C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 002120

SIPDIS

E.O. 12958: DECL: 06/01/2016
TAGS: ECON EAID ETRD PGOV PREL KWBG KPAL PINR IS ISRAELI PALESTINIAN AFFAIRS HUMANITARIAN AID
SUBJECT: GOI HITS SNAG IN MEDICAL AID DISTRIBUTION;
PROMISES CROSSING IMPROVEMENT

REF: JERUSALEM 2068

Classified By: Ambassador Richard H. Jones for reasons 1.4 (b) and (d).

This cable has been cleared by ConGen Jerusalem.


1. (C) Summary: In a May 31 meeting, COGAT head General
Yossef Mishlev said that the GOI intends to use NIS 50
million from frozen clearance revenues to purchase goods in
Israel and transfer them through NGOs/international
organizations to Palestinian hospitals or to the central
medical supply warehouse, which can then pass the stocks to
the hospitals. If the NGO option is closed, he said that
Minister of Defense Peretz and FM Livni would have to approve
any proposal which uses PA President Mahmud Abbas as the
channel for delivering assistance. Mishlev promised to
explore re-establishment of a special lane for USAID
employees at Erez in order to avoid problems during security
checks as well as look into the possibility of increasing
exports at Karni. Mishlev said that he has spoken to the
Israeli Airports Authority (IAA), which operates the
terminal, about returning an additional ten empty containers
a day through Karni. Regarding complaints by American
distributors about Karni,s reservation system, Mishlev
suggested that he would join any discussion on a more
transparent system with IAA officials and the Embassy. He
acknowledged the economic need to expand the fishing area off
the Gaza coast and promised to discuss the issue with the
Naval commander. In separate discussions with General Baruch
Spiegel, he expressed an interest in finding a private sector
mechanism for delivering medical assistance to the
Palestinians that could be placed under an international
umbrella. Spiegel also raised concerns about the lack of
equipment maintenance at Rafah, which he said could lead to a

deterioration of security at the crossing if not rectified.
End summary.

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Humanitarian Medical Assistance
--------------


2. (SBU) COGAT head General Yossef Mishlev on May 31
discussed with EconCouns and USAID Deputy Mission Director
the issue of using VAT and customs receipt revenues owed the
PA but currently frozen by the GOI to purchase medicines and
medical equipment for the Palestinians. Mishlev claimed that
this idea had been his initiative. Mishlev said the GOI has
approved using NIS 50 million to purchase goods in Israel and
transfer them through NGOs/international organizations to the
Palestinian hospitals or to the central medical supply
warehouse, which can then pass the stocks to the hospitals.
No money would be transferred, no salaries would be paid, and
the GOI would not negotiate with Hamas. The medicine would
not include any items that are in short supply in Israel, he
said, but the GOI is still awaiting a needs assessment from
Palestinian hospitals and their ideas on how best to make the
transfer. Mishlev said that if a mechanism can be found that
does not cross any red lines, it can be implemented
immediately.


3. (C) USAID Deputy Mission Director said he had consulted
with WHO, CARE, and UN representatives who told him that they
do not want to be involved in the plan. He said they view
the NIS 50 million as Palestinian funds and not funds
available for GOI usage. However, he said, the NGOs would
probably be supportive if PA President Mahmud Abbas blessed
the plan. The Deputy Mission Director said that Abbas wants a
direct agreement between his office and COGAT regarding the
medical assistance and wants the items to be purchased from
Palestinian sources, which would be cheaper than Israeli
products. Mishlev said that it was bad news that CARE and
the other organizations did not want to be involved. He said
that whether or not to deal with Abbas is a political issue
that would have to be decided by Minister of Defense Peretz
and FM Livni. He speculated that purchasing goods in the
territories could lead to corruption and would not guarantee
that the assistance reached its intended destination.


4. (C) At a separate meeting on May 31, Brig. Gen. (res.)
Baruch Spiegel told EconCouns that he will attend a
conference hosted by the Aspen Institute in Washington that
will discuss alternative mechanisms for delivering assistance
to the Palestinians while bypassing Hamas. Spiegel said that
this type of a discussion is useful, because the central
medicine warehouse is under the PA Ministry of Health, which
makes giving medical supplies to it politically complicated.
He said that he is particularly interested in finding a
private sector mechanism that could be placed under an
international umbrella.

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Harassment of AID Employees
--------------


5. (C) EconCouns requested Mishlev,s intervention in
situations where Palestinian USAID employees resident in Gaza
have been subject to intense scrutiny, bordering on
harassment, when they cross into Israel at Erez. In
addition, expatriate employees have come under extra scrutiny
at Ben Gurion Airport. USAID Deputy Director suggested
giving the GOI a heads up when contractors are due to enter
the country so their entry can be facilitated and finding a
way to smooth the crossing of Palestinians with USAID
employee IDs. Mishlev acknowledged increased security at
Erez. He said it might be possible to add a special lane at
the crossing for the employees.

--------------
Karni Exports
--------------


6. (C) Mishlev said that Karni crossing is now open for
two-way traffic. He noted that some of the cargo transfer
cells had been closed due to the security situation, but that
he had spoken with security officials on May 30 and asked
them to find a way so that exports from Gaza into Israel
could be increased. Deputy Mission Director noted that there
is still a problem of a backlog of empty containers in Gaza.
He urged that containers be sent back regularly, instead of
sporadically, as is the case now. Mishlev said he has spoken
with the Israeli Airport Authority (IAA), which operates the
Karni terminal, about the problem and the IAA has agreed to
allow an extra 10 empty containers to cross daily. He
offered that using palettes instead of containers to
transport some of the humanitarian assistance would also cut
down on the number of empty containers in Gaza. (Note: the
USG has provided scanners and other security equipment at
Karni specifically in order to move away from costly and
time-consuming handling of palletized cargoes. End note.)

--------------
Karni Reservation System Complaint
--------------


7. (C) EconCouns raised complaints by American business
distributors about Karni,s reservation system. He said they
have called the system "chaotic" and criticized the fact that
many of their cargoes have waited three-four months or more
to cross, while other companies are able to transfer two
loads a day with the same truck. He emphasized the need for
a transparent system, such as a website where reservations
can be obtained and queues monitored. EconCouns said it
would be easier for businessmen to plan with such a system,
even when security alerts close the terminal. Mishlev said
that he had heard of problems from Israeli business leader
Shraga Brosh and had tried to correct them. Mishlev agreed
that corruption is the root of the problem, with companies
having to pay NIS 9,000 or more to guarantee that their
shipments can cross. (Note: Embassy contacts among the
Palestinian business community report that payments to
guarantee crossing Karni can reach NIS 12,000 or more and
have presented written evidence thereof. End note.) He
suggested that he would join U.S. officials in a meeting with
IAA officials to discuss USG ideas, including fixes to the
reservation system.


--------------
Gaza Fishing
--------------


8. (C) EconCouns raised the issue of the depleting fish
stocks off the Gaza coast (reftel). He said it is important
to extend the fishing zone past the current reportedly 6-mile
limit to avoid a total depletion of the fish stocks within
the permitted area. Mishlev said that Gaza fishermen are, by
current regulation, allowed to fish within a 10-mile zone,
but he admitted there is a problem with overfishing in the
restricted area. He said that he has been in contact with
the ICRC on the issue and agreed there is a need to expand
the current fishing area. Mishlev promised to talk to the
naval commander about expanding the range. He said that
security concerns will be a major factor in the decision.

--------------
Permits for Palestinian Workers
--------------


9. (C) Mishlev said that a total of 11,000 permits have been
issued for West Bank workers to enter Israel, with another
4,000 permits issued for Palestinian businessmen and 1,500
for workers in Jerusalem. He said he intends to speak with
defMin Peretz about further increasing the number of permits
for businessmen and workers. Mishlev said that he had
recommended to various GOI officials that permits be issued
for Gazan workers but his idea had been rejected. He said he
had succeeded, however, in getting 250 permits approved for
Gaza businessmen.

--------------
Rafah Scanners
--------------


10. (C) Brig. Gen. Spiegel separately raised concerns about
the equipment maintenance at Rafah. He said USAID had been
responsible for bringing the crossing up to international
security standards, but its involvement ended when Hamas had
come to power. Spiegel noted that one of the two scanners has
been broken for three weeks and asserted that when the other
one breaks down, the crossing will have to close. If any
other equipment breaks down, security would deteriorate and
that would be a problem, he said. (Note: Embassy officers,
along with General Dayton, again discussed this issue with
Spiegel later in the day and are working on options to solve
the problem. End note.)


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