SAUDI ASSISTANCE TO LEBANON

S E C R E T RIYADH 001137 SIPDIS DEPARTMENT PLEASE PASS TO NEA CWELCH AND NEA/ARP BMCGRATH E.O. 12958: DECL: 07/22/2018 TAGS: ECON IR IS KWPA PGOV PHUM PINR PREL SA SUBJECT: SAUDI ASSISTANCE TO LEBANON REF: SECSTATE 71463 Classified By: Charge' d'Affaires Michael Gfoeller for reasons 1.4 (B) and (D) ¶1. (S) SUMMARY. The Saudi government has so far contributed over half a billion USD in 2008 to support the Palestinian Authority (PA). The SAG acknowledges the strategic importance of keeping the PA funded to prevent Hamas from gaining full control of the Palestinian territories. The Saudis, as a matter of policy, do not publicly advertise their donations to other governments or international causes. END SUMMARY. ¶2. (S) On July 21, Pol Counselor met with Saudi MFA Deputy Director for Western Affairs Department Mojahid Ali Alwahbi regarding financial support to the PA (Reftel). Post had previously submitted Reftel's points via dipnote to the MFA. In our meeting, Alwahbi presented a prepared list of financial contributions the SAG had made so far in 2008 to the PA. He emphasized the SAG wanted to make clear that they have upheld their donation pledges and have been "most generous." ¶3. (S) The specific Saudi contributions for 2008 to the PA are: - USD 21M to Jerusalem Fund - USD 94.4M to PA operating budget - USD 70M to Rafah Housing Fund - USD 250M in voluntary contributions - USD 50M "urgent need" (emergency) donation to PA operating budget - USD 30.8M additional "urgent need" (emergency) donation to PA operating budget - USD 7.2M piecemeal donations Total for 2008 - USD 523.4M ¶4. (S) Alwahbi asserted SAG support for Fatah, and strong opposition to Hamas. He characterized Hamas as being a surrogate of Iranian expansionist policy which "is up to no good," while also opining that Israeli policies are hurting the Palestinian people. Alwahbi remarked that Iran has been "relatively quiet lately," adding that Iran will not take any overly provocative actions until after the U.S. presidential election. ¶5. (S) Alwahbi added that the SAG routinely makes donations to various other governments and causes, noting most recently the SAG's support to the China earthquake relief fund. He explained it is Saudi policy to follow the Islamic code of doing charity for the needy while not seeking credit for it. ¶5. (S) COMMENT. These donations, totaling over half a billion USD by the SAG to the PA, are significant. This reflects how the Saudis do in fact expend large sums of money as both charity, and to support their, and at times our, policy goals. The Saudis avoidance of publicizing their donations stems partly from adherence to the Islamic principle that charity should be given in a humble, i.e. non-public, manner, but also for both domestic and SAG policy advancement reasons. Many Saudis are unhappy at seeing the nation's wealth expended to support foreign entities, especially as high living costs erode living standards for so many. Likewise, the SAG believes keeping a low profile gives it more leverage and influence with aid recipients. That the SAG provided us such a detailed rundown of their PA contributions for 2008 is not routine, and likely reflects their desire to make clear to us that they are being generous, and helpful with regard to our common interests in Palestine. END COMMENT. GFOELLER