LOCAL DONORS' CONTACT POLICIES WITH PA: EITHER

C O N F I D E N T I A L JERUSALEM 001318 SIPDIS SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/GREENE/WATERS/WAECHTER; NSC FOR DORAN/LOGERFO E.O. 12958: DECL: 03/30/2016 TAGS: EAID PREL KWBG SUBJECT: LOCAL DONORS' CONTACT POLICIES WITH PA: EITHER STILL WAITING FOR GUIDANCE OR NO CHANGE REF: STATE 50416 Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d). ¶1. (C) Summary: Key donors and implementing agencies active in the West Bank and Gaza reviewed their current contact policy with the PA in a March 30 meeting. The European Commission's Technical Assistance Office is still awaiting official guidance from Brussels. The Norwegian Representative Office faces no formal restrictions on contact with the new PA government. The UN agencies and the UN Special Coordinator (UNSCO) have not received any instructions from New York and are still dealing with the PA until advised otherwise. The World Bank mission requested guidance from headquarters and is asking to be able to maintain working contacts for existing projects and analytical work. The International Monetary Fund mission, absent specific instructions, is continuing to speak with its PA contacts but will follow the UN and World Bank's lead if their policies change. End summary. ¶2. (C) In a March 30 meeting of the friends (USG, EU, IMF) of the donor chairs (Norway, World Bank, UN) of the Local Development Forum, the successor organization to the Local Aid Coordination Committee, representatives from the World Bank, UNSCO, European Commission, Norway, and IMF described their contact policies with the recently sworn-in PA government. EconChief broadly described the USG's new contact policy, as outlined in reftel. ¶3. (C) European Commission -- Raffaella Iodice de Wolff, a Counselor in the European Commission's Technical Assistance Office, said that the local office had not yet received any official guidance from Brussels on a contact policy but had started going through a screening process of all of its projects and had no plans to start any new projects. She noted that they are also awaiting guidance on on-going projects such as a 25 million Euro infrastructure facility currently on deposit with the PA. ¶4. (C) Norway -- Representative Sten Arne Rosnes said that there are no formal Norwegian restrictions against contact with the new PA government and there are no indications that a policy would be adopted to limit contacts. He noted that they are trying to be pragmatic, but he could not yet describe the scope of the representative office's contacts with the new PA government. He did note the office's historically close relations with the Ministers of Planning, National Economy, Finance, and Foreign Affairs, given Norway's role in the donor coordination process. ¶5. (C) United Nations -- UN Special Coordinator (UNSCO) Alvaro de Soto said that UNSCO and the UN agencies are waiting for New York to dictate a contact policy but noted that UN agencies with on-going projects on the ground are still dealing with the PA government until further notice. He said that further notice could be determined by a political decision from UN headquarters or by the demands of donors. He specifically noted that he is still waiting for instructions on his own contacts since he has more of a political role, as the Secretary General's Personal Representative to the Palestinian Authority, than do the other UN agencies on the ground. ¶6. (C) World Bank -- Country Director David Craig noted that he had sent a March 29 message to World Bank President Wolfowitz requesting guidance on a contact policy, given the government change-over. He said he asked to be able to maintain working contacts for existing projects and to continue the Bank's analytical work. He said that the only new project he envisioned taking to the World Bank Executive Board for approval was an Avian Influenza project. He mused that the Executive Directors would probably elect not to discuss the project and would allow it to move forward. Craig indicated strong concern for how USG legal restrictions on dealing with the PA might impact Bank staff who have family members and residences in the United States, as well as personal financial assets. ¶7. (C) International Monetary Fund (IMF) -- Resident Representative Joel Toujas said that the IMF mission, absent specific instructions from headquarters, would generally follow the same contact policy as the UN agencies and the World Bank. He noted that he continued to speak with PA Deputy Finance Minister Jihad al-Wazir. Toujas also indicated the same concerns as Craig regarding USG legal restrictions on dealing with the PA and how those might impact Fund staff. WALLES