ISRAEL ON PA BID FOR WTO OBSERVER STATUS

UNCLAS GENEVA 000898 SENSITIVE BUT UNCLASSIFIED SIPDIS DEPT PASS USTR TEL AVIV FOR AMB, DCM, AND ECON USTR FOR CKLEIN, AVENKATARAMAN,SFRANCESKI, MMOWREY E.O. 12958: N/A TAGS: ETRD WTRO ECON PREL KWBG IS SUBJECT: ISRAEL ON PA BID FOR WTO OBSERVER STATUS Reftels: (a) Jerusalem 1607 (B) Secstate 99831 (c) Geneva00783 (d) Tel Aviv 02166 (e) Geneva 00839 1.(SBU) The Israeli's local Trade Ministry rep approached the Charge today to ask our understanding of what the trade off might be between granting the PA observer status at the WTO Ministerial and the PA not pressing on GC observer status. In particular, he wanted to know whether we thought this could be used to make the issue go away for an extended time or whether we were thinking the best we could do would be to make it go away for the November 17 General Council meeting. He said that the issue has risen to the cabinet level and that some felt that buying peace for the November meeting was not enough. Charge promised to check with Washington on what they thought was possible. ¶2. (SBU) We only have a short time to bring this issue to closure. The agenda for the November General Council closes COB November 5 so by that time a decision will have to be taken on whether to place General Council Observer status, Ministerial Conference Observer status or neither on the agenda. According to our Israeli colleague, GC Chair Matus plans to call a meeting on Friday to kick off consultations, though we have not heard from Matus yet. Things could get heated quickly. ¶3. (SBU) Please advise what we can tell the Israelis here as to our expectations. SHARK