AMBASSADOR'S MEETING WITH SHIMON PERES: AMBITIOUS

C O N F I D E N T I A L TEL AVIV 002098

SIPDIS

SIPDIS

E.O. 12958: DECL: 07/06/2017
TAGS: PREL PGOV ECIN EINV JO KWBG IS
SUBJECT: AMBASSADOR'S MEETING WITH SHIMON PERES: AMBITIOUS
PLANS FOR THE PRESIDENT'S ROLE; PEACE VALLEY PROJECT;
DEALING WITH GAZA

REF: TEL AVIV 1039

Classified By: Ambassador Richard H. Jones, Reason 1.4 (b) (d)


1. (C) Summary. In a July 6 meeting with the Ambassador,
President-elect Peres offered an ambitious agenda for his
presidency, including restoring optimism to the Israeli
public and reinvigorating Israel's relations with the
American Jewish community. Peres thought Israel should not
apply too much pressure on Hamas in Gaza, but rather force
Hamas to take responsibility for Gaza's economic well-being.
He noted that Jordan and the West Bank were increasingly
linked and increasingly separate from Gaza. Peres reiterated
(see reftel) his desire for the U.S. Government to declare
its support for the Red Sea to Dead Sea Peace Valley project.
(Note: We have e-mailed a project description by the
American company WMH Global to the NEA Front Office, NEA/IPA
and NEA/RA.) Peres claimed that many third country private
investors, including Americans, Japanese and Europeans, are
ready to finance the Peace Valley project if the U.S. gave it
an official seal of approval. According to Peres, Jordanian
King Abdullah and Palestinian President Abbas fully support
the project, which he believes will greatly benefit the
economies of Israel, Jordan and the Palestinians. Peres said
Israel can be a world leader in countering the two main
threats to globalization, Islamic terrorism and global
warming. Asked about Haim Ramon's role as Deputy Prime
Minister, Peres said he had urged PM Olmert to have Ramon
assume responsibility for economic issues with the
Palestinians, including the Peace Valley project. Olmert,
however, will retain responsibility for peace negotiations.
End summary.

A New Kind of Israeli President
--------------


2. (C) The Ambassador, accompanied by PolCouns, called on
President-elect Shimon Peres July 6 to congratulate him on
his election and discuss his agenda. Peres, who will be
inaugurated on July 15, said he would use the office to
advise and influence. One of his top priorities will be to
change the relationship between Israel and the American
Jewish community to emphasize intellectual connections rather
than financial contributions. Peres said his other priority
will be to work for peace with the Palestinians.


3. (C) Regarding the Palestinians, Peres noted the strong
and growing connections between 2.5 million Palestinians in
the West Bank and Jordan, with its "4 million Palestinian"
citizens. Israel should take advantage of Hamas' rule in
Gaza to force Hamas to take responsibility for the well-being
of Gaza residents. Israel should "not be brutal" with Gaza;
if the Qassam rockets stop, Israel can live in peace with a
Hamas-run Gaza. Israel should move quickly to reengage in
political negotiations with the new Palestinian government
while working to create economic conditions in the West Bank
similar to those in Jordan, including QIZs and Japanese and
European-financed industrial parks. Political negotiations
for a Palestinian state in the West Bank should proceed in
parallel. If the Gazans then want to join in, they would be
welcome. Relations between Jordan and the West Bank would be
based entirely on economic cooperation, since a political
confederation would be too risky for the King.

Peace Valley Project
--------------


4. (U) Peres termed the Peace Valley project (reftel) from
the Red Sea to the Dead Sea the first step. The valley is
520 kilometers in length, of which only 100 kilometers
includes the West Bank. The border between Israel and Jordan
has no fences and no minefields, Peres observed. In addition
to the enormous water projects that would "irrigate Israel,
Jordan and the West Bank as well as save the Dead Sea," the
Peace Valley would start with a new airport serving both
Eilat and Jordanian Aqaba. Peres said the project would
include the creation of three artificial lakes and related
tourism and residential projects. It would be entirely
funded by private investors and would result in a tremendous
increase in the value of the surrounding land. Three things
are still needed: overcoming the Israeli bureaucracy; an MOU
with Jordan; and the "moral and political support" of the
United States, not U.S. money. Peres said he could not
understand why the U.S. appeared to consider this project
marginal, especially since it has been declared a national
priority by the GOI and has the support (in writing) of King
Abdullah, President Abbas, and Prime Minister Olmert. He


argued that political support from the U.S. would help
overcome the other remaining obstacles.

Threats in a Global Age
--------------


5. (C) Peres commented that while governments were still
national, the economy had become global. Many old problems
were disappearing as a result. Racism had been the key issue
in the U.S. when he first visited fifty years ago, but not
any more. It was impossible to be racist in a global
environment. This sea change was, however, threatened by two
phenomena: Islamist terrorism and global warming. The
terrorists are fighting the modern world with modern means,
while global warming puts the entire world in danger. Israel
should become a world center in the fight against terrorism,
while helping address global warming through new
technologies. Peres agreed with the Ambassador's comment
that the presidency would offer him a new podium. He said he
looked forward with great enthusiasm to working with civil
society and the private sector.

Ramon's Role, Development of the Negev and Galilee
-------------- --------------


6. (C) Asked about the role of newly appointed Deputy Prime
Minister Haim Ramon, Peres said he had suggested to Olmert to
make Ramon responsible for economic relations with the
Palestinians, including the Peace Valley project. Peres said
that Olmert will want to continue to run the peace
negotiations with the Palestinians himself. Peres stated
that he intends to remain involved in his former ministerial
portfolio, the development of the Negev and Galilee regions,
and would work closely with the new minister, Yaakov Edri.
Those regions could be developed with private funds, Peres
stressed.



********************************************* ********************
Visit Embassy Tel Aviv's Classified Website:
http://www.state.sgov.gov/p/nea/telaviv

You can also access this site through the State Department's
Classified SIPRNET website.
********************************************* ********************
JONES