CODEL KOLBE MAY 20 MEETING WITH PALESTINIAN

C O N F I D E N T I A L SECTION 01 OF 02 CAIRO 003267

SIPDIS

H PASS FOR CHERITH NORMAN
NSC FOR SINGH

E.O. 12958: DECL: 05/27/2016
TAGS: PREL KPAL IS XF
SUBJECT: CODEL KOLBE MAY 20 MEETING WITH PALESTINIAN
PRESIDENT MAHMOUD ABBAS

REF: CAIRO 3119

Classified by Economic and Political Counselor John Desrocher
for Reasons 1.4(b) and (d)


1. (C) Summary: In a May 20 meeting on the margins of the
World Economic Forum (WEF) in Sharm el Sheikh, Egypt,
Palestinian President Mahmoud Abbas told House Foreign Ops
Subcommittee Chairman Rep. Jim Kolbe and his delegation that,
having had little choice but to allow Hamas to form a
government, he hoped that it would fail. Acknowledging that
Fatah had made mistakes, Abbas was optimistic that the party
would be revitalized within months. He pledged to organize a
national dialogue in the near future in an attempt to unify
the Palestinian people. In the meantime, he pleaded with
Rep. Kolbe to find some solution to the dire funding
situation, saying he felt "besieged" by the international
community's cutoff of assistance. The day-to-day suffering of
the Palestinian people was growing and current situation is a
"disaster waiting to happen," Abbas said. One option might
be funding through the office of the President with
appropriate safeguards and monitoring, Abbas suggested. Rep.
Kolbe assured Abbas that Congress would seek a means to
provide funds for the Palestinian people, but made clear that
USG funding would not be channeled to Hamas. End summary.


2. (U) Joining the meeting with President Abbas were Dr. Saeb
Erekat, Chief Palestinian Negotiator, Fatah MP Nabil Shaath,
Nabil Abu Rudeina, Palestinian Authority Spokesman, and Amb.
Munzir el-Dajani, Palestinian Ambassador to Egypt. The
delegation of House Foreign Operations HAC Subcommittee
Chairman Jim Kolbe (R-AZ) included Rep. Nita Lowey
(D-NY),Rep. Howard L. Berman (D-CA),Rep. James P. Moran
(D-VA),Rep. Roger Wicker (R-MS),Rep. Caolyn Kilpatrick,
(D-MI),Rep. Brian Baird (D-WA),and Mr. David Adams, Staff
Director for the House International Relations Committee.

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Hamas Recalcitrant, to Fail
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3. (C) Abbas explained that after Hamas won the legislative
assembly elections he considered attempting to thwart the
formation of a Hamas government, but in the end had little
choice but to allow the new government to be formed. Now
Hamas was facing the international community, he said, and
could be expected to fail. Although there were slight
differences between Hamas leaders in Gaza and those from the
West Bank, he emphasized that there was no indication
whatsoever that Hamas would change its position on three
critical issues: 1) recognition of Israel, 2) honoring
international commitments, and 3) renunciation of terror. No
Hamas members of the government were attending the WEF, he
noted, and Hamas has been treated very coolly by the
Egyptians.

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Revitalizing Fatah and Continuing Talks with Israel
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4. (C) Acknowledging that Fatah had made mistakes, Abbas was
optimistic that the party could be revitalized within the
next three to four months, and would win the next elections.
The party still had overwhelming popular support, he claimed,
despite mistakes which had cost them the recent elections.
Part of the problem, he explained, was a lack of party
discipline. There were seats contested by two or more Fatah
members, and the party was not unified. Sanctions have been
meted out against some members of the party, and about 80
people were fired from Fatah positions, he said. He pledged
to organize a national dialogue within the next two weeks in
an attempt to unify the Palestinian people. Regarding talks
with Israel, Abbas said that he had already had numerous
telephone conversations with new Israeli Prime Minister
Olmert. Abbas wants to continue to engage in negotiations,
and bilateral talks, according to the Roadmap, he said, are
the best route.

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"Besieged" by the International Community
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5. (C) Abbas pleaded with Chairman Kolbe to find some
solution to the Pakistinians' dire need for funding, saying
he felt "besieged" by the international community's cutoff of
assistance. The day-to-day suffering of the Palestinian
people was growing and current situation is a "disaster
waiting to happen," Abbas said. He noted that private sector
was hurting, with businesses closing, bank deposits down, and
emigration on the rise. Of immediate concern, he noted were
the salaries owed to 150,000 government employees, all of
whom were Fatah. "Give us the means for survival," Abbas
told Rep. Kolbe. Cutting off all funding was not the right
strategy.
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Funding Flow through the Office of the President?
-------------- --------------


6. (C) Acknowledging the importance of keeping donor funds
out the hands of Hamas ministers, Abbas suggested that one
solution might be to route funding directly through his
office. He stated that if this would be considered, he would
agree to any sort of monitoring or evaluation required by the
donors. Chairman Kolbe assured Abbas that Congress would
seek a means to provide funds for the Palestinian people, but
made clear that USG funding would not be channeled to Hamas.


7. (U) CODEL Kolbe did not have an opportunity to clear this
report before departing Egypt.
RICCIARDONE