GENERAL JONES' MEETING WITH SHIMON PERES

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. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES