PM FAYYAD ON SECURITY AND WEST BANK ECONOMIC ISSUES

C O N F I D E N T I A L JERUSALEM 001229 SIPDIS NEA FOR FRONT OFFICE AND NEA/IPA; NSC FOR SHAPIRO/KUMAR; JOINT STAFF FOR LTGEN SELVA E.O. 12958: DECL: 07/16/2019 TAGS: PGOV PREL PINS KWBG KPAL IS SUBJECT: PM FAYYAD ON SECURITY AND WEST BANK ECONOMIC ISSUES Classified By: Consul General Jake Walles for reasons 1.4 (b) and (d). ¶1. (C) Summary. In a July 14 meeting, PM Salam Fayyad said he is proud of gains in West Bank security but stressed again the need to end IDF incursions. He also noted an improving economy and cited the opening of a new theater in Nablus as a key development. Finally, Fayyad stressed the importance of ensuring the GOI allocate frequency for the Wataniya mobile telephone network and said he was concerned that U.S. court judgments are increasingly threatening the PA's viability. End Summary. FAYYAD STRESSES IMPORTANCE OF IDF-PASF COORDINATION -------------- -------------- ¶2. (C) In a July 14 meeting with LtGen Selva and the Consul General, PM Salam Fayyad said he is proud of gains in West Bank security. With regard to GOI-PASF coordination, Fayyad said ad hoc coordination between the IDF and the PASF could be improved. He urged that the Israelis use the existing channels and not coordinate separately with each PA security force. "All traffic should be directed through the (PA) Office of Military Coordination," he said. ¶3. (C) Fayyad said he is seeking a broader and more complete IDF suspension of operations in Area A. "We want something consistent with our capacity," he said, noting that "the Israelis themselves said after (the Qalqilya operation) that we are improving. There is no justification for (their) retaining the ability to conduct interdictions (in Area A). ¶4. (C) Fayyad said ending incursions is important to show ordinary Palestinians that occupation on the ground is ending. "I still think statehood is doable by 2011," he said, adding "I want to dissolve the PA into the new state." It is not enough to say the IDF will operate "with less frequency." He noted the difficulty of maintaining morale among PASF forces, at the same time Hamas accuses them publicly of being "subcontractors" for the GOI. Ending the occupation means these forces must feel a sense of empowerment, he explained. ¶5. (C) Fayyad encouraged the USG to lower its public profile on security assistance. "Frankly, I cared less about this issue in the beginning," he noted, adding "but now I care about...how I establish a sense of optimism (among PA forces)." While noting his gratitude for USG assistance, he said it is important for a lower U.S. profile to build morale in the PASF and give the PA the credit for its accomplishments. CINEMA IN NABLUS A TURNING POINT -------------- ¶6. (C) Fayyad said preliminary growth estimates for the West Bank would soon be revised upwards to reflect an improving economic situation. He called the opening of a new movie theater in Nablus - the first to open in the West Bank and Gaza since all closed during the first intifada - a symbol of how security and economic reforms are taking hold. While growing up in Tulkarem, Fayyad said, there were two movie theaters and two mosques. Today there are no theaters and hundreds of mosques. The opening of a theater in a conservative city in the West Bank could signal a turning point in the PA's efforts to restore confidence and promote a more tolerant civil society. ¶7. (C) Fayyad stressed the need for the GOI to allocate the frequency for the mobile telephone operator, Wataniya. Wataniya's launch will generate much-needed revenue for the PA and demonstrate that large-scale foreign investment is possible and profitable in the West Bank, he said. He also expressed concern that recent U.S. court decisions threatened the PA's viability "The circle is tightening on us," he said, and asked the USG to intervene. WALLES