FAYYAD THANKS CODEL ACKERMAN FOR USG SUPPORT, SAYS

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 001230

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E.O. 12958: DECL: 07/11/2013
TAGS: PGOV ECON PREL EAID PTER KWBG IS
SUBJECT: FAYYAD THANKS CODEL ACKERMAN FOR USG SUPPORT, SAYS
IDF INCURSIONS UNDERMINE PA

Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d)


1. (C) Summary: Palestinian Authority (PA) Prime Minister
Salam Fayyad told CODEL Ackerman on July 5 that the PA's
capacity to govern has improved significantly in the last
year, despite continued IDF incursions into the West Bank
that undermine PA security reform efforts. Fayyad thanked
the CODEL - particularly Mr. Ackerman - for the USD 150
million in budget support provided by the USG in March and
highlighted the success of the Palestine Investment
Conference, saying it has successfully attracted new
investment to the West Bank. End summary.

Fayyad: PA Upgrading Capacity To Govern
--------------


2. (C) At a July 5 meeting in Jerusalem, PM Salam Fayyad
told Representatives Gary Ackerman (D-NY),Sheila Jackson-Lee
(D-TX),Thad McCotter (R-MI),Randy Neugebauer (D-MO),Russ
Carnahan (D-MO) and Al Green (D-TX) that the security
situation in the West Bank has improved over the last year
due to PA security force deployments to Nablus and Jenin. He
underscored the progress of PA reform, which has "upgraded
our capacity to govern." Fayyad thanked the CODEL, and Mr.
Ackerman in particular, for the USG's provision of USD 150
million in direct budget support, which the PA received in
March.

PA building toward statehood, weakened by IDF incursions
-------------- --------------


3. (SBU) Fayyad said the PA will continue to build the
foundation of a secure, peaceful, prosperous state, despite
the opposition and hurdles imposed by Israel. Fayyad said
his government's reform effort has reduced corruption within
the PA. The Prime Minister highlighted the success of the
Palestine Investment Conference (PIC),held in Bethlehem in
May, saying that it has attracted many investors from the
Palestinian diaspora and Arab states. He expressed
appreciation for the senior USG delegation to the PIC. He
said that there has been an increased level of cooperation
between the PA and the Palestinian private sector since the
PIC.


4. (C) Fayyad told the CODEL that recent Israeli raids in the
West Bank undermine the authority of PA security forces and
that the IDF should instead allow the PA to "break the
culture of violence" there. Fayyad said the PA wants to
increase information sharing between the IDF and PA security
forces but said his efforts to convince the GOI to alter its
posture in the West Bank have been unsuccessful.

Fayyad: No compromising unity deal with Hamas;
Gaza "siege" strengthens Hamas
--------------


5. (C) Fayyad assured the CODEL that the PLO will not
sacrifice its principles to cut a unity deal with Hamas. He
said "isolation has been the Palestinians' worst enemy" and
the PA will continue to focus on a "lasting, meaningful,
two-state solution and peace with Israel." Fayyad said that
Hamas, overt presence is fading in the West Bank )
especially from Ramallah. He said his government hopes to
ban political parties from managing social welfare programs,
as the "needs of people cannot be exploited for political
gain."


6. (C) Fayyad said the Gaza "siege" continues to benefit
Hamas, which makes substantial amounts of money by providing,
via the Gaza-Egypt tunnels, basic goods that can no longer
pass through the formal Gaza-Israel commercial crossings. He
said he has not yet seen evidence that Egypt has made a
concerted effort to close the Gaza-Egypt tunnels.

Fayyad: Israeli deal-making with Hamas undermines PA
-------------- --------------


7. (C) Fayyad noted his unease over Israel's deal-making with
Hamas and Hizbollah in recent weeks, opining that ISRAEL
should instead close deals on Gaza crossings and Palestinian
prisoners with PA President Abbas. Fayyad said he does not
understand Israel's intention to "allow Hasan Nasrallah and
not the PA" to free Palestinian prisoners.


8. (U) CODEL Ackerman did not have the opportunity to clear
on this cable prior to departure.

JERUSALEM 00001230 002 OF 002


WALLES