SENATOR CORZINE'S MARCH 14 MEETING WITH VICE PM

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001635

SIPDIS

E.O. 12958: DECL: 03/15/2015
TAGS: OREP IS ECONOMY AND FINANCE GAZA DISENGAGEMENT ISRAELI PALESTINIAN AFFAIRS
SUBJECT: SENATOR CORZINE'S MARCH 14 MEETING WITH VICE PM
OLMERT

Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b) and (d)


1. (C) Summary. Senator Corzine and Ambassador Kurtzer met
March 14 with Vice Prime Minister, and Minister of Industry,
Trade and Labor Ehud Olmert. The meeting focused on recent
USG initiatives on intellectual property rights, Gaza
disengagement, and the future of GOI interaction with the PA.
Olmert highlighted the positive progress in PA-GOI
cooperation, and also hinted that fall 2005 would be an
appropriate time to return to the final status discussions
envisioned in the Road Map. End Summary.

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IPR
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2. (C) Minister Olmert opened the meeting with a discussion
of his initiative to sign R&D agreements with sub-national
governments in high-tech fields such as biotechnology or
nanotechnology. He noted that such deals have already been
signed with Maryland, Victoria (Australia),and Ontario.
Olmert pitched the idea of a biotech R & D fund between New
Jersey and Israel. Senator Corzine responded noting U.S.
business' concern over the GOI proposals for data exclusivity
as currently drafted. Senator Corzine not only raised
research-based PhRMA opposition to the bill, but inquired how
the U.S. generic industry felt about the legislation. In
reviewing his key arguments, Minister Olmert emphasized that
he has been willing to be flexible from the beginning.
However, he also emphasized that, "what the PhRMA companies
want is beyond the limits," and that Israel will not agree to
a deal that goes beyond "what is done everywhere else."

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Disengagement
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3. (C) On the subject of Gaza disengagement, Minister Olmert
highlighted his impression that Prime Minister Sharon's
disengagement plan is "de Gaullian in its historic
proportions." He described Sharon as the "ultimate authority
on settlements" because he was so intrinsically identified
with their development. Olmert characterized disengagement
as the first step to do "nothing less than attempt to
redefine the borders of Israel to make it a demographically
sustainable Jewish state." He was sanguine about Sharon's
possibilities for completing the process during his tenure as
Prime Minister, adding that disengagement will be Sharon's
legacy. Briefly mentioning the budget, the passage of which
has been cast in doubt by the rebel Likud members who oppose
disengagement, Olmert commented that "I hope at the last
minute we will manage, but I don't know---and I am the man
who is supposed to know."

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GOI-PA Cooperation
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4. (C) Minister Olmert heralded his March 13 decision to
grant 6,000 Gazans work permits for Israel as his personal
effort to "help a little bit." He characterized the move as
against his own policy, against the policy of the Prime
Minister, and possibly damaging to the interests of
unemployed Israeli workers, but said he was convinced of the
necessity of the move in the short-term. However, in the
future Olmert maintains, "separation is separation" and "a
free market for labor is different from a free market when
the workers that you import might also be terrorists."
Olmert emphasized that, "we (the GOI) have to help them (the
PA) now, because with two or three more attacks like the one
in Tel Aviv, we will no longer be able to help."


5. (C) Commenting on PA President Abbas, Olmert stated his
opinion that "Abu Mazen wants to be better, and he is capable
of taking the necessary steps," but he questioned Abbas'
commitment to engage in a violent confrontation with militant
groups that threaten to undermine the growing
Israeli-Palestinian cooperation. Responding to a question
from Senator Corzine about the ability of external actors
such as Hizballah to interfere with cooperation, Olmert
contended that it was not only the headquarters of such
groups in Beirut that were of concern for the GOI, but also
established, local cells inside the West Bank that could
cause problems.

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Roadmap
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6. (C) Minister Olmert floated the idea that in September or
October 2005 the GOI and the PA would be ready to start "real
negotiations." After disengagement in July the GOI will need
"some time to recover" before a return to the roadmap would
be possible. He added that the PA elections in July should
also provide a useful insight into how ready the PA is for
real reform. Omlert contended that even on the divisive
issue of Jerusalem there was some opportunity for a
negotiated solution, but not on the terms that the PA was
currently promoting.


7. (U) Senator Corzine did not have an opportunity to clear
this message.

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