YASSER ABD RABBO BRIEFS CODEL ACKERMAN ON

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 001837

SIPDIS

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NEA FOR FRONT OFFICE. NSC FOR ABRAMS/SINGH/WATERS

E.O. 12958: DECL: 08/30/2017
TAGS: KWBG PGOV PREL PTER PHUM IS
SUBJECT: YASSER ABD RABBO BRIEFS CODEL ACKERMAN ON
ABBAS-OLMERT MEETING AND FATAH REFORM


Classified By: Acting Principal Officer Thomas M. Duffy, per reasons 1.
4 (b) and (d)


1. (C) Summary. On August 29, PLO Executive Committee
Secretary-General Yasser Abd Rabbo told CODEL Ackerman that

SIPDIS
the August 28 meeting between PA President Mahmoud Abbas (Abu
Mazen) and GoI PM Ehud Olmert was "not bad," but that he had
hoped for better results. Abd Rabbo said Abu Mazen and
Olmert discussed, in general terms, Jerusalem, borders, and
refugees, and agreed to postpone development of a bilateral
committee on permanent status until two more rounds of
one-on-one discussions are held. Abd Rabbo told CODEL
Ackerman that the success of PM Salam Fayyad's government
will help facilitate Fatah reform. He added that a new
generation of local Fatah leaders are emerging in Gaza as
they struggle against Hamas. He called for removal of West
Bank checkpoints and road blocks. Abd Rabbo warned that by
the end of 2007, the PA will be in need of major financial
support. End Summary.

Abu Mazen-Olmert Read-out
--------------


2. (C) At an August 29 meeting in Ramallah, Abd Rabbo told
Representatives Gary Ackerman (D-NY) and John Hall (D-NY)
that the August 28 meeting between Abu Mazen and Olmert was
"not bad," but that he had hoped for better results. He said
Olmert asked Abu Mazen to postpone formation of a bilateral
committee on permanent status until two more rounds of
one-on-one discussions are held. He said Olmert also told
Abu Mazen that he prefers to have a group of Israelis and
Palestinians with past negotiating experience lead the
drafting committee in preparation for this fall's
international meeting.


3. (C) Abd Rabbo said Abu Mazen and Olmert discussed, in
general terms, three final status issues: Jerusalem, borders,
and refugees. He said he believes Olmert is using these
preliminary meetings to determine how far he can push Abu
Mazen, but he worries that without in-depth discussion on
central issues it will not be clear to Abu Mazen and Olmert
where they agree and disagree. "We have our limits," Abd
Rabbo said, "and any compromise should be based on the Arab
Peace Initiative." He added that time is short and while the
August 28 Abu Mazen-Olmert meeting is a small step forward,
it is certainly a leap from where the two leaders were a few
months ago. He said Abu Mazen and Olmert also discussed ways
to stop Hamas from smuggling weapons and money from Egypt.

Fatah Reform Tied to Success of New Government
-------------- -


4. (C) The success of PM Fayyad's independent government
will help facilitate Fatah reform, said Abd Rabbo, adding
that "we do not want the public to view this as a Fatah-Hamas
conflict, but with an independent government, Fatah is able
to move forward and reform on its own." He said a small
group of "Old Guard" Fatah members, while "limited in power
and marginal," are trying to undermine the government, but
thus far have not diminished the government's authority. He
said Fatah must cure itself from its "power disease" and that
he hopes a wide coalition of Fatah members will run on a
joint slate with independent businessmen/academics against
Hamas. Abd Rabbo said internal Fatah elections are needed to
fight the stalemate within the movement and to generate new
leaders, commenting that "renewal of leadership is not a
tradition within Fatah," but that Fatah is re-grouping,
particularly in Gaza, where new leaders are emerging in their
struggle against Hamas.

Checkpoints Paralyzing Palestinians
--------------


5. (C) Abd Rabbo said checkpoints and roadblocks in the
West Bank are paralyzing Palestinians. He said Olmert
promised Abu Mazen in their first meeting to provide a map of
road blocks to be removed, but no map has been provided yet
nor have any restrictions been lifted. He commented that
economic development will not occur in the West Bank without
improving access and movement.

Security and Finances
--------------


6. (C) Abed Rabbo praised PM Salam Fayyad for working with
the GoI on the fugitive issue and said more GoI cooperation
is needed to bring law and order to the West Bank. He said
the new government will face severe financial problems at the
end of 2007, adding that Saudi Arabia has stopped sending

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funds to the PA because they blame Abu Mazen for the failure
of the Mecca Agreement. In contrast, Abd Rabbo said Qatar,
Iran and Muslim Brotherhood cells throughout the Arab world
are funding Hamas in Gaza. "Ironically, we, the PA -- and
not Hamas -- are being boycotted financially now," he said.


7. (U) CODEL Ackerman did not have the opportunity to clear
this cable.

DUFFY