Identifier
Created
Classification
Origin
05TELAVIV5233
2005-08-24 14:13:00
CONFIDENTIAL
Embassy Tel Aviv
Cable title:
GOI'S EFFORTS AGAINST TERROR FINANCE IN GAZA; GOI
how-to read a cableThis 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 03 TEL AVIV 005233
SIPDIS
E.O. 12958: DECL: 08/24/2015
TAGS: PTER KTFN EFIN PREL COUNTERTERRORISM ISRAELI PALESTINIAN AFFAIRS
SUBJECT: GOI'S EFFORTS AGAINST TERROR FINANCE IN GAZA; GOI
TO FUND PA SOCIAL WELFARE SYSTEM
Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b) and (d)
.
C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 005233
SIPDIS
E.O. 12958: DECL: 08/24/2015
TAGS: PTER KTFN EFIN PREL COUNTERTERRORISM ISRAELI PALESTINIAN AFFAIRS
SUBJECT: GOI'S EFFORTS AGAINST TERROR FINANCE IN GAZA; GOI
TO FUND PA SOCIAL WELFARE SYSTEM
Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b) and (d)
.
1. (C) SUMMARY: MFA and NSC officials briefed econoff and
poloff August 11 on the GOI's post-disengagement efforts
against terror finance in Gaza. An Israeli National Security
Council official said an alternative to the Hamas social
service network in Gaza, operated by the Palestinian
Authority (PA),and supported by the GOI is one way to stop
terror finance in Gaza. The NSC official said this would
strengthen the PA's credibility and broaden its sphere of
influence as it helps Palestinians get on the road to
economic recovery. He asserted that the GOI is working with
the PA, specifically Finance Minister Salam Fayyad and
President Mahmud Abbas, to establish and help fund such an
organization. He said he would share his thinking with USG
officials at State, Treasury and the NSC, when he visits the
U.S. in the coming months. An MFA official stressed that the
Israeli withdrawal from Gaza will impede GOI efforts against
terror finance and that the PA would have to shoulder greater
responsibility in monitoring and seizing terror money. He
also commented on recent plans by the MFA to increase the
budget and manpower of its counterterrorism department to
bolster its effort and response capabilities in this area.
END SUMMARY.
-------------- -
GOI-NSC: TF Efforts In Gaza Post-Disengagement
-------------- -
2. (C) On August 11, the GOI's National Security Council
Counterterrorism Finance Bureau Director, Udi Levi, met with
econoff and poloff regarding efforts against terror finance
in the Gaza Strip. Levi said that success after
disengagement will depend on ensuring that funds going to the
Palestinian Authority (PA) -- including donations from the
international community -- are used for legitimate purposes
to strengthen the PA's authority and popularity among Gaza's
residents. Levi said the GOI can approach fighting terrorism
finance two ways: (1) it can take steps to undermine Hamas,
which would end up hurting innocent people who receive
assistance from Hamas, or (2) it can assist the PA in
building a parallel structure to channel assistance to the
unemployed and needy. It is critical that the Palestinian
people see an alternative to Hamas, stressed Levi. He
claimed that efforts are underway by the PA to establish a
Social Security program in Gaza to meet the needs of Gaza's
residents.
3. (C) Levi pointed out that the PA has already raised 60
million NIS for the Social Security program budget. He
confided that the GOI has decided in principle to provide an
additional 300 million NIS for the PA program, but that this
allocation has not yet been announced. He envisions a
situation in the future where the PA would raise 20 million
NIS every month, and the GOI would match it. At issue now is
who will receive this social assistance. GOI officials are
discussing with Palestinian Finance Minister Salam Fayyad the
definition of the term "needy." The GOI does not want the
Palestinians to see social assistance coming from the GOI,
the USG or other governments. Levi emphasized that it is
important that the credibility of the PA among Palestinians
remain intact.
4. (C) Israel will have to rely on Palestinian President
Mahmud Abbas and Fayyad to work this out. Levi noted that
Fayyad controls all of the PA's financial institutions, which
makes it easy to work with the PA, but also potentially
hazardous, as the GOI's reliance on one man makes it
vulnerable. Levi acknowledged that there is an ongoing
debate in the "Israeli security community" about the future
of the PA and the fate of Abbas. Levi remarked that "we have
to deal with the Palestinians because we do not have any
alternative. On the other hand, we are not living in the
Arafat era. If Abbas and Fayyad do not work with us, they
will pay the price as well."
--------------
International Assistance to PA Will be Key
--------------
5. (C) Levi emphasized that success will also hinge on
ensuring that international donor funds to the PA stay within
PA structures, and not "leak out" for use by terrorists.
Levi underscored that this issue has not yet been raised with
the Europeans or the Gulf states, and he thought that the GOI
might ask the USG to approach the Gulf states about it in the
future.
--------------
Hamas Still A Threat
--------------
6. (C) Levi indicated that the NSC is, at the same time,
nervous that the Europeans might change their attitudes to
look more favorably towards Hamas after disengagement and
Palestinian parliamentary elections. He said that in the
NSC's view, the Europeans had initially taken significant
measures against Hamas funds in Europe, but the Israeli MFA
is now hearing voices in Europe saying that Hamas should be
regarded as a "political entity worthy of dialogue" after
disengagement and elections. Levi commented that, as Europe
is a source of financing for Hamas, the concern is that the
flow of funds will be renewed. To counter this possibility,
he said, the NSC is now assembling a dossier that will show
evidence connecting the financial infrastructures of Hamas
and Al Qaeda. The goal, he said, is to make it clear that if
Hamas is allowed to operate freely, Al Qaeda will have
freedom of movement as well.
--------------
Show Me the Money
--------------
7. (C) Levi indicated that the GOI is also placing a priority
on locating and capturing "lost money" that Arafat and his
cronies hid away in various accounts. He added that "we've
got to get to it before anyone else does." Levi said the GOI
is also asking the Egyptians to help the PA because some of
the funding that gets to Hamas transits Egypt. He said Saudi
Arabia has stopped most of the funding that went to Hamas
through its territory.
--------------
Hizballah An Old Enemy
--------------
8. (C) Levi stressed that Hizballah is one of the most
dangerous enemies facing Israel today. He added that NSC
lawyers are working to get the GOI and USG to place 50
companies and NGOs that are operating internationally on an
international "blacklist" due to the connections that the GOI
says those organizations maintain with Hizballah.
--------------
MFA: Fighting TF in Gaza a PA Responsibility
--------------
9. (C) Econoff and poloff also met on August 11 with Ministry
of Foreign Affairs (MFA) Nonproliferation and
Counterterrorism Director Yehuda Yaakov. Yaakov said that
after the GOI's withdrawal from Gaza, the PA will have to
shoulder the responsibility for fighting terrorism finance
there. He asserted that it will be difficult for the GOI to
carry out efforts against terrorism finance in Gaza because
of the new political paradigm. He noted that monitoring and
controlling the Israel-Gaza border is one way the GOI is
going to fight terrorism finance. He said the GOI is going
to ensure that money or assets crossing the border and headed
for certain organizations, groups or individuals will be
stopped. The other way, he said is to work with European
countries to exchange information and strengthen joint
activities against terror finance.
10. (C) Yaakov said he was not aware of any cooperative
effort between the GOI and the PA to fight financing of
terrorism in Gaza. He emphasized that the main efforts
against terror finance in Gaza would take place at the
borders and in the international arena through cooperative
engagement and information sharing.
--------------
Yaakov: MFA CT Restructuring
--------------
11. (C) Yaakov said that the MFA is re-organizing its
counterterrorism department and increasing its numbers to
facilitate a more robust operation. He underscored the
importance of Post's cooperation and correspondence regarding
terror finance designation letters. He said that the
increase in the counterterrorism department's budget and
manpower will allow it to designate an individual who will be
the responsible counterpart to examine these documents and
work with the rest of the ministries.
12. (C) Yaakov touched on the European efforts against terror
finance, noting that the European nations have recently
increased their efforts, especially against Hamas, and said
that this is a good sign.
********************************************* ********************
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
SIPDIS
E.O. 12958: DECL: 08/24/2015
TAGS: PTER KTFN EFIN PREL COUNTERTERRORISM ISRAELI PALESTINIAN AFFAIRS
SUBJECT: GOI'S EFFORTS AGAINST TERROR FINANCE IN GAZA; GOI
TO FUND PA SOCIAL WELFARE SYSTEM
Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (b) and (d)
.
1. (C) SUMMARY: MFA and NSC officials briefed econoff and
poloff August 11 on the GOI's post-disengagement efforts
against terror finance in Gaza. An Israeli National Security
Council official said an alternative to the Hamas social
service network in Gaza, operated by the Palestinian
Authority (PA),and supported by the GOI is one way to stop
terror finance in Gaza. The NSC official said this would
strengthen the PA's credibility and broaden its sphere of
influence as it helps Palestinians get on the road to
economic recovery. He asserted that the GOI is working with
the PA, specifically Finance Minister Salam Fayyad and
President Mahmud Abbas, to establish and help fund such an
organization. He said he would share his thinking with USG
officials at State, Treasury and the NSC, when he visits the
U.S. in the coming months. An MFA official stressed that the
Israeli withdrawal from Gaza will impede GOI efforts against
terror finance and that the PA would have to shoulder greater
responsibility in monitoring and seizing terror money. He
also commented on recent plans by the MFA to increase the
budget and manpower of its counterterrorism department to
bolster its effort and response capabilities in this area.
END SUMMARY.
-------------- -
GOI-NSC: TF Efforts In Gaza Post-Disengagement
-------------- -
2. (C) On August 11, the GOI's National Security Council
Counterterrorism Finance Bureau Director, Udi Levi, met with
econoff and poloff regarding efforts against terror finance
in the Gaza Strip. Levi said that success after
disengagement will depend on ensuring that funds going to the
Palestinian Authority (PA) -- including donations from the
international community -- are used for legitimate purposes
to strengthen the PA's authority and popularity among Gaza's
residents. Levi said the GOI can approach fighting terrorism
finance two ways: (1) it can take steps to undermine Hamas,
which would end up hurting innocent people who receive
assistance from Hamas, or (2) it can assist the PA in
building a parallel structure to channel assistance to the
unemployed and needy. It is critical that the Palestinian
people see an alternative to Hamas, stressed Levi. He
claimed that efforts are underway by the PA to establish a
Social Security program in Gaza to meet the needs of Gaza's
residents.
3. (C) Levi pointed out that the PA has already raised 60
million NIS for the Social Security program budget. He
confided that the GOI has decided in principle to provide an
additional 300 million NIS for the PA program, but that this
allocation has not yet been announced. He envisions a
situation in the future where the PA would raise 20 million
NIS every month, and the GOI would match it. At issue now is
who will receive this social assistance. GOI officials are
discussing with Palestinian Finance Minister Salam Fayyad the
definition of the term "needy." The GOI does not want the
Palestinians to see social assistance coming from the GOI,
the USG or other governments. Levi emphasized that it is
important that the credibility of the PA among Palestinians
remain intact.
4. (C) Israel will have to rely on Palestinian President
Mahmud Abbas and Fayyad to work this out. Levi noted that
Fayyad controls all of the PA's financial institutions, which
makes it easy to work with the PA, but also potentially
hazardous, as the GOI's reliance on one man makes it
vulnerable. Levi acknowledged that there is an ongoing
debate in the "Israeli security community" about the future
of the PA and the fate of Abbas. Levi remarked that "we have
to deal with the Palestinians because we do not have any
alternative. On the other hand, we are not living in the
Arafat era. If Abbas and Fayyad do not work with us, they
will pay the price as well."
--------------
International Assistance to PA Will be Key
--------------
5. (C) Levi emphasized that success will also hinge on
ensuring that international donor funds to the PA stay within
PA structures, and not "leak out" for use by terrorists.
Levi underscored that this issue has not yet been raised with
the Europeans or the Gulf states, and he thought that the GOI
might ask the USG to approach the Gulf states about it in the
future.
--------------
Hamas Still A Threat
--------------
6. (C) Levi indicated that the NSC is, at the same time,
nervous that the Europeans might change their attitudes to
look more favorably towards Hamas after disengagement and
Palestinian parliamentary elections. He said that in the
NSC's view, the Europeans had initially taken significant
measures against Hamas funds in Europe, but the Israeli MFA
is now hearing voices in Europe saying that Hamas should be
regarded as a "political entity worthy of dialogue" after
disengagement and elections. Levi commented that, as Europe
is a source of financing for Hamas, the concern is that the
flow of funds will be renewed. To counter this possibility,
he said, the NSC is now assembling a dossier that will show
evidence connecting the financial infrastructures of Hamas
and Al Qaeda. The goal, he said, is to make it clear that if
Hamas is allowed to operate freely, Al Qaeda will have
freedom of movement as well.
--------------
Show Me the Money
--------------
7. (C) Levi indicated that the GOI is also placing a priority
on locating and capturing "lost money" that Arafat and his
cronies hid away in various accounts. He added that "we've
got to get to it before anyone else does." Levi said the GOI
is also asking the Egyptians to help the PA because some of
the funding that gets to Hamas transits Egypt. He said Saudi
Arabia has stopped most of the funding that went to Hamas
through its territory.
--------------
Hizballah An Old Enemy
--------------
8. (C) Levi stressed that Hizballah is one of the most
dangerous enemies facing Israel today. He added that NSC
lawyers are working to get the GOI and USG to place 50
companies and NGOs that are operating internationally on an
international "blacklist" due to the connections that the GOI
says those organizations maintain with Hizballah.
--------------
MFA: Fighting TF in Gaza a PA Responsibility
--------------
9. (C) Econoff and poloff also met on August 11 with Ministry
of Foreign Affairs (MFA) Nonproliferation and
Counterterrorism Director Yehuda Yaakov. Yaakov said that
after the GOI's withdrawal from Gaza, the PA will have to
shoulder the responsibility for fighting terrorism finance
there. He asserted that it will be difficult for the GOI to
carry out efforts against terrorism finance in Gaza because
of the new political paradigm. He noted that monitoring and
controlling the Israel-Gaza border is one way the GOI is
going to fight terrorism finance. He said the GOI is going
to ensure that money or assets crossing the border and headed
for certain organizations, groups or individuals will be
stopped. The other way, he said is to work with European
countries to exchange information and strengthen joint
activities against terror finance.
10. (C) Yaakov said he was not aware of any cooperative
effort between the GOI and the PA to fight financing of
terrorism in Gaza. He emphasized that the main efforts
against terror finance in Gaza would take place at the
borders and in the international arena through cooperative
engagement and information sharing.
--------------
Yaakov: MFA CT Restructuring
--------------
11. (C) Yaakov said that the MFA is re-organizing its
counterterrorism department and increasing its numbers to
facilitate a more robust operation. He underscored the
importance of Post's cooperation and correspondence regarding
terror finance designation letters. He said that the
increase in the counterterrorism department's budget and
manpower will allow it to designate an individual who will be
the responsible counterpart to examine these documents and
work with the rest of the ministries.
12. (C) Yaakov touched on the European efforts against terror
finance, noting that the European nations have recently
increased their efforts, especially against Hamas, and said
that this is a good sign.
********************************************* ********************
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