Identifier
Created
Classification
Origin
06TELAVIV853
2006-02-28 13:59:00
CONFIDENTIAL
Embassy Tel Aviv
Cable title:  

ISRAELIS TELL CODEL SHAYS THEY WON'T TURN OUT THE

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C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 000853 

SIPDIS

CODEL

E.O. 12958: DECL: 02/17/2016
TAGS: PREL PGOV ECON IS ISRAELI PALESTINIAN AFFAIRS GOI EXTERNAL
SUBJECT: ISRAELIS TELL CODEL SHAYS THEY WON'T TURN OUT THE
LIGHTS ON THE PA

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 000853

SIPDIS

CODEL

E.O. 12958: DECL: 02/17/2016
TAGS: PREL PGOV ECON IS ISRAELI PALESTINIAN AFFAIRS GOI EXTERNAL
SUBJECT: ISRAELIS TELL CODEL SHAYS THEY WON'T TURN OUT THE
LIGHTS ON THE PA

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


1. (C) Summary: Senior Foreign Policy Advisor Shalom
Tourgeman assured CODEL Shays that the GOI would not withold
electricity or take purely punitive economic measures against
the Palestinian people, but did say that the GOI believes
that all other US, European and Israeli economic assistance
should cease. Tourgeman also dismissed any "third option" of
working with Palestinian President Abbas on
Israeli-Palestinian issues, while allowing Hamas to manage
domestic Palestinian policy. On Iran, Tourgeman said that
the GOI has a lower threshold than the USG for considering
Iran to be a nuclear threat. In a separate meeting, Shimon
Peres told the CODEL that the Hamas victory was a protest
against bad governance rather than support for an Islamist
regime. Peres also briefed the CODEL on his initiative to
create a privatized economic development zone along the
Israeli and Palestinian borders with Jordan. End summary.

-------------- ---
TOURGEMAN:NO THIRD OPTION FOR DEALING WITH HAMAS
-------------- ---


2. (C) On February 6, CODEL Shays, consisting of
Representatives Christopher Shays (R-CT),John Doolittle
(R-CA),Katherine Harris (R-FL) and Virginia Brown-Waite
(R-FL),accompanied by staff assistants Dr. R. Nicholas
Palarino, Jeffrey Baran, MAJ Carolyn Closs-Walford, DCM and
Econoff met with Shalom Tourgeman, Senior Foreign Policy
Advisor to the Prime Minister; Ari Varon, Assistant Foreign
Policy Advisor to the Prime Minister; and Iris Sapir, MFA
Counselor, in the Prime Minister's Office in Jerusalem.
Tourgeman opened by confiding that the GOI would have faced a
more difficult situation if Hamas had won 20 percent of the
PLC seats instead of a majority, as Israel would have had to
decide whether or not to cooperate with a PA that was
partially Hamas. As Hamas won a clear electoral victory,
Tourgeman said that Israel was left with only two options. If
Hamas disarms and recognizes the right of the State of Israel
to exist, Israel will assume it has a partner for peace and

resume cooperation. If Hamas does not comply with these
conditions, Israel will no longer cooperate with the PA.
Tourgeman did not believe Hamas would change its position,
and predicted that Hamas would renew a campaign of violence
against Israel. He claimed that Israeli security forces
successfully disrupted twelve suicide bombing attacks in the
past week.


3. (C) Tourgeman said that the Europeans want Israel to
consider a third option, whereby President Abbas maintains
the authority to negotiate with Israel, manage foreign
policy, and command the Palestinian security forces, while
Hamas manages domestic policy. Tourgeman claimed that Abbas
himself is pursuing this strategy. Tourgeman dismissed this
arrangement as unacceptable to the GOI, and said that the
inability or unwillingness of Abbas to confront the terrorist
organizations has destroyed his credibility with the GOI.
When asked about Israel's intentions if Hamas provides a
period of relative peace after assuming power, Tourgeman
replied that such a move would not change Hamas' long-term
objective of destroying Israel. Shays assured Tourgeman that
the United States will be clear that it does not expect
Israel to participate or cooperate with a Hamas-led PA.

--------------
ECONOMIC FALLOUT OF HAMAS-LED PA
--------------


4. (C) Congressman Shays asked for the GOI's views on
financial aid to a Hamas-led PA. Tourgeman replied that the
GOI believes that all US, European, and Israeli economic
assistance to the PA should cease when Hamas takes control.
He stressed that Israel would not withold electricity or take
purely punitive economic measures against the Palestinian
people. Although the Israeli government had "taken a
political beating" for transferring customs revenues to the
PA after the PLC election, Tourgeman said the GOI would
continue to do so as long as revenues are not used to support
terrorism.


5. (C) Tourgeman noted that the GOI currently allows 20,000
Palestinians from Gaza and 20,000 more from the West Bank to
enter Israel each day to work. He reiterated the GOI's
intention to end this practice by 2008. Tourgeman said that
during more peaceful periods in the past, the GOI had
permitted 200,000 Palestinians to enter Israel each day to
work. These Palestinians had been replaced by foreign
workers from East Asia, although this influx had created
other problems. Consequently, the GOI also intends to stop
the importation of all foreign workers by 2008.

-------------- --------------
GOI TO COMPLETE BARRIER; FURTHER WITHDRAWALS ON HOLD
-------------- --------------


6. (C) Tourgeman said that the Israeli government will wait
until after its own elections in March before considering
further unilateral actions to protect Israeli national
security. The GOI intends to complete the security barrier
in the Southern West Bank by the end of 2006 and to construct
a similar fence along the Gazan and Egyptian borders.
Tourgeman said that the GOI is not considering any further
evacuations of settlements in the West Bank. When asked
about the recent evacuation of the illegal outpost of Amona,
Tourgeman replied that 6,000 soldiers and policemen were
required to evacuate nine houses that were clearly illegally
constructed on Palestinian land.

--------------
A DIFFERENCE OF OPINION ON IRAN
--------------


7. (C) When asked by Conressman Shays for his views on Iran,
Tourgeman replied that he was pleased with the recent vote to
refer Iran to the U.N. Security Council, but was worried that
the decision came too late to achieve any real impact on the
Iranian weapons program. While he expressed hope that
economic sanctions would be levied against Iran, he said that
sanctions would only delay Iran's program. He noted the
"difference of opinion" between the US and Israeli experts on
Iran's point of no return. According to the GOI, the
critical juncture will arrive when Iran possesses the
technology to make a nuclear weapon, which will happen well
before the USG's threshold of Iran actually producing such a
weapon.

--------------
PERES: HAMAS WON A DILEMMA, NOT A VICTORY
--------------


8. (C) In a separate meeting in Tel Aviv, former Vice Prime
Minister Shimon Peres told CODEL Shays that he is certain
that the majority of Palestinians do not favor a repressive,
Islamist religious regime. He characterized the Hamas
victory as a protest against corruption, and attributed the
election results to Hamas' greater organizational
effectiveness. Peres said that the Hamas victory will
essentially render President Abbas irrelevant. According to
Peres, Hamas had "won a dilemma, not a victory," because
Hamas' interests were not served from being burdened with the
responsibility of governance. Peres said that Israel must be
patient with a Hamas-led PA, but be tough with any terrorist
activity. Regarding economic assistance and customs
transfers to the PA, Peres believes that Israel should
continue to provide assistance unless the PA uses the money
to fund violence.

-------------- --------------
REQUEST FOR SUPPORT FOR ECONOMIC DEVELOPMENT ZONE
-------------- --------------


9. (C) Peres told the CODEL that governments can make war,
but are too bound by politics and bureaucracy to take the
risks necessary to make peace. He said that the private
sector is accustomed to assuming risk in every major business
venture, and called the common economic interests of the
Jordanian, Palestinian, and Israeli people the best
opportunity for peace in the region. He said that he will
press a Kadima-led Israeli government to introduce an
economic initiative to create an economic development zone
stretching from the Syrian border along the Jordan River to
Aqaba and Eilat. Peres told the CODEL that he would
appreciate their support in encouraging private American
businesses to invest capital in this endeavor. He said that
the Israeli experts believed that a private bank would be the
most effective choice to administer this zone. Peres claimed
that Alternate Prime Minister Olmert and King Abdallah of
Jordan had both been briefed on this venture and were fully
supportive.



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