MIXED FRENCH MFA RESPONSE TO U.S. POINTS ON

C O N F I D E N T I A L PARIS 003571 SIPDIS SIPDIS E.O. 12958: DECL: 5/22/2016 TAGS: PREL EAID KPAL FR SUBJECT: MIXED FRENCH MFA RESPONSE TO U.S. POINTS ON PALESTINIAN ASSISTANCE REF: STATE 86455 Classified By: Acting Political Counselor Bruce Turner, reasons 1.4 (b) and (d). ¶1. (C) Poloff discussed reftel points on U.S. views on Palestinian assistance and a proposed temporary international funding mechanism with MFA DAS-equivalent for Egypt/Levant Herve Besancenot May 30. Besancenot offered a mixed response to U.S. views. He agreed that the PA government bore primary responsibility for the humanitarian hardships faced by the Palestinian people. But he added that there were secondary factors that needed to be considered, such as Israel's delayed transfer of PA tax revenues and continued GOI restrictions on Palestinian freedom of movement. Besancenot welcomed the U.S. desire for the proposed funding mechanism to be established quickly, but criticized what he assessed as excessive U.S. rigidity in opposing funding for PA salaries. ¶2. (C) Poloff responded that U.S. was seeking to maintain consensus on points already agreed to by the Quartet: the PA government must face consequences for its failure to meet the Quartet principles, and any fiscal problems it faced were the direct result of continued rejection of basic principles of peace. Besancenot stressed that, given a potential humanitarian and security crisis in the Palestinian terrirories, the GoF remained attached to the notion that some international assistance should be offered to address payment of salaries. The priority should be placed on the education and health sectors, but not necessarily be limited to these areas. Besancenot concluded discussion by expressing hope that the U.S. and EU could find a compromise on the salary issue. He noted that the GoF supported thinking floated by the Commission on calling salary payments by another name, such as compensation or indemnification, which hopefully would allow the Quartet to reach consensus on the issue. Please visit Paris' Classified Website at: http://www.state.sgov.gov/p/eur/paris/index.c fm STAPLETON