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 SIPDIS 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 JERUSALEM 00001837 002 OF 002 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