HAMAS FIRMLY ENTRENCHED IN GAZA; SMUGGLING AND

C O N F I D E N T I A L JERUSALEM 001886 SIPDIS NEA FOR FRONT OFFICE, NSC FOR ABRAMS/PASCUAL/RAMCHAND E.O. 12958: DECL: 10/16/2018 TAGS: KWBG IS PGOV PTER PHUM ECON SUBJECT: HAMAS FIRMLY ENTRENCHED IN GAZA; SMUGGLING AND UNEMPLOYMENT NOW THE ECONOMIC NORMS REF: A. JERUSALEM 1840 ¶B. JERUSALEM 1849 Classified By: Consul General Jake Walles, for reasons 1.4 (b) and (d) ¶1. (C) Summary. Gaza-based Fatah and independent contacts report that Hamas is well- entrenched and controls nearly every aspect of political and economic life in the Gaza Strip. They comment that Israeli-imposed closures have hurt Gazans generally but benefited Hamas, which is increasing its employment rolls, revenue collection, and monopoly on political life. Hamas regularly jails remaining Fatah leaders and imposes restrictions on PLO and non-Hamas organizations. End summary. Independent PLO Leader: Hamas Allows Supporters to Create Disorder, But Crushes Opposition -------------- ¶2. (C) Independent, Gaza-based PLO Executive Committee (ExComm) member Riyad al-Khudari (strictly protect) told PolOff by phone October 15 that Hamas cracks down brutally on anti-Hamas demonstrations while encouraging hooliganism among its supporters. He said Hamas police stood by while armed Hamas youths ransacked offices at al-Azhar University in Gaza City on October 14, beating three students and causing extensive damage. In contrast, he noted that Hamas security forces routinely harasses Fatah- and independent-aligned academic and civil society groups. He said Hamas does not harass him and returned his ID card (confiscated when he attempted to attend an ExComm meeting in Ramallah in August), but forbids him from traveling to Ramallah, preventing his participation in PLO meetings. ¶3. (C) Gaza Governor Muhammad al-Qidwa (appointed by President Abbas as his representative for Gaza City) told PolOff September 6 that Hamas authorities have jailed dozens of Fatah leaders without charges in the past four months, including him. Al-Qidwa was arrested on August 1 without explanation and released on September 28, similarly without explanation except a warning "to cease involvement in illegal activities." Palestinian press quote senior Hamas spokesmen explaining these arrests as a response to "continued political detention of Hamas leaders in the West Bank." Hamas Controls Smuggling Tunnels, Fuel Shipments, Not Pressed Financially -------------- ¶4. (C) Al-Khudari and independent PLC member Rawiya al-Shawwa told PolOff October 15 that Hamas has also firmed up its nearly exclusive management of imports into the Gaza Strip (and associated revenue collection mechanisms), controlling everything from goods smuggled through tunnels from Sinai to fuel from Israel shipped via Nahal Oz terminal. Al-Khudari said foodstuffs and basic household goods are widely available in Gaza ("no one is starving, but everyone is suffering"),but unemployment is the norm for Gazan men unless they work for Hamas. Al-Shawwa said closures have reinforced Hamas' economic control, as businesses that formerly ran Gaza's import channels have been moved aside or co-opted by Hamas. ¶5. (C) Al-Khudari said Hamas is increasing its employment rolls and never misses salary payments to its civil and security employees. He said closures of Rafah do not punish Hamas, whose leaders travel freely to Egypt and elsewhere, while ordinary people are trapped in Gaza, where municipal services are at abysmal levels and the economic outlook is bleak. WALLES