OMANI OFFICIALS WARN THAT SETTLEMENT EXPANSION

C O N F I D E N T I A L MUSCAT 001125

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E.O. 12958: DECL: 12/12/2017
TAGS: PREL KPAL IS MU
SUBJECT: OMANI OFFICIALS WARN THAT SETTLEMENT EXPANSION
WILL UNDERMINE ANNAPOLIS CONFERENCE GAINS

REF: MUSCAT 1120

Classified By: Ambassador Gary A. Grappo for Reasons 1.4 (b, d)


1. (C) In discussing Oman's plans for the December 17 donors
conference in Paris (reftel),Ministry of Foreign Affairs
Secretary-General Sayyid Badr al-Busaidi told the Ambassador

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on December 12 that while financial support for the
Palestinian Authority was important, it was "not enough."
What was more urgently needed, he continued, was real
progress toward the creation of an independent Palestinian
state. This could not happen, Sayyid Badr asserted, unless
the U.S. exerted its full influence on both parties,
especially Israel. After hosting the successful Annapolis
conference, the credibility of the U.S. in helping to broker
a peace deal was now "on the line," he stated.


2. (C) Sayyid Badr exhorted the U.S. to be "firmer" and
"more outspoken" on the issue of Israeli settlements in
particular. The announcement the previous week of new
housing construction in occupied East Jerusalem, he
emphasized, was a very negative development that threatened
to undermine the positive gains achieved in Annapolis. Just
as bad, the announcement served to legitimize the disparaging
statements of "extremists" against the Annapolis conference
-- such as Iranian President Ahmadinejad's pronouncement of
it as a "failure" and "propaganda" -- while it "worked
against moderate states." In response to a query by the
Ambassador, Sayyid Badr stated that Oman had not had contact
with Israeli officials since Annapolis, but that Minister
Responsible for Foreign Affairs Yusef bin Alawi may meet with
Israeli Foreign Minister Livni at the Paris donors
conference.


3. (C) Earlier in the week, Ministry of Defense Under
Secretary Mohammed al-Rasbi expressed similar views about the

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potential impact of continuing Israeli settlement activity in
East Jerusalem on the Annapolis process. "The Israeli
settlement announcement so soon after the Annapolis
conference totally undercuts what the U.S. is trying to do
and strengthens Arab distrust" of U.S. intentions, argued
al-Rasbi. He further claimed that the Israeli settlement
action makes it harder for moderate Arab governments to speak
publicly in favor of the Annapolis process.
GRAPPO