GAZA: FUEL IMPORTS CUT; FARMERS HOPE TO EXPORT

UNCLAS SECTION 01 OF 02 JERUSALEM 002393 SIPDIS SENSITIVE SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR GOLDBERGER/SHAMPAINE/BELGRADE; PRM FOR PDAS GREENE AND PRM/ANE; NSC FOR ABRAMS/WATERS; TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR LERNER; PLEASE PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN E.O. 12958: N/A TAGS: EAID ECON KPAL KWBG PGOV PHUM IS SUBJECT: GAZA: FUEL IMPORTS CUT; FARMERS HOPE TO EXPORT THIS YEAR'S HARVEST REF: JERUSALEM 2239 ¶1. (SBU) Summary: Gaza fuel imports have been reduced by roughly one-third since October 27. Gaza-based WHO contacts report that Gazans are receiving an "all time low" level of medical care. Humanitarian and commercial shipments have continued to enter Gaza in reduced quantities. Gaza farmers are focused on whether they will be able to export their harvest this year, as USD 30 million worth of Gaza produce will ready for export from late-November through January. End summary. Fuel Cuts Pose Risk To Power Supply; Hamas Deters Major Price Increase -------------- ¶2. (SBU) Director of the PA Fuel Agency in Gaza Mujahid Salama told Econoff on November 19 that fuel transfers at the Nahal Oz fuel transfer station have been reduced by more than one-third since October 27. He said that diesel fuel has been cut by 30 percent; gasoline by 35 percent; cooking gas by 10 percent; and industrial fuel (used exclusively by the Gaza Power Plant) by 30 percent. ¶3. (SBU) Power Plant Manager Rafiq Maliha told Econoff November 19 that if the reduced fuel imports continue, his plant will be forced to reduce power output from 60 MW to 25 MW by January. European Commission TIM official Ian Hoskins confirmed this estimate, stating that the plant will use up all its reserve fuel before January. ¶4. (SBU) Gaza-based OCHA Representative Hamada al-Bayari said that Gaza fuel prices have increased by 10 percent since the fuel cuts began. He opined that gas station owners have not increased prices more significantly for fear of Hamas retribution for perceived price gouging. Erez/Beit Hanoun Crossing -------------- ¶5. (SBU) WHO Gaza director Mahmoud Daher told Econoff on November 19 that reduced hours at the Erez/Beit Hanoun crossing has resulted in a 15 percent reduction in medical patients permitted to depart. Increased restrictions on after-dark travel across the Erez/Beit Hanoun crossing has also limited options for Gaza medical professionals in emergency cases. ¶6. (SBU) OCHA's al-Bayari and USG contractors in Gaza reported that Sufa crossing was open November 19 for beef cattle shipments and on November 18 for banana shipments into Gaza. Kerem Shalom crossing was open November 19 for one hour - 15 truckloads of humanitarian goods were transferred. Kerem Shalom was closed on November 18. (Note: Sufa was closed by the GOI on October 27, making Kerem Shalom, with a capacity of 60 truckloads per day, the only commercial crossing into Gaza. End note.) Al-Bayari added that, in spite of the closure regime, Gaza markets have sufficient food supply to meet Gazans' basic human consumption needs. Sufficient Supplies And Drugs; Hospital Infrastructure Lacking -------------- ¶7. (SBU) Daher said that Gaza hospitals have sufficient disposables and drugs, but are experiencing a lack of replacement parts for hospital medical machines, laundry machines, windows, doors, and floor materials. He said that the absence of cement and other construction materials has halted all renovations and additions to Gaza hospitals, which incurred damage during the Hamas coup in June. Gaza medical care, he summarized, has been reduced to an "all time low" in the last few months. ¶8. (SBU) Daher confirmed to Econoff on November 19 the death of a 20-year old Gaza cancer patient on November 17, as reported on by local news agencies. Daher said that the Israeli NGO "Physicians For Human Rights" had made numerous requests to the GOI over the last two years to allow the 20-year old patient to receive cancer treatment outside of Gaza, but all were denied. JERUSALEM 00002393 002 OF 002 USD 30 Million In Agriculture Earnings Possible -------------- -- ¶9. (SBU) Minister of Health (MoH) Director General of Planning Alaa Joma told Econoff November 19 that if Gaza agricultural exports are permitted this harvest (late November to early January),Gazan farmers would earn roughly USD 30 million in exports of strawberries, bell peppers, cherry tomatoes, and carnations to Israel and Europe. Gaza-based USG contractors said that 90 percent of the harvest will go to waste if they are not able to be exported. -------------- For the latest reports on the Palestinian economy, visit ConGen Jerusalem's unclassified intelink site at: http://www.intelink.gov/communities/state/pal econ WALLES