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. -------------- Katsav Commits to Moving Negotiations Forward -------------- ¶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. -------------- 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. ********************************************* ******************** 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. ********************************************* ******************** JONES