Identifier
Created
Classification
Origin
05AMMAN4369
2005-06-02 13:13:00
CONFIDENTIAL
Embassy Amman
Cable title:  

ASSISTANT SECRETARY WAYNE,S MAY 18 MEETING WITH

Tags:  PREL PGOV ECON KWBG IS 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

021313Z Jun 05
C O N F I D E N T I A L AMMAN 004369 

SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
RUBINSTEIN/GREENE/GERMAIN/LOGERFO; TREASURY FOR
MILLS/DOWNARD; NSC FOR ABRAMS/DANIN/MUSTAFA

E.O. 12958: DECL: 06/02/2015
TAGS: PREL PGOV ECON KWBG IS
SUBJECT: ASSISTANT SECRETARY WAYNE,S MAY 18 MEETING WITH
PALESTINIAN AUTHORITY FINANCE MINISTER FAYYAD


Classified By: CHARGE DAVID HALE FOR REASONS 1.4 (B) AND (D).

FY 2005 Supplemental
--------------------

C O N F I D E N T I A L AMMAN 004369

SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
RUBINSTEIN/GREENE/GERMAIN/LOGERFO; TREASURY FOR
MILLS/DOWNARD; NSC FOR ABRAMS/DANIN/MUSTAFA

E.O. 12958: DECL: 06/02/2015
TAGS: PREL PGOV ECON KWBG IS
SUBJECT: ASSISTANT SECRETARY WAYNE,S MAY 18 MEETING WITH
PALESTINIAN AUTHORITY FINANCE MINISTER FAYYAD


Classified By: CHARGE DAVID HALE FOR REASONS 1.4 (B) AND (D).

FY 2005 Supplemental
--------------


1. (C) On the margins of the BMENA Trade and Investment
conference in Amman on May 18, PA Finance Minister Salam
Fayyad acknowledged to Assistant Secretary E. Anthony Wayne
that he had found the Congressional debate of the PA's
worthiness of the supplemental request stressful and contrary
to the spirit of the Administration's request. He noted that
the approved version (and the designation of USD 50 M for
Israel) had received widespread negative coverage locally.
He said he had been surprised since it was contrary to the
spirit of the relationships that he had forged with many
members of Congress. Nevertheless, Fayyad said that the PA
would continue to do the best that it could to earn the trust
and confidence of its friends. A/S Wayne said that the USG
remained committed to working together with Fayyad, Quartet
Envoy James Wolfensohn, and other partners.

Request for a Cash Transfer
--------------


2. (C) Fayyad said that he would like to work with the USG
on a cash transfer to the PA of the remaining FY 05 Economic
Support Funds. He said he had read the record of the
supplemental debate and there appeared to be an understanding
in Congress that a presidential waiver could be used on the
remaining FY 05 money. Fayyad said that such a transfer
would provide the PA with much needed assistance. Fayyad
said that if this could be prepared for President Abbas'
visit to Washington, Abbas would be very pleased. According
to Fayyad, it would give him encouragement and something
tangible with which to go back home and would balance out the
$50 million for Israel in the supplemental. Wayne said he
would explore this with colleagues in Washington. Fayyad
said that if the PA had been able to get the full USD 200 M
then he would not have raised this issue. (Note: The
President subsequently announced May 26 a USD 50 M cash
transfer to the PA for infrastructure projects in the Gaza
Strip. End Note.)

Disengagement
--------------


3. (C) Fayyad acknowledged that the PA had taken a bit of a
hiatus earlier on disengagement planning but that it was now
engaged and working hard. He noted that the PA still did not
have all of the settlement asset information that it needed
for planning purposes and that it was essential that this
information be shared by the GOI as soon as possible. (Note:
As of May 31, PA officials reconfirmed to ConGenOffs that the
GOI had not yet begun to share the requested asset inventory
information with the PA. End note.) Fayyad said that the PA
was strongly considering hiring a management company to
oversee the selection of successful bidders to lease the
assets while the PA decided the final disposition of the
assets. By focusing on a short-term, temporary solution
while the longer-term issues were considered and resolved,
the PA would be seen as being more proactive and build
confidence in its ability to manage the situation, according
to Fayyad.


4. (C) In terms of the other disengagement issues for
discussion with the GOI, Fayyad said he believed that
everything was negotiable. His main concern, he said, was to
ensure that the customs union would not be abrogated but kept
the way it currently was. Fayyad stressed that all efforts
must be expended to guarantee that a post-disengagement Gaza
is not a sealed-off Gaza and to guarantee access to the West
Bank and the world.


5. (U) This message was cleared by Assistant Secretary
Wayne.
HALE