GAZA ECONOMY AT A STANDSTILL AS VIOLENCE RAGES

UNCLAS JERUSALEM 000900 SIPDIS SENSITIVE SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/SHAMPAINE/BELGRADE; NSC FOR ABRAMS/WATERS; TREASURY FOR NUGENT/HIRSON E.O. 12958: N/A TAGS: ECON ETRD ENRG EFIN PHUM KWBG SUBJECT: GAZA ECONOMY AT A STANDSTILL AS VIOLENCE RAGES ¶1. (SBU) HEAVY FIGHTING IN GAZA CITY HAS LED TO AN "UNDECLARED CURFEW" ON GAZA STREETS, ACCORDING TO MOHAMMED AL-KHOZENDAR, OWNER OF SEVERAL GAS STATIONS IN GAZA. WHILE KHOZENDAR HAS KEPT SOME OF HIS GAS STATIONS OPEN, HE SAID THERE ARE NO CUSTOMERS. USAID GAZA-BASED STAFF REPORTED THAT THE STREETS ARE EMPTY EXCEPT FOR MILITANTS, AND MOST SHOPS IN GAZA ARE CLOSED. BUSINESSES, INSTITUTIONS, AND CROSSINGS CLOSED -------------- - ¶2. (SBU) USAID GAZA-BASED STAFF SAID THAT KARNI/AL-MINTAR AND RAFAH CROSSINGS WERE CLOSED MAY 15 AND 16, EXCEPT FOR A BRIEF PERIOD ON MAY 15 WHEN RAFAH OPENED TO ALLOW 450 PA SECURITY FORCE MEMBERS TO RETURN FROM TRAINING IN EGYPT. THE PALESTINIAN MONETARY AUTHORITY AND BANKS CLOSED ALL GAZA BRANCHES MAY 16 TO PROTEST THE VIOLENCE. THE PA MINISTRY OF EDUCATION PUBLICLY ANNOUNCED SCHOOL CLOSURES IN GAZA ON MAY 16 AND 17. PALESTINIAN TELEVISION REPORTED THE SUSPENSION OF CLASSES AT GAZA UNIVERSITIES FROM MAY 15-17. DESPITE HAMAS MILITANTS' FORCED ENTRANCE INTO THE GAZA INDUSTRIAL ESTATE (GIE) LOCATED NEXT TO KARNI CROSSING, TWO FACTORY OWNERS THERE TOLD USAID GAZA-BASED STAFF THAT THE NATIONAL SECURITY FORCES WERE ABLE TO REPEL BOTH THE MILITANTS AND HUNDREDS OF POTENTIAL LOOTERS. THE OWNERS REPORTED THAT THE GIE SUSTAINED NO SIGNIFICANT DAMAGE. NEVERTHELESS, THE PRIVATE SECTOR IS BASICALLY AT A STANDSTILL BECAUSE FEW DARE TO LEAVE THEIR HOMES. HOSPITALS IN "STATE OF EMERGENCY" -------------- ¶3. (SBU) GAZA HOSPITALS ARE IN A "STATE OF EMERGENCY." DR. JUMA AL-SAQA OF DAR AL-SHIFA HOSPITAL IN GAZA CITY TOLD THE LOCAL PRESS THAT THERE IS NO BLOOD AT ALL IN THE HOSPITAL'S BLOOD BANK AND THAT, BECAUSE PEOPLE FEAR LEAVING THEIR HOMES, THE HOSPITAL IS NOT RECEIVING DONATIONS, EITHER. THE WHO REPRESENTATIVE IN GAZA SAID THAT THE HOSPITAL WAS ALSO SHORT OF X-RAY FILM AND DISPOSABLES. HANAN TAHA, DIRECTOR OF PALTRADE IN GAZA, ADDED THAT SHOOTINGS AND MILITANT ROADBLOCKS ARE DRAMATICALLY INCREASING THE TIME IT TAKES FOR AMBULANCES TO BRING THE INJURED TO HOSPITALS. TENUOUS ELECTRICITY SUPPLY BUT WATER IS AVAILABLE -------------- -------------- ¶4. (SBU) TAHA TOLD ECON SPECIALIST THAT WHILE THERE ARE NO RETAIL FUEL SHORTAGES, GAZA CITY EXPERIENCED A TWO-HOUR POWER OUTAGE MAY 16, WHICH SHE ATTRIBUTED TO GUNSHOTS HITTING POWER LINES. WATER CONTINUES TO BE AVAILABLE, ACCORDING TO USAID GAZA-BASED STAFF. WALLES