PA DEPUTY FINANCE MINISTER CONFIRMS ISRAEL

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000529

SIPDIS

SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/WATERS/LOGERFO;
TREASURY FOR NUGENT/ADKINS

E.O. 12958: DECL: 02/06/2016
TAGS: EFIN KBIO KWBG IS
SUBJECT: PA DEPUTY FINANCE MINISTER CONFIRMS ISRAEL
CLEARANCE REVENUE TRANSFER, STILL WAITING ON GULF FUNDING
PLEDGES


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


1. (C) Summary: Palestinian Authority Deputy Finance
Minister Jihad al-Wazir confirmed that the Israeli clearance
revenue transfer would appear in the PA's bank account
February 7. He asked for USG assistance in obtaining letters
from the Saudi and Qatari government by February 7 that noted
that transfers of budget support from each of those
governments were in process. Al-Wazir confirmed that PA
President Abbas was on his way to Kuwait to seek USD 100
million in assistance. Al-Wazir voiced concern that Gulf
governments would delay transfers until a Hamas delegation
traveling in the region had visited. He noted how
politically difficult that would be for President Abbas if
transfers were delayed until Hamas could claim credit for
them. End summary.

Israel transfers clearance revenues
--------------


2. (C) Al-Wazir confirmed that the Israeli government had
transferred the USD 54 M in clearance revenue it had
collected on behalf of the PA. He said these funds would
appear in the PA's single treasury account in the morning of
February 7. He stressed, however, that those funds would not
cover the PA's January payroll and other emergency expenses,
so he was counting on receiving transfers from Gulf states.

Increased Saudi transfer
still awaiting King's approval
--------------


3. (C) Al-Wazir confirmed this afternoon that the Saudi
transfer had still not arrived in the PA's account and that
he had not received any indication that it was being
processed. Al-Wazir did note that the PA had asked Saudi
Arabia for USD 40 M, an increase from the USD 20 M discussed
last week. Al-Wazir understood that this larger transfer had
to be approved by the King. Al-Wazir asked for USG
assistance in obtaining a letter from the Saudi government
stating that funds were in the process of being transferred.
Al-Wazir said he would use such a letter to obtain an advance
from Arab Bank. According to earlier reports from al-Wazir,
Arab Bank tried to call in a number of loans extended to the
PA. February 7 is the final day that al-Wazir can get the
financing lined up in order to pay PA salaries on Saturday,
February 11, given that it takes 4 days for Arab Bank to
process direct deposit salary payments. (Note: Al-Wazir
believes that February 11 is the last day that the PA can pay
January salaries before the public loses confidence in the PA
and violence breaks out on the street. PA salaries were due
to be paid February 4. End note.)

Qatari transfer also outstanding
--------------


4. (C) Al-Wazir also asked for USG assistance in obtaining a
similar letter from the Qatari government by February 7 since
the Qatari transfer had not yet arrived. Al-Wazir noted that
a Hamas delegation, currently in Cairo, is expected to be in
Doha within the next day or so. He said that it would be a
bad sign for President Abbas if the GOQ held the transfer
until the Hamas delegation arrived in Doha since President
Abbas had spoken with the Qatari Foreign Minister last week
who had confirmed that the transfer was in the works.

Abbas headed to Kuwait seeking USD 100 M;
understand Emiratis not considering a transfer
-------------- -


5. (C) Al-Wazir said that President Abbas was en route to

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Jordan and was expected to arrive in Kuwait the evening of
February 6. He would ask the Government of Kuwait (GOK) to
make good on its USD 141 M in Arab summit pledges to the PA
and would urge the GOK to quickly transfer at least USD 100

M. Al-Wazir said that Abbas had no plans to go on to the
Emirates since the PA had not received any indications that
the Emiratis would be forthcoming with a transfer.

Hamas says it can secure funding
for PA through other channels
--------------


6. (C) Al-Wazir voiced concern that a Hamas delegation
currently in Cairo would soon head to the Gulf seeking
funding for the PA. Al-Wazir stressed that it would be
politically difficult for President Abbas if Gulf states
decided to wait on transferring funds until that delegation
had visited. New PLC member Mohammed Abu Taeir was quoted by
Arabic daily al-Quds February 6 as saying that Hamas could
secure funding for the Palestinian people through other
channels and PA personnel should not be concerned about their
salaries under a Hamas-led government. He also referred to a
USD 100 million pledge from an unnamed Arab donor.
WALLES