Identifier
Created
Classification
Origin
08TELAVIV900
2008-04-18 07:20:00
CONFIDENTIAL
Embassy Tel Aviv
Cable title:  

GENERAL JONES' MEETING WITH SHIMON PERES

Tags:  PREL ECON KPAL IS JO TU GE JA 
pdf how-to read a cable
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C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 000900 

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/17/2018
TAGS: PREL ECON KPAL IS JO TU GE JA
SUBJECT: GENERAL JONES' MEETING WITH SHIMON PERES

REF: TEL AVIV 467

Classified By: DCM Luis G. Moreno, Reason 1.4 (b) (d)

C O N F I D E N T I A L SECTION 01 OF 03 TEL AVIV 000900

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/17/2018
TAGS: PREL ECON KPAL IS JO TU GE JA
SUBJECT: GENERAL JONES' MEETING WITH SHIMON PERES

REF: TEL AVIV 467

Classified By: DCM Luis G. Moreno, Reason 1.4 (b) (d)


1. (C) Summary. Special Envoy for Middle East Regional
Security (SEMERS) General James Jones met with President
Shimon Peres April 13. General Jones briefed Peres on his
mission, including the Jenin project that is being
coordinated with Tony Blair. Peres said he was skeptical
that a political agreement could be reached with the
Palestinian Authority this year, and therefore he suggested
the U.S., Israel, the PA, and the international community
redouble their efforts to promote economic development in the
West Bank. Part of this effort should involve a larger role
for Jordan, which Peres said can cooperate economically
without appearing to betray the Palestinians. Peres reviewed
his idea of transforming the Jordan Valley through an
ambitious Peace Valley project, including a Red Sea to Dead
Sea canal, water desalination, tourism, and infrastructure
development projects, for which he said King Abdullah,
President Abbas, and Prime Minister Olmert were all on board.
Peres also called for expedited implementation of plans for
the three Blair-backed, foreign-financed industrial parks in
the West Bank. Peres commented that there was still time to
have a signing ceremony for the three parks during President
Bush's visit in mid-May. Peres called for designating a
project manager who would work with Defense Minister Barak
and PA Prime Minister Fayyad to finalize the agreements on
the industrial parks according to a strict timetable.
General Jones said he agreed that stimulating the West Bank's
economy was the best way to defeat Hamas, adding that we have
reached a strategic moment and must give Palestinians hope
for a better future. Peres called for closer trilateral
security cooperation among Israel, the PA and Jordan. He
dismissed the idea of an international security presence in
the Jordan Valley, saying that none of the three parties
would accept it. Peres called oil "our greatest enemy" since
it both pollutes the environment and finances terrorism.

Calling for greater reliance on solar energy, Peres said,
"the sun is more reliable than the Saudis." General Jones
noted his work with the U.S. Chamber of Commerce on energy
independence, adding that the U.S. now spends $400 billion a
year on Persian Gulf oil. Peres said he was ready to help
General Jones in any way possible. End Summary.


2. (C) The Special Middle East Envoy for Regional Security,
retired General James Jones, accompanied by SEMERS staff
members John Raidt, Mike Durkee, Lt. Col. Kevin Schmiegel and
Pol Couns, called on President Shimon Peres April 13. Peres
was joined by his military aide BG Shimon Hefetz, policy
adviser Orry Ben Porath, adviser BG (res) Baruch Spiegel, and
MOD West Bank coordinator BG (res) Udi Dekel. They discussed
General Jones' mission and the Jenin project, Peres'
brainchild known as the Peace Valley project, the status of
the Tony Blair-sponsored industrial parks in the West Bank,
and Peres' view of the key role of Jordan in stabilizing the
West Bank.

General Jones' Mission
--------------


3. (C) General Jones began by explaining the SEMERS mission,
noting that Secretary Rice had asked him last November to
prepare an assessment of the security capabilities of a
Palestinian state, taking into consideration the equities of
Israel, Jordan, and Egypt. in the course of his work,
General Jones said it became clear that security issues could
not be separated from economic factors. He and Quartet Envoy
Tony Blair had decided to develop a series of integrated
projects in the West Bank that would build trust and
confidence. The first such project would focus on the Jenin
area, and would capitalize on the security training of PASF
in Jordan. This also provided an opportunity to bring
together various elements of the USG, including USAID, into a
coordinated effort which, if successful, could be duplicated
in other areas of the West Bank.

No Political Deal, Emphasize Economics
--------------


4. (C) Peres said he appreciated General Jones' efforts.
The Israeli-Palestinian negotiations face a short timeline
since the U.S. presidential elections and the transition to a
new Administration will mean a long delay. We should
therefore do everything we can to achieve tangible results by
the fall. Peres noted that the situation in Gaza could flare
up at any time, which would have a negative effect on the
negotiations and the position of President Abbas. Even if
Israel and the PA reach an agreement by the fall, not only

TEL AVIV 00000900 002 OF 003


will they not be able to implement it, they probably will not
be able to sign it since the leaders on both sides have to
consider the reaction of their public opinion. Peres opined
that the Palestinians' problem was that they failed to build
a nation. During the Oslo process, Israel recognized the
Palestinians as a nation but the Palestinians are deeply
divided between Hamas and Fatah. Iran is trying to establish
a religious empire in the Middle East and has established
bases in Lebanon, Syria and now Gaza. Given this situation,
there was little Israel could do. Since it could no longer
govern the Palestinians, the Palestinians' weakness had also
become Israel's problem.


5. (C) Israel, the U.S. and the international community
should therefore focus on redoubling economic development
efforts in the West Bank and bring in Jordan in a more direct
fashion. This would inject dynamism into both the PA and
Jordanian economies, and should include addressing the water
needs of both. Peres commented that Hamas is also Jordan's
bitter enemy. Israel enjoys excellent security relations
with Jordan, but the Jordanians cannot align themselves
openly with Israel. Jordan could, however, cooperate
economically without appearing to betray the Palestinians.
The QIZ industrial parks in Jordan were a great success,
since they now employ 130,000 workers and produce $1.5
billion in exports. This success should be duplicated in the
West Bank.

Peace Valley Project
--------------


6. (C) Peres outlined his ideas for a Peace Valley project,
including a canal from the Red Sea to the Dead Sea, related
desalination and irrigation projects, and the development of
tourism and infrastructure. The project would help save the
Dead Sea from drying up, and had great potential for
developing tourism. Peres admitted that no government was
prepared to bear the $2.3 billion cost of the water conduit,
but developing the entire region would bring in private
financing. King Abdullah, President Abbas, and Prime
Minister Olmert were all on board in principle, but this
needed to be translated into real development. Peres
commented that Jordan was focused on the water needs of
Amman, not the Dead Sea area, while with the exception of
Prime Minister Fayyad, the Palestinian leadership was not
interested in economics. Peres said he had briefed both
President Bush and Vice President Cheney during their visits.
According to Peres, the President was so impressed that he
called King Abdullah to discuss it. Peres said he hoped an
MOU could be signed with Jordan in time for the President's
next visit.

West Bank Industrial Parks
--------------


7. (C) Peres said economic conditions were improving in the
West Bank but remained far from what could be achieved.
There could not be true peace with the Palestinians without
greater economic equality with Israel. Plans by Turkey,
Japan and Germany to finance industrial parks would help
modernize the West Bank. The Japanese project was the best
organized, but the Turkish project was also well conceived.
Peres said Israel had a strategic stake in including Turkey
in improving Palestinian living conditions since Turkey was
under political pressure as a result of its close military
and security cooperation with Israel. Peres noted that he
had urged President Bush to provide $150 million in U.S.
funding for infrastructure, including scanners.


8. (C) As he had done previously in a February meeting with
the Ambassador (reftel),Peres stressed that it was still not
too late to have agreements on the industrial parks ready in
time for President Bush's mid-May visit. He suggested the
President hold a signing ceremony involving the Japanese,
Turkish, and German ambassadors, PM Fayyad and PM Olmert.
This would help mobilize private investment in the West Bank,
since Peres observed that it was uncertain how much of the
post-Annapolis $7 billion in pledges to the PA would ever
materialize. This would also demonstrate to the people of
Gaza that working cooperatively with Israel produces tangible
results. What was needed was for the U.S. to bring Fayyad
and Defense Minister Barak to the table to finalize the
details. There was also a need for a project manager to
ensure that everything was accomplished according to a
timetable.

A Strategic Moment
--------------


TEL AVIV 00000900 003 OF 003



9. (C) General Jones said he agreed that economic
development was the key to defeating Hamas. There was
necessarily a military element in fighting terrorism, but
military means alone could not solve the problem. Noting
that he had grown up in France during the reconstruction of
Europe after World War II, Jones said that while the military
piece was important, there must be a vision of what will come
after the establishment of a Palestinian state. We are
facing a strategic moment in which it is essential to give
people on both sides hope for a better future. We are
working with Tony Blair and his team on the economic piece,
which could make a real difference if the results are
tangible.


10. (C) Peres noted that in order to make the projects work,
Palestinian workers would need to be able to move freely.
There would also need to be joint security coordination among
Israel, Jordan and the PA. General Jones asked about the
possibility of an international security presence in the
Jordan Valley. Peres said there was no need for such a
presence since none of the parties would agree to it.
Security cooperation among the three parties was a better
approach, especially since likely European troop-providing
countries would find their mandates tied up in knots by their
parliaments. Commenting on the Europeans, Peres noted that
the EU believes deeply in "soft power" without recognizing
that European soft power only works when it is backed by
American hard power. Peres cautioned against revealing the
extent of Jordanian security cooperation, noting that the
three-way cooperation should appear to be strictly economic.
Peres praised Jordan as part of a broader effort among
modern-minded Muslims to counter the tide of Islamic
extremism. Jordan's problem was that it had too many
refugees, not just Palestinians but now also Iraqis, and not
enough water or energy.

Energy Policy
--------------


11. (C) General Jones noted his work for the U.S. Chamber of
Commerce on the development of a more comprehensive U.S.
energy policy. Peres commented that oil was our greatest
enemy since it both pollutes the environment and finances
terrorism. Solar energy held great promise, he said,
quipping that "the sun is more reliable than the Saudis."
The fight against terrorism begins at the oil wells. Israel
is developing an electric car that will be on the roads in
two to three years. It is also working to combine solar
energy with nanotechnology. General Jones said the U.S. is
spending $400 billion a year for Persian Gulf oil.


12. (C) Peres said he was prepared to support General Jones'
work in any way he could, adding that he wanted to see
something tangible accomplished in time for the President's
visit. Jones thanked Peres for his support and reiterated
that he was focused in the short term on developing synergies
between security and economic development in the Jenin area.


13. (U) SEMERS staff has cleared this cable.


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