C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 001621

SIPDIS

E.O. 12958: DECL: 04/25/2016
TAGS: ECON PREL PGOV KPAL KWBG PTER IS ISRAELI PALESTINIAN AFFAIRS HUMANITARIAN AID
SUBJECT: GOI COMMITTED TO KEEPING KARNI OPEN, WILL GET U.S.
PRIORITIZED WISH LIST OF ASSISTANCE PROJECTS


Classified By: Ambassador Richard H. Jones, Reasons 1.4 (B) and (D).


1. (C) Summary: In a meeting with the Ambassador, Ministry
of Defense Political-Military Advisor Amos Gilad said that he
is committed to keeping Karni open despite the security
risks. He agreed to get the Ambassador a prioritized list of
specific assistance projects that the GOI wants to see
continued despite the general suspension of aid to the PA
since the Hamas takeover. He also promised to look into using
frozen Palestinian customs revenues to fund medical treatment
for Palestinians in Israeli hospitals. Gilad said he would
seek to keep the number of cars in PA President Mahmud
Abbas, motorcade at five for security reasons. End summary.

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GOI Assistance Preferences
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2. (C) In an April 25 meeting with the Ambassador, Ministry
of Defense (MOD) Political-Military Advisor Amos Gilad said
he had only recently been apprised of the GOI's promise to
provide a list of assistance projects the GOI wants to see
continued in the West Bank. The Ambassador explained the
range of USAID projects being suspended, including those
involving water, waste treatment and roads, and told Gilad
that GOI input into this process would assist our
deliberations. He told Gilad that he had also raised the
issue with Foreign Minister Livni and discussed the
importance of finding ways to pay for medical treatment for
Palestinians in Israeli hospitals like Augusta Victoria,
perhaps utilizing frozen tax revenues. Gilad promised to
consult on the list with ministry officials, but said that,
given the current political situation, it is difficult to get
Minister Mofaz (a lame duck) to focus.

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Current Situation in Gaza
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3. (C) Gilad described the current political situation with
the Palestinians, saying that it is important for Hamas to
collapse, but not for the Palestinian people to fall. He
noted that Mahmud Abbas now seems to understand the situation
and finally to be taking some action. The Egyptians,
according to Gilad, have sent two new generals to Gaza to
represent GOE interests there. He thought that the GOE may
have been behind Abbas' decision to be more assertive on
control of the border (and Hamas's willingness to accept
this). The GOE had made it clear to all that they did not
want Hamas fighters on their border. He urged the U.S. to
work with the Egyptians to be more actively involved in Gaza.
Responding to the Ambassador's question on the recent
reported launches of Katyusha rockets, Gilad commented that
Islamic Jihad, with the tacit support of Hamas, continues to
attempt to launch the rockets but were hampered by technical
difficulties, with most rockets landing inside Gaza. This
situation was unlikely to persist, however. If the rockets
hit Ashkelon and cause deaths or damage, this would create a
situation to which Israel would need to vigorously respond,
he said.

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Karni Crossing to Remain Open
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4. (C) Gilad insisted that the GOI is committed to keeping
the Karni crossing open unless an attack is imminent. &We
will measure the risk,8 he said, and ensure that the
Palestinians are kept alive and their basic needs met. The
Ambassador urged that exports from Gaza through Karni also be
continued. He then described the progress of USAID-funded
improvements at Rafah, including the completion of an optical
fiber connection to the Kerem Shalom liaison office. He also
told Gilad that he had given Minister Livni a letter of
acceptance of the Customs protocol for Rafah. Gilad promised
to follow up on the protocol, which he appeared to welcome.


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Abbas Motorcade
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5. (C) The Ambassador then raised the status of Mahmud
Abbas, motorcade. Recently, Abbas had been informed that
the motorcade would need to be reduced from five/six to three
cars. The Ambassador asked Gilad to consider retaining the
motorcade as is for security reasons. Gilad indicated that
he understood and will address the situation.

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Upcoming Visits
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6. (C) Gilad said he would be traveling to Jordan on May 8 to
attend a boundary committee meeting, but more importantly, to
consult with Jordanian officials and try to enhance
relations. He said that Egyptian Intelligence Chief Omar
Suleiman would come to Israel on a visit after the Israeli
government is formed. He also confirmed that PM Olmert would
visit Cairo either before or after his visit to the U.S.
Gilad surmised that the Egyptians, for reasons of face, would
likely press for the stop in Cairo before Washington.

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