PERETZ SAYS HE WILL TAKE RISKS TO HELP THE

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 002225

SIPDIS

E.O. 12958: DECL: 06/07/2016
TAGS: PREL PTER PINR KWBG KPAL EU IR IS ISRAELI PALESTINIAN AFFAIRS GOI EXTERNAL
SUBJECT: PERETZ SAYS HE WILL TAKE RISKS TO HELP THE
PALESTINIANS


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


1. (C) Summary: Defense Minister Amir Peretz told A/S Welch
June 7 that he is willing to take maximum possible risks
allowable in light of security demands to ease the pressure
on the Palestinian people. He noted his efforts to keep the
Karni crossing open -- as it is currently -- in both
directions, unless security threats dictate otherwise. He
stressed that he is in that part of the coalition that
supports exhausting efforts to negotiate with a Palestinian
partner before resorting to unilateral measures, but added
that unilateral measures could serve to spur positive
Palestinian actions as well. He underlined the need to
strengthen Palestinian Authority President Mahmud Abbas. A/S
Welch highlighted the need to prevent a humanitarian crisis
in the PA to ensure continued EU and other international
solidarity in isolating Hamas and maintaining international
focus on Hamas accepting the Quartet's three conditions. A/S
Welch stressed the Secretary's strong interest that the GOI
allow the crossings to function in as liberal a manner as
possible in light of security conditions -- especially with
regard to exports. He stressed the U.S. interest that the
GOI explore ways to respect the dignity of the Palestinian
people. He and the Ambassador raised concrete examples of
Israeli security restrictions that humiliate and negatively
impact the lives of Palestinians. DefMin Peretz and A/S
Welch also discussed the threats presented by Iran and
Hizballah and the need for continued U.S.-Israel cooperation
on these matters. End Summary.


2. (C) A/S Welch was accompanied by Ambassador Jones, U.S.
Security Coordinator LTG Dayton, DAO CDR Williamson, NSC
LoGerfo, and Embassy notetaker Bernstein-Zabza. Peretz was
accompanied by MOD advisor Amos Gilad, Military Secretary to
DefMin BG Eitan Dangott, MOD advisor Schmuel Limone
(interpreter),MFA Deputy Director General North America
Division Yoram Ben Ze'ev, MFA No. America Division Iris
Sapir, MOD advisor Haggai Alon, and Peretz's personal advisor
Oriella Ben-Zvi. Peretz spoke Hebrew throughout the meeting,
though in a one-on-one meeting he spoke comfortably in
English with no interpretation.

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Toward a Partner
--------------


3. (C) Peretz began the June 7 meeting with A/S Welch by
noting that he had come straight from his hometown of Sderot,
where he continues to reside and drew attention to the
continuing rocket attacks there from Gaza. Turning to
Israeli-Palestinian relations, Peretz underlined that he
belongs to that part of the coalition -- the Labor Party --
that insists on exhausting efforts to identify a Palestinian
negotiating partner before resorting to unilateral measures.
He noted, however, that the entire coalition, including
Labor, had agreed to PM Olmert's outline for government
action. He added that unilateral steps could act as a
catalyst to spur the Palestinians to "abide by their
commitments" and cooperate with Israel. Peretz said that PA
President Abbas should be strengthened and that he does not
want to judge Abbas's strength by Abbas's past actions, but
rather by what he does in the future. Peretz stressed that
his focus is on fighting terrorism while not harming the
Palestinian people.

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Peretz Willing to Take Risks
--------------


4. (C) A/S Welch highlighted PM Olmert's successful visit to
Washington and the importance of the continued cooperation
between the U.S. and Israel on regional security matters,
including with USSC LTG Dayton. He noted the importance of
Peretz's role in the GOI's sustained efforts to test whether
an effective Palestinian partner exists. A/S Welch stressed
that EU and international support in isolating Hamas can be
sustained by ensuring that Hamas cannot blame Israel or the
U.S. for a humanitarian crisis in the West Bank and Gaza.
The focus must be on Hamas, he stressed, and on its choice of
whether or not to adhere to the three Quartet conditions.
A/S Welch noted that the U.S. and the EU are close to
agreeing on a funding mechanism for assisting the Palestinian
people -- not the PA -- and expressed the hope that the
mechanism could be widely used, including by Israel and Arab
countries. He said that the GOI also has within its control
the ability to ease the plight of the Palestinian people
without compromising its security. He added that he hopes
that the GOI will also consider the USG's advice in this
regard.


5. (C) The Secretary, Welch underlined, is very interested
in continued efforts to implement the Agreement on Movement
and Access, and in ensuring that the GOI allow the crossings
to operate in as liberal a manner as possible, especially
with regard to exports. He noted that the two main
complaints that the USG hears from the EU are about the GOI's
freeze on PA tax revenues and about crossing controls that
are ruining the PA economy. A/S Welch also stressed the need
for the GOI to consider ways to afford the Palestinian people
dignity and respect. As an example of a problem in this
regard, A/S Welch noted that he had to ensure that Abbas's
advisor Yasir Abed Rabbo ride in USG vehicles in order to
reach Jerusalem for a dinner with Welch June 6 because of the
permit problems that Abed Rabbo, as a West Bank resident, had
encountered. (Note: Peretz appeared a little rattled about
the report of this incident by Welch. He turned to Dangot
and exchanged a few words in Hebrew. End note.) The
Ambassador raised his concern that the average Palestinian
also be treated with greater respect by Israel. He said it
has come to his attention that Palestinian students from the
West Bank and Gaza are no longer allowed to study at Israeli
educational institutions. He emphasized that by barring
Palestinian students, Israel could be squandering the
opportunity to cultivate natural allies among Palestinian
youth.


6. (C) LTG Dayton stressed his appreciation for the close
cooperation he has experienced with the GOI. He said that
significant movement has taken place on the Palestinian side
with regard to the border crossings. He said that he will
soon be approaching the GOI with some new ideas regarding the
management of the crossings that will likely entail more risk
for the GOI. Peretz expressed appreciation for the
productive meeting on May 21 that he had with LTG Dayton.


7. (C) Peretz underlined the actions he has been taking to
ease the situation of the Palestinians, which include
allowing more Palestinian laborers to enter and work in
Israel and opening the Karni crossing in both directions.
Peretz agreed on the importance of addressing the "human
element" of the Palestinian situation, including nurturing
cooperation between the Israeli and Palestinian peoples. He
said he would examine the issues and problems raised during
the meeting "in a deep manner" and try to make changes. He
stressed that by alleviating pressure on the Palestinian
people, he is undermining the terrorists' influence on them.
By keeping the crossings open, Peretz added, he is easing
pressure on the Palestinians. Peretz underlined that he is
willing to take the maximum possible risks allowable -- in
light of security concerns -- to ease the living conditions
of the Palestinians. Saying that he was speaking
confidentially, Peretz said that he had recently kept

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crossings around the Jerusalem envelop open despite security
threats of a suicide bomber. He noted that he must strike a
daily balance.

--------------
Regional Threats
--------------


8. (C) Turning to regional issues, Peretz noted that
although the northern border is now "quiet," he remains on
guard about Hizballah threats and continues to keep his "hand
on the pulse" of the situation. He asserted that Iran is
inspiring the events on that border. Regarding Sheba Farms,
Peretz said that he is aware of the situation, but is now in
a wait-and-see mode. On Iran, Peretz said that the USG and
GOI positions are similar -- to prevent Iran from
manufacturing uranium in its early stages. A/S Welch
highlighted the valuable intelligence exchanges between the
U.S. and Israel on these regional issues. He commented that
he does not see a difference in the GOI and USG views on
Hizballah.


9. (C) A/S Welch cleared this cable.

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