Identifier
Created
Classification
Origin
08JERUSALEM2202
2008-12-05 16:05:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:  

FAYYAD TO CODEL WEXLER: CONDITIONS IMPROVED IN THE

Tags:  KWBG PGOV PREL PTER PHUM ECON IS OREP 
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VZCZCXRO9823
OO RUEHROV
DE RUEHJM #2202 3401605
ZNY CCCCC ZZH
O 051605Z DEC 08 ZDK
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3462
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
C O N F I D E N T I A L JERUSALEM 002202 

SIPDIS

NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR
ABRAMS/RAMCHAND/PASCUAL; TREASURY FOR AHERN
PLEASE PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN

E.O. 12958: DECL: 12/04/2013
TAGS: KWBG PGOV PREL PTER PHUM ECON IS OREP
SUBJECT: FAYYAD TO CODEL WEXLER: CONDITIONS IMPROVED IN THE
WEST BANK, BUT ISRAELI PRACTICES HINDER FURTHER PROGRESS

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

C O N F I D E N T I A L JERUSALEM 002202

SIPDIS

NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR
ABRAMS/RAMCHAND/PASCUAL; TREASURY FOR AHERN
PLEASE PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN

E.O. 12958: DECL: 12/04/2013
TAGS: KWBG PGOV PREL PTER PHUM ECON IS OREP
SUBJECT: FAYYAD TO CODEL WEXLER: CONDITIONS IMPROVED IN THE
WEST BANK, BUT ISRAELI PRACTICES HINDER FURTHER PROGRESS

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


1. (C) Summary: PA Prime Minister Salam Fayyad thanked
Representative Wexler for Congress' continued support for
Palestinian assistance programs. He said that the economic
situation in the West Bank is better than one year ago due to
improved security and unprecedented levels of donor support.
He noted, however, that GOI practices in the West Bank,
including IDF incursions and continued restrictions on
movement, have not allowed the PA to achieve "breakthroughs"
on security or economic issues. Fayyad underscored that
continued settlement activity diminishes the prospects for a
two-state solution. He claimed that Palestinian support for
Hamas has weakened -- most notably following Hamas' refusal
to allow thousands of Gazans to travel for the Haj. End
summary.

Fayyad: Time for Israel to change its approach
-------------- -


2. (C) On December 3, PM Fayyad told Representative Robert
Wexler (D-FL) and the Consul General that Congressional
support for budget assistance to the PA and other US
assistance programs had allowed his government to pay back
salaries and embark on significant financial reforms. Fayyad
claimed that West Bank unemployment has fallen under his
government, and that revenues are increasing due to an
aggressive security effort and high levels of external
assistance. However, Fayyad complained that economic and
security progress in the West Bank remains capped by GOI
practices, including incursions and continued restrictions on
access and movement. Fayyad said "the time is now" for the
GOI to change its security posture in the West Bank. The GOI
needs to support the PA's security efforts in the West Bank,
as PASF have the will and capacity to maintain law and order,
he said. He stressed the recent success of PA security
operations in Jenin, Nablus, and Hebron.


3. (C) Fayyad stressed the importance of addressing the GOI's
continued expansion of settlements following Annapolis and
the "fierce and frequent" attacks by settlers on Palestinians
in the West Bank. He said it is important that the new US.
Administration act immediately to further Israeli and
Palestinian implementation of each side's Roadmap
obligations. He said that continued settlement activity
"flies in the face of the possibility of a two state
solution."

Economic growth linked to political progress
--------------


4. (C) Representative Wexler asked Fayyad about press reports
that attributed an "economic peace plan" to Likud leader
Binyamin Natanyahu. Fayyad described the idea of pursuing
economic initiatives in the absence of permanent status
discussions as "superficial and short-sighted." Fayyad said
that any refusal to discuss permanent status issues with the
PA would be a mistake, as economic issues in the West Bank
and Gaza are inextricably intertwined with politics.

Fatah-Hamas dialogue undermines Hamas
--------------


5. (C) Fayyad told Wexler that Fatah-Hamas reconciliation
efforts highlight Hamas's unwillingness to compromise and
inability to be constructive. Fayyad told Wexler that
Hamas's political base in the West Bank is undermined by
economic progress, particularly when compared to the economic
disaster in Gaza. In addition, Hamas' decision to prevent
thousands of Haj pilgrims from departing Gaza has deeply
damaged the group's political standing, according to Fayyad.


6. (U) CODEL Wexler was not able to review this cable prior
to its departure.
WALLES