GAZA: FOOD AND FUEL AVAILABLE FOR NOW

UNCLAS SECTION 01 OF 02 JERUSALEM 001253

SIPDIS

SENSITIVE
SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
WILLIAMS/SHAMPAINE/STEINGER; PRM FOR PDAS GREENE AND
PRM/ANE; NSC FOR ABRAMS/WATERS; TREASURY FOR
SZUBIN/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR LERNER; PLEASE
PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN

E.O. 12958: N/A
TAGS: EAID ECON EFIN KPAL KWBG PGOV PHUM
SUBJECT: GAZA: FOOD AND FUEL AVAILABLE FOR NOW



1. (SBU) Summary: Basic food commodities and fuel remain
available in Gaza, but prices are increasing and food stocks
are declining rapidly, according to Gaza residents, UN
agencies and NGOs. UNRWA and WFP have resumed operations,
but UNRWA says it has only 10 days of flour in its
warehouses. If Karni/al-Mintar crossing remains closed,
several basic foodstuffs will become extremely scarce by the
end of June. End Summary.

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FUEL FLOWS
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2. (SBU) The Israeli company Dor resumed shipments of all
petroleum products into Gaza through the Nahal Oz crossing
June 18, according to several ConGen contacts. Prime
Minister Fayyad confirmed this with the Consul General on
June 18. A temporary suspension of shipments had resulted in
long lines at Gaza Gas stations June 16-17, as Palestinians
attempted to fill up while supplies lasted. A Palestinian
retailer of petroleum products advised EconSpecialist June 18
that, although fuel is flowing, confusion exists on the Gaza
side over who from the PA should be involved in the process.
The retailer said he expects a resolution of the issue later
on June 18. Hamas Executive Forces entered the Gaza side of
the Nahal Oz crossing early June 18 and demanded fuel, but
were convinced to leave empty-handed, according to the
retailer. The Gaza Power Plant reportedly received a
delivery of fuel late on June 17 sufficient for three days.


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FOOD AVAILABLE
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3. (SBU) Karni/al-Mintar crossing, the main commercial
artery for Gaza, has remained closed since June 11. WFP
staff told Econoff June 18 that sugar, wheat flour and
cooking oil supplies are sufficient for one-to-two weeks.
Most bakeries have a five-day supply of wheat flour and oil,
according to the WFP. Gaza-based OCHA staff report that
bakeries are limiting sales to one bag of bread per customer,
and lines have formed at most Gaza bakeries. Food stocks are
being depleted faster than usual because Gaza residents have
begun hoarding basic food commodities. Prices on some items
have risen as much as 40 percent. Dairy products -- most of
which are imported through Karni/al-Mintar crossing -- are in
limited supply.


4. (SBU) WFP Spokesperson Kirstie Campbell advised Econoff
June 18 that WFP resumed operations in Gaza June 17. UNRWA's
Gaza Director of Field Operations John Ging announced
publicly that his agency had resumed full operations June 17
throughout the entire Gaza Strip after a two-day cessation of
activity. (Note: WFP and UNRWA provide food assistance to
over 1 million Gazans. End note.) WFP and UNRWA completed
partial food distributions prior to Karni/al-Mintar's most
recent closure. WFP assistance beneficiaries will have their
needs met until late July/early August. Ging advised June 18
that UNRWA's stock of basic foodstuffs is sufficient for one
month, but its supply of flour will last only 10 days.

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HOSPITALS OPERATIONAL
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4. (SBU) Gaza-based WHO staff advised Econoff June 18 that
most hospitals in Gaza have returned to normal operations and
have, in general, one-month of medicines and medical
supplies. Hospital personnel are again working regular
shifts, although the three Gaza vascular surgeons continue to
work almost non-stop on wounded fighters and civilians. The
PA Ministry of Health (MOH) has called for blood donations.
WHO staff noted that some medical equipment requires
maintenance and parts, most of which must be imported through
Karni/al-Mintar. WHO is working to coordinate the entry of
some medical supplies into Gaza from the MOH warehouse in
Ramallah. The electricity supply from the Gaza Power Plant
remains unreliable, so hospitals use diesel-powered
generators. Hospital directors reported to WHO June 18 a
5-10 day supply of diesel fuel remaining.

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JERUSALEM 00001253 002 OF 002


Crossings
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5. (SBU) All Gaza crossings remained closed June 18, except
Nahal Oz for fuel shipments and Erez for pedestrians traffic
with special coordination. Erez opened briefly but closed
after a large crowd of Palestinians attempting to flee Gaza
rushed the crossing.

WALLES