Identifier
Created
Classification
Origin
07JERUSALEM1574
2007-07-30 06:42:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
FAYYAD STILL CONCERNED ABOUT GAZA UTILITY
how-toVZCZCXRO5460 OO RUEHROV DE RUEHJM #1574 2110642 ZNY CCCCC ZZH O 300642Z JUL 07 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC IMMEDIATE 8522 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 001574
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR SHAMPAINE/BELGRADE; NSC
FOR ABRAMS/WATERS; TREASURY FOR
HARRIS/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR LERNER
E.O. 12958: DECL: 07/29/2012
TAGS: EFIN EAID ENRG KWBG IS
SUBJECT: FAYYAD STILL CONCERNED ABOUT GAZA UTILITY
PAYMENTS; BUT NOT (YET) ASKING EU TO CUT OFF SUPPORT
REF: JERUSALEM 1483
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 001574
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR SHAMPAINE/BELGRADE; NSC
FOR ABRAMS/WATERS; TREASURY FOR
HARRIS/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR LERNER
E.O. 12958: DECL: 07/29/2012
TAGS: EFIN EAID ENRG KWBG IS
SUBJECT: FAYYAD STILL CONCERNED ABOUT GAZA UTILITY
PAYMENTS; BUT NOT (YET) ASKING EU TO CUT OFF SUPPORT
REF: JERUSALEM 1483
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 on July 26 that he has raised his
concerns about Hamas benefiting from EU funding for utility
payments in Gaza with EC Commissioner Ferrero-Waldner
(reftel),but he has not yet explicitly asked the EU to cut
off funding, as he continues to think through how to address
the problem. Fayyad is concerned that a cessation of EU
support would lead to either blackouts in Gaza or the need
for the PA to pick up the payments - two unattractive
options. Fayyad told the CG that he remains concerned that
funds could be diverted from utility payments to support
Hamas, but he had not yet seen evidence that Hamas is doing
so. If they do, however, he said he would ask the EU to stop
payments. Fayyad also suggested that the utility support
payments could be phased out as the Temporary International
Mechanism (TIM) expires in September, but he did not indicate
what he thought might replace them.
2. (C) In a subsequent conversation on July 27, Fayyad told
the CG that he intends to ask the GOI to stop deducting
electricity payments from clearance revenues, as part of a
longer-term effort to reduce the major financial burden on
the PA resulting from subsidized electricity. Recognizing
that change to the system will come gradually, Fayyad plans
to tell West Bank mayors that municipalities will have to
deal directly with the ISRAEL Electric Company and fund their
own utility needs. Fayyad said he would provide some funds
(diminishing over time) to help municipalities adjust to the
new system. Fayyad indicated that he would expect the same
from Gaza, but did not elaborate on how he would proceed
given the current political situation.
WALLES
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR SHAMPAINE/BELGRADE; NSC
FOR ABRAMS/WATERS; TREASURY FOR
HARRIS/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR LERNER
E.O. 12958: DECL: 07/29/2012
TAGS: EFIN EAID ENRG KWBG IS
SUBJECT: FAYYAD STILL CONCERNED ABOUT GAZA UTILITY
PAYMENTS; BUT NOT (YET) ASKING EU TO CUT OFF SUPPORT
REF: JERUSALEM 1483
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 on July 26 that he has raised his
concerns about Hamas benefiting from EU funding for utility
payments in Gaza with EC Commissioner Ferrero-Waldner
(reftel),but he has not yet explicitly asked the EU to cut
off funding, as he continues to think through how to address
the problem. Fayyad is concerned that a cessation of EU
support would lead to either blackouts in Gaza or the need
for the PA to pick up the payments - two unattractive
options. Fayyad told the CG that he remains concerned that
funds could be diverted from utility payments to support
Hamas, but he had not yet seen evidence that Hamas is doing
so. If they do, however, he said he would ask the EU to stop
payments. Fayyad also suggested that the utility support
payments could be phased out as the Temporary International
Mechanism (TIM) expires in September, but he did not indicate
what he thought might replace them.
2. (C) In a subsequent conversation on July 27, Fayyad told
the CG that he intends to ask the GOI to stop deducting
electricity payments from clearance revenues, as part of a
longer-term effort to reduce the major financial burden on
the PA resulting from subsidized electricity. Recognizing
that change to the system will come gradually, Fayyad plans
to tell West Bank mayors that municipalities will have to
deal directly with the ISRAEL Electric Company and fund their
own utility needs. Fayyad said he would provide some funds
(diminishing over time) to help municipalities adjust to the
new system. Fayyad indicated that he would expect the same
from Gaza, but did not elaborate on how he would proceed
given the current political situation.
WALLES