PALESTINIAN LEADERSHIP WANTS STATUS QUO ON GAZA

S E C R E T SECTION 01 OF 02 JERUSALEM 001487

SIPDIS

SIPDIS

NEA FOR FRONT OFFICE; NSC FOR ABRAMS/SINGH/WATERS; BRUSSELS
FOR LERNER

E.O. 12958: DECL: 07/18/17
TAGS: ECON ETRD KPAL PGOV PREL PTER KWBG IS
SUBJECT: PALESTINIAN LEADERSHIP WANTS STATUS QUO ON GAZA
CROSSINGS

REF: JERUSALEM 1455

Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d).


1. (S) Summary. PA President Mahmoud Abbas (Abu Mazen) and
Prime Minister and Minister of Finance Salam Fayyad informed
Consul General on July 17 that they do not support at this
time increasing throughput at Gaza crossings beyond
humanitarian assistance and commercial food shipments. Abu
Mazen also indicated that he wants Rafah to remain closed and
welcomed a proposal to transport Palestinians stranded in
Egypt through Netzana crossing between Egypt and Israel and
then through the Erez crossing in northern Gaza. While
continuing to seek PA assistance in loosening the current
crossing closure regime, Palestinian business leaders,
particularly those in Gaza, are becoming increasingly
critical of the official PA position. End Summary.

Continue Limits on Thoughput
--------------


2. (S) In separate July 17 meetings meeting with the Consul
General, PA President Mahmoud Abbas (Abu Mazen) and Prime
Minister Salam Fayyad voiced their support for the continued
flow of humanitarian assistance (food, medicines and water)
and commercial food shipments into Gaza, but oppose the
inclusion of any additional products at this time. Abu Mazen
said that the Kerem Shalom and Sufa crossings, along with
conveyor belts at Karni/al-Mintar, should continue to be used
for humanitarian assistance and commercial food shipments
only, as has been the case in recent weeks. Prime Minister
Fayyad took the same view in a separate meeting with the
Consel General.

Infrastructure Project Needs
--------------


3. (S) In reply to the Consul General's question about raw
materials for infrastructure projects in Gaza, Abu Mazen
indicated that the PA will consider project needs on a
case-by-case basis. Abu Mazen said that he did not object to
the transfer of materials for a specific sewage treatment
project in Beit Lahiya, but is not prepared to go farther at
this time. Fayyad also mentioned this project separately.
Neither Abu Mazen nor Fayyad identified any other project in
immediate need of raw materials.

Keep Rafah Closed
--------------


4. (S) Abu Mazen stated that he wants the Rafah crossing to
remain closed. He welcomed a proposal to transport
Palestinians stranded in Egypt through Netzana crossing
between Egypt and Israel, and then through the Erez crossing
in northern Gaza. Abu Mazen said he believes the Egyptians
have asked, and will continue to press, the GOI to open Rafah
crossing, despite PA and Israeli opposition. He said that he
has heard reports that Hamas members among the stranded had
managed to travel to Gaza through tunnels under the
Philadelphi corridor. He concurred with the Consul General's
assessment that, if these reports are true, then bad people
have succeeded in entering Gaza while those without influence
or funds are left waiting.

Crossing Responsibilities
--------------


5. (S) Fayyad reported that PLO Chief Negotiator Erekat will
soon have little to do with crossings, as these
responsibilities are being transferred to the Ministry of
National Economy, to which the Crossings Committee will be
"anchored." He added that he is still trying to identify the
appropriate GOI counterparts on crossings and other issues.
He said he wants clear contacts and clear channels of
communication with the GOI.

Private Sector Complaints
--------------


6. (C) Palestinian business leaders continue to seek PA
assistance in loosening the current crossing closure regime.
In a World Bank-hosted meeting July 12, Gazans asserted that
current combined throughput barely meets daily basic food
needs, so the survival of Gaza's private sector depends on
the immediate reopening of the Karni/al-Mintar crossing.
Business representatives said they feared that, if the

JERUSALEM 00001487 002 OF 002


closure regime continues, the 350,000-400,000 Gazans
currently sustained by the private sector will soon join the
1.1 million Gazans already dependent on donor assistance.
Several of the Gaza participants voiced frustration with what
they described as multiple unproductive meetings and urged
that immediate action. Several opined that the most serious
obstacle to reopening Karni/al-Mintar may be "Ramallah," i.e.
Abbas and the PA government.

WALLES