UPDATE ON NATIONAL UNITY GOVERNMENT FORMATION

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 000417 SIPDIS SIPDIS NEA FOR FRONT OFFICE, NSC FOR ABRAMS/DORAN/WATERS E.O. 12958: DECL: 02/28/2017 TAGS: PREL PGOV KWBG IS KPAL SUBJECT: UPDATE ON NATIONAL UNITY GOVERNMENT FORMATION Classified By: Consul General Jake Walles, for reasons 1.4 (b) and (d) ¶1. (C) Summary. Senior Fatah officials and Hamas press statements suggest that the national unity government (NUG) could be finalized by March 8. Fatah PLC leader Azzam al-Ahmad said President Mahmud Abbas (Abu Mazen) will return to Ramallah and meet with Fatah leadership March 2 and PM Ismayil Haniyah on March 3. Abbas will reportedly eschew senior Fatah officials in favor of figures with proven governing experience and reputations for ability and honesty, according to senior Fatah contacts, and he will minimize the number of PLC members serving as ministers. Akram Haniyah and other senior Fatah contacts say Abbas is leaning toward selecting PLC member Salam Fayyad as Deputy PM in addition to his duties as Finance Minister, while Ziad Abu Amr will likely be Foreign Minister. FIDA, the National Struggle Front, the People's Party and DFLP have expressed interest in joining the NUG and are negotiating for cabinet slots, while the PFLP and PIJ have publicly announced they will not participate. End summary. NUG Formation Timeline -------------- ¶2. (C) Fatah contacts and Hamas press statements indicate that NUG formation could be completed by March 8. Al-Ayyam editor Akram Haniyah told the Consul General on February 27 that there are no major disputes on formation and he expects cabinet composition to be finished within a week. Palestinian newspapers report PM Ismayil Haniyah met with Fatah and Hamas delegations February 27 and said he wants both factions' lists for their respective portfolios by March ¶2. Fatah PLC leader Azzam al-Ahmad said President Abbas will meet with Fatah PLC members March 2 to discuss and approve a list of ministers al-Ahmad is preparing with Fatah leader Rawhi Fattuh, Akram Haniyah and other Fatah elements, and then travel to Gaza March 3 to present Fatah's selections to PM Ismayil Haniyah. ¶3. (SBU) Senior Fatah contacts said President Abbas is not interested in naming Fatah Central Committee (FCC) or Revolutionary Council (FRC) members to the Cabinet, and wants to minimize the number of PLC members serving as ministers. They said Abbas is focusing on naming Fatah members with proven governing experience who are perceived as highly capable and free from corruption, offering former PM Chief of Staff Hasan Abu Libdah and PECDAR director Muhammad Shtayya as examples of likely appointments. Both were ministers in the government headed by Ahmad Quraya' (Abu Ala'a). Fayyad Possibly Deputy PM, Abu Amr as MFA, MoI Undecided -------------- ¶4. (C) Akram Haniyah and other senior Fatah contacts say Abbas is leaning toward selecting PLC member Salam Fayyad as Deputy PM as well as Finance Minister, but has not made a final decision. Hamas and Fatah are working under the assumption that Gaza PLC member Ziad Abu Amr will be Foreign Minister, according to Gaza PLC member Rawiya al-Shawwa (independent). Akram Haniyah and Azzam al-Ahmad said that Hamas' Interior Minister (MoI) candidate, Hamuda Jarwan, will be rejected by Abbas. Hamas official Usama al-Muzayni told Palestinian newspapers February 27 that Haniyah will propose several independent MoI names to Abbas and let him choose from this list if Abbas rejects Jarwan. Minor Factions Still Haggling -------------- ¶5. (SBU) In addition to Fatah and Hamas, FIDA, the National Struggle Front, the People's Party and DFLP have expressed interest in joining the NUG, while the PFLP and PIJ have publicly announced they will not participate. (Note: the Damascus-based PFLP splinter, PFLP-GC ("General Command") announced they are interested in joining the NUG, but this group is politically insignificant and not widely represented in the West Bank or Gaza. End note). Fatah PLC member Muhammad Dahlan and PM Haniyah advisor Ahmad Yusif both told Arabic-language press they are still in discussions with the PFLP and will offer cabinet posts if they participate. PIJ spokesmen, however, have made clear in press statements that PIJ's rejection of NUG participation is final. The People's Party, FIDA and DFLP are still negotiating with Fatah and Hamas leaders in Gaza on cabinet portfolios, according to senior Fatah contacts, and will not commit to participating until they have a deal on minister/deputy positions. Sectional, Religious JERUSALEM 00000417 002 OF 002 and Gender Balance -------------- ¶6. (SBU) Senior Fatah contacts and Hamas official al-Muzayni's press statements indicate agreement that cabinet posts will be divided 60-40 to West Bank and Gaza Palestinians respectively, and that the Deputy PM will be from the West Bank. At least one minister will be a Christian and at least one will be female. Neither Fatah nor Hamas are interested in naming Ministers of State (without portfolio) to achieve these balances, according to Palestinian press accounts. WALLES