Identifier
Created
Classification
Origin
07JERUSALEM1483
2007-07-18 12:23:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
UTILITY PAYMENTS INDIRECTLY SUBSIDIZING HAMAS IN
how-toVZCZCXRO5934 OO RUEHROV DE RUEHJM #1483 1991223 ZNY CCCCC ZZH O 181223Z JUL 07 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC IMMEDIATE 8396 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RUEHBS/USEU BRUSSELS PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
C O N F I D E N T I A L JERUSALEM 001483
SIPDIS
SIPDIS
NEA FOR A/S WELCH; NEA/IPA FOR SHAMPAINE/BELGRADE; NSC FOR
ABRAMS/WATERS; TREASURY FOR NUGENT/HIRSON/LOEFFLER/HARRIS;
BRUSSELS FOR LERNER
E.O. 12958: DECL: 07/18/2017
TAGS: EFIN EAID ENRG KWBG IS
SUBJECT: UTILITY PAYMENTS INDIRECTLY SUBSIDIZING HAMAS IN
GAZA
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d)
C O N F I D E N T I A L JERUSALEM 001483
SIPDIS
SIPDIS
NEA FOR A/S WELCH; NEA/IPA FOR SHAMPAINE/BELGRADE; NSC FOR
ABRAMS/WATERS; TREASURY FOR NUGENT/HIRSON/LOEFFLER/HARRIS;
BRUSSELS FOR LERNER
E.O. 12958: DECL: 07/18/2017
TAGS: EFIN EAID ENRG KWBG IS
SUBJECT: UTILITY PAYMENTS INDIRECTLY SUBSIDIZING HAMAS IN
GAZA
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d)
1. (C) Palestinian Authority (PA) Prime Minister Salam
Fayyad told the Consul General July 17 that he no longer
wants the European Union to fund utility payments through the
Temporary International Mechanism (Window II) or the GOI to
deduct utility payments from clearance revenues. Fayyad
believes that both forms of payment subsidize Hamas, which
has begun to collect consumer payments for these services in
Gaza. Press reports on July 18 indicate that Hamas replaced
the Fatah head of the Gaza Electricity Distribution Company
(GEDCO),a PA agency, with an individual associated with
Hamas. (Note: GEDCO distributes the electricity within Gaza
and collects customer payments. End note.)
2. (C) Fayyad said that he had raised this matter with EC
Commissioner Benita Ferrero-Waldner in a phone call on July
17 but requested USG help in pressing the Europeans to
replace the Window II payments with transfers to the PA and
the GOI to stop deductions. Fayyad said he would use the
Gaza situation as a way to put West Bank mayors on notice
that they need to collect the utility payments from their
constituents and pass the funds to the PA. Instead, the
municipalities have either been not collecting the payments
or using the payments as municipality revenue since the
Europeans, and before that the PA, have paid the bills. The
IMF, since 2004, has cited this "net lending" problem as a
major fiscal constraint on the PA.
WALLES
SIPDIS
SIPDIS
NEA FOR A/S WELCH; NEA/IPA FOR SHAMPAINE/BELGRADE; NSC FOR
ABRAMS/WATERS; TREASURY FOR NUGENT/HIRSON/LOEFFLER/HARRIS;
BRUSSELS FOR LERNER
E.O. 12958: DECL: 07/18/2017
TAGS: EFIN EAID ENRG KWBG IS
SUBJECT: UTILITY PAYMENTS INDIRECTLY SUBSIDIZING HAMAS IN
GAZA
Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d)
1. (C) Palestinian Authority (PA) Prime Minister Salam
Fayyad told the Consul General July 17 that he no longer
wants the European Union to fund utility payments through the
Temporary International Mechanism (Window II) or the GOI to
deduct utility payments from clearance revenues. Fayyad
believes that both forms of payment subsidize Hamas, which
has begun to collect consumer payments for these services in
Gaza. Press reports on July 18 indicate that Hamas replaced
the Fatah head of the Gaza Electricity Distribution Company
(GEDCO),a PA agency, with an individual associated with
Hamas. (Note: GEDCO distributes the electricity within Gaza
and collects customer payments. End note.)
2. (C) Fayyad said that he had raised this matter with EC
Commissioner Benita Ferrero-Waldner in a phone call on July
17 but requested USG help in pressing the Europeans to
replace the Window II payments with transfers to the PA and
the GOI to stop deductions. Fayyad said he would use the
Gaza situation as a way to put West Bank mayors on notice
that they need to collect the utility payments from their
constituents and pass the funds to the PA. Instead, the
municipalities have either been not collecting the payments
or using the payments as municipality revenue since the
Europeans, and before that the PA, have paid the bills. The
IMF, since 2004, has cited this "net lending" problem as a
major fiscal constraint on the PA.
WALLES