Identifier
Created
Classification
Origin
08JERUSALEM2084
2008-11-20 15:36:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
FAYYAD RAISES CONCERNS ABOUT CORRESPONDENT BANKING
how-toVZCZCXRO5858 OO RUEHROV DE RUEHJM #2084 3251536 ZNY CCCCC ZZH O 201536Z NOV 08 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC IMMEDIATE 3301 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY
C O N F I D E N T I A L JERUSALEM 002084
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR GOLDBERGER/LENTZ; NSC FOR
PASCUAL; TREASURY FOR AHERN/HAJJAR
E.O. 12958: DECL: 11/19/2018
TAGS: ECON EFIN KTFN KWBG PREL IS
SUBJECT: FAYYAD RAISES CONCERNS ABOUT CORRESPONDENT BANKING
SERVICES
REF: STATE 122043
Classified By: Consul General Jake Walles, for reasons 1.4(b) and (d)
C O N F I D E N T I A L JERUSALEM 002084
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR GOLDBERGER/LENTZ; NSC FOR
PASCUAL; TREASURY FOR AHERN/HAJJAR
E.O. 12958: DECL: 11/19/2018
TAGS: ECON EFIN KTFN KWBG PREL IS
SUBJECT: FAYYAD RAISES CONCERNS ABOUT CORRESPONDENT BANKING
SERVICES
REF: STATE 122043
Classified By: Consul General Jake Walles, for reasons 1.4(b) and (d)
1. (C) Palestinian Authority (PA) Prime Minister Salam
Fayyad told the Consul General on November 19 that he is
concerned about the apparent decision of Israeli commercial
banks to terminate correspondent banking services for
Palestinian banks (reftel). Fayyad predicted the cut-off
will have three major and immediate effects. First, he said,
it will significantly hinder trade between Israel and the
Palestinian Territories, with a resulting negative effect on
Israeli business and manufacturing sectors, as the current
trade balance benefits Israel. Second, Fayyad said, the PA
economy will begin to move away from the shekel and towards
the dollar. Third, he noted that informal transactions
through East Jerusalem moneychangers would increase, with
unpredictable implications for anti-terrorism finance efforts.
2. (C) In a subsequent conversation, Fayyad informed the
Consul General that he had expressed his concern directly to
Stanley Fisher, Chairman of the Bank of Israel (BOI),on
November 20. According to Fayyad, Fischer was not aware of
the details of the change in the banks' policies, but
indicated he is concerned and will look into the matter.
Fayyad requested USG involvement on the issue, and suggested
we might look for ways to enlist the support of Israeli
manufacturers, who have much to lose if cut off from
Palestinian markets. The Consul General noted that Embassy
Tel Aviv will raise the banking issue directly with Fischer.
WALLES
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR GOLDBERGER/LENTZ; NSC FOR
PASCUAL; TREASURY FOR AHERN/HAJJAR
E.O. 12958: DECL: 11/19/2018
TAGS: ECON EFIN KTFN KWBG PREL IS
SUBJECT: FAYYAD RAISES CONCERNS ABOUT CORRESPONDENT BANKING
SERVICES
REF: STATE 122043
Classified By: Consul General Jake Walles, for reasons 1.4(b) and (d)
1. (C) Palestinian Authority (PA) Prime Minister Salam
Fayyad told the Consul General on November 19 that he is
concerned about the apparent decision of Israeli commercial
banks to terminate correspondent banking services for
Palestinian banks (reftel). Fayyad predicted the cut-off
will have three major and immediate effects. First, he said,
it will significantly hinder trade between Israel and the
Palestinian Territories, with a resulting negative effect on
Israeli business and manufacturing sectors, as the current
trade balance benefits Israel. Second, Fayyad said, the PA
economy will begin to move away from the shekel and towards
the dollar. Third, he noted that informal transactions
through East Jerusalem moneychangers would increase, with
unpredictable implications for anti-terrorism finance efforts.
2. (C) In a subsequent conversation, Fayyad informed the
Consul General that he had expressed his concern directly to
Stanley Fisher, Chairman of the Bank of Israel (BOI),on
November 20. According to Fayyad, Fischer was not aware of
the details of the change in the banks' policies, but
indicated he is concerned and will look into the matter.
Fayyad requested USG involvement on the issue, and suggested
we might look for ways to enlist the support of Israeli
manufacturers, who have much to lose if cut off from
Palestinian markets. The Consul General noted that Embassy
Tel Aviv will raise the banking issue directly with Fischer.
WALLES