Identifier
Created
Classification
Origin
06TELAVIV1620
2006-04-25 16:55:00
CONFIDENTIAL
Embassy Tel Aviv
Cable title:  

SHIMON PERES CONCERNED ABOUT JORDAN'S STABILITY

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C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001620 

SIPDIS

CODEL

E.O. 12958: DECL: 04/20/2016
TAGS: PREL PGOV ECON IS GOI EXTERNAL ISRAEL RELATIONS
SUBJECT: SHIMON PERES CONCERNED ABOUT JORDAN'S STABILITY


Classified By: DCM Gene A. Cretz for reasons 1.4(b) and (d)

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001620

SIPDIS

CODEL

E.O. 12958: DECL: 04/20/2016
TAGS: PREL PGOV ECON IS GOI EXTERNAL ISRAEL RELATIONS
SUBJECT: SHIMON PERES CONCERNED ABOUT JORDAN'S STABILITY


Classified By: DCM Gene A. Cretz for reasons 1.4(b) and (d)


1. (C) Summary: Shimon Peres told CODEL Shays that
Palestinian patience with ineffectual Hamas governance will
run out sooner than Hamas thinks, and that the USG must
encourage PA President Mahmoud Abbas to be courageous in
standing up to Hamas. He asked the USG to encourage the GOI
to work with Abbas, and to pressure Hamas to accept the
Quartet's three conditions. He also noted his opposition to
IDF military operations in Gaza. Peres is particularly
worried about the effect of the war in Iraq on Jordan, and
said that the USG and GOI must provide economic assistance to
the Hashemite Kingdom in order to ensure it remains a strong,
stable state. Finally, Peres briefed the CODEL on his idea
to provide economic assistance to Jordan by constructing a
Qualified Industrial Zone (QIZ) along the Jordanian border
from the Dead Sea to Eilat. End Summary.


2. (C) On April 20, CODEL Shays, consisting of Representative
Christopher Shays (R-CT),Dr. R. Nicholas Palarino, Michael
McCarthy, MAJ Carolyn Closs-Walford, and Econoff met with
Shimon Peres, former Prime Minister and current Kadima Party
Member of the Knesset.

--------------
ELECTORAL HONEYMOON OVER FOR HAMAS
--------------


3. (C) Peres said that while Palestinian political divisions
have delayed the peace process, he preferred a divided
Palestinian population to one that was united behind Hamas.
He believes that Hamas, as a religious movement, does not
understand the political urgency of dealing pragmatically
with the many Palestinian problems. He said that Hamas'
inability to govern is becoming more apparent with each
passing day, and that Palestinians will eventually lose
patience. He predicted that the Hamas leadership of the PA
could last as little as one year, but perhaps as long as ten
years. He praised Palestinian President Abbas for "showing
courage" against Hamas and said that without Abbas, the
Israeli-Palestinian situation would be even more bleak. He
concluded by asking the USG to encourage Abbas to resist

Hamas, encourage the GOI to work with Abbas, and to pressure
Hamas to accept the Quartet's three conditions. When asked
directly by Congressman Shays, Peres said that he is opposed
to Israeli ground operations inside Gaza.

--------------
BETWEEN IRAQ AND A HARD PLACE
--------------


4. (C) Peres said that Iraq is bracketed by two neighboring
states competing to influence its internal affairs. One
neighbor, Iran, is more interested in bleeding the U.S.
military in Iraq than assisting the Iraqis in forming a
stable government. The other neighbor, Jordan, is threatened
by instability in Iraq and is actively training Iraqi
security forces. Peres expressed concern about the Hashemite
Kingdom's strength as a state, and said that the USG and GOI
must provide economic assistance to Jordan to strengthen King
Abdallah's position against his enemies.

--------------
PRIVATIZING PEACE
--------------


5. (C) Unfolding a map of Israel in front of the CODEL, Peres
explained his concept for the creation of a new Qualified
Industrial Zone (QIZ) along the 400 kilometer border with
Jordan between the Dead Sea and Eilat. Peres described a QIZ
that would employ several hundred thousand Jordanians,
Israelis and Palestinians while improving the political
climate through the promotion of trade. He said that the
economic engines driving this QIZ will be copper, tourism,
and agriculture. According to Peres, Israeli geologists
discovered that the copper veins of King Solomon's mines
actually stretch into Jordan and are available for the
Jordanians to exploit. He detailed a plan to construct two
man-made lakes between the Dead Sea and Gulf of Aqaba that
would draw tourists and real estate development. The lakes
would be connected to both the Dead Sea and Red Sea by an
irrigation pipe, which would replenish the Dead Sea while
supporting year-round agriculture. He said that the GOI
supports the Jordanian desire to make the Aqaba airport an
international airport, saying that in time of war, Israel
could take such an airport by force less expensively than
building its own.


6. (C) Repeating his philosophy of "privatizing peace," Peres
said that governments are too risk-averse and
bureaucracy-bound to take the bold actions required to make
peace. Peres stated bluntly that he cannot count on
receiving funds for this project from the USG or GOI, because
governments have budgets, not capital. Consequently, Peres
believes this QIZ should be funded by private investors and
managed by an international bank, under the direction of an
internationally prestigious board. He claimed that former
President Bill Clinton, former Secretary of State James
Baker, a former President of Poland, a former Prime Minister
of Turkey and a former Prime Minister of Spain have already
agreed to sit on this board. He also said that he has
received letters from several international banks expressing
interest in managing the QIZ.


7. (C) Peres also mentioned a related plan to construct a
railroad from the port city of Haifa to Jordan in order to
more efficiently transport goods to Iraq by eliminating the
need to transit the Suez Canal and Arabian Peninsula.


8. (U) CODEL Shays did not have the opportunity to clear this
cable before departing post.

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