Identifier
Created
Classification
Origin
06JERUSALEM1620
2006-04-21 15:27:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:  

PALESTINIAN OPINION-MAKERS VOICE DOUBTS ABOUT U.S.

Tags:  KPAL KWBG PREL IS 
pdf how-to read a cable
VZCZCXYZ0020
OO RUEHWEB

DE RUEHJM #1620/01 1111527
ZNY CCCCC ZZH
O 211527Z APR 06
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1691
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/WHITE HOUSE NSC PRIORITY
C O N F I D E N T I A L JERUSALEM 001620 

SIPDIS

SIPDIS

NEA FOR FRONT OFFICE; NSC FOR ABRAMS/DORAN/LOGERFO

E.O. 12958: DECL: 04/20/2016
TAGS: KPAL KWBG PREL IS
SUBJECT: PALESTINIAN OPINION-MAKERS VOICE DOUBTS ABOUT U.S.
ASSISTANCE POLICY


Classified By: Consul General Jake Walles, per reasons 1.4 (b) and (d).

C O N F I D E N T I A L JERUSALEM 001620

SIPDIS

SIPDIS

NEA FOR FRONT OFFICE; NSC FOR ABRAMS/DORAN/LOGERFO

E.O. 12958: DECL: 04/20/2016
TAGS: KPAL KWBG PREL IS
SUBJECT: PALESTINIAN OPINION-MAKERS VOICE DOUBTS ABOUT U.S.
ASSISTANCE POLICY


Classified By: Consul General Jake Walles, per reasons 1.4 (b) and (d).


1. (C) SUMMARY: The Consul General met with a group of ten
influential Palestinian contacts on April 20 to explain
changes in USG policy following the formation of the new PA
government and it's rejection of Quartet requirements.
Several of the Palestinian interlocutors voiced objections to
the USG redirection of assistance and others expressed
concern that the new policy would lead to the collapse of the
PA. Two of the businessmen present raised the need for
re-assurance for the private sector. Some participants
suggested that overt USG and GOI opposition to HAMAS actually
strengthened the movement. END SUMMARY.


2. (SBU) Palestinian participants: Mazen Sinokrot, former
Minister of National Economy; Basem Khoury, Chairman
Palestinian Federation of Industries; Nafez Hirbrawi,
Chairman PalTrade; Qadura Faris, former Fatah PLC member;
Issa Karaka, current Fatah PLC member; Khaled Osaily,
businessman, Third Way activist; Suheil Jideon, Chairman,
Palestinian-American Chamber of Commerce; Rabiha Diab, Fatah
PLC Member; Salih Abu Sineid, Businessman; Lily Fahdi, Deputy
Director, Miftah.

--------------
PA Collapse, Chaos Possible
--------------


3. (C) The Consul General met with a group of ten influential
Palestinians from diverse professional backgrounds on April
20 in order to explain the rationale behind recent changes in
USG assistance and contact policy, expand our outreach to
Palestinian opinion leaders, and elicit reactions from the
group. Several participants emphasized that they felt the
curtailment of international assistance could lead to the
collapse of the PA. Current Fatah PLC member Issa Karaka
said the PA's inability to pay civil service and security
salaries would likely lead to a complete breakdown of
government services. Karaka pointed out that cancellation of
infrastructure projects and curtailment of budget support
harms the Palestinian people, not just HAMAS. The Consul
General emphasized that the US regrets that the PA government
has not accepted the Quartet requirements and our expansion
of humanitarian assistance is intended to help meet the needs
of the Palestinian people.

--------------
Political Horizon Essential
for Security, Stability
--------------


4. (C) Former Fatah PLC member Qadura Faris argued for the
importance of a &political horizon8 for negotiations on
permanent status issues. Faris emphasized that in the
absence of hope for a peaceful, negotiated settlement between
the PA and the GOI, Palestinians were likely to respond with
&explosive violence.8 Fatah PLC member Rabiha Diab struck
a similar theme saying, &When there is desperation,
Palestinians naturally sympathize with those who resist.8
Merely dealing with the humanitarian needs of the Palestinian
will not prevent resurgence in violence, argued Issa Karaka.
The USG must find a way to address Palestinian political
needs and national aspirations, despite the new political
circumstances.

--------------
Support the Private Sector
--------------


5. (C) Businessman Bassam Khoury noted that USG assistance
focused nearly entirely on humanitarian needs and did not
include support for the private sector. Khoury said this was
a mistake since the private sector accounts for 70 percent of
the labor force and is outside HAMAS control. Former Economy
Minister Mazen Sinokrot underscored this point, adding that
it would be important for USG officials not to make any
statements that would make firms and investors anxious about
doing business in the West Bank and Gaza. Sinokrot reported
that his private sector colleagues are already receiving
inquiries from American investors about whether it was
legally permissible for them to continue business with
Palestinian firms.

--------------
USG/GOI Rejection Benefits HAMAS
--------------


6. (C) Several of the Palestinian participants argued that
any efforts by the USG to undermine HAMAS would only benefit

the movement. Businessman Salih Abu Zinaid pointed out that
HAMAS benefited from USG and Israeli opposition during the
PLC elections and even went as far as to advertise it in
their campaign propaganda. Likewise, since the announcement
of the curtailment of USG assistance to the PA, HAMAS made
gains in important university elections (septel). Qadura
Faris made a similar point in regard to the unilateral nature
of the GOI convergence plan saying, "HAMAS doesn't want a
partner either." Faris argued that Israel's rejection of the
PA and decision to sideline Abu Mazen would ultimately
strengthen Palestinian leaders who reject Israel.

WALLES