and rent it out instead. In this case, the
compensation breaks down as follows:
--Self-built house: $900/square meter
--Government-built house: $750/square meter
--Pre-fabricated house: $600/square meter
This is further broken down by the actual size of the house:
--160 or less meters: 100 percent of the value
--161-200 meters: 90 percent of the value
--200 meters: 80 percent of the value
According to Blass, the thought behind giving less money to
settlers with the biggest houses is that the concept of
economies-of-scale means it actually costs less to build a
house the bigger it is.
13. (C) Option B is for settlers who have lived in their
homes longer than two years and therefore have "stronger
rights" to the property. In these cases, the settlers will
receive compensation for the house as well as NIS225,000 for
the land if they live in community settlements or NIS360,000
if they live in agricultural settlements. Settlers will
receive a percentage of the value based on how long they have
lived in the settlement up to eight years, at which point
they will receive 100 percent of the value. Blass stated,
however, that settlers will only be compensated for one house
even if they own more than one.
14. (C) Blass related that Option C is for settlers who
have short-term rental contracts with the GOI in public
housing, and that this will apply to approximately 100
families in Neveh Dekalim and the northern West Bank
settlements. If settlers have lived in public housing for
more than eight years, they will receive NIS160,000 and will
be entitled to public housing in Israel but not to land.
Blass said the Knesset will likely increase this amount in
the end.
15. (C) Blass acknowledged that the MOJ has received
complaints that the compensation is too low, but in a
presentation to the Knesset, Minister Meir Sheetrit said that
if the MKs want to increase the packages, they will have to
decide where cuts will be made in the rest of the budget
because this money is coming out of the GOI's pockets.
According to Blass, some MKs asked Sheetrit why the GOI did
not ask "our friends" the Americans for help, but Sheetrit
allegedly responded that for now the NIS2.5-3 billion for
compensation and NIS2 billion for security is coming from
Israeli funds. Blass also said the GOI was changing the law
to increase the budget deficit to finance evacuation.
--------------
Throwing in Some Grants
--------------
16. (C) Blass explained that in addition to compensation
for the house and land, settlers who live in their homes --
versus renting the homes out to others -- will also receive
grants from the GOI. One of these grants is a moving grant
which Blass claimed is "more than generous" for one move,
although it may fall a little short if a second move is
needed. For a family of three, the grant is NIS9,000; for a
family of four or five, the grant is NIS13,500; and for six
or more, the grant is NIS18,000. Settlers who cannot move
directly to their new homes will also get six months worth of
rent without having to a show a contract. For a family of
three, the grant is NIS10,800; for a family of four or five,
the grant is NIS12,150; and for six or more, the grant is
NIS13,500. If these settlers need to rent for longer than
six months, they can receive an additional six months by
showing a contract.
17. (C) Blass also said there was another grant for "just
living the area." He described it as money anyone 21 years
or older who has lived in a settlement at least five years
will receive as the GOI's way of recognizing the trauma that
evacuation may cause. The grant will be NIS2,400 per year
that the settler lived in a settlement. In addition,
according to Blass, the PM personally added a $30,000 loan to
settle in the Negev or the Galilee that will become a grant
after five years if the settler stays in the area. The last
incentive for settlers is that if they buy an apartment in
Israel within four years of evacuation, they will receive a
refund on the purchase tax, which he said is approximately
$10,000 for a $300,000 apartment.
--------------
Income Supplements
--------------
18. (C) Blass explained that workers must live and work in
a settlement to receive compensation for lost income, or an
"adjustment payment." Settlers who live in a settlement but
work within the Green Line will not receive income
supplements nor will Israelis who live within the Green Line
but work in a settlement. According to Blass, the adjustment
payment for individuals who live and work in a settlement
will be six months worth of their average annual salary for
the year before evacuation. In addition, if they are paying
into a pension fund, the GOI will pay into the fund for them
for those six months.
19. (C) If the settler is 57 years of age or older, has
lived in a settlement at least four years, and has worked in
the settlement at least three years, s/he will also be
entitled to a "retirement payment" which is 60 percent of the
adjustment payment but not more than 70 percent of the
average salary in Israel, or a maximum of NIS5,000 per month.
The expectation is that anyone 57 or older may not be able
to find a job in Israel so settlers will receive this payment
until they are 67 at which point regular pension and social
security payments will kick in. Blass was unsure, however,
if this payment would take place if the settler could find a
job despite his or her age.
-------------- ---
Businesses and Public Institutions Get Help, Too
-------------- ---
20. (C) Blass said a special team was created to determine
how to compensate businesses and there will be two options
for this. The first option will be based on the value of the
assets of the business, such as computers, equipment, and
supplies, and the second option will be based on the
companies' money flow, or "revenue minus costs." Another
special committee wrote the guidelines for how to compensate
infrastructure companies such as telephone, electricity and
water, as well.
21. (C) Blass explained that the GOI will also have
non-profit organizations to deal with, such as institutions
that build swimming pools, synagogues or community centers.
These organizations have funds that they collect from their
members, but they will have to be liquidated. The Gaza Strip
municipality, from its debts to its workers, will also have
to be liquidated, although the municipality in the northern
West Bank will not since only four settlements there will be
evacuated.
22. (C) In addition, Blass stated that the GOI will have to
work with private banks who have liens on the settlers'
houses or businesses. The government wants to avoid a
situation in which it compensates a settler for a house he
has not paid off and then the settler takes the money
without paying back the bank because then the GOI will have
to pay twice. According to Blass, the GOI will publicize
when a settler will receive compensation so that the banks
will have advanced notice and can collect.
--------------
Comment
--------------
23. (C) It seems the MOJ has tried to cover every angle
when determining how to compensate the settlers that will be
evacuated, and Blass concluded the meeting by stating that
the legislation also includes provisions to establish a
Special Committee for cases the MOJ may not have considered
because it could not "think of everything." Despite MOJ's
attempts to be generous and fair, however, the legislation
faces an uphill battle in the Knesset and Blass's comments
that the bureaucracy could kill the process should not be
taken lightly. End comment.
********************************************* ********************
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http://www.state.sgov.gov/p/nea/telaviv
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KURTZER
SIPDIS
E.O. 12958: DECL: 12/15/2014
TAGS: PREL KWBG IS GAZA DISENGAGEMENT ISRAELI PALESTINIAN AFFAIRS GOI INTERNAL
SUBJECT: THE LOW-DOWN ON DISENGAGEMENT LEGISLATION
Classified By: Economic Counselor William Weinstein for reasons 1.5 (b)
and (d)
1. (C) Summary: Embassy economic officer on December 9 met
with Dr. Shavit Matias and Malkiel "Mike" Blass, Deputy
Attorneys General at the Ministry of Justice, to discuss the
details of the evacuation legislation. While there have been
complaints from settlers and MKs that the compensation
amounts are too low, the MOJ lawyers stressed that the GOI is
trying to be generous and fair, and that it understands the
potential trauma evacuation may have on the settlers. To
this end, the MOJ has devised a compensation package, with
about 100 academics and businessmen, that includes
compensation for homes, land, lost income, various grants,
and also includes monetary help for businesses that will have
to be closed down with disengagement. End summary.
--------------
We Want to be Fair
--------------
2. (C) Dr. Shavit Matias, Deputy Attorney General at the
Ministry of Justice (MOJ),explained to econoff on December 9
that with respect to compensation for evacuating settlements,
"the idea was to be generous" but not extravagant. While the
MOJ thinks it is giving the settlers a good deal, it will not
object if the GOI ultimately decides to compensate the
settlers with more money. In order to come up with the
compensation figures, the MOJ led a team of about 100
government officials, businessmen and academics to work out
the package. According to Matias, settlers were invited to
the negotiations but they did not want to come, although she
acknowledged that some sent lawyers in their place. Matias
stated that if Labor and Shas join the government coalition,
the settlers will realize disengagement will be a reality and
they will eventually get more involved in the process and
actively lobby the Knesset for what they want.
--------------
Killer Bureaucracy
--------------
3. (C) Malkiel "Mike" Blass, Deputy Attorney General at the
MOJ, told econoff that the legislation for the disengagement
plan for now consists of 150 provisions, and the Knesset is
negotiating hard time on everything down to the last comma.
So far the MOJ has had at least four meetings with the
Knesset Law Committee and one meeting with the Knesset
Finance Committee to explain the provisions of the law, and
Blass expects that there will be many more meetings in the
future. Blass related that one of the biggest challenges of
disengagement would be to keep the bureaucracy from killing
the process, but he explained that it was important to
undertake disengagement in a democratic manner regardless
because Knesset approval is the only way for the plan to gain
legitimacy in the eyes of Israelis.
-------------- -
The Disengagement Authority's Responsibilities
-------------- -
4. (C) In a presentation to econoff of the actual
legislation, Blass explained that the purpose of the law was
"regulating all matter of implementation of the disengagement
plan, evacuation of Israelis and their properties, and giving
fair and just compensation from the State to those entitled."
The law gives the GOI the authority to establish the
Disengagement Authority -- SELA headed by Yonatan Bassi --
and states that the main job of this entity will be to decide
who is entitled to compensation and to decide on places for
relocation, whether they be agricultural plots in kibbutzim
or moshavim, or whether whole communities move together.
5. (C) Blass opined that the option of moving entire
communities together was the best for psychological and
social reasons since people would be moving with their
families, friends and neighbors, but also the most
complicated because the residents all have to agree amongst
themselves whether this is what they want and because it
usually takes three years to establish a new community from
the ground up. As a result, the GOI is looking at small
existing communities within Green Line Israel that already
have the required zoning permits and infrastructure so that
settlers can relocate to their new homes as quickly as
possible.
6. (C) Blass said that in order to determine who is
entitled to compensation, the GOI will establish an
Entitlement Committee with a judge appointed by the MOJ to
serve as chairman, either Bassi or his deputy from SELA, and
an accountant from SELA. They will study the cases and
conduct negotiations with approximately 1500 families and
hundreds of businesses affected, and they will have the
authority to verify documents and sign contracts relating to
compensation on behalf of the GOI.
7. (C) Blass explained that settlers will have up to three
years to claim their compensation with very clear evidence
for their requests, but said that the GOI hopes settlers will
submit their claims before the evacuations. In response to
econoff's question, Blass said the GOI expected many
ideological settlers to hold out "on principle" and related
the story of a settler who left Yamit in 1982 but did not
claim his compensation for another 15 years. Blass said SELA
will give its decision in writing, and that settlers will be
able to appeal in Magistrate Courts exclusively in Jerusalem
because the GOI wants judges to build up expertise on
disengagement.
--------------
Evacuation is the Heart
--------------
8. (C) While compensation provisions account for 90 percent
of the legislation, Blass said the evacuation provisions were
naturally the heart of the matter. He explained that the law
gives the GOI the authority to evacuate the settlers, but at
the end of the day Prime Minister Ariel Sharon will decide
which group goes on which day. In response to econoff's
question, Blass replied that there was nothing written down
about giving the settlers a warning of their evacuation date,
but the MOJ is negotiating this point with the Knesset.
9. (C) Blass also said the PM, the Ministry of Defense and
the Ministry of Internal Security will all agree on a date
before evacuation on which entry into the settlements will be
limited. The rationale behind this is that the GOI does not
want sympathizers to go into the areas beforehand and cause a
"big balagan." Blass explained that between this day and the
day of actual evacuation, visitors will need permits to enter
the settlements but he acknowledged that working out a
description of what constitutes a visitor versus a
sympathizer will be difficult. He concluded that the more
violent settlers and their visitors become, the more
restrictive the GOI will be.
10. (C) According to Blass, on the day of evacuation the
settlers' right to the land will be canceled and they will
return the property to the authorities when they leave. They
should be prepared to move all fo their possessions ahead of
time because any furniture left behind will become the
property of the GOI. In addition, the security forces will
have the authority to evacuate those who remain illegally
with "reasonable force" and the MOJ has suggested creating a
category of "special offenses" that would be different from
criminal offenses for anyone who tries to stay, although it
is negotiating this point with the Knesset, as well.
--------------
The Complicated Compensation Package
--------------
11. (C) Blass explained that the calculation of
compensation packages will be very complicated but basically
settlers will be compensated for the house and land, for loss
of income, and for the loss of a business. In response to
econoff's question, Blass replied that even if settlers are
leasing the land but do not own it, they will still receive
compensation (Note: in many cases, settlers have 49- or
50-year leases with the GOI but they do not technically have
a title to the land, even if they may own the house on it.
End note). Blass said that since these settlers had an
expectation that they would be able to live on this property
for 49 years, they should "get something."
12. (C) To compensate for the house and land, the MOJ has
broken down the package into three options. Option A is for
settlers who have lived in the houses for a short time,
perhaps two years, or for settlers who own the property but
do not live in it and rent it out instead. In this case, the
compensation breaks down as follows:
--Self-built house: $900/square meter
--Government-built house: $750/square meter
--Pre-fabricated house: $600/square meter
This is further broken down by the actual size of the house:
--160 or less meters: 100 percent of the value
--161-200 meters: 90 percent of the value
--200 meters: 80 percent of the value
According to Blass, the thought behind giving less money to
settlers with the biggest houses is that the concept of
economies-of-scale means it actually costs less to build a
house the bigger it is.
13. (C) Option B is for settlers who have lived in their
homes longer than two years and therefore have "stronger
rights" to the property. In these cases, the settlers will
receive compensation for the house as well as NIS225,000 for
the land if they live in community settlements or NIS360,000
if they live in agricultural settlements. Settlers will
receive a percentage of the value based on how long they have
lived in the settlement up to eight years, at which point
they will receive 100 percent of the value. Blass stated,
however, that settlers will only be compensated for one house
even if they own more than one.
14. (C) Blass related that Option C is for settlers who
have short-term rental contracts with the GOI in public
housing, and that this will apply to approximately 100
families in Neveh Dekalim and the northern West Bank
settlements. If settlers have lived in public housing for
more than eight years, they will receive NIS160,000 and will
be entitled to public housing in Israel but not to land.
Blass said the Knesset will likely increase this amount in
the end.
15. (C) Blass acknowledged that the MOJ has received
complaints that the compensation is too low, but in a
presentation to the Knesset, Minister Meir Sheetrit said that
if the MKs want to increase the packages, they will have to
decide where cuts will be made in the rest of the budget
because this money is coming out of the GOI's pockets.
According to Blass, some MKs asked Sheetrit why the GOI did
not ask "our friends" the Americans for help, but Sheetrit
allegedly responded that for now the NIS2.5-3 billion for
compensation and NIS2 billion for security is coming from
Israeli funds. Blass also said the GOI was changing the law
to increase the budget deficit to finance evacuation.
--------------
Throwing in Some Grants
--------------
16. (C) Blass explained that in addition to compensation
for the house and land, settlers who live in their homes --
versus renting the homes out to others -- will also receive
grants from the GOI. One of these grants is a moving grant
which Blass claimed is "more than generous" for one move,
although it may fall a little short if a second move is
needed. For a family of three, the grant is NIS9,000; for a
family of four or five, the grant is NIS13,500; and for six
or more, the grant is NIS18,000. Settlers who cannot move
directly to their new homes will also get six months worth of
rent without having to a show a contract. For a family of
three, the grant is NIS10,800; for a family of four or five,
the grant is NIS12,150; and for six or more, the grant is
NIS13,500. If these settlers need to rent for longer than
six months, they can receive an additional six months by
showing a contract.
17. (C) Blass also said there was another grant for "just
living the area." He described it as money anyone 21 years
or older who has lived in a settlement at least five years
will receive as the GOI's way of recognizing the trauma that
evacuation may cause. The grant will be NIS2,400 per year
that the settler lived in a settlement. In addition,
according to Blass, the PM personally added a $30,000 loan to
settle in the Negev or the Galilee that will become a grant
after five years if the settler stays in the area. The last
incentive for settlers is that if they buy an apartment in
Israel within four years of evacuation, they will receive a
refund on the purchase tax, which he said is approximately
$10,000 for a $300,000 apartment.
--------------
Income Supplements
--------------
18. (C) Blass explained that workers must live and work in
a settlement to receive compensation for lost income, or an
"adjustment payment." Settlers who live in a settlement but
work within the Green Line will not receive income
supplements nor will Israelis who live within the Green Line
but work in a settlement. According to Blass, the adjustment
payment for individuals who live and work in a settlement
will be six months worth of their average annual salary for
the year before evacuation. In addition, if they are paying
into a pension fund, the GOI will pay into the fund for them
for those six months.
19. (C) If the settler is 57 years of age or older, has
lived in a settlement at least four years, and has worked in
the settlement at least three years, s/he will also be
entitled to a "retirement payment" which is 60 percent of the
adjustment payment but not more than 70 percent of the
average salary in Israel, or a maximum of NIS5,000 per month.
The expectation is that anyone 57 or older may not be able
to find a job in Israel so settlers will receive this payment
until they are 67 at which point regular pension and social
security payments will kick in. Blass was unsure, however,
if this payment would take place if the settler could find a
job despite his or her age.
-------------- ---
Businesses and Public Institutions Get Help, Too
-------------- ---
20. (C) Blass said a special team was created to determine
how to compensate businesses and there will be two options
for this. The first option will be based on the value of the
assets of the business, such as computers, equipment, and
supplies, and the second option will be based on the
companies' money flow, or "revenue minus costs." Another
special committee wrote the guidelines for how to compensate
infrastructure companies such as telephone, electricity and
water, as well.
21. (C) Blass explained that the GOI will also have
non-profit organizations to deal with, such as institutions
that build swimming pools, synagogues or community centers.
These organizations have funds that they collect from their
members, but they will have to be liquidated. The Gaza Strip
municipality, from its debts to its workers, will also have
to be liquidated, although the municipality in the northern
West Bank will not since only four settlements there will be
evacuated.
22. (C) In addition, Blass stated that the GOI will have to
work with private banks who have liens on the settlers'
houses or businesses. The government wants to avoid a
situation in which it compensates a settler for a house he
has not paid off and then the settler takes the money
without paying back the bank because then the GOI will have
to pay twice. According to Blass, the GOI will publicize
when a settler will receive compensation so that the banks
will have advanced notice and can collect.
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Comment
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23. (C) It seems the MOJ has tried to cover every angle
when determining how to compensate the settlers that will be
evacuated, and Blass concluded the meeting by stating that
the legislation also includes provisions to establish a
Special Committee for cases the MOJ may not have considered
because it could not "think of everything." Despite MOJ's
attempts to be generous and fair, however, the legislation
faces an uphill battle in the Knesset and Blass's comments
that the bureaucracy could kill the process should not be
taken lightly. End comment.
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