Identifier
Created
Classification
Origin
06TELAVIV2571
2006-06-27 19:30:00
SECRET
Embassy Tel Aviv
Cable title:
(S) SHIMON PERES ON HAMAS, JORDAN, NEGEV-GALILEE
how-toThis record is a partial extract of the original cable. The full text of the original cable is not available.
S E C R E T SECTION 01 OF 02 TEL AVIV 002571
SIPDIS
E.O. 12958: DECL: 06/27/2016
TAGS: ECON ETRD PREL PGOV PTER KWBG JO AF IS GOI EXTERNAL ECONOMY AND FINANCE
SUBJECT: (S) SHIMON PERES ON HAMAS, JORDAN, NEGEV-GALILEE
DEVELOPMENT, AND AFGHANISTAN
REF: TEL AVIV 02451
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b) and (d)
S E C R E T SECTION 01 OF 02 TEL AVIV 002571
SIPDIS
E.O. 12958: DECL: 06/27/2016
TAGS: ECON ETRD PREL PGOV PTER KWBG JO AF IS GOI EXTERNAL ECONOMY AND FINANCE
SUBJECT: (S) SHIMON PERES ON HAMAS, JORDAN, NEGEV-GALILEE
DEVELOPMENT, AND AFGHANISTAN
REF: TEL AVIV 02451
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b) and (d)
1. (S) Summary: In a June 26 meeting with Ambassador Jones,
Minister for Negev and Galilee Development Shimon Peres said
the kidnapping of an Israeli soldier at Kerem Shalom by
militants, without the knowledge of Hamas Prime Minister
Haniyeh proves that Haniyeh is as weak as President Abbas, at
least in terms of controlling Hamas' military wing. Peres
urged the international community to pressure the Hamas
leadership in Damascus, and claimed that orders to carry out
the attack on Kerem Shalom came from Khalid Misha'al. Peres
discussed his meeting with Jordan's King Abdullah and shared
Abdullah's thoughts on joint development projects. He
outlined his vision for joint industrial zones, to provide
employment for Palestinians in the West Bank, and claimed to
have already secured the support of influential investors for
the project. He also described how financing for Negev and
Galilee development projects will be carried out -- by
earmarking funds from the budgets of other ministries.
Finally, Peres described his meeting with Afghan president
Hamid Kharzai and his vision for an Israeli Arab role in the
agricultural development of Afghanistan. End summary.
--------------
Kerem Shalom attack
--------------
2. (C) Peres claimed that the kidnapping of an Israeli
soldier at Kerem Shalom by Palestinian militants affiliated
with Hamas proves that Hamas Prime Minister Haniyeh is as
weak as President Abbas, at least in terms of controlling
Hamas' military wing. Peres urged the U.S. to pressure the
Hamas leadership in Damascus and their sponsors, and claimed
that orders to carry out the attack on Kerem Shalom came from
Khalid Misha'al. The Ambassador asked Peres what support
Israel would seek from the international community. Peres
said that public pressure will be enough, but he added,
"Europe needs to send the message to the PA that they will
not see a penny until the prisoner is released."
--------------
Meeting with the King
--------------
3. (C) Peres said that the atmospherics at the recent Nobel
Laureates' meetings in Petra, Jordan were good. He said that
the King did not respond favorably to his suggestion that
Israel and Jordan jointly develop the 80 km strip of border
between the West Bank and Jordan (along the Jordan Valley)
into industrial zones to provide employment for Palestinians,
out of concern that it would attract large numbers of
Palestinian workers to Jordan's doorstep. However, the King
strongly supported plans for the development of a regional
airport for Aqaba and Eilat, according to Peres. Peres said
that the breakfast between the King, Prime Minister Olmert,
President Abbas, and himself also "went well," but had no
tangible results.
--------------
Joint Projects
--------------
4. (C) Peres described three possible joint development
projects with Jordan.
--Aqaba Airport: Israel currently maintains an airport in
Eilat to service international charters and domestic air
travel. Peres said that the King is interested in moving
forward with the proposal for the development of a "regional
runway" with two terminals, one in Aqaba and the other in
Eilat. The Ambassador asked if the Ministry of
Transportation has specific security concerns with the
proposal to share the runway but maintain separate terminals.
Peres said that there are security concerns. But he added
that there are also the vested commercial interests of the
city of Eilat and the Ministry of Transportation - both of
which view the existing but inadequate Eilat airport as a
source of revenue - which must be resolved before such a
project can move forward. The Ambassador asked Peres whether
he had considered making the airport a true regional project,
e.g. by including a light rail connection to Sharm El-Sheik
in Egypt.
--Mining of Copper Ore: Peres said that Israel has already
engaged a Mexican company to exploit the copper vein that
runs underneath the Israel-Jordan border in the Timna mines,
and hopes that this can also become a joint development
project.
--Red-Dead Conduit: Peres expressed frustration with the pace
of World Bank preparations for a feasibility study of
transferring water from the Red Sea to the Dead Sea. He said
that the World Bank has only raised about USD 10 million out
of USD 15 million needed to carry out the study. He added
that he has sent letters to the Secretary and World Bank
President Wolfowitz, asking for assistance in moving the
project forward. Peres claims that the private sector could
carry out the feasibility study in three months, while the
World Bank would take at least two years. He also said that
the total cost estimate for the Red-Dead project of USD five
billion is exaggerated, and that a more modest Red-Dead
project (without hydroelectric power plants and with a
smaller amount of water transferred) will cost only between
USD 1.2-2 billion. Peres claimed that two local billionaires
are interested in helping to finance the project, but did not
provide their names.
--------------
Industrial Zones
--------------
5. (C) Peres said that King Abdullah did not support the idea
of establishing qualifying industrial zones (QIZs) along the
80 km border between the West Bank and Jordan. Peres noted
that he was therefore considering locating it in the
industrial zone in the center of Jenin instead. The
Ambassador reminded Peres that Palestinian exports currently
qualify for duty-free export to the United States, and asked
what benefit there would be, from a trade perspective, to
establishing such a QIZ. Peres responded that the QIZ would
qualify for duty-free export to Europe and provide jobs for
Palestinians. He also argued that in the current poor
political climate the only possible avenue for progress was
to improve economic conditions. He claimed that the
Wertheimer family is willing to finance the initiative, but
that Israel needs to find anchor companies to attract other
investors to the zone. In the long-term, he predicts an
economic confederation between Jordan and the West Bank, but
the maintenance of strict political separation.
--------------
Negev and Galilee Development
--------------
6. (C) The Ambassador asked how plans for Negev and Galilee
development are progressing in light of the lack of a current
budget for many of the Ministries' activities (Reftel).
Peres explained that over the next few weeks his ministry
will be placing earmarks within the budgets of other
ministries for Negev and Galilee development -- for example
the construction of railroads will be funded from the
Ministry of Transportation budget. Peres also highlighted
his success is enlisting private investors, such as Carlson
Wagonlit Travel, to invest in the development of tourism
around the Kinneret and Akko areas. Peres said that now
Israel needs to attract private investment to the Negev, "to
prepare for the future (West Bank settlement) evacuees." In
addition to that, he added that such development will make it
easier for the fifty-thousand Israeli-Arabs who graduate from
college each year to find jobs.
--------------
Talks with Kharzai
--------------
7. (S) Peres said that during his recent meetings in Almaty,
Kazakhstan on the margins of the CICA conference, he spoke
with Afghan President Hamid Kharzai and offered Israeli
assistance in agriculture development. He suggested using
Israeli-Arab farmers to assist in developing a training
program for Afghan farmers. Peres highlighted the advantages
of working through Israeli-Arabs farmers since they possess
the sophisticated agricultural development experience of
Israeli farmers, and are much more likely to be able to work
effectively in predominantly Muslim Afghanistan. The
Ambassador agreed that Israeli Arabs were a potential
untapped asset which could greatly assist Israel's efforts to
build bridges to Muslim countries.
********************************************* ********************
Visit Embassy Tel Aviv's Classified Website:
http://www.state.sgov.gov/p/nea/telaviv
You can also access this site through the State Department's
Classified SIPRNET website.
********************************************* ********************
JONES
SIPDIS
E.O. 12958: DECL: 06/27/2016
TAGS: ECON ETRD PREL PGOV PTER KWBG JO AF IS GOI EXTERNAL ECONOMY AND FINANCE
SUBJECT: (S) SHIMON PERES ON HAMAS, JORDAN, NEGEV-GALILEE
DEVELOPMENT, AND AFGHANISTAN
REF: TEL AVIV 02451
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b) and (d)
1. (S) Summary: In a June 26 meeting with Ambassador Jones,
Minister for Negev and Galilee Development Shimon Peres said
the kidnapping of an Israeli soldier at Kerem Shalom by
militants, without the knowledge of Hamas Prime Minister
Haniyeh proves that Haniyeh is as weak as President Abbas, at
least in terms of controlling Hamas' military wing. Peres
urged the international community to pressure the Hamas
leadership in Damascus, and claimed that orders to carry out
the attack on Kerem Shalom came from Khalid Misha'al. Peres
discussed his meeting with Jordan's King Abdullah and shared
Abdullah's thoughts on joint development projects. He
outlined his vision for joint industrial zones, to provide
employment for Palestinians in the West Bank, and claimed to
have already secured the support of influential investors for
the project. He also described how financing for Negev and
Galilee development projects will be carried out -- by
earmarking funds from the budgets of other ministries.
Finally, Peres described his meeting with Afghan president
Hamid Kharzai and his vision for an Israeli Arab role in the
agricultural development of Afghanistan. End summary.
--------------
Kerem Shalom attack
--------------
2. (C) Peres claimed that the kidnapping of an Israeli
soldier at Kerem Shalom by Palestinian militants affiliated
with Hamas proves that Hamas Prime Minister Haniyeh is as
weak as President Abbas, at least in terms of controlling
Hamas' military wing. Peres urged the U.S. to pressure the
Hamas leadership in Damascus and their sponsors, and claimed
that orders to carry out the attack on Kerem Shalom came from
Khalid Misha'al. The Ambassador asked Peres what support
Israel would seek from the international community. Peres
said that public pressure will be enough, but he added,
"Europe needs to send the message to the PA that they will
not see a penny until the prisoner is released."
--------------
Meeting with the King
--------------
3. (C) Peres said that the atmospherics at the recent Nobel
Laureates' meetings in Petra, Jordan were good. He said that
the King did not respond favorably to his suggestion that
Israel and Jordan jointly develop the 80 km strip of border
between the West Bank and Jordan (along the Jordan Valley)
into industrial zones to provide employment for Palestinians,
out of concern that it would attract large numbers of
Palestinian workers to Jordan's doorstep. However, the King
strongly supported plans for the development of a regional
airport for Aqaba and Eilat, according to Peres. Peres said
that the breakfast between the King, Prime Minister Olmert,
President Abbas, and himself also "went well," but had no
tangible results.
--------------
Joint Projects
--------------
4. (C) Peres described three possible joint development
projects with Jordan.
--Aqaba Airport: Israel currently maintains an airport in
Eilat to service international charters and domestic air
travel. Peres said that the King is interested in moving
forward with the proposal for the development of a "regional
runway" with two terminals, one in Aqaba and the other in
Eilat. The Ambassador asked if the Ministry of
Transportation has specific security concerns with the
proposal to share the runway but maintain separate terminals.
Peres said that there are security concerns. But he added
that there are also the vested commercial interests of the
city of Eilat and the Ministry of Transportation - both of
which view the existing but inadequate Eilat airport as a
source of revenue - which must be resolved before such a
project can move forward. The Ambassador asked Peres whether
he had considered making the airport a true regional project,
e.g. by including a light rail connection to Sharm El-Sheik
in Egypt.
--Mining of Copper Ore: Peres said that Israel has already
engaged a Mexican company to exploit the copper vein that
runs underneath the Israel-Jordan border in the Timna mines,
and hopes that this can also become a joint development
project.
--Red-Dead Conduit: Peres expressed frustration with the pace
of World Bank preparations for a feasibility study of
transferring water from the Red Sea to the Dead Sea. He said
that the World Bank has only raised about USD 10 million out
of USD 15 million needed to carry out the study. He added
that he has sent letters to the Secretary and World Bank
President Wolfowitz, asking for assistance in moving the
project forward. Peres claims that the private sector could
carry out the feasibility study in three months, while the
World Bank would take at least two years. He also said that
the total cost estimate for the Red-Dead project of USD five
billion is exaggerated, and that a more modest Red-Dead
project (without hydroelectric power plants and with a
smaller amount of water transferred) will cost only between
USD 1.2-2 billion. Peres claimed that two local billionaires
are interested in helping to finance the project, but did not
provide their names.
--------------
Industrial Zones
--------------
5. (C) Peres said that King Abdullah did not support the idea
of establishing qualifying industrial zones (QIZs) along the
80 km border between the West Bank and Jordan. Peres noted
that he was therefore considering locating it in the
industrial zone in the center of Jenin instead. The
Ambassador reminded Peres that Palestinian exports currently
qualify for duty-free export to the United States, and asked
what benefit there would be, from a trade perspective, to
establishing such a QIZ. Peres responded that the QIZ would
qualify for duty-free export to Europe and provide jobs for
Palestinians. He also argued that in the current poor
political climate the only possible avenue for progress was
to improve economic conditions. He claimed that the
Wertheimer family is willing to finance the initiative, but
that Israel needs to find anchor companies to attract other
investors to the zone. In the long-term, he predicts an
economic confederation between Jordan and the West Bank, but
the maintenance of strict political separation.
--------------
Negev and Galilee Development
--------------
6. (C) The Ambassador asked how plans for Negev and Galilee
development are progressing in light of the lack of a current
budget for many of the Ministries' activities (Reftel).
Peres explained that over the next few weeks his ministry
will be placing earmarks within the budgets of other
ministries for Negev and Galilee development -- for example
the construction of railroads will be funded from the
Ministry of Transportation budget. Peres also highlighted
his success is enlisting private investors, such as Carlson
Wagonlit Travel, to invest in the development of tourism
around the Kinneret and Akko areas. Peres said that now
Israel needs to attract private investment to the Negev, "to
prepare for the future (West Bank settlement) evacuees." In
addition to that, he added that such development will make it
easier for the fifty-thousand Israeli-Arabs who graduate from
college each year to find jobs.
--------------
Talks with Kharzai
--------------
7. (S) Peres said that during his recent meetings in Almaty,
Kazakhstan on the margins of the CICA conference, he spoke
with Afghan President Hamid Kharzai and offered Israeli
assistance in agriculture development. He suggested using
Israeli-Arab farmers to assist in developing a training
program for Afghan farmers. Peres highlighted the advantages
of working through Israeli-Arabs farmers since they possess
the sophisticated agricultural development experience of
Israeli farmers, and are much more likely to be able to work
effectively in predominantly Muslim Afghanistan. The
Ambassador agreed that Israeli Arabs were a potential
untapped asset which could greatly assist Israel's efforts to
build bridges to Muslim countries.
********************************************* ********************
Visit Embassy Tel Aviv's Classified Website:
http://www.state.sgov.gov/p/nea/telaviv
You can also access this site through the State Department's
Classified SIPRNET website.
********************************************* ********************
JONES