KATSAV'S VATICAN VISIT POSITIVE, BUT NEGOTIATIONS

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 006847

SIPDIS

E.O. 12958: DECL: 12/06/2015
TAGS: PGOV KIRF IS GOI EXTERNAL
SUBJECT: KATSAV'S VATICAN VISIT POSITIVE, BUT NEGOTIATIONS
PROGRESS HALTINGLY

REF: VATICAN 00546

Classified By: Political Counselor Norman Olsen for reasons 1.4 (b,d).


1. (C) Summary: MFA Division Director for Religious Affairs
Zvi Tal briefed Poloff November 28 on President Moshe
Katsav's November 17 Vatican meetings and on the status of
GOI-Vatican negotiations toward a concordat on
fiscal and legal matters. Tal, who traveled with Katsav, was
upbeat about the visit, but noted that Katsav did not hold
any substantive discussion on the negotiations although he
did commit to urging the GOI to move the negotiations
forward. Tal assessed that the GOI and Vatican teams have
made progress on some issues in the negotiations, but said
the core issue on tax status continues to be a "thorny"
subject (see reftel). End Summary.

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Katsav Commits to Moving Negotiations Forward
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2. (SBU) MFA Division Director for Religious Affairs Zvi Tal
told Poloff November 28 that President Katsav met privately
November 17 with Pope Benedict XVI and Vatican Secretary of
State Cardinal Angelo Sodano. Katsav said that meetings
focused on enhancing the bilateral relationship between
Israel and the Vatican, including the initiation of a
strategic dialogue and increasing academic and cultural ties.
Tal noted that Israel currently is working with the Vatican
on various development projects in Brazil and several African
countries. He said that Israel and the Vatican are now
discussing the possibility of trilateral cooperation
involving the UN to provide humanitarian assistance to
African countries.


3. (C) Tal said that during their meeting Katsav asked the
Pope to issue statements against terrorism, racism, and
anti-Semitism. He said they both agreed on the need to
spread the principles of Nostra Aetate ("in our epoch"),a
declarative statement issued by the Catholic Church October
28, 1965 on enhancing relations between the Catholic Church
and other faiths, including Judaism. In his meetings, Katsav
gave his commitment to urge the relevant Israeli government
ministries to move ahead to finalize a concordat on fiscal
and legal matters with the Vatican. Tal said that Katsav did
not have any substantive discussions on this issue during his
visit. Tal said that Katsav invited the Pope to visit
Israel, but assessed that such a visit would not take place
until after an agreement is reached.

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GOI-Vatican Negotiations Skirt Tax Issue
--------------


4. (C) Tal said that in their November 24 meeting, GOI and
Vatican negotiating teams working on a concordat on fiscal
and legal matters had finalized the issue of state funding to
Vatican institutions "in principle." Tal said that the
Ministry of Justice "is willing to be as flexible as
possible" in determining which church institutions meet the
requirements to secure state funding. The GOI and Vatican
teams created a working group to develop criteria to be
applied in determining allocation of state funding, Tal said,
which is to report to the plenary negotiating session
scheduled for either January 10 or 11. Tal said that the
teams also made progress on common text addressing the
prohibition on the state to seize or confiscate movable
property used by Vatican institutions for worship or
devotional activities.


5. (C) The teams "left (national) taxation aside for now,"
according to Tal, as it is a "thorny issue" (reftel). The
Vatican is seeking assurance from the GOI, Tal said, that
once an agreement is reached on taxation of Vatican
institutions, that agreement will not be affected by any
changes in Israeli law. Tal said that the GOI does not want
to exempt Vatican institutions from Israeli law. Tal said
that it is his understanding that the Vatican would not rule
out accepting some rate of municipal taxation of its
properties, which, Tal said, would be at about one-third the
normal rate, if its institutions are compensated through
state assistance. Tal said that a working group addressing
Vatican institutions' access to the courts met November 3 to
discuss two GOI proposals and will be meeting again on
January 4. He said he is optimistic that this issue can be
resolved.

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