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