EC 2006 FUNDING FOR UNRWA, PALESTINIAN REFUGEES

C O N F I D E N T I A L BRUSSELS 000557

SIPDIS

DEPARTMENT FOR PRM; NEA; EUR/ERA; AMMAN FOR REFCOORD;
GENEVA FOR RMA

E.O. 12958: DECL: 02/16/2016
TAGS: PREF PREL EAID EUN USEU BRUSSELS
SUBJECT: EC 2006 FUNDING FOR UNRWA, PALESTINIAN REFUGEES

Classified By: PRMOFF MARC J. MEZNAR. REASONS 1.4(B) AND (D).


1. (SBU) Summary. The EC plans to maintain its funding level
to assist Palestinian refugees through UNRWA at 100 million
euros in 2006. Support to UNRWA represents over a third of
EC assistance to Palestinians. The EC may earmark a portion
of its contribution to UNRWA's general fund. End Summary.


2. (SBU) On February 15, PRMOff and PRMAsst met with DG RELEX
Palestine Desk Officer Nina Obermaier to discuss European
Commission (EC) funding for the UN Relief and Works Agency
for Palestinian Refugees (UNRWA) in 2006. Obermaier said
that EC funding would continue at roughly the same level this
year, even though its multi-annual convention with UNRWA
expired at the end of 2005.


3. (C) DG RELEX funding for UNRWA, which will be finalized in
the coming weeks, is projected to again be 64 million euros.
Traditionally, the totality of the EC contribution to UNRWA's
general fund has been unearmarked. However, because the EC
has been unhappy with UNRWA's management, decision-making
process, reporting and failure to sufficiently acknowledge
its contribution, DG RELEX is considering some earmarks in

2006. Although a significant majority of its contribution
would remain unearmarked, earmarks with corresponding
benchmarks could be introduced. While Obermaier did not
specify what the exact benchmarks might be, she said they
would be both policy and output oriented. DG RELEX will
discuss this "more conditional approach" with UNRWA
Commissioner General Karen Abu-Zayd during her March 20 visit
to Brussels.


4. (SBU) Regarding the initiative by some donors to
strengthen UNRWA's Advisory Committee into an entity with a
stronger executive role, Obermaier said that opinions varied
among the EU Member States. She noted that in spite of
ranking as one of UNRWA's top donors, the EC was only
accorded "observer" status and so had no significant voice in
this issue.


5. (SBU) Obermaier noted that two other EC agencies also
funded UNRWA in 2005, raising the total EC contribution to
100 million euros. She said EuropeAid provided 15 million
euros for food aid and an additional 15 million euros for
food security; ECHO provided 6 million euros for a variety of
humanitarian needs. (Note. ECHO confirmed it intends to
again contribute 6 million euros to UNRWA, probably not
before June. Of this amount, three fourths will go to
temporary job creation schemes and one fourth to emergency
food distribution in Gaza. The remaining 28 million ECHO has
designated for Palestinians in 2006 will be implemented
through NGOs and other international partners. End note.)


6. (C) Considering that total assistance to Palestinians in
2005 amounted to 280 million euros, the UNRWA portion of 100
million euros is significant. When asked if the electoral
victory of Hamas might influence the EC to channel additional
funding through UNRWA, Obermaier stated that "all options are
open." However, she noted that UNRWA's mandate did not
extend to the entire Palestinian population.

GRAY
.