Identifier
Created
Classification
Origin
09JERUSALEM1094
2009-06-29 12:37:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
CONSUL GENERAL VISITS QALQILIYA; EXPRESSES SUPPORT
how-toVZCZCXRO1413 PP RUEHROV DE RUEHJM #1094/01 1801237 ZNY CCCCC ZZH P 291237Z JUN 09 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC PRIORITY 5266 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEKJCS/JOINT STAFF WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 001094
SIPDIS
NEA FOR NEA/IPA AND NEA/PPD; JOINT STAFF FOR LTGEN SELVA;
PLEASE PASS TO USAID FOR ANE/MEA:SBORODIN; NSC FOR
SHAPIRO/KUMAR
E.O. 12958: DECL: 06/29/2019
TAGS: ECON PGOV KPAO ETRD KWBG EAID IS
SUBJECT: CONSUL GENERAL VISITS QALQILIYA; EXPRESSES SUPPORT
FOR PA AND LOCAL BUSINESSES
REF: JERUSALEM 1079
Classified By: Consul General Jake Walles, per reasons 1.4 (b) and (d)
C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 001094
SIPDIS
NEA FOR NEA/IPA AND NEA/PPD; JOINT STAFF FOR LTGEN SELVA;
PLEASE PASS TO USAID FOR ANE/MEA:SBORODIN; NSC FOR
SHAPIRO/KUMAR
E.O. 12958: DECL: 06/29/2019
TAGS: ECON PGOV KPAO ETRD KWBG EAID IS
SUBJECT: CONSUL GENERAL VISITS QALQILIYA; EXPRESSES SUPPORT
FOR PA AND LOCAL BUSINESSES
REF: JERUSALEM 1079
Classified By: Consul General Jake Walles, per reasons 1.4 (b) and (d)
1. (SBU) Summary. The Consul General visited Qalqiliya on
June 24, toured a local factory, met the Governor and local
business leaders, and emphasized USG support for PA efforts
to restore stability and promote private sector growth.
Qalqiliya residents emphasized that the city's primary
sources of revenue - agriculture, trade with Israel, and
employment over the Green Line - have been diminished by
movement and access restrictions and the separation barrier,
but noted recent improvements in access from the city to
other parts of the West Bank. End Summary.
Qalqiliya Economy Still Hobbled by Israeli Restrictions
-------------- --------------
2. (SBU) The Consul General traveled to Qalqiliya on June 24
to express support for PA efforts to improve basic government
services, restore stability and the rule of law, and promote
private sector economic development. Accompanied by USAID
and Commercial Service officers, the Consul General met
Governor Rafih al-Khandaqji and business leaders, and toured
a local textile factory. The Consul General's visit and
comments were widely covered in Palestinian media, as the
first visit to Qalqiliya by a U.S. Consul General in over
five years.
3. (SBU) The Governor noted that Qalqiliya is almost
completely surrounded by the barrier wall, and five of the
governorate's six main villages are cut off from the city
center by checkpoints or roadblocks. Qalqiliya business
leaders said that the barrier has decimated the city's three
main sources of revenue: agriculture, trade with Israel, and
employment over the Green Line. Residents said that access
to/from the city and the West Bank has been somewhat eased in
recent weeks (reftel),but noted that their traditional
economic routes all go west.
Trade Depends on Settlements
--------------
4. (SBU) Qalqiliya business leaders stressed that the barrier
has made trade with Israel significantly more costly and time
consuming. Qalqiliya's nearest commercial checkpoint is in
Tulkarem, 25 kilometers to the north, and serves as the main
crossing for three other Palestinian governorates. Qalqiliya
business leaders told the Consul General that traders (who
can afford to) have little choice but to establish "branches"
in settlements in order to facilitate easier and faster
trade.
5. (SBU) During a tour of a textile factory, owner Fatima
al-Jada explained that, after purchasing the yarn, tags (that
say "Made in Israel" in Hebrew),and other raw materials from
Israel, she creates the final product for export to Europe,
the United States, and back to Israel. She told the Consul
General that she uses a "packing house" in nearby Emmanuel
settlement and exports her products outside the West Bank via
yellow-plated trucks. She noted that she was taxed by both
the PA and the GOI for having business addresses both in the
West Bank and an Israeli settlement, but that "it's worth
it." She said that she could set up a relationship with an
Israeli middleman inside in Green Line Israel, but that they
would have trouble getting her goods out of Qalqiliya.
Al-Jada said that she received NIS 4 (USD 1) for a dress that
retails at NIS 129 (USD 30) in Israel.
Ongoing Restrictions on Arab-Israelis Visiting Qalqiliya
-------------- --------------
6. (SBU) Palestinian business leaders also reported that
Arab-Israelis may enter the city, but are generally not
permitted to return to Israel with purchases. One
businessman told EconOff that there have been several recent
incidents of Arab-Israelis being fined when leaving Qalqiliya
under the auspices of the GOI's prohibition of Israelis
entering Area A, although they were allowed to enter the city
freely.
Comment
--------------
7. (C) The Qalqiliya area presents a grim picture of a city
JERUSALEM 00001094 002 OF 002
surrounded by the security barrier and a governorate
dominated by settlements and the associated military
presence. The few economic opportunities that remain consist
of subcontracting for Israeli firms, with a large part of the
profits accruing to Israeli middlemen and settlers. The
overall picture illustrates the negative impact of existing
settlements on Palestinian life and the prospect of a viable
Palestinian state in the future.
WALLES
SIPDIS
NEA FOR NEA/IPA AND NEA/PPD; JOINT STAFF FOR LTGEN SELVA;
PLEASE PASS TO USAID FOR ANE/MEA:SBORODIN; NSC FOR
SHAPIRO/KUMAR
E.O. 12958: DECL: 06/29/2019
TAGS: ECON PGOV KPAO ETRD KWBG EAID IS
SUBJECT: CONSUL GENERAL VISITS QALQILIYA; EXPRESSES SUPPORT
FOR PA AND LOCAL BUSINESSES
REF: JERUSALEM 1079
Classified By: Consul General Jake Walles, per reasons 1.4 (b) and (d)
1. (SBU) Summary. The Consul General visited Qalqiliya on
June 24, toured a local factory, met the Governor and local
business leaders, and emphasized USG support for PA efforts
to restore stability and promote private sector growth.
Qalqiliya residents emphasized that the city's primary
sources of revenue - agriculture, trade with Israel, and
employment over the Green Line - have been diminished by
movement and access restrictions and the separation barrier,
but noted recent improvements in access from the city to
other parts of the West Bank. End Summary.
Qalqiliya Economy Still Hobbled by Israeli Restrictions
-------------- --------------
2. (SBU) The Consul General traveled to Qalqiliya on June 24
to express support for PA efforts to improve basic government
services, restore stability and the rule of law, and promote
private sector economic development. Accompanied by USAID
and Commercial Service officers, the Consul General met
Governor Rafih al-Khandaqji and business leaders, and toured
a local textile factory. The Consul General's visit and
comments were widely covered in Palestinian media, as the
first visit to Qalqiliya by a U.S. Consul General in over
five years.
3. (SBU) The Governor noted that Qalqiliya is almost
completely surrounded by the barrier wall, and five of the
governorate's six main villages are cut off from the city
center by checkpoints or roadblocks. Qalqiliya business
leaders said that the barrier has decimated the city's three
main sources of revenue: agriculture, trade with Israel, and
employment over the Green Line. Residents said that access
to/from the city and the West Bank has been somewhat eased in
recent weeks (reftel),but noted that their traditional
economic routes all go west.
Trade Depends on Settlements
--------------
4. (SBU) Qalqiliya business leaders stressed that the barrier
has made trade with Israel significantly more costly and time
consuming. Qalqiliya's nearest commercial checkpoint is in
Tulkarem, 25 kilometers to the north, and serves as the main
crossing for three other Palestinian governorates. Qalqiliya
business leaders told the Consul General that traders (who
can afford to) have little choice but to establish "branches"
in settlements in order to facilitate easier and faster
trade.
5. (SBU) During a tour of a textile factory, owner Fatima
al-Jada explained that, after purchasing the yarn, tags (that
say "Made in Israel" in Hebrew),and other raw materials from
Israel, she creates the final product for export to Europe,
the United States, and back to Israel. She told the Consul
General that she uses a "packing house" in nearby Emmanuel
settlement and exports her products outside the West Bank via
yellow-plated trucks. She noted that she was taxed by both
the PA and the GOI for having business addresses both in the
West Bank and an Israeli settlement, but that "it's worth
it." She said that she could set up a relationship with an
Israeli middleman inside in Green Line Israel, but that they
would have trouble getting her goods out of Qalqiliya.
Al-Jada said that she received NIS 4 (USD 1) for a dress that
retails at NIS 129 (USD 30) in Israel.
Ongoing Restrictions on Arab-Israelis Visiting Qalqiliya
-------------- --------------
6. (SBU) Palestinian business leaders also reported that
Arab-Israelis may enter the city, but are generally not
permitted to return to Israel with purchases. One
businessman told EconOff that there have been several recent
incidents of Arab-Israelis being fined when leaving Qalqiliya
under the auspices of the GOI's prohibition of Israelis
entering Area A, although they were allowed to enter the city
freely.
Comment
--------------
7. (C) The Qalqiliya area presents a grim picture of a city
JERUSALEM 00001094 002 OF 002
surrounded by the security barrier and a governorate
dominated by settlements and the associated military
presence. The few economic opportunities that remain consist
of subcontracting for Israeli firms, with a large part of the
profits accruing to Israeli middlemen and settlers. The
overall picture illustrates the negative impact of existing
settlements on Palestinian life and the prospect of a viable
Palestinian state in the future.
WALLES