C O N F I D E N T I A L JERUSALEM 002033

SIPDIS

SIPDIS

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

E.O. 12958: DECL: 05/19/2016
TAGS: KPAL KWBG MOPS PREL IS
SUBJECT: GAZA STANDOFF CONTINUES; HAMAS FUNDS SEIZED AT
RAFAH

REF: JERUSALEM 02028

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


1. (C) SUMMARY: A tense standoff between security forces
under President Abbas' (Abu Mazen) control and Interior
Ministry forces continued in several localities in Gaza on
May 18 and 19. Four Palestinians were injured in clashes
overnight on May 18 during a gun battle in Gaza City. Talks
between senior HAMAS and Fatah officials have continued, with
agreement on steps to reduce tensions. The Presidential
Guard seized USD 639,000 on May 19 from a senior HAMAS
official as he crossed the Rafah terminal into Gaza.
Officials in Abu Mazen's office have referred the issue to
the PA Attorney General. The funds were reportedly collected
during HAMAS, meetings with Muslim Brotherhood leaders in
Doha. END SUMMARY.

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Standoff Continues After
Overnight Shooting
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2. (C) Four Palestinians were injured overnight on May 18
during exchanges of fire between PA Civil Police and members
the Interior Ministry Special Security Force, composed of
militias loyal to HAMAS (reftel). The main clash took place
in an area near the Civil Police headquarters in Gaza City's
al-Jawazat neighborhood. According to Presidential Guard
sources, a Special Security Force foot patrol approached a
roadblock near the Civil Police headquarters. A yelling
match ensued between the two sides. A gunfight lasting
approximately one and half hours broke out after unidentified
gunmen in a passing car opened fire on the Civil Police
headquarters. Two Civil Policemen, two members of the
Special Security Force and an al-Aqsa Martyrs Brigades gunman
were injured in the fire-fight.

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Egyptians Working To
Reduce Tensions
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3. (C) Egyptian officials in Gaza hosted a second meeting the
evening of May 18 between senior HAMAS and Fatah officials in
an effort to contain violence. The two sides remained at an
impasse regarding the Interior Ministry's refusal to withdraw
the Special Security Force, but agreed to measures to reduce
the likelihood of clashes: no forces will be allowed to wear
masks, and militias (other than the militias employed by the
Interior Ministry) will not be allowed to display weapons.
The two sides also agreed to continue discussions.

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HAMAS Funds Seized At
Rafah Border Crossing
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4. (C) EU monitors and PA customs agents discovered USD
639,000 in a suitcase carried by HAMAS spokesman Sami Abu
Zuhri at approximately 0800L on May 18 during a routine
search at Rafah crossing. When Presidential Guard forces
seized the funds citing Abu Zuhri's failure to declare the
money or process it through proper channels, Abu Zuhri
protested and insisted on remaining with the money at the
terminal. Rumor quickly spread through Gaza that Abu Zuhri
was under arrest and at least 24 HAMAS militants and a large
number of security forces loyal to President Abbas converged
on the terminal. After a brief standoff between the forces
outside the terminal, Abu Zuhri agreed to depart the terminal
without the money and contacted the President's Office to
demand the release of the funds.


5. (C) Presidential Advisor Sahim Fateh (Abu Hisham)
confirmed to POL FSN that he had spoken with Abu Zuhri
regarding the seized funds. Abu Hisham was noncommittal as
to whether the President's Office planned to release the
money, saying only that he had referred the issue to the PA
Attorney General and there were "legal aspects to be
studied." PLO Chief Negotiator Sa'eb Erekat told Consul
General that Abu Mazen had referred the case to the Attorney
General, who will launch an investigation. The funds will be
held under the Attorney General's authority while the
investigation is underway. Separately, President's Office
official Munir Salameh indicated that Abu Zuhri had collected
the money during his recent visit to Doha where he met with
Muslim Brotherhood leaders during a three day conference in
support of the HAMAS-led PA. Salameh said HAMAS planned to
use the money to support stipends for imprisoned HAMAS

members and charitable activities. Abu Zuhri emphasized this
point in his statement to the al-Jazeera television network
saying, "The funds that the Presidential Guard have seized
were collected by HAMAS to support the Palestinian people."

WALLES